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1. For the purpose of this Article, ‘chartering Contracting Party’ refers to the Contracting Party that holds an allocation as indicated in Annex I.A and Annex I.B to the CEM, or the Member State that holds a fishing opportunities allocation, and ‘flag State Contracting Party’ refers to the Contracting Party or to the Member State in which the chartered vessel is registered.

2. All or part of the fishing allocation of a chartering Contracting Party can be harvested using a chartered authorised vessel (‘chartered vessel’) flying the flag of another Contracting Party, subject to the following conditions:

(a) the flag State Contracting Party has consented in writing to the chartering arrangement;

(b) the chartering arrangement is limited to one fishing vessel per flag State Contracting Party in any calendar year;

(c) the duration of the fishing operations under the chartering arrangement does not exceed six months cumulatively in any calendar year; and (d) the chartered vessel is not a vessel that has previously been identified as having engaged in IUU fishing.

3. All catch and by-catch taken by the chartered vessel in accordance with the chartering arrangement shall be attributed to the chartering Contracting Party.

4. The flag State Contracting Party shall not authorise the chartered vessel, when conducting fishing operations under the chartering arrangement, to fish any of the flag State Contracting Party’s allocations or under another charter at the same time.

5. No transhipment at sea may be carried out without the prior authorisation of the chartering Contracting Party, which shall ensure that it is carried out under the supervision of an observer on board.

6. The flag State Contracting Party shall notify the NAFO Executive Secretary in writing prior to the start of the chartering arrangement of its consent to the chartering arrangement and provide to the chartered vessel a copy of the notice issued by the NAFO Executive Secretary with the details of the chartering.

6a. Where the chartered vessel is a Union fishing vessel, the flag Member State shall notify the Commission in writing prior to the start of the chartering arrangement. Where the Commission considers that the relevant conditions established in the CEM are met, it shall notify the NAFO Executive Secretary of the consent to the chartering arrangement.

6b. The chartering Contracting Party shall, before the date the chartering arrangement is effective, provide the following information in writing to the NAFO Executive Secretary and to the chartered vessel, which shall at all times carry a copy on board:

(a) the name, flag State registration, IMO number and flag State of the vessel;

(b) previous name(s) and flag State(s) of the vessel, if any;

(c) the name and address of the owner(s) and operators of the vessel;

(d) a copy of the chartering arrangement and any fishing authorisation or licence the chartering Contracting Party has issued to the chartered vessel; and (e) the allocation assigned to the vessel.

6c. Where the chartering Contracting Party is the Union, the chartering Member State shall notify the information referred to in paragraph 6b to the Commission before the chartering arrangement becomes effective. Where the Commission considers that the relevant conditions established in the CEM are met, it shall transmit the information to the NAFO Executive Secretary.

7. Where the chartered vessel is a Union fishing vessel, the flag Member State shall notify the Commission immediately upon the occurrence of any of the following events:

(a) start of fishing operations under the chartering arrangement;

(b) suspension of fishing operations under the chartering arrangement;

(c) resumption of fishing operations under a chartering arrangement that has been suspended;

(d) end of fishing operations under the chartering arrangement.

8. The flag State Contracting Party shall maintain a separate record of catch and by-catch data from fishing operations in accordance with every charter of a vessel flying its flag and report them to the Commission, which shall transmit it to the chartering Contracting Party and the NAFO Executive Secretary.