TTM03820 - Qualifying companies and ships: commercial management

Commercial management of a ship

This concept is undefined. But it is likely to include a range of ship and technical management activities carried out in the UK over a broad spectrum which includes the following (and where it can be demonstrated that these activities contribute substantially to economic activity and employment within the EU):

• route planning
• bookings for cargo or passengers
• arranging insurance
• arranging finance
• personnel management
• direction of foreign establishments
• provisioning and victualling
• arranging training
• arranging repair and maintenance of vessels
• ship superintending
• bunker management
• safety management
• recruiting and managing crew
• support facilities (e.g. training centre, terminal management)
• ship registration/flagging
• classification society
• dry and wet docking management.

The test, as discussed at TTM03800, has to be interpreted purposively according to Commission guidelines and it is not possible to lay down clear rules on the extent and nature of the above criteria which must be included, but TTM03830 gives some pointers. Greater weight will be given to higher levels of decision-making and management, in contrast to routine daily management. Companies will need to review their activities in the light of the guidelines and these TTM paragraphs. In the event of a successful challenge by the Commission on grounds of unlawful State aid HMRC would be obliged to recover the aid in full and with compound interest. See Commission v Germany, Case C-70/72, ‘Kohlegesetz’ [1973] ECR 813 at [13]; and, as regards interest, Commission decision No 195/04/COL.

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