It is calculated by subtracting non-revenue-earning spaces i.e. spaces not available for carrying cargo, for example engine rooms, fuel tanks and crew quarters, from the ship's gross register tonnage.
[1][2] Net tonnage is thus used in situations where a vessel's earning capacity is important, rather than its mere size.
The new tonnage regulations entered into force for all new ships on 18 July 1982, but existing vessels were given a migration period of 12 years to ensure that ships were given reasonable economic safeguards, since port and other dues are charged according to ship's tonnage.
Since 18 July 1994 the gross and net tonnages, dimensionless indices calculated from the total moulded volume of the ship and its cargo spaces by mathematical formulae, have been the only official measures of the ship's tonnage.
[3] However, the gross and net register tonnages are still widely used in describing older ships.