U.S. Flag interpretations on the ISM Code issued by USCG

The United States Coast Guard has revised a work instruction (WI) regarding the U.S. Flag interpretations on the ISM Code.

The revision was published on 13 November 2023.

This instruction provides guidance on the U.S. Flag Administration’s interpretations on the application and implementation of the ISM Code.

Where no additional instructions or interpretations are provided, the ISM Code should be applied as written.

ISM Code and Associated References

The 2018 edition of the ISM Code is the most recent version, incorporating amendments effective until January 1, 2015. This instruction aligns with the mentioned edition and should be interpreted in line with ISM Code paragraph 1.2.3.2. It is crucial to consider the latest version of referenced guidance, acknowledging potential revisions or supersessions of previous editions.
Recognized Organizations (ROs) affiliated with the International Association of Classification Societies (IACS) are advised to diligently apply IACS Procedural Requirements, following the IACS Quality Management System Requirements (IACS QMSR). Furthermore, ROs should aptly apply the relevant provisions of IACS Recommendations as deemed suitable and applicable.

Implementation

The ISM Code is legally implemented in U.S. law through 46 U.S.C. § 3201-3205 and 33 CFR part 96.

U.S. flag vessels subject to the ISM Code include those with over 12 passengers, various cargo vessels, and those enrolled in the Alternate Compliance Program.

Exemptions encompass public vessels, barges, non-commercial recreational and fishing vessels, and those operating on the Great Lakes.

Companies and vessels not subject to the ISM Code may voluntarily comply through a Statement of Voluntary Compliance (SOVC).

The Coast Guard delegates ISM verification to Recognized Organizations (ROs) and oversees compliance through various measures, including Key Performance Indicators (KPIs) and occasional audits.

In case of non-conformities, the Coast Guard may collaborate with ROs under IACS PR-17 and holds exclusive authority to suspend or revoke ISM Certificates for U.S. flag vessels and companies.

National Guidance as it relates to the ISM Code

In the context of the ISM Code, the national guidance emphasizes the implementation of safety management systems on U.S. flag vessels.

It details specific chapters covering company responsibilities, safety culture, crew management, and emergency preparedness, ensuring alignment with U.S. laws and regulations.

Instructions to the RO on SMS Audits and Verifications

ROs conducting SMS audits for ISM Code compliance must reference IACS PR 9 and ensure the lead auditor reviews relevant SMS documentation.

Advanced notification to the Coast Guard is mandatory, with a 14-day notice for Company DOC audits and a 7-day notice for SMC audits.

The Coast Guard may initiate a "Quality Case" against an RO for unsatisfactory performance, and occasional oversight of SMS audits serves a dual purpose: overseeing the RO and the audited company or vessel.

During audits, ROs must verify compliance with 46 U.S.C. § 10104, sampling policies and procedures, and report non-conformities to the Coast Guard.

Addressing Major Non-Conformities, Non-Conformities, and Observations

ROs issue major non-conformities, non-conformities, and observations based on severity, promptly notifying the Coast Guard of major non-conformities.

Companies must address non-conformities and observations within 3 months, with major non-conformities subject to downgrading procedures.

Risk assessment deficiencies result in observations, while non-conformities are issued for lacking contingency plans for identified risks.

Withdrawal of Certificates

The Commandant (CG-CVC) has exclusive authority to revoke the Document of Compliance (DOC) for U.S. companies, and revocation may occur for various reasons, such as failure to address major non-conformities or obstruction of audits.

The cognizant Officer in Charge, Marine Inspection (OCMI), can revoke the Safety Management Certificate (SMC) for U.S. flag vessels, with the Coast Guard revoking the SMC if the holder knowingly or repeatedly fails to comply with regulations.

Revocation of the DOC may lead to a reevaluation of other DOCs held by the same company, and the revocation of an SMC alone doesn't prohibit a vessel from domestic trade, except for specific cases.

Appeals

Appeals can be made by individuals for decisions issued by an authorized organization under 33 CFR § 96.495 or by a Coast Guard Officer in Charge, Marine Inspection (OCMI) under 46 CFR § 1.03.

For more information, please see the document below (available only to subscribers):