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Coastal Shipping Law (Permit for a Foreign Vessel), 5766-2005

חוק ספנות חופית (היתר לכלי שיט זר), תשס"ו-2005

Published: 2005-11-22Consolidated Hebrew text as of 2026-08-03 · Last amended 2026-07-28✓ Amendment status checked against the Knesset legislation record on 2026-09-17
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

This English text was translated from the official Hebrew using a range of translation tools, and it undergoes ongoing checks and updates. It is not a certified translation.

Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.

The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

This translation is provided for informational purposes only and does not constitute legal advice. For use in legal proceedings, request a certified Expert Legal Opinion.

Definitions§

1.

In this Law –

"crew member" – a person fulfilling a function on a vessel that is required for the operation of the vessel during navigation, excluding a pilot;

"permit holder" – a person who has received a coastal shipping permit under this Law;

"owner of a foreign vessel" – the registered owner of a foreign vessel under the law of the state in which it is registered, and also a person who holds control over the foreign vessel and over its crew members;

"trailer" – a non-motorised vehicle designed by its structure to be towed behind a motorised vehicle, which is used or intended to be used for the carriage of containers or goods;

"the maritime zone" – the waters above the sub-aquatic areas included within the territory of the State of Israel under the Sub-Aquatic Areas Law, 5713-1953;

"coastal shipping permit" – a permit granted in accordance with the provisions of this Law;

"the Director" – as defined in the Shipping and Ports Authority Law, 5764-2004, or a person authorised by him for the purposes of this Law, in whole or in part;

"Shipping Law (Vessels)" – the Shipping Law (Vessels), 5720-1960;

"Companies Law" – the Companies Law, 5759-1999;

"Penal Law" – the Penal Law, 5737-1977;

"vessel" – as defined in the Shipping Law (Vessels), excluding a military vessel and a vessel serving in auxiliary functions to a military vessel;

"Israeli vessel" – as defined in the Shipping Law (Vessels);

"foreign vessel" – a vessel that is not an Israeli vessel;

"port manager", "port" – as defined in the Ports Ordinance;

"inspector" – a person appointed by the Minister as an inspector under the provisions of section 10;

"place of origin", in relation to the carriage of goods or passengers – the place at which the goods were loaded or the passengers embarked on a vessel;

"place of destination", in relation to the carriage of goods or passengers – the place at which the goods were unloaded or the passengers disembarked from a vessel;

"coastal shipping" – commercial activity as detailed below, carried out by means of a vessel:

(1)carriage of goods or passengers whose place of origin and place of destination are a port, vessel, installation or other structure situated in the coastal waters or internal waters of Israel, or in the maritime zone, all without calling at a port outside Israel, and excluding the carriage of empty containers or empty trailers used by the vessel owner for the carriage of goods;
(2)other activity carried out in the coastal waters or internal waters of Israel, or in the maritime zone, excluding fishing, extraction and drilling of oil or natural gas and the laying of pipelines for the conveyance of oil or natural gas on the seabed or in the sub-seabed, and in respect of activity carried out in the maritime zone – also excluding the laying of cables or pipelines on the seabed or in the sub-seabed;

"Ports Ordinance" – the Ports Ordinance [New Version], 5731-1971;

"master" – a crew member who holds command over a vessel;

"the Minister" – the Minister of Transport.

Coastal Shipping Permit§

2.
(a)A person shall not carry out coastal shipping by means of a foreign vessel, whether personally or through another, unless that person holds a written permit from the Director, granted to the owner of the foreign vessel in respect of that vessel for its operation in coastal shipping and in accordance with the conditions of the permit.
(b)A coastal shipping permit shall be granted in respect of a foreign vessel for its operation in one type of coastal shipping activity or in several types of such activity, all as the Director shall determine in the permit.
(c)The Director may prescribe in a coastal shipping permit conditions that the permit holder must fulfil during the period of its validity.
(d)The Director shall prescribe in a coastal shipping permit the period of its validity, provided that no permit shall be granted in respect of a foreign vessel for a period exceeding 30 days, unless one of the following set out in paragraphs (1) or (2) below has been fulfilled, as the case may be:
(1)in respect of an owner of a foreign vessel who is a foreign company – that owner has complied with the requirements prescribed in Chapter II of Part 9 of the Companies Law in relation to a foreign company maintaining a place of business in Israel;
(2)in respect of an owner of a foreign vessel who is not a foreign company – that owner has appointed a representative, including a ship's agent, whose permanent place of residence is in Israel, who is authorised to act on behalf of the vessel owner in Israel in connection with proceedings under this Law, and has submitted to the Director the written consent of the representative.
(e)In this section, "foreign company" – as defined in the Companies Law.

Prohibition on Transfer of Coastal Shipping Permit§

3.

