The Saeima has adopted and the President of State promulgates the following Law:
Article 1. Activity of thee Law
This Law regulates principles of port activities and administration order, as well as navigation safety at the port.
Article 2. Definition of a port
A port is a bordered land area of the territory of Latvia, including artificially made embankments, and an area of inland waters, including interior and exterior roads and approaches to the port, that are arranged for servicing ships and passengers, for performing cargo, transport and forwarding operations, and other activities related to navigation. Use of the port for defense needs is regulated by regulations of the Cabinet of Ministers and regulations of the respective port.
Article 3. Determination of port borders
Port borders, including also those territories, which taking into consideration geographic situation, could be used for future development of the port, are determined by the Cabinet of Ministers after suggestion of the respective local government and the port management.
Article 4. Real estate at thee port
(l) Area of land territory of the port (hereinafter - port land) may be a property of the state, local government or other legal entities or physical persons.
(2) Area of inland waters of the port (hereinafter - port waters) is a property of the state.
(3) State land and port waters are assigned into possession of the respective port management by a decision of the Ministry of Transportation, but land of local government - by a decision of the respective city dome (council) or rural district council.
(4) Common hydrotechnical constructions of the port (moles, stream, regulations dams, breakwaters, coast strengthening), quays, waterways, floating navigational equipment and devices at the ports of Riga, Liepaja, and Ventspils are a property of the state or local government. They are in possession of the respective port management. In other ports, the common hydrotechnical constructions may be a property also of other legal entities or physical persons.
(3) Port management may let or lease, or encumber with easements the land belonging to the state or local government for construction of buildings and constructions, over ground and underground communications, or of other economic activities, particularly, concerning use and construction rights. For the same purpose, the port management may let or lease also easements established in its favour on port land belonging to other legal entities or physical persons. In such transactions, the port management deals in the name of land owners.
(6) The term of port land lease and rent contracts as well as easements established for the port management or with the mediation of the port management to other legal entities and physical persons shall not exceed 30 years, unless the amount of planned for the port and made in the planned term investments exceeds 50 million lats and provided that any such contract or easements is previously accepted by Council of Latvia's Ports.
(7) The port authority has rights to encumber, on the basis of a contract or as a coercive measure, according to this Law, port land belonging to other legal entities or physical persons with an easement provided by Civil Law it regards to be necessary. Principle terms of contract, order of forced encumbrance and compensation are regulated by regulations of the Cabinet of Ministers. The state of local government may alienate port land in the procedure established by Law the "On Eminent Domain".
Article 5. Documents regulating port operations
Ports operate according to laws, international agreements accepted by Republic of Latvia acts issued by the Cabinet of Ministers, a regulation of a respective port management and port regulations.
Article 6. Port regulations
(1) Port regulations are affirmed by the Ministry of Transportation, agreeing on it with local government. Port regulations shall provide:
1) approved borders of port land and port waters;
2) technical possibilities to admit ships in port districts (quays);
3) regulations about ship traffic in port waters - the order, in which information shall be given about ships entering and leaving a port, documents shall be arranged, communication system shall be used, regulations in relation to pilot services, speed, an oeuvering areas;
4) regulations for vessel's stay - anchorage coordinates on the road~ mooring and unmooring order, ship security at the port, order of repair works to be accomplished while ships stay, regulations for loading operations;
5) environmental protection regulations at the port;
6) requirements to be put for dredging the port;
7) basic principles of port security supervision;
8) regime of customs, border-guards, sanitary service, fire resistance at the port;
9) responsibility for violating port regulations;
10) duties to be levied at the port;
11) other norms regulating port operations.
(2) Port regulations are compulsory for all legal entities and physical persons at the port, and their execution is supervised by the port management.
Article 7. Functions of the port management
(1) The port management is an institutions, which is established by respective city dome or rural district council and which within the scope provided by this law is also under supervision of the Ministry of Transportation. The regulation of the port management is approved by respective local government and according to the model regulation affirmed by the Cabinet of Ministers.
