Proposal for a COUNCIL REGULATION (EC) on the implementation of IMO Resolution A.747(18), on the application of tonnage measurement of ballast spaces in segregated ballast oil tankers
Date: 1993-12-08
Institutions: European Commission
Subjects: International Maritime Organisation, international convention, international standard, oil pollution, prevention of pollution, tanker

COMMISSION  OF  THE  EUROPEAN  COMVIUNITIES 

COM(93)468  final  - SYN 481 

Brussels,  8 December  1993 

Proposal  for a 

COUNCIL  REGULATION  (EC) 

. on the implementation  of IMO 

Résolution  A.747(18),  on  the  application  of  tonnage 
measurement  of  ballast  spaces  in  segregated  ballast  oil 
tankers. 

(presented  by  the  Commission) 

EXPLANATORY  MEMORANDUM 

GENERAL  INTRODUCTION 

In the Communication,  "A Common Policy on Safe Seas"l,  adopted by the Commis 
1. 
sion on 24th February  1993, the Commission draws attention to the problem of imposing port 
dues  on the tonnage of  segregated  ballast tanks in oil tankers. 

2. 
The  Communication  emphasises  that,  despite  the  adoption  in  1991  of  Resolution 
A.722(17)2 - "Application of tonnage measurement of ballast spaces  in segregated ballast oil 
tankers" - by the Assembly of the International Maritime Organization (IMO), port dues and 
other charges  are  15-20% higher  for segregated  ballast oil tankers  (SBTs)  than for  conven 
tional oil tankers when comparing volumes of cargo oil transported,  due to the lack of imple 
mentation of  the  resolution 

3. 
For the safe  operation of an unloaded oil tanker,  the vessel  should be ballasted with 
water ballast.  Conventional oil tankers carry this water ballast in some cargo tanks  formerly 
used  for  oil.  The  ballast  water  is then contaminated with some  5% of  residual  oil.  During 
the  voyage,  the  contaminated  ballast  water  is  changed  after  a  tankwashing  operation  and 
replaced by clean water from the open seas. After settling, the contaminated water is pumped 
overboard  and thereby pollutes  the marine environment. 

Oil  tankers  of  a  modern  design  are,  however,  equipped  with  tanks  which  are 
exclusively  used  as  water  ballast  tanks.  The  changing  of  ballast  water  does  not  therefore 
contaminate  the marine environment. 

The  MARPOL 73/78  Convention 3 addresses  the problem of  changing  ballast  water 
4. 
in requiring  that every  new oil  tanker as defined  in the Convention,  above a certain dead 
weight,  should be provided  with tanks where oil-free  ballast water  is contained.  These  oil 

1  COM(93)66 final,  para.  29 - 33 of  PART II. 

2  Resolution  A.722(17),  adopted 6 November  1991,  now  superseded  by  Resolution 

A.747(18),  of  4  November  1993 

3  International  Convention for the Prevention of Pollution from Ships,  1973,  and the 

Protocol  of  1978 related thereto. 

weight,  should be provided  with tanks where oil-free  ballast water  is contained.  These  oil 
tankers  are known as SBTs  4. 
It is estimated that,  at present,  the percentage of SBTs  to conventional  tankers of  the world 
oil  tanker  fleet  is  35  to 65. 

A SBT therefore differs  from a conventional oil tanker in that it has ballast tanks and 
5. 
pipes  which are completely  separate from the cargo system  and which are not used  for  the 
transport of cargo. These separate or segregated ballast tanks are therefore permanently used 
for the carriage and pumping of ballast water. The fact that the ballast water discharged from 
a SBT  is free of  any oil has obvious  environmental  benefit. 

6. 
As  part  of  the capacity  of  an oil  tanker  which complies  with the requirements  of a 
SBT  is permanently  reserved  for  water ballast purposes,  such a tanker has a reduced cargo 
carrying  capacity.  Therefore,  for  a  SBT  to  have  the  same  cargo  carrying  capacity  as  a 
conventional  oil  tanker,  it must have a gross  tonnage (GT)5  which  is  15-20%  greater than 
that of  a conventional  oil tanker. 

7. 
A problem  arises as port dues and other charges  are often based upon the GT of the 
vessel.  Since a SBT has a GT which is some  15-20% greater  than that of a conventional  oil 
tanker,  a SBT  has  to pay port  dues  and other  charges  which are  15-20% higher  than for a 
conventional  oil  tanker.  The  net effect  is  that a SBT,  while benefitting  the environment,  is 
subject  to punitively  and unjustifiably  higher port dues and charges. 

