Legal Representation in yacht dismantling project
September 24, 2025.
Legal Representation in yacht dismantling project
Source: Abaco’s archive
ABACO Ltd is pleased to report on the successful completion of a complex legal and operational undertaking involving the dismantling of a foreign-flagged motor yacht within the territory of Montenegro.
The yacht, aged over twenty years and long withdrawn from maritime navigation, had reached the end of her operational life. Her owner, seeking a legally sound and environmentally responsible solution, opted for final disposal by yacht dismantling under customs supervision.
Although Montenegro is not a signatory to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, the domestic legal framework - comprising environmental, customs, port, and occupational safety regulations - provided a sufficiently robust basis for the execution of this project in accordance with international principles of environmental protection.
Acting on behalf of the yacht owner, ABACO submitted a formal request to the Ministry competent for maritime affairs, invoking Articles 18 and 116 of the Law on Administrative Procedure and Article 26b(3) in conjunction with Article 26b(1)(17) of the Law on Ports. The Ministry issued its approval by way of Resolution, authorizing the dismantling of the yacht within the Free Zone of the Port of Bar, subject to environmental and safety conditions prescribed therein.
Prior to this, the Ministry secured the consent of the Harbour Master’s Office Bar as well as of the Port of Bar, confirming the port’s readiness to host the dismantling operation. Additionally, coordination with the Customs Authority, Branch Unit Tivat, resulted in the issuance of transit documentation for the yacht’s transfer to Bar, while customs supervision at the dismantling site was delegated to the competent territorial unit.
ABACO’s legal assistance further encompassed the coordination of the towage operation for the subject yacht from Tivat to Bar, as well as the preparation and execution of all legal documentation pertaining thereto, including the formal Towage Agreement.
Given the hazardous nature of certain materials used in the yacht’s construction - most notably carbon fiber, which qualifies as hazardous waste under both domestic and international regulations - the dismantling process required the engagement of a certified operator with the requisite licenses and technical capacity. ABACO facilitated the appointment of Hemosan DOO, the only Montenegrin entity authorized for hazardous waste treatment and export, to carry out the dismantling within their recycling center located at the Free Customs Zone of the Port of Bar.
The dismantling was conducted under strict adherence to occupational health and safety standards, with particular attention to the prevention of marine pollution from oil residues and other harmful substances. The operation was executed under the supervision of the competent customs authority, ensuring full compliance with applicable customs procedures.
What made this experience even more unique, the yacht in question used to be famous – featured in a Hollywood action movie and celebrated for years as the fastest yacht in the world.
This project exemplifies ABACO’s commitment to delivering legally sound and environmentally responsible solutions in complex maritime matters. The successful execution of the yacht dismantling carried out in full compliance with Montenegrin law and under the oversight of relevant authorities was met with the satisfaction of our client, who sought to dispose of the vessel in a manner consistent with legal integrity and environmental stewardship.