Council Regulation (EC) No 718/1999 of 29 March 1999 on a Community-fleet capacity policy to promote inland waterway transport
Date: 1999-03-29
Institutions: Council of the European Union
Subjects: carriage of goods, chartering, inland waterway fleet, inland waterway shipping, transport regulations

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Official Journal of the European Communities

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 718/1999

of 29 March 1999

on a Community-fleet capacity policy to promote inland waterway transport

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 75 thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the Economic and Social
Committee (2),

Acting in accordance with the procedure laid down in
Article 189c of the Treaty (3),

being wiped out by new capacity coming into service
as soon as the abovementioned rule ends; whereas it is
therefore encessary to retain the ‘old-for-new' rule for
a limited period of not more than four years while
gradually reducing the ratios to zero to safeguard the
transition and end the Community market interven-
tion stage; whereas it is also important to maintain the
‘old-for-new' instrument for regulating the capacity of
the Community fleets beyond these four years, but as
a standby mechanism set at zero which could be reac-
tivated only in the event of serious market disturbance
of the kind referred to in Article 7 of Directive 96/75/
EC;

for

improvements

inland waterway networks

(1) Whereas Regulation (EEC) No 1101/89 (4) introduced
arrangements
in the
structural
inland waterway sector for the fleets operating on the
of Belgium,
linked
Germany, France, Luxembourg, the Netherlands and
Austria; whereas the objective of that Regulation was
to reduce overcapacity in the inland waterway fleets by
means of vessel-scrapping schemes coordinated at
Community level; whereas that Regulation expires on
28 April 1999;

the ‘old-for-new'

further overcapacity,

(2) Whereas of the measures to support these structural
improvement arrangements with the aim of avoiding
aggravation of existing overcapacity or the emergence
rule has
of
proved indispensable to balanced operation of
the
inland waterway market; whereas
rule also
remains an essential instrument for intervention in
the event of a serious disturbance on the same market,
as defined in Article 1 of Directive 96/75/EC (5);
whereas steps should be taken to prevent the benefits
from the scrapping schemes conducted since 1990

this

(1) OJ C 320, 17.10.1998, p. 4 and OJ C 15, 20.1.1999, p. 15.
(2) Opinion delivered on 2 December 1998 (OJ C 40, 15.2.1999,

p. 47).

(3) Opinion of the European Parliament of 3 December 1998 (OJ
C 398, 21.12.1998), Common Position of the Council of 21
December 1998 (OJ C 55, 25.2.1999) and Decision of
the
European Parliament of 25 February 1999 (not yet published
in the Official Journal).

(4) OJ L 116, 28.4.1989, p. 25. Regulation last amended by
Commission Regulation (EC) No 742/98 of 2 April 1998 (OJ
L 103, 3.4.1998, p. 3).

(5) Council Directive 96/75/EC of 19 November 1996 on the
systems of chartering and pricing in national and international
inland waterway transport
in the Community (OJ L 304,
27.11.1996, p. 12).

(3) Whereas the emergence of new overcapacity must be
kept in check effectively in every branch of the inland
waterway transport market; whereas it
is therefore
important that the measures to be adopted should be
generally applicable and cover all cargo vessels and
pusher craft; whereas there should be exemption from
such measures for vessels which, because they operate
solely on closed national or international markets, in
no way contribute to the overcapacity on the network
of linked inland waterways and provision should be
made for the possibility of exempting vessels which,
because their deadweight tonnage is less than 450
tonnes, also do not contribute to such overcapacity;
whereas, by contrast, private fleets performing own-
account operations cannot be excluded because of
their impact on transport markets;

(4) Whereas a common approach allowing Member States
to take joint measures to attain the same objective is a
sine qua non for regulating capacity; whereas to this
end the scrapping funds introduced by Regulation
(EEC) No 1101/89 in the Member States with inland
a
waterways

should be maintained, but under

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new designation, and should administer this ‘old-for-
new' rule; whereas the surplus funds from the indus-
try’s contributions to structural improvement schemes
conducted up until 28 April 1999 should be placed in
a reserve fund attached to the abovementioned funds;

(5) Whereas,

in view of

the fundamental differences
between the dry cargo, liquid cargo and pusher craft
markets, it is advisable to keep separate accounts in
each fund for dry cargo carriers, tanker vessels and
pusher craft;