This discrimination,  when imposing levies under present tariff systems, urgently calls 
8. 
for the unified application of tonnage measurement of segregated ballast spaces  in oil tankers 
as  a  basis  for  port  fees  and  other  charges,  so  as  to  convince  owners  to  invest  in 
environmentally  friendly  oil  tankers  which could benefit from a financial  incentive  scheme 
to be established  on the basis  of  international  agreements. 
In  order  to  provide  for  such  a  scheme,  as  a  complementary  rule  to  the  International 
Convention  on  Tonnage  Measurement  of  Ships,  1969,  the  Assembly  of  the  International 
Maritime Organization (IMO) adopted Resolution A.388(X) on 14th November  1977, which 
was subsequently  modified by the adoption of Resolution A.722(17)  on 6th November  1991 
and finally by the adoption of Resolution A.747(18) of 4th November  1993 which supersedes 
Resolution A.722(17).  These  IMO Resolutions  are recommendations  only.  The  resolutions 
invite  Governments  to  advise  their  port,  harbour  and pilotage  authorities,  when  assessing 
fees,  to  deduct  the  tonnage  of  the  segregated  ballast  tanks  from  the  GT  as  calculated  in 
accordance with the formula given in the annex of the resolution and as stated on the Interna 
tional Tonnage  Certificate  (1969). 

In addition  to  the recommendation  of  the  IMO,  the  International  Association  of  Ports  and 
Harbours  (IAPH) passed  a resolution  supporting  IMO Resolution A.722(17)  at its biennial 
meeting in 1991. Subsequently,  at its 18th Conference in 1993, the IAPH adopted Resolution 
No.2 which,  in pursuit of  the goal of sustainable  economic and operational  development of 

4  Regulation  13 of  Annex  I of  MARPOL 73/78. 

5  According to the International Convention on Tonnage Measurement of Ships,  1969. 

2 

ports,  states that incentives should be considered which "might include adoption of a scheme 
in  which  environmentally  friendly  equipped  and  operated  ships  are  encouraged  in  the 
structure  of port tariffs  and  fees". 

9. 
However,  State authorities  and other public and private persons  in many countries, 
including Member States, continue to impose dues and charges on SBTs under present  tariff 
systems,  in a manner  which does not comply  with IMO Resolutions  A.388(X),  A.722(17) 
and  A.747(18).  SBT  owners  thus  continue  to  be  financially  punished  and  operators  and 
contractors  are encouraged  not to use these environmentally friendly vessels as they are put 
at a commercial  disadvantage.  The  financial  effect  varies  from  approximately  15 to 20%, 
depending  on the age of the vessels. 
It has been calculated that extra port and harbour  fees  for  a SBT super  tanker vary between 
$40,000 and $240,000 per port visit.  This  implies that for  certain ships, on certain trades, 
the annual difference  in fees can for a SBT amount to up to a million dollars, when the IMO 
resolution  is not  implemented. 

It is not the purpose of this Regulation to harmonize the tariff  structure of authorities 
10. 
which  charge  users  for  the  services  provided.  Neither  shall,  through  this  Regulation,  the 
International Convention on Tonnage Measurement of Ships,  1969 become mandatory under 
Community  law,  as all Member  States have ratified  and implemented  this  Convention. 

JUSTIFICATION  FOR A COUNCIL  REGULATION 

11. 

a) What are the objectives  of the envisaged action in relation to the obligations of the 
Community? 

The objectives  of  this Regulation are: 

to  encourage,  to  design,  provide  and  use  segregated  ballast  tanks  in  oil 
tankers; 

to promote the use of SBTs which are environmentally friendly oil tankers  in 
the Community,  through the implementation of existing  international recom 
mendations for deducting the tonnage of the segregated ballast tanks of certain 
oil  tankers  for  levies  when visiting  Community  ports,  in order  to protection 
of the marine environment. 

The  Extraordinary  Council  on  Environment  and  Transport,  at  its  meeting  of  25 
January  1993,  urged  the  Community  and  Member  States  to  establish  a  strict  and 
convergent implementation for the whole Community of international rules. In the list 
of priority  actions discussed  on the 7 and 8 of June  1993, the Council also urged the 
Community  and Member  States  "to implement  IMO  Resolution  A.722(17)  on  the 
application  of  tonnage  measurement  of  ballast  spaces  in  segregated  ballast  oil 
tankers".  The  Communication  "A Common Policy  on Safe  Seas",  approved  by  the' 
Commission on 24 February  1993 and accepted by the Transport  Council on 8 June 
1993 the objectives  of which were  fully  supported  by the Commission,  stresses  the 

need  for  the mandatory  application of  IMO Resolution  A.722(17)  (now  superseded 
by Resolution 747(18) of 4 November  1993) which embodies the principles of which 
have  been  subscribed  by  all  Member  States,  in  all  Community  ports,  to  meet  the 
objective  of cleaner seas. 

This  implies  that  through  the  application  of  this  internationally  agreed  recommen 
dation a financial incentive will be developed by the ports, harbours and other persons 
in  the  Community  for  owners  and  operators  to  use  and  invest  in  environmentally 
friendly  oil tankers. 

b) Is the envisaged action solely the responsibility of the Community or a responsibil 
ity shared  with the Member  States? 

