European Union reporting of imports and exports under the

Montreal Protocol

European CommissionDirectorate General Climate Action

2011

1. IntroductionContent

1. Introduction2. Reporting requirements3. Definitions4. Customs procedures5. Stores6. Conclusion

2. Reporting requirements

2.1 EU legislation (1)

• Each importer and exporter must report*: Annually before 31 March All imports and export of controlled and new

substances under any customs procedure Quantities and uses Stocks Purchases and sales

• No specific rules for maritime sector

* Under Article 26 of Regulation (EC) No 1005/2009

2. Reporting requirements

2.2 EU legislation (2)

• Other direct reporting obligations to EU Production Destruction Process agent and feedstock uses Laboratory uses

• Indirect reporting obligations via Member States QPS

• Phased out in March 2010 Critical uses of non virgin Halons

• Phase out started

2. Reporting requirements

2.3 Montreal Protocol (1)

• Article 7(3) of the Montreal Protocol Annual report on imports and exports

• Decision IV/14*: Transhipments As opposed to imports and re-exports: Country of origin to report export Country of final destination to report import

* and as reminded by Decision IX/34

2. Reporting requirements

2.3 Montreal Protocol (2)

• Decision IV/14*: Imports and re-exports Two separate transactions:

Country of origin to report export to country of intermediate destination (CID)

CID to report import from country of origin

CID to report export to country of final destination Country of final destination to report import from

CID

* and as reminded by Decision IX/34

3. Definitions 3.1 Import and export

• Montreal Protocol No definition of import or export

• World Customs Organisation*: The act of bringing or causing any good to be

brought into / taken out from a Customs territory

• European Union (ODS Regulation)**: The entry /exit of substances, products and

equipment covered by this Regulation into / from the customs territory of the Community […]

* Glossary of international customs terms, World Customs Organisation, Brussels, 2006 (D2006/0448/20)

** Regulation (EC) No 1005/2009 on ozone depleting substances. Simplified extract.

3. Definitions 3.2 Customs territory

• Montreal Protocol No specific definition All areas covered by the ratification

• Customs territory: Defined by national legislation Usually the whole territory of a nation (land

and sea) Customs territory ≠ customs union EU: customs territory separate presentation

4. Customs procedures 4.1 Kyoto Convention

• Revised Kyoto Convention

International convention on the simplification and harmonisation of customs procedures

Initial convention of 1974 Revised 1999, entry into force

2006

4. Customs procedures 4.2 Overview

• Import / Export Permanent imports / exports Temporary imports / exports To be reported

• Transit Transhipment Customs transit Not to be reported

4. Customs procedures 4.3 Permanent import /

export

• Clearance for home use aka “release for free circulation”

• Re-importation in the same state

• Outright exportation aka “permanent export”

4. Customs procedures 4.3 Temporary import /

export

• Customs warehouses and free zones Free zones are geographically defined Customs warehouses can be anywhere

• Inward / outward processing• Processing of goods for home use

aka “processing under customs control”

• Temporary admission

4. Customs procedures 4.3 Special procedures

• Travellers• Postal traffic• Means of transport for commercial use• Containers• Relief consignments (“humanitarian aid”)• Stores

5. Stores5.1 Definition

• Stores for consumption:

[…] goods necessary for the operation and maintenance of vessels, aircraft or trains including fuel and lubricants but excluding spare parts and equipment; which are either on board upon arrival or are taken on board during the stay in the Customs territory […]

• Other stores are not relevant in the Montreal Protocol context

5. Stores5.2 Reliefs - Exports

• Vessels and aircraft which depart […] shall be entitled to take on board, exempted from duties and taxes:stores for consumption necessary for their operation and maintenance, in [reasonable] quantities having regard also to […] stores already on board.

• No exclusion from export definition!

5. Stores5.3 Reliefs - Import

• Exempted from import duties and taxes provided that they stay on board

• Customs declarations upon arrival shall be kept to the minimum

• Others

• Not excluded from import definition!

6. Conclusion6.1 Summary

• Movement from/into customs territory is: Import / export Processed under different customs procedures Subject to reporting under Montreal Protocol Except transit and certain special procedures

• Stores Imports / exports benefiting from relieves Account for consumption as imports & exports Open questions remain

6. Conclusion6.2 Open questions

• Customs territory vs. flag state approach How to handle:

• stores to be delivered to a ship of a foreign flag state but commutes only within one customs territory?

• stores to be delivered to a ship of national flag but that will leave the customs territory?

• Legal entity importing / exporting Owner? Operator? Representative?

• Consumption allocation mechanism

Thank you for your attention

• Aléxandros Kiriazis

• European CommissionDG Climate Action1049 BrusselsBelgium

• alexandros.kiriazis@ec.europa.eu• http://ec.europa.eu/clima/policies/ozone

7. Annex7.1 Links

• WCO Glossary of international customs terms http://wcoomdpublications.org/glossary-of-

international-customs-terms.html

• Revised Kyoto Convention http://www.wcoomd.org/

home_pfoverviewboxes_tools_and_instruments_pfrevisedkyotoconv.htm

• Regulation (EC) No 1005/2009 EU Regulation on ODS http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?

uri=CELEX:32009R1005:EN:NOT

European Union reporting of imports and exports under the

Montreal Protocol

European CommissionDirectorate General Climate Action

2011