A coastal shipping permit is not transferable to another person or in respect of another vessel.

Conditions for the Grant of a Coastal Shipping Permit§

4.
(a)The Minister, with the approval of the Economics Committee of the Knesset, shall prescribe conditions for the grant of a coastal shipping permit, which must be fulfilled before the grant of the permit or during the period of its validity, as the Minister deems necessary to ensure the objectives set out in subsection (b), including in relation to the structure and maintenance of the vessel, the systems, installations and equipment required for the proper operation of the vessel, certificates, procedures and other documents that must be on board the vessel, and the crew complement required to ensure navigational safety.
(b)Conditions under subsection (a) shall be prescribed by the Minister in order to ensure the following:
(1)the continued existence of coastal shipping carried out by means of Israeli vessels, and the prevention of harm to it;
(2)the maintenance of an appropriate level of navigational safety and of the wellbeing of persons on or near the vessel;
(3)the prevention of pollution of the marine environment from vessels;
(4)compliance with the requirements of any international convention on shipping matters to which Israel is a party;
(5)payment of compensation by the owner of a foreign vessel for damage caused as a result of the operation of the foreign vessel in coastal shipping, including damage to a third party, damage to the marine environment and damage arising from the sinking of the vessel;
(6)the preservation of state security and public safety.
(c)Conditions intended to ensure the prevention of pollution of the marine environment from vessels, as referred to in subsection (b)(3), shall be prescribed in consultation with the Minister for Environmental Quality.
(d)In Regulations under this section, the Minister may prescribe different conditions according to types of vessels, types of coastal shipping or types of voyages.

Determination of Israeli Crew Members§

5.
(a)The Minister, in consultation with the Minister of Finance and with the approval of the Economics Committee of the Knesset, may prescribe that a foreign vessel to which a coastal shipping permit has been granted shall, while operating in coastal shipping, be served by Israeli crew members as the Minister shall determine, and may prescribe functions on a vessel to be performed by Israeli crew members, to the extent necessary to ensure the following objectives:
(1)the maintenance of an appropriate level of navigational safety and of the wellbeing of persons on or near the vessel;
(2)the prevention of pollution of the marine environment from vessels.
(b)If compliance with provisions prescribed by the Minister under subsection (a) would contradict a provision regarding the nationality or residence of crew members under the law of the state in which the foreign vessel granted a coastal shipping permit is registered, the provision of that state shall prevail, and the burden of proof of such precedence lies on the party asserting it.
(c)In Regulations under this section, the Minister may prescribe different conditions according to types of vessels, types of coastal shipping or types of voyages.
(d)In this section, "Israeli crew member" – a crew member who is an Israeli citizen or permanent resident of Israel, who has been certified in a maritime profession or in a function on a vessel that requires certification under the provisions of the Shipping Law (Seamen), 5733-1973.

Refusal to Grant a Coastal Shipping Permit on Grounds Relating to the Owner of the Foreign Vessel§

6.
(a)The Director may refuse to grant a coastal shipping permit to an owner of a foreign vessel in respect of the foreign vessel, even if the conditions for the grant of a permit prescribed under the provisions of section 4 are fulfilled, if the owner of the foreign vessel, and if the owner is a corporation – the corporation or a controlling shareholder in it, has been convicted, in Israel or outside Israel, of an offence constituting a felony, or of an offence which, had it been committed in Israel, would have constituted a felony, which by reason of its nature, gravity or circumstances renders the owner of the foreign vessel, in the Director's opinion, unfit to receive a coastal shipping permit, or if an indictment has been filed against the owner of the foreign vessel or the controlling shareholder in it, as the case may be, in Israel or outside Israel, in respect of such an offence and a final judgment has not yet been given therein.
(b)In this section, "control" – as defined in the Communications Law (Telecommunications and Broadcasting), 5742-1982.

Refusal to Grant a Coastal Shipping Permit on Other Grounds§

7.
(a)The Director may refuse to grant a coastal shipping permit, even if the conditions for the grant of the permit prescribed under section 4 are fulfilled, if one of the following applies:
(1)there exists, to the Director's satisfaction, a reasonable alternative for carrying out the coastal shipping activity for which the permit is sought, by means of an Israeli vessel;
(2)the state in which the foreign vessel in respect of which the permit is sought is registered does not permit Israeli vessels to carry out coastal shipping activity within that state.
(b)The Director's decision to refuse to grant a coastal shipping permit under subsection (a)(1) requires the consent of the Budget Commissioner in the Ministry of Finance.

Submission of Particulars to the Director§

8.

The Director may require an applicant for a coastal shipping permit to furnish particulars regarding the vessel or regarding the type of coastal shipping activity in respect of which the permit is sought, as well as any other particular required by the Director in order to decide on the application; an applicant for a coastal shipping permit shall furnish to the Director every particular required under this section; if the applicant has not furnished a particular as aforesaid, the Director may decline to grant the applicant a coastal shipping permit.