It  is  a responsibility  shared  between the Community  and  the Member  States.  The 
Member  States  are  responsible  for  working  out  and  agreeing  on  the  calculation 
methodology of the tonnage of ships in the framework  of the IMO. The Community 
then  has  exclusive  responsibility  under  Article  84(2)  of  the  Treaty  to  ensure  its 
uniform application by public and private persons. The market is best served through 
a  unified  implementation  of  the  IMO  recommendation.  The  Community's  action 
establishes  the legislative base -the mandatory application of an international recom 
mendation  -  whilst  the  public and  private  persons  have  to  take  the  appropriate 
measures  to ensure  the enforcement  of  the rule. 
The envisaged action stems from the fact that the individual harbour authorities in the 
Member  States have been very reluctant  to introduce  the relevant  IMO Resolutions 
individually and are unlikely to do so in the future,  since individual harbours  would 
be put  at a  competitive  disadvantage  if  they  were  the  only  authorities  enacting  the 
Resolution. 
Thus  Community action is needed in order  to help Member  States enforce  the IMO 
Resolution,  because they will not be able to do so without Community support  even 
though  they  subscribed  to  the  underlying  principles.  The  Regulation  provides  a 
mechanism that,  in order  to compensate possible reduction in income, port,  harbour 
and other  authorities  are free  to impose surcharges  on other vessels. 

c) What  is the Community  dimension of the problem? 

Eleven Member  States are concerned as port States for  sea-going vessels.  Oil trans 
port  to  the  Community  making  use  of  the  waters  surrounding  the  Community, 
represents  approximately  25 % of  the  transport  of  oil  worldwide.  Oil  transport  in 
Community  waters  will  even  show  higher  figures  due  to  transiting  ships.  It  is  an 
immense amount of trade of a source  of energy vital to the Community which must 
be  assured.  However,  it  can not be allowed  at an unacceptable  level  of  risk  to the 
environment.  Therefore,  measures  must be taken to ensure that this cargo is carried 
on ships which are environmentally friendly. Where ships meet these requirements  -
as SBT vessels  do - they should  not be economically penalised. 

The Community dimension is also determined by the environmental aspects connected 
to this issue.  In environmental policy making, the policy level at which action should 
be taken depends on the geographical  scope of the environmental problem.  Spacial 

congruence suggests  that EC-wide or global pollution,  such as the one dealt with in 
this  Regulation,  should  be  tackled  at  the  EC  level  if  efficient  and  cost-effective 
solutions  are  to  be  reached.  Member  States  acting  in  isolation  cannot  solve  the 
problem  at  hand  if  it  has  cross-border  European  and  indeed 
international 
dimensions. 

d)  What  is  the  most  efficient  solution  taking  into  account  the  resources  of  the 
Community  and the Member  States? 

The  most  efficient  solution  is  at  Community  level,  as  amply  described  in  the 
preceding paragraphs. 

e) What is the concrete added value of the action envisaged  by the Community  and 
what would be the cost of  inaction? 

The concrete added value of  this  Regulation  is that  it will  unambiguously  force  all 
port,  harbour  and  other  authorities  in  the  Community,  without  interference  in  the 
Member  States'  legal  system,  to do what they have  failed  to do so  far,  despite  the 
existence of an international  recommendation: 

to implement and enforce  international  provisions  in a non-divergent  way at 
port and harbour  level all over the Community and to eliminate punitively and 
unjustifiably  high port and harbour  levies and other  dues for  SBTs; 

to help prevent pollution of the marine environment through attracting  SBTs 
to the Community  instead  of  the earlier  generation  of  tanker  without segre 
gated  ballast  tanks.  It  is  estimated  that  about  60%  of  all  oil  tankers  sailing 
between ports  in the Mediterranean  are of the non-SBT type; 

to avoid distortion  of competition between ports  in the Community  applying 
or  not applying  the  internationally  recommended  financial  incentive  scheme 
for  oil tankers  when establishing  and  imposing port  and harbour  dues.  This 
point deserves  some more explanation. 

i) 
Ports  which are not applying the reduction scheme have more 
income from  port levies based on the same amount of handled tons of 
oil than ports  which follow  the scheme; 

ii) 
Ports which do apply the reduction scheme have to attract more 
tons of oil from other ports, to be handled in their ports, to receive the 
same amount of  income per ton oil handled,  than ports which are not 
applying  the scheme; 

in) 
Owners  or  operators  of  oil  tankers  operating  in a  fixed  trade 
are  not  free  to transfer  their  transport  (loading  and unloading)  fronr 
one port  to another  to benefit  from  the  reduction  in  levies  in  a port 
which is applying  the incentive scheme; 

iv) 
It is more beneficial  for an owner or operator of a conventional 
oil  tanker  to  transport  to  and  from  a port  where  the  scheme  is  not 
implemented as the levies per ton of oil transported are lower than for 
a SBT of the same tonnage (GT), despite the fact that the conventional 
oil  tanker  is  a greater  threat  to the environment  than a SBT. 

From  the  above,  it  can be  seen  that distortion  of  competition  between  Community 
ports  will  develop  when  not  all  ports  are  implementing  the  internationally  agreed 
financial  incentive  scheme  at the  same  time.  The  purpose  of  this  Regulation  is  to 
implement this scheme in the Community at the same time, so preventing a distortion 
of competition, as explained above between Community ports,  which would be to the 
detriment  of  the  marine  environment,  as  owners  and  operators  of  environmentally 
friendly  oil  tankers  are not attracted to trade in the waters  around the Community  if 
the  financial  incentive  scheme  is  dubiously  applied  in the  Community. 
On  the  other  hand,  distortions  of  competition  theoretically  could  occur  when 
Community  ports  and non-Community  ports  supply  the same  market.  Because  this 
situation  is  difficult  to  ascertain  without  hindsight.  When  such  a  situation  occurs, 
judgement will be executed in the future after implementation of the financial  scheme 
for  the use  of  SBTs  in 'the Community. 

f)  What forms  of  action are available  to the  Community? 