(6) Whereas,

in the context of an economic policy
compatible with the Treaty, responsibility for capacity
regulation lies primarily with operators in the sector;
whereas the cost of the measures introduced should
therefore be borne by the undertakings in the inland
waterway sector; whereas
this capacity regulation
consists of laying down the conditions to apply for
bringing into service certain new capacity without
going so far as totally blocking access to the market;
whereas it is possible to limit the duration and impact
of these conditions and to adjust them flexibly to
market
the ratios must gradually be
reduced to zero within four years starting on 29 April
1999; whereas this regulatory mechanism designated
the ‘old-for-new' rule should be maintained as a
standby mechanism once the ratio reaches zero;
whereas the special contributions paid under
the
‘old-for-new' rule should be placed in the reserve fund
and may be used for granting scrapping premiums, if
intervention in the market proves necessary;

trends but

(7) Whereas it is desirable to ensure that the measures
provided for in this Regulation and implementation
thereof do not distort, or
threaten to distort,
competition, in particular by favouring certain under-
takings to an extent which is contrary to the common
interest; whereas,
in order to place the enterprises
concerned in similar conditions of competition, the
special contributions to be paid to the funds covering
scrapping
the building of new craft
premiums, if such premiums prove necessary in the
event of a serious disturbance of the market and in
accordance with the procedure provided for in Article
8 of Directive 96/75/EC, should be set at uniform
rates and on uniform terms;

and the

(8) Whereas,

the

since

inland waterway

are
fleets
Community fleets, decisions on operation of
this
capacity-regulation mechanism should be taken at
Community level; whereas the power to adopt such
decisions, to see to implementation thereof and to
safeguard the conditions of competition laid down in
this Regulation should be conferred on the Commis-
sion; whereas it is important that the Commission
take such decisions after consulting the Member States

and the organisations representing inland waterway
transport at Community level;

(9) Whereas, in connection with the modernisation and
the Community fleets to create a
restructuring of
context
favourable to the environment and safety,
social measures should be envisaged to help workers
who wish to leave the inland waterway industry or to
retrain for jobs in another sector, together with meas-
ures to encourage the establishment of groupings of
skills and to
to improve operators’
undertakings,
promote
to technical
vessels
progress,

adaptation of

the

HAS ADOPTED THIS REGULATION:

Article 1

Inland waterway vessels used to carry goods between two
or more points by inland waterway in the Member States
shall be subject to the Community-fleet capacity policy
laid down in this Regulation.

For a period of not more than four years with effect from
29 April 1999 this capacity policy shall include the condi-
tions for bringing into service new capacities, in accord-
ance with this Regulation.

Article 2

This Regulation shall apply to cargo-carrying vessels
1.
and pusher craft providing transport services on own
account or for hire or reward and registered in a Member
State or, if not registered, operated by an undertaking
established in a Member State.

For the purposes of this Regulation,
‘undertaking' shall
mean any natural or legal person exercising an economic
activity on a non-industrial or industrial scale.

2.

The following shall be exempt from this Regulation:

(a) vessels operating exclusively on national waterways
not linked to other waterways in the Community;

(b) vessels which, owing to their dimensions, cannot leave
the national waterways on which they operate and
cannot enter the other waterways of the Community
(captive vessels), provided that such vessels are not
likely to compete with vessels covered by this Regula-
tion;

(c) vessels operating exclusively on the Danube (and its

tributaries) up to Kelheim without leaving it;

(d) pusher craft with a motive power not exceeding 300

kilowatts;

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(e) sea-going inland waterway vessels and ship-borne
barges used exclusively for international or national
transport operations during voyages which include a
sea crossing;

(f) vessels used exclusively for storage of goods,

i.e.
vessels used for loading and subsequently unloading
goods at the same place;

(g) dredging equipment, such as hopper vessels and
pontoons and floating construction plant, provided
that such equipment is not used for the carriage of
goods within the meaning of Article 1;

(h) ferries;

(i) vessels providing a non-profit-making public service.

3.
Each Member State concerned within the meaning
of Article 3(1) may exclude its vessels with a deadweight
tonnage of less than 450 tonnes from the scope of this
Regulation. Where a Member State avails itself of this
option, it shall notify the Commission accordingly within
six months;
inform the other
Member States.

the Commission shall

Article 3

Each Member State whose inland waterways are
1.
linked to those of another Member State and the tonnage
of whose fleet
is above 100 000 tonnes, hereinafter
referred to as ‘the Member State concerned', shall set up,
under its national legislation and with its own adminis-
trative resources, an Inland Waterways Fund, hereinafter
referred to as ‘the Fund'.

2.
The competent authorities in the Member States
concerned shall administer the Fund. Each Member State
representing
involve its national organisations
shall
inland waterway carriers in this administration.

port. In this case, the measures must be the subject of an
action at Community level.

6.
There shall be mutual financial support between the
Funds with regard to the separate accounts mentioned in
the first subparagraph of paragraph 3. This shall come
into play for all the expenditure and all the funding
mentioned in the second subparagraph of paragraph 3, so
as to quarantee equal treatment for all carriers subject to
this Regulation, independently of the Fund to which the
vessel belongs.

7.
The Member States concerned shall continue to
administer the Fund referred to in Article 3 of Regulation
(EEC) No 1101/89 until the new Fund referred to in
paragraph 1 is set up.

Article 4

Vessels covered by this Regulation, whether newly