(1) Where a valid Safety Convention Certificate is produced in respect of a foreign Safety Convention ship it shall be accepted and the ship shall be exempt from survey or inspection under section 292, unless there are clear grounds for believing that the condition of the ship or the equipment of the ship does not correspond substantially with the particulars of the certificate, or that the ship and the equipment of the ship are not in compliance with regulations made under this Act respecting the maintenance of conditions of ships and their equipment after survey.
(2) Where a certificate is not acceptable due to the circumstances referred to in subsection (1), or if a certificate has expired or ceased to be valid, the ship shall not be granted clearance and shall be detained until it can proceed to sea or to the appropriate repair yard without causing danger to the ship or persons on board, and the following persons shall be notified in writing of the circumstances, namely—
(a) the local Consul of the ship's flag State or, in his or her absence, the nearest diplomatic representative of the ship's flag State;
(b) nominated surveyors or recognised organisations responsible for the issue of the certificates referred to in subsection (1).
(3) Where any ship referred to in subsection (2) is unduly detained or delayed, the ship shall be entitled to compensation for any loss or damage suffered as a direct result of such undue detention or delay.