The  optimum  action  of  the  Community  is  for  the  Council  to  adopt  a  Regulation 
imposing  on public and private persons  in the Community  the full  application of  the 
international  recommendation  as  adopted by  the Assembly  of  the IMO  to the  effect 
that this  is  done  in the  most  effective  and pragmatic  way.  In this  way  no  distortion 
of competition is introduced between Community ports in attracting SBTs to the Com 
munity.  The  environment  will  be  served  through  the  possible  development  of 
operators and owners transporting oil to the Community using more SBTs than before 
and conventional  oil  tankers  will  be  forced  out  indirectly. 

g)  Is uniform  legislation  necessary  or does  a Directive  setting  the general  objectives 
and leaving  the execution  to the Member  States  suffice? 

To  harmonize  national  requirements  on  this  issue  and  to  avoid  distortion  of 
competition between ports  in the Community,  the unified  implementation  through a 
Directive  of  the IMO recommendation  does  not serve  the objective  -  to promote  the 
use of SBTs  and to protect the marine environment  - better than a framework Direc 
tive or a Regulation. A Regulation will serve the objective best. A further explanation 
is  given  in paragraph  14. 

12. 
The  facts  outlined  above  show  the  urgent  need  to  ensure  that  there  is  an  unified 
application in the Community  of  IMO Resolution A.747(18) on the Application of  Tonnage 
Measurement  of  Segregated  Ballast Tanks  in Oil Tankers,  when imposing port and harbour 
levies  on tankers,  so as  to reduce  the amount of pollution of  the marine  environment.  This 
implies  a measure  to ensure  that the total tonnage of  the tanks  exclusively  used  for  the car 
riage  of  segregated  water  ballast  is  taken  into  account  as  a reduction  in the  tonnage  of  the 

vessel  used as a basis  for  imposing levies. 

13.  Action at  international  level has so far  not achieved  this objective,  since,  with only 
few  exceptions,  the  agreed  IMO  resolution  has  not  been  implemented.  Also,  an  effective 
answer  to the situation outlined above cannot be found at national level. The Community, on 
the contrary,  can provide a solution through binding provisions  designed to enforce compli 
ance with an IMO resolution i.e. in this case to ensure that SBTs are not penalised by having 
to pay higher dues than conventional oil tankers. By this approach Member  States are  freed 
from  problems  described  in the previous paragraphs. 

In  accordance  with  the  proportionality  principle,  the  Regulation  proposed  by  the 
14. 
Commission  shall  establish  at  Community  level:  i) the obligation  to  follow  a  well-defined 
approach  which is internationally  accepted and supported  by all Member  States,  ii) leaving 
to port, harbour,  and other authorities the task of implementing the measures,  iii) leaving to 
these  authorities  the  freedom  to  adjust  their  fees  as  they  see  fit,  provided  that  they  fully 
respect  the provisions  of the Regulation regarding  tonnage measurement  as a basis  for  fees 
and do not discriminate against SBTs and iv) not to prevent authorities from rearranging their 
levy system  in such a way as to avoid a reduction of their  income,  if they so wish. 

15. 
It must be borne in mind that, at present,  the tonnage measurement of vessels  is not 
unified  globally. The tonnage of an oil tanker may have been measured by various rules, be 
they the Greek rules, the rules of the Oslo Convention 1947, or the International Convention 
on  Tonnage  Measurement  of  Ships,  1969  (London  1969  Rules).  Many  States  are  in  the 
process  of re-establishing  the tonnage of the vessels,  entitled to fly  their flag,  according  to 
the rules  of  the latter  Convention,  within  the transitional  period  as  foreseen.  In  order  to 
avoid  ambiguity,  the  basis  for  measuring  the  tonnage  of  the  segregated  ballast  spaces  is 
restricted  to the latter  rules  only. 

It is the task of Member States to see to the correct implementation of this Regulation 
16. 
by the port,  harbour,  and other authorities  in the Community. This task shall be undertaken 
up by them and they shall report to the Commission on a regular basis on the implementation 
of  the Regulation and its  effects. 

CONTENT OF THE COUNCIL REGULATION 

The objective of this Regulation is to promote the use of SBTs in the Community and 
17. 
to enhance the protection of the marine environment by making IMO Resolution  A.747(18) 
mandatory  in the Community. 

This Regulation also represents  an essential step towards improving compliance with 
18. 
international provisions presently existing in the shipping sector. Problems in enforcing such 
international provisions have led to varying levels of their application in general.  Specifically, 
internationally agreed financial  incentive schemes for  the building and operating of environ 
mentally  friendly  oil  tankers  through  reductions  in port  levies  and  other  charges  for  oil 
tankers  of a specific  design have not been followed  up. 

