In a nutshell: Beaching – the transfer of ships to non-certified recycling yards for the purpose of dismantling – may constitute a violation of the Waste Shipments Act (Abfallverbringungsgesetz, AbfVerbrG). The investigative pressure of the public prosecutor(s) continues unabated. Again and again, searches of business premises and private spaces are taking place. All involved parties should familiarize themselves with the current legal situation and what to do in the event of search measures directed against them.

During the Breakfast Briefing ‘UPDATE Ship Recycling – Beaching’ held by ROXIN Rechtsanwälte and EHLERMANN RINDFLEISCH GADOW on 15 June 2023, the participants were provided with current insights into the investigation status of some pending lawsuits. The different legal positions of the parties involved in the lawsuits were presented. Furthermore, we informed about the risk of confiscation of assets and gave specific recommendations on how to behave during searches. Additionally, we discussed with the participants the drafting and negotiation of purchase agreements for older tonnage. Finally, our guest speaker Mr. Sherbir Panag of the law office Panag & Babu (New Delhi, India) provided us with an insight of the legal and investigation practice in India. 

For a seller based in Germany, the sale of older tonnage entails the risk that their ship will be scrapped in a non-certified recycling yard shortly after having been transferred to a carefully vetted buyer, despite the sale having been properly executed. In that case, the seller may become the target of a public prosecutor’s investigation. Germany-based shipowners, brokers and Germany-based banks involved in ship sales should familiarize themselves with the current legal situation and what to do in the event of search measures directed against them.

If you have any questions on this topic, please do not hesitate to approach your contact person at ROXIN Rechtsanwälte or EHLERMANN RINDFLEISCH GADOW.