(2) Port administering is ensured by the port management, which as a subject of public rights performs the following state administration functions:
1) together with the port captain, works out and submits port regulations for approval to the Ministry of Transportation;
2) determines port duties and maximum limits on tariffs for services mentioned in Article 15;
3) secures encashment of port duties and lease (rent) payments;
4) determines security regime and passes at the port;
5) controls observance of port regulations within the scope of its competency;
6) controls accordance of activities by port enterprises (entrepreneurial associations) to laws, normative acts issued by the Cabinet of Ministers and the regulation of the respective port management, within the scope of its competency;
7) controls protection of port territory against pollution, secures liquidation of pollution consequences in the port;
8) secures winter navigation in the port.
(3) The port management as a subject of private rights performs the following functions:
1) works out a draft of port development programme corresponding to the approved concept of Latvian port development and to the general plan of the respective city or to the land use and survey project of a locality;
2) secures implementation of the port development programme accepted by Council of Latvian Ports;
3) to secure navigation in the port and its safety, manages the property assigned into possession - hydrotechnical constructions, waterways, floating navigational equipment and devices, port waters;
4) works out and approves, in the procedure provided by the regulation of the port management, a draft estimate on use of financial resources for the next calendar year and the following five years and, if necessary, specifications in relation to long-term estimate on use of financial resources, submitted in the previous year;
5) organizes construction of the port, communications in the territory of the port in accordance with the port development programme;
6) studies demand and supply of port services;
7) concludes agreements with enterprises (entrepreneurial associations) about their activities in the port, to secure and improve the set of port services, according to the regulation of the port management and port development programme;
8) within the scope of its authority, operates with port land and objects. of property of the state or local government situated on it, on the basis of easement or leasehold;
9) participates in development of infrastructure connected with port operations.
(4) In private ports, order of administration is determined by the owner of the port, but navigation safety is secured in the procedure stipulated by Chapter Five of this Law.
Article 8. Port management.
(1) Structure of the port management, rights and duties of the board of the port and the port manager are determined by the regulation of the port management.
(2) The port management is a legal entity. It comprises the board of the port, that is the highest decision-taking institution, under subordination of which is the executive body managed by the port manager.
(3) The board of the port is appointed by the respective city dome or rural district council consisting of not more than 10 members. The boards of the ports of riga, Liepaja, Ventspils shall include representatives form the Ministry of transportation, the Ministry of Economies, the Ministry of Finance and the Ministry of Environment and Regional Development, as well as from Latvian Development Agency.
(4) The manager of the port is appointed by the board of the port by consent of the Ministry of Transportation.
(5) Issues, upon which the port management cannot decide or when a concrete decision is contested'by at least three representatives from state institutions said in Part 3 of this Article, are decided by the Ministry of Transportation.
Article 9. Restrictions for members of thee board of the port
(1) A member of the board of the port, his/her spouse, parents, children directly or through the third persons shall not receive any kind of reward or income from enterprises (entrepreneurial associations) except enterprises of the state or local governments, which operate in the given port or which have economic of financial relations with port management.
(2) A member of the board of the port after two weeks when he/she has started to undertake duties of a member of the board of the port, as well as twice a year, in terms prescribed by State Income Service, submits a declaration about hi m/herself, the spouse and children and parents living together with him/her to State Income Service. The declaration shall declare all income received by the member of the board of the port, his/her spouse, parents and children within the reporting period.
(3) Any resident of the given administrative territory, a journalist of any mass media, and employees of law enforcement institutions may get introduced to declarations provided in Part 2 of this Article.
Article 10. Council of Latvian Ports
(1) Latvian state policy in development of ports and activities of all ports are coordinated by Council of Latvian Ports, that works out the main directions of port development, policy of investments and tariffs, which the port management is due to implement.
(2) The Cabinet of Ministers establishes Council of Latvian Ports consisting of:
 Chairperson of the Council - the Prime Minister;
 members of the Council;
 the Minister of Transportation;
 a representative from Maritime Department of the Ministry of Transportation;
 a representative from Railway Department of the Ministry of Transportation;
 Chairperson of Riga Dome;
 Chairperson of Liepaja Dome;
 Chairperson of Ventspils Dome;
 managers of the ports of Riga, Liepaja, Ventspils;
 representative from other Latvian ports, who is recommended by Latvian Maritime Union;
 Director of Latvian Sea Administration;
 Director of Latvian Development Agency;
 Director of Department of tax and Customs Legislation, the Ministry of Finance;
 the Minister of Economies;
 the Minister of Environment and Regional Development;
 a representative from the Ministry of Agriculture;
 a representative from Latvian Maritime Union;
 a representative from the Ministry of Defense.