The aim of this Regulation is to bring about a unified  application of the appropriate 

19. 
international  provisions  in this respect.  This  is to be achieved by ensuring: 

firstly,  that SBTs  are unambiguously  identified  only  as  those defined  in the 
MARPOL 73/78  Convention; 

secondly, that a ship which complies with this definition is then to be certified 
as a SBT and this is to be stated on its International  Oil Pollution Prevention 
Certificate; 

thirdly,  that the tonnage of the ship is measured  in accordance with the rules 
of the International Convention on Tonnage Measurement of Ships,  1969, that 
the tonnage of  the segregated  ballast  tanks  is  to be calculated  in accordance 
with  the  prescribed  formula  set  out  in  paragraph  4  of  the  annex  of  the 
Regulation  and that the figure  of  this  tonnage,  together  with the declaration 
as set out in paragraph  3 of the annex of the Regulation,  is to be inserted, by 
the  issuing  body  of  the  tonnage  certificate,  on  the  International  Tonnage 
Certificate  (1969) of  the vessel  under  the heading  "Remarks"; 

fourthly,  when  collecting  its  dues  and  charges  the  organisation  which 
establishes levies for oil tankers has to deduct, from the GT of the vessel, the 
tonnage  of  the  segregated  ballast  tanks  of  a  SBT,  as  indicated  under  the 
heading  "Remarks"  on  the  International  Tonnage  Certificate  (1969)  of  the 
vessel. 

SPECIAL  CONSIDERATIONS 

Article 1 

The purpose of this Regulation is to encourage the use of environmentally friendly oil tankers 
through  the harmonised  implementation of  IMO Resolution A.747(18)1. 

Article 2 

This  article  establishes  the  applicability  of  the  Regulation.  The  Regulation  applies  to 
segregated  ballast oil tankers  as defined  in MARPOL 73/782, meeting the requirements  of 
both MARPOL 73/78 and the International  Convention on Tonnage Measurement of Ships, 
1969, and holding  a valid  International  Tonnage  Certificate  (1969). 

Article 3 

This  article addresses  the Administration  of the Member  States and other bodies which are 
recognised  by the Member  States to issue  international certificates  for  ships,  entitled to fly 
their  flag,  on their behalf. 

Paragraph  1.  An oil tanker  which would benefit  from  the measures  of  the Regulation has 
to be designed, built, and operated in accordance with the requirements of MARPOL 73/78. 
In order  to prove  this  compliance,  the oil tanker  has  to be certified  as being  a  segregated 
ballast  oil tanker  (SBT) provided  with segregated  ballast tanks. 

Paragraph  2.  Any  oil  tanker  benefitting  from  this  scheme  has  to  carry  on board  a valid 
International Tonnage Certificate  (1969) to prove that the vessel  is measured  in accordance 
with the rules  of the International  Convention on Tonnage Measurement  of Ships,  (1969). 
Furthermore,  to  diminish  the  administrative  burden  for  the  public  and private  authorities 
when they  impose their  levies  for  a SBT,  a declaration  must be present  on the supplement 
of  the International  Oil Pollution Prevention  Certificate  to show that the segregated  ballast 
tanks are in compliance with the requirements of the MARPOL 73/78. In addition, the figure 
of the tonnage of the segregated ballast tanks of the oil tanker should be stated in a particular 
box of the International Tonnage Certificate  (1969) which has been issued for the individual 
oil  tanker. 
The  tonnage  of  the  segregated  ballast  tanks  has  to  be  measured  in  accordance  with  the 
requirements of the International Convention on Tonnage Measurement of Ships, (1969), and 

1  Superseding  Resolution A.722(17)  of  the IMO, adopted on 6 November  1991. 

2  International  Convention for  the Prevention of Pollution from  Ships,  1973, and the 

Protocol  of  1978 related  thereto. 

1 

shall be established according to the rules and procedure as given in the annex of this Regula 
tion,  which is a full  copy of the annex of the IMO Resolution A. 747(18). This approach is 
to be taken for  tht  sole purpose of the harmonization of the implementation of the  financial 
incentive scheme in the Community,  implicitly called for in the IMO Resolution,  to promote 
the use of  SBTs,  through  the reduction of levies  for  environmentally  friendly  tankers. 
The reason that the tonnage measurement of vessels covered by the Regulation must be calcu 
lated  in accordance  with the International  Convention  on Tonnage Measurement  of Ships, 
(1969)  only,  is that,  at present,  several  different  methods  of  tonnage  measurement  can be 
used and are in use based on rules preceding this convention, and that flag States are in the 
process  of  re-assessing  the  tonnage  of  ships  entitled  to  fly  their  flags  during  the 
internationally  agreed  transition  period. 

Article 4 

This  article  is addressed  to the public and private authorities  in the Member  States. 

The  article  affirms  that  public  and  private  authorities  have  to  implement  the  financial 
incentive scheme, as implicitly called for in the IMO Resolution, for environmentally  friendly 
tankers  only  if  those  vessels  can  be- identified  as  such  by  way  of  their  international 
certificates.  This is so when the vessel complies fully with the requirements  of Article 3 and 
is operated  as a SBT.  Only in such a case the tonnage of  the segregated  ballast tanks  of an 
individual oil  tanker  must be excluded from  levies. 

