Overview
On 19 March 2026, the Ministry of Transport and Communications, Department of Marine Administration, issued Directive No. 1/2026 (the “Directive“) on Civil Liability for Pollution Damage Caused by the Spillage or Discharge of Oil Carried on Board Ships, pursuant to the Myanmar Merchant Shipping Act. The Directive aligns Myanmar’s domestic framework with the International Convention on Civil Liability for Oil Pollution Damage, 1992 (“CLC 1992“) and has immediate implications for shipowners, operators, managers, and insurers operating in or transiting through Myanmar waters.
Key Points
1. Scope of Application
The Directive applies to pollution damage caused by the spillage or discharge of oil from a Myanmar ship within the jurisdiction of any State Party to the CLC 1992, or from any ship within Myanmar waters, including the Exclusive Economic Zone. It also extends to preventive measures taken anywhere in the world to prevent or mitigate such pollution damage.
Warships, naval auxiliary vessels, coast guard vessels, and State-owned or operated ships used exclusively for government non-commercial purposes are exempt from the Directive. Additionally, the Directive does not apply to pollution damage covered by the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001.
2. Liability Framework
Where pollution damage occurs as a result of the spillage or discharge of oil carried on board a ship, the shipowner shall be liable for any such pollution damage. The key liability rules are as follows:
- Primary liability: The shipowner who caused the incident giving rise to pollution damage — or, where an incident consists of a series of occurrences, the shipowner who caused the first occurrence — shall be liable to pay compensation.
- Joint and several liability: Where more than one shipowner is liable in respect of the same occurrence, they shall be jointly and severally liable to pay compensation.
- Preventive measures: Where the spillage or discharge of oil poses a threat of pollution damage to anything outside the ship, the shipowner shall be liable to pay the costs of preventive measures taken to prevent or mitigate such pollution damage.
- Multi-ship incidents: Where an incident involving two or more ships gives rise to pollution damage and the respective liability cannot reasonably be apportioned, the shipowners concerned shall be jointly liable to pay compensation.
- State commercial vessels: States owning or operating ships used for commercial purposes shall also be liable for pollution damage caused by the spillage or discharge of oil.
3. Limitation of Liability and Dispute Resolution
The Department of Marine Administration may permit the limitation and exemption of a shipowner’s liability for pollution damage in accordance with the provisions of the CLC 1992.
Any disputes arising in respect of civil liability for such pollution damage shall be resolved in accordance with the provisions of the CLC 1992.
4. Mandatory Insurance and Financial Security
Owners of oil tankers carrying more than 2,000 tons of oil in bulk as cargo are required to maintain financial security or other insurance sufficient to cover their liability for pollution damage in accordance with the CLC 1992.
The Department of Marine Administration will issue an Oil Pollution Insurance Certificate (“Certificate“) to Myanmar ships that have maintained the requisite financial security or insurance, and the validity period of the Certificate shall correspond to the validity period of the underlying financial security or insurance.
Owners, managers, and operators of Myanmar ships must keep a valid Certificate issued under the Directive on board at all times, while owners, managers, and operators of foreign ships must keep on board a valid Certificate issued by the maritime authority of the flag State or by the maritime authority of a CLC 1992 State Party, available for inspection at all times.
5. Port Entry and Exit Restrictions
No ship shall enter, leave, or attempt to enter or leave any port or place within Myanmar without carrying on board a valid Certificate.
Practical Implications
Shipowners, operators, managers, and charterers with vessels calling at Myanmar ports or operating under the Myanmar flag should consider the following steps immediately:
- Review insurance coverage to ensure it meets the financial security requirements prescribed under the CLC 1992 and this Directive.
- Obtain or verify the validity of the Oil Pollution Insurance Certificate for all relevant vessels.
- Ensure the Certificate is kept on board at all times, as port access is contingent upon carrying a valid Certificate.
- Assess liability exposure in multi-ship operations, given the potential for joint and several liability.
- Review contractual arrangements (e.g., charterparty indemnity clauses) in light of the expanded liability framework.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
