(1) Subject to subsections (2) and (3), every ship under 24 metres in length shall be licensed under this Act.
(2) The following ships shall be exempt from being licensed under this Act—
(a) pleasure craft of less than 5 metres in length not equipped with propulsion machinery;
(b) pleasure craft of less than 3 metres in length equipped with propulsion machinery of not more than 5 horse power; and
(c) ships registered under this Act.
(3) The Minister may in writing exempt, either generally or specifically, ships from compliance with subsection (1), subject to such conditions as the Minister may stipulate.