Article 5 

This  article provides  that the annex of the Regulation may be amended by the Commission 
following  the  commitology  procedure  in  order  to  adapt  it  to  possible  evolutions  of  the 
relevant  international  Conventions  and Resolutions. 

Article 6 

This article describes the procedure which must be applied when the Commission is required 
to take a decision on matters. 

Article  7 

The  Regulation  is  addressed  directly  to  private  and  public  persons  and  has  not  to  be 
implemented  in  national  law,  if  the  legal  system  of  Member  States  is  not  requiring  to 
implementation.  However,  each  Member  State  has  to  comply  in  order  to  control  the 
implementation of the Regulation and to assist  Member States in this control.  Furthermore, 
Member  States  are  obliged  to  bring  into  force  legislation  through  which  breaches  of  the. 
application  of  the Regulation can be penalized. 

>f» 

Article  8 

This  Regulation shall  enter into force on  1 January  1995.  This date has been chosen to give 
authorities in the Community sufficient  time to re-establish their financial system for charges 
for  services  to shipping,  so  that no reduction  in income occurs  through the  implementation 
of  the financial  incentive  scheme  for  environmentally friendly oil  tankers. 

W 

proposal for  a Council Regulation 

SYN  481 

.  on the  implementation  of  IMO 
Resolution  A.747(18),  on  the  application  of  tonnage 
measurement  of  ballast  spaces  in  segregated  ballast  oil 
tankers. 

THE  COUNCIL OF THE  EUROPEAN UNION, 

Having regard  to  the Treaty  establishing  the European  Community,  and  in 
particular  Article  84 (2) thereof, 

Having regard to the proposal  from  the Commission  \ 

In cooperation with the European Parliament3, 

Having regard to the opinion of the Economic and Social Committee s

7 

Whereas  operational and accidental pollution by sea-going oil tankers is still 
occurring  and  the  transport  of  oil  by  tankers  of  fhe  conventional  oil  tank 
design poses  a continuous threat to the marine environment; 

Whereas internationally agreed rules for the design and operation of environ 
mentally friendly  oil tankers were  established  under  auspices of the Interna 
tional Maritime  Organization (IMO); 

Whereas  international  conventions  contain requirements  for the  certification 
of oil tankers; whereas the measurements of the tonnage of segregated ballast 
tanks in oil tankers has been further  worked out by the IMO; 

Whereas  all but one of the Member States have ratified  and implemented the 
International Convention for fhe Prevention of Pollution from Ships, 1973 and 
the Protocol of  1978 related thereto (MA&POL 73/78); whereas all Member 
States have ratified and implemented the International Convention on Tonnage 
Measurement  of Ships,  1969; 

It 

Whereas, in conformity with the recommendation of the Assembly of the IMO 
of  4  November  1993  4,  there  is  a desire  to encourage  the design of  environ 
mentally friendly tankers and the use of segregated ballast tanks in oil tankers; 

Whereas the Council recognised the need for intensified  action as appropriate 
at Community or national level to ensure an adequate response  to the require 
ments  of  maritime  safety  and the prevention of  marine pollution;  whereas  it 
is desirable to promote the use of tankers fulfilling  the requirements of regula 
tion  13F  of  Annex  I of  MARPOL  73/78  as  amended  on  6  March  1992,  as 
well  as  segregated  ballast  oil tankers; 

Whereas  it is inappropriate to penalize ship owners and operators for using oil 
tankers  which are environmentally  friendly  in design  and operation; 

Whereas  the charging  of  dues  on the volume  of  the  segregated  ballast  tanks 
of  oil  tankers  is  an  operational  disadvantage  for  those  who  have  taken  an 
important  step  towards  a cleaner  environment; 

Whereas,  for  economic  reasons,  individual  harbour  authorities  are reluctant 
to be put in a competitive disadvantage if they were the only ones enacting the 
IMO Resolution; 

Whereas  IMO  Resolution  A.722(17)  has  been  agreed  upon but  failed  to  be 
implemented by  Member  States; 

Whereas,  in  environmental  policy  making;  the  policy  level  at  which  action 
should  be  taken  depends  on  the  geographical  scope  of  the  environmental 
problem.  In  this  case,  spatial  congruence  suggests  that  EC-wide  or  global 
pollution should be tackled at Community  level  if efficient  and  cost-effective 
solutions  are to be reached.  Member  States  acting  in isolation  cannot  solve 
the problem  at hand,  as  it has  a cross-border  international  dimension; 

Whereas  for  the purpose  of  the protection  of  the  marine  environment  from 
pollution from oil  tankers of  a conventional  design,  the marine environment, 
the  Community  and  its  Member  States  and  the  industry  are  best  served 
through an unified implementation in the Community of internationally agreed 
rules addressing  all persons  who charge levies on oil tankers,  inter alia, ports 
and harbours  and pilotage  organisations  in the  Community; 

Whereas  in accordance with the principle of subsidiarity,  the agreement in the 
IMO  on  the  calculation  of  the  tonnage  of  ballast  spaces  in  segregated  oil 
tankers  laid  down  in  IMO  Resolution  A. 747(18)  adopted  on  4  November 
1993,  has been concluded  in presence  of  Member  States; 

4  Resolution A.747(18)  of 4 November  1993, which revokes  Resolution 

A.722(17)  adopted on 6 November  1991. 

43 

Whereas  in  accordance  with  spatial  congruence  to  take  measures  for  the 
Community  as  a whole,  to avoid distortion of competition  in shipping  within 
the Community and to reach efficient  and cost-effective  solutions,  a concerted 
action,  not  infringing  the subsidiarity  principle,  is  most appropriate  through 
a Regulation,  thus  implementing  the agreed rules  in the  Community; 

-Whereas  the flag  State or other bodies  issuing  the International  Oil  Pollution 
Prevention  Certificate  and  the  International  Tonnage  Certificate  (1969),  as 
well  as  the  ship  owners  and persons  who charge  levies  on oil  tankers  must 
work together to enhance the protection of the marine environment through the 
deduction from  their levies  the tonnage of the segregated ballast spaces  of oil 
tankers,  according  to  the  relevant  recommendation  of  the  Assembly  of  the 
IMO,  through  the principles  laid down in the annex to this  Regulation; 

Whereas the operation of environmentally friendly oil tankers benefits both the 
coastal  States  and the industry,  which  is promoted  through this  Regulation; 

Whereas  it is  neither  the purpose of  this Regulation to unify  laws and regula 
tions  of  Member  States  based  on  the  above  mentioned  Conventions,  nor  to 
harmonize  the  system  of  charging  levies  on  users  of  ports  and  harbour 
services; 

Whereas  persons  applying  the IMO recommended  scheme  should not be in a 
financial  disadvantaged  situation compared with those which do not apply it; 

HAS  ADOPTED  THIS  REGULATION: 

Article  1 

The  purpose  of  the  Regulation  is  to  enforce  within  the  Community 
Resolution  A.747(18)  5  annexed  to  this  Regulation,  of  the  International 
Maritime  Organization  (IMO),  adopted  on 4th November  1993,  in order  to 
tanks. 
encourage 

tankers  with  segregated  ballast 

the  use  of  oil 

5  Superseding Resolution A.722(17)  of the IMO, adopted on 6 November 

1991. 

m 

Article  2 

This  Regulation shall  apply to oil tankers  which can bear in specially 
1. 
appointed  cargo  tanks  segregated  ballast  as  defined  in  regulation  1(17)  of 
Annex  I  of  MARPOL  73/786;  which  are  designed,  built,  equipped  and 
operated as segregated ballast oil tankers; which meet the requirements of the 
International Convention on Tonnage Measurement of Ships  1969; and which 
hold  the International Tonnage  Certificate;" (1969). 

Article  3 

For  the purpose  of  this  Regulation,  an oil  tanker,  which  is  a tanker 
1. 
designed, built, equipped and operated and complies fully with all the relevant 
requirements  of MARPOL 73/78,  is to be certified  by the government of the 
flag  State or by  other bodies  entitled  to do so  on  its  behalf  as  an oil  tanker 
provided  with  segregated  ballast  tanks.  This  compliance  has  to  be  stated 
clearly by such authority in the appropriate paragraph of the supplement to the 
International  Oil Pollution Prevention  Certificate. 

The competent body when issuing the International Tonnage Certificate 
2. 
(1969)  for a segregated ballast tanker which has been measured following the 
rules  of  the  International  Convention  on  Tonnage  Measurement  of  Ships, 
1969,  for  the  purpose  of  this  Regulation,  shall  insert,  under  the  heading, 
"Remarks",  a  statement  according  to  paragraph  3  of  the  annex  to  this 
Regulation,  specifying  the tonnage of the segregated ballast tanks of  the ship 
which shall be calculated in accordance with the method and the procedure set 
out  in paragraph 4  of the annex to this Regulation. 

Article  4 

When determining tariffs for oil tankers, public or private persons shall 
exclude  the  tonnage  of  the  segregated  ballast  tanks  of  an  oil  tanker  which 
complies  with the requirements  of  Article  3,  as  indicated under  the heading 
"Remark"  of  the International  Tonnage  Certificate  (1969). 

6  International  Convention  for  the  Prevention  of  Pollution  from  Ships, 

1973,  and the Protocol  of  1978 related thereto. 

•s 

Article 5 

The  Commission,  in  accordance  with  the  procedure  laid  down  in 
Article  6,  may  amend  the  annex  of  this  Regulation  in  order  to  take  into 
account amendments  to Resolution A.747(18) of the IMO and to the relevant 
international  Conventions  and new  international  Conventions. 

Article  6 

The Commission shall be assisted by a committee of an advisory nature 
1. 
composed  of 
representatives  of  Member  States  and  chaired  by  the 
representative  of  the  Commission.  This  Committee  shall  be  called  by  the 
Commission once a year or whenever it is necessary  for the application of this 
Regulation. 

2. 

3. 

The  Committee  shall  draw up its rules  of procedure. 