Revocation, Suspension or Refusal to Renew a Coastal Shipping Permit§

9.

The Director may suspend a coastal shipping permit for a period and on conditions as the Director sees fit, revoke it or refuse to renew it, after having given the permit holder an opportunity to state arguments, if one of the following applies:

(1)the permit was granted on the basis of false or incorrect information;
(2)a condition of the permit prescribed by the Director under section 2 has been breached, or a condition of the conditions prescribed by the Minister under sections 4 or 5 has ceased to be fulfilled or has been breached, provided that the permit holder was given a written warning and did not remedy the breach or did not fulfil the condition, as the case may be, within the period prescribed in the warning;
(3)one of the restrictions prescribed in section 6 has been fulfilled;
(4)the permit holder has breached a provision of this Law.

Appointment of Inspectors and Their Powers§

10.
(a)The Minister may appoint inspectors, from among the employees of his Ministry, for the purpose of supervising the implementation of provisions under this Law; notice of the appointment of an inspector shall be published in Reshumot (Official Gazette).
(b)For the purpose of supervising the implementation of provisions under this Law, an inspector or a police constable may –
(1)enter, at any reasonable time, a foreign vessel in respect of which the inspector or constable has a reasonable suspicion that an offence against provisions under this Law is being committed thereon, provided that no entry shall be made into a place used solely as residential quarters except pursuant to an Order of a court;
(2)require the owner of the foreign vessel in respect of which the coastal shipping permit was granted, or a crew member thereof, to identify himself and to present the said permit and any other document connected with the grant of the permit or with the activities of the vessel.
(c)For the purpose of detecting an offence under this Law, an inspector shall have the investigation powers vested in a police officer under sections 2 and 3 of the Criminal Procedure (Testimony) Ordinance, 1927, and also the powers of a police constable to apply to a court for a search warrant and to execute it under sections 23 and 24(a)(1) of the Criminal Procedure Ordinance (Arrest and Search) [New Version], 5729-1969; the provisions of those enactments shall apply to an investigation, search and seizure of objects as if they had been carried out by a police officer or a police constable, as the case may be.
(d)Without derogating from the provisions of subsection (c), a search carried out by an inspector under the provisions of that subsection shall be conducted in the presence of a police constable.

Penalties§

11.
(a)A person who carries out coastal shipping by means of a foreign vessel without a coastal shipping permit or otherwise than in accordance with its conditions, contrary to the provisions of section 2, is liable – to a fine as referred to in section 61(a)(3) of the Penal Law.
(b)If an offence under subsection (a) has been committed and the offender continued to commit the offence after a written warning was given to that person by an inspector or a police officer in respect of the breach, that person is liable – in addition to any other penalty, to an additional fine at the rate prescribed in section 61(c) of the Penal Law, for each day on which the offence continues from the date on which the warning was given or from the date prescribed therein, whichever is the later; the provisions of section 237 of the Criminal Procedure Law [Consolidated Version], 5742-1982, regarding the service of documents, shall apply, with the necessary modifications, to the giving of a warning under this subsection.
(c)If an offence under this section has been committed by a corporation, it is liable – to a fine of four times the fine prescribed for the offence.

Exemption§

12.

The Minister may, by Order, exempt a particular coastal shipping activity, or a type of such activity, from all or part of the provisions of this Law, if the Minister considers that this is required in order to prevent danger to human life or for reasons of preserving state security or the public interest, protecting vital state interests, or other special reasons that necessitate the grant of such an exemption.

Fees§

13.

The Minister, with the approval of the Economics Committee of the Knesset, may prescribe fees for an application for the grant of a coastal shipping permit or for its renewal.

Implementation and Regulations§

14.

The Minister is responsible for the implementation of this Law and may make Regulations in respect of anything relating to its implementation.

Savings Provisions§

15.

The provisions of this Law are in addition to the provisions of any law and shall not derogate therefrom.

Amendment of Administrative Courts Law – No. 20§

16.

In the Administrative Courts Law, 5760-2000, in the First Schedule, in item 14, at the end thereof the following shall be inserted:

"(c) A decision of the Director under sections 2 and 6 to 9 of the Coastal Shipping Law (Permit for a Foreign Vessel), 5766-2005.".

Transitional Provision§

17.

Notwithstanding the provisions of section 2, a person who was carrying out coastal shipping by means of a foreign vessel on the eve of the commencement of this Law may continue to carry out coastal shipping by means of the foreign vessel until the expiry of six months from the day of commencement of this Law.

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LawAdministrative Law

חוק ספנות חופית (היתר לכלי שיט זר), תשס"ו-2005

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