(3) Representatives are delegated to the Council of Latvian Ports by a decision of the head of the corresponding institution.
(4) Regulation of the Council of Latvian Ports is approved by the Prime Minister.
Article 11. Main assignments of the Council of Latvian Ports
The main assignments of the Council of Latvian Ports are:
1) to work out a concept of port development in Latvia and to organize its implementation;
2) to coordinate activities, specialization and development of ports;
3) to assess the correspondence of long-term programmes of port development and drafts of legislative acts to the concept of port development in Latvia;
4) to review proposals for attraction of investments to development of ports and infrastructure related to them;
5) to approve utilization of resources from the Port Development Fund;
6) to give a conclusion about suggestions to alienate real estate at the ports for state or public needs.
FINANCIAL RESOURCES OF PORT MANAGEMENT
Article 12. Financial sources
(1) Financial resources of the port management consist of:
 - allocations from port duties;
 - land rent;
 - lease (rent) payment for leasing (letting) real estate in possession of port management;
 - investments;
 - payment for services rendered by the port management.
(2) Financial resources of the port management are utilized observing principles of non-profit organization: financial resources at the disposal of the port management may be used only for maintenance and development of the port and its infrastructure and for performing functions established in Article 7 of this Law. .
(3) The port management shall not participate with its financial resources in entrepreneurial associations.
(4) The port management keeps account of business activity and financial operations according to Law "On Bookkeeping" and submits reports according to Law "On Annual Accounts of Companies".
PORT AND SHIPPING DUTIES, THEIR ALLOCATION. SERVICE CHARGES
Article 13. Types of duties at ports
(I) The following duties may be determined at ports of Latvia:
1) tonnage duty;
2) canal duty;
3) sanitary duty;
4) small ships duty;
5) anchorage duty;
6) ice duty;
and the following shipping duties;
l) light duty;
2) pilotage duty.
(2) Tariffs on port duties are determined by port management, agreeing on it with local government. Tariffs on shipping duties are determined by the Ministry of Transportation.
Article 14. Allocation of duties
(1) Resources, that are formed port and shipping duties, shall be allocated in the following procedure:
l) tonnage, canal, small ships, anchorage and ice duties are levied by the port management;
2) light and pilotage duties are levied by the Latvian Sea Administration;
3) sanitary duty is received by enterprises (entrepreneurial associations) situated in the territory of the port.
(2) 10% from tonnage, canal, small ships and anchorage duties shall be entered in the special budget of local government and may be utilized for development of infrastructure related to port operations.
(3) 5% form all the duties shall be entered in the Port Development Fund and may be utilized for payments to international maritime and fishing organizations, the member-state of which is Latvia.
Article 15. Service charges
(1) The port management approves the following maximum limits on tariffs for services, that are rendered to ships at the port:
1) agency fee;
2) berthing charges;
3) mooring charges;
4) charges for accepting waste and polluted waters;
5) passengers poll;
6) harbour craft hire;
7) charge for firewatch;
8) yachting peerage.
(2) The specific amount of service fee is determined by renderer of the service and a representative from the ship by mutual agreement.
SAFETY CONTROL OF NAVIGATION AT PORT
Article 16. Navigation and its control
Operations management of ship movement in the port and on nautical access to the ports, as well as functions of safe control and supervision over navigation safety are performed by the captain of the port.
Article 17. Captain of the port
(1) The Latvian Maritime Code and this Law prescribe functions, rights and duties of the captain of the port.
(2) The captain of the port is directly subordinated to Latvian Sea Administration.
(3) Orders of the captain of the port, that are connected to navigation safety, are compulsory to all ships, organizations, enterprises (entrepreneurial associations), and citizens.
(4) The captain of the port has rights to forbid a ship to leave the port in the following cases:
1) if the ship does not fit for navigation according to 1974 Convention about safety of human life in the sea, or regulations of loading and supply are violated according to the International Maritime Dangerous Goods (IMDG) Code if International Maritime Organization, or requirements in relation to crew members are not met, or there are other deficiencies, that endanger navigation safety, the sea environment of human life abroad the ship;
2) if the ship's documentation does not correspond to certain requirements;
3) if port duties and service charges are not paid, and if there are no permits from customs, boulder-guards and other state services of the port;
4) if there is a prohibition of court, police or environmental protection institutions.
(5) Expenses, that occur, if the captain of the port realizes his rights provided by this Article, shall be covered by the owner of the ship.
(6) The captain of the port may detain a ship, if a claim is brought against due to average accident, default of an agreement about freight transportation, salvage works, ship collision or if a damage incurred in the port. Ship detention is possible also when the port is claiming if there are damages incurred to the port constructions or other port property. Being the case, the ship may be detained until the owner of the ship or freight gives the necessary guarantees, that losses will be compensated.
(7) Ship detention due to the mentioned claims takes place according to 1952 Convention about unification of specific laws concerning the arrest of sea ships. Those persons, due to the claims of which, the ship is detained, are responsible for losses, that occur due to unfounded detention of the ship.
(8) It is forbidden for officials of port management to interfere in actions of the captain of the port.
ENTREPRENEURIAL ACTIVITY IMPORTS
Article 18. Regulations for entrepreneurial activity in ports
Entrepreneurial activity in ports takes place according to the legislative acts in effect, port regulations, and according to the contract concluded between the port management and the entrepreneur.
Article 19. Restrictions for economic activity
(1) It is allowed to sublease port land only having permission from the respective port management.
(2) Activity of legal entities and physical persons at the port, including any submarine works, may take place only when having permission from the respective port management and under its control.
(3) A permission from the captain of the port is necessary for disembarking sunk objects, dredging, construction, diving and other works in the port waters.
(4) In the person of port management, only the state and local government has the rights to buy port land. However, it is forbidden for the port management to sell the port land.
(5) If the port land is bought, and the former owner or his/her heirs receive certificates for that, upon their wish, the value of these certificates shall be paid in cash to them.
PORT DEVELOPMENT FUND
Article 20. Target of the Port Development Fund
The target of the Port Development Fund is to administer additional resources allocated for planned development of ports and their reconstruction, in order to secure competitiveness of Latvian ports, as well as participation of the Republic of Latvia in international maritime and fishing organizations.
Article 21. Sources of financial resources in the Port Development Fund
Financial resources are entered in the Port Development Fund from:
1) allocations from port duties;
2) state assignations;
3) specified donations;
4) other income.
Article 22. Utilization of financial resources of the Port Development Fund
The Council of Latvia's Ports decides about the utilization of resources of the Port Development Fund. The Port Development Fund is a constituent part of the special budget of the state budget, the regulation of which is approved by the Cabinet of Ministers.
l. Ship quays, building and constructions, underground and overground communications, that at the moment of taking effect of this Law are in possession of le gal entities of the state of local government, remain in their possession on time till 30 years. Within six months from the moment of taking effect of this Law, the port management shall conclude land leasehold contracts with these enterprises about exploitation of these objects in the procedure stipulated Article 4 of this Law.
2. Contracts about use of buildings and constructions belonging to other legal entities and physical persons are valid until such easement is established in favour of the port management according to Article 4 of this Law, that relates to this contract. With establishment of such easement, the contracts become null and void, and afterwards they shall be concluded repeatedly with the port management.
3. Till December 31, 1996, an easement established on the basis of an contract or as a coercive measure shall be regarded valid beginning with the day, when the given contract is approved by a notary or an order is enforced about establishment of the easement. The easement shall be registered with Land Book till December 31, 1997. Should the easement be not registered in the Land Book within this term, it is automatically cancelled.
4. Local governments shall form port management according to this Law till 4 August 1, 1994.
3. Port land, port waters, quays and common hydrotechnical constructions shall be delivered by the Ministry of Transportation and local governments to port management till October 1, 1994.
The Law was adopted by the Saeima on June 22, 1994.
The President of State
Riga, July 12, 1994
The Latvia Law Institute, pursuant to a special agreement with the Ministry of justice of the Republic of latvia, is authorized to perform and certify this translation. Should there be any difference between the meaning of the Latvian text and that of the English language, the official Latvian language text shall prevail.