ISM Code Implementation - Phase II

Certain freight vessels and self-propelled mobile offshore drilling units (MODUs) to which the ISM Code does not currently apply will come within its ambit on 1 July 2002. The U.S. Coast Guard will require, commencing January 15, 2002, that such vessels include in their advance notice of arrival to the United States a statement regarding their status under the ISM Code. At the same time, the Coast Guard will commence a pre-enforcement campaign to verify ISM Code compliance and issue letters to such vessels reminding them of the impending deadline. Since compliance cannot be achieved overnight, vessels and their owner/operators are encouraged to commence the ISM Code certification process as soon as possible (if they have not yet done so), in order to be in compliance by 1 July. As of that date, vessels not in compliance with the ISM Code will be denied entry into the U.S.