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EU Council Greenlights the Beijing Convention: A Turning Point for Judicial Sales of Ships

With Decision (EU) 2026/1099, the Council has authorized the conclusion by the EU of the United Nations Convention on the International Effects of Judicial Sales of Ships (“Beijing Convention on the Judicial Sale of Ships”) of 7 December 2022.

This measure falls within the framework of Article 218 TFEU (procedure for concluding international agreements) and represents a typical case of the EU participating in multilateral UN instruments.

From a systemic perspective, the Council Decision does not directly introduce substantive rules but binds the EU at the international level, with indirect effects on the internal legal order.

As for its content, the Beijing Convention addresses the judicial sales of ships. A field with a strong transnational dimension.

In particular, recitals 3 and 4 of the Council Decision state:

“(3) The Convention constitutes the first international instrument establishing a harmonized regime to give international effect to judicial sales, while preserving domestic law governing the procedure of judicial sales and the circumstances under which such sales confer a title of ownership free of any burden. The Convention strengthens the existing international legal framework on maritime transport and navigation and makes a useful contribution to the development of harmonious international economic relations. By ensuring legal certainty as to the title acquired by the purchaser when the ship sails internationally, the Convention aims to maximize the price the ship can obtain on the market and the proceeds available for distribution among creditors, as well as to promote international trade.”

From a legal perspective, it is significant that the Convention does not harmonize domestic sale procedures but regulates their cross-border effects (recognition of the transfer of ownership).

This results in strengthened international circulation of legal effects without encroaching upon national procedural law.

The Convention also pursues typical objectives of international trade law, such as certainty of title to the ship, elimination of risks related to registrations or liens not recognized abroad, increased economic value of the sale, and creditors protection.

By becoming a party to the Convention, the principle of the “clean title rule” (acquisition free of encumbrances) is reinforced, and conflicts of laws and jurisdiction are reduced.

However, certain critical issues remain, as EU competence is defined dynamically, which may cause uncertainty in application for other States. Moreover, with the exclusion of Ireland and Denmark, there may be territorial differences in the application of the Convention within the EU.

Overall, the Decision represents an example of integration between EU law and international law, as well as a step toward the globalization of rules governing the circulation of registered assets (ships).

Chiara Raggi
chiara.raggi@mordiglia.it

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