The following procedure shall apply for matters covered by Article 5. 

(a) 

(b) 

(c) 

the  representative  of  the  Commission  shall  submit  to  the 
committee a draft of the measures  to be taken. The committee 
shall deliver its opinion on the draft,  within a time limit which 
the  chairman  may  lay  down  according  to  the  urgency  of  the 
matter,  if necessary  by taking a vote; 

the opinion shall be recorded  in the minutes;  in addition, each 
Member  State  shall  have  the right  to ask  to have  its  position 
recorded  in the minutes; 

the  Commission  shall  take  the  utmost  account  of  the  opinion 
delivered  by  the committee.  It shall  inform  the committee  of 
the manner in which  its opinion has been taken into account. 

Article  7 

1. 
Member  States  shall,  in due  time,  but before  1 January  1995,  adopt 
such  laws,  regulations  or administrative  provisions  as  may be  necessary  for 
the implementation of  this Regulation. 
Such measures  shall cover,  inter alia,  the organization of,  procedure  for and 
means of  control  and the penalties  to be  imposed  in case of breach. 

Member States shall  assist  each other  in applying  this  Regulation and 

2. 
in checking  compliance  therewith. 

\* 

3. 
Within the framework  of this mutual assistance  the Administration  of 
the  Member  States  shall  annually  send one  another  and the Commission  all 
available  information  concerning: 

breaches of this Regulation committed by port and harbour authorities 
and other persons; 

any penalties  imposed  for  such breaches. 

When Member  States  adopt measures  as  referred  to  in paragraph  1, 
4. 
they  shall  contain a reference  to this Regulation or shall  be accompanied by 
such  reference  on the occasion  of  their official  publication.  The  methods  of 
making such reference  shall  be laid down by Member States. 

5. 
The Member States shall immediately communicate to the Commission 
all provisions  of domestic  law which they adopt in the field governed by this 
Regulation.  The  Commission  shall  inform  the other  Member  States  thereof. 

Article  8 

The  Commission shall  annually  review  the implementation of the Regulation 
after  receiving  reports  of  Member  States as prescribed  in Article  7. 

Article  9 

This  Regulation shall  enter  into force  on  1 January  of  1995. 

Article  10 

This  Regulation shall  be binding  in its entirety  and directly  applicable  in ail 
Member States. 

Done  at Brussels, 

For the Council 

The President 

'f 

ANNEX 

In order  to use a unified  base  for  the application of tonnage measurement  of 
segregated  ballast  tanks in oil  tankers,  administrations,  bodies  recognized  to 
issue  international  certificates  and persons  who charge levies  on oil tankers, 
have to accept the following  principles: 

1. 

2. 

The  ship  is  certified  as  a  segregated  ballast  oil  tanker  as  stated  in 
paragraph  5  of  the  supplement  to  the  International  Oil  Pollution 
Prevention  Certificate  and the location of the segregated  ballast tanks 
is  indicated under paragraph 5.2  of  that supplement. 

Segregated  ballast  tanks  are  those  tanks  exclusively  used  for  the 
carriage of segregated  water ballast,  as defined  in regulation  1 (17) of 
annex I of  MARPOL 73/78. The segregated ballast tanks should have 
a separate  ballast pumping  and piping  system  arranged  for  the intake 
and discharged of ballast water from and to the sea only. There should 
be  no  piping  connections  from  segregated  ballast  tanks  to  the  fresh 
water  system.  No  segregated  ballast  tanks  should  be  used  for  the 
carriage  of  any cargo or for  storage  of  ship's  stores  or  material. 

3. 

In the  International  Tonnage  Certificate  (1969) under  "Remarks" and 
entry is made for the tonnage of segregated ballast tanks in oil tankers 
as  follows: 

"The segregated ballast tanks comply with regulation  13 of Annex I of 
the  International  Convention  for  the  Prevention  of  Pollution  from 
Ships,  1973, as modified by the Protocol of  1978 relating thereto, and 
the  total  tonnage  of  such  tanks  exclusively  used  for  the  carriage  of 
". 
segregated  water ballast  is 

The reduced gross tonnage which should be used for the calculation of 
tonnage based  fees  is 

1  This  annex is  a full copy of  the annex of  Resolution A.747(18) of the 

International  Maritime  Organization adopted  on 4 November  1993. 

The  tonnage  of  segregated  ballast  tanks  mentioned  above  shall  be 
calculated  according  to the following  formula: 

Ki  x Vb 

where: 

Kt  =  0.2  +  0.02  log  10 V  (or as tabulated in appendix 2 of the 
International  Convention  on Tonnage  Measurement  of  Ships, 
1969). 

V  =  the  total  volume  of  all  enclosed  spaces  of  the  ship  in 
cubic  metres  as  defined  in  regulation  3  of  the  International 
Convention on Tonnage  Measurement  of Ships,  1969. 

Vb  =  the  total  volume  of  segregated  ballast  tanks  in  cubic 
metres  measured  in accordance  with regulation  6 of  the Inter 
national Convention on Tonnage Measurement of Ships,  1969. 

/? 

COM(93) 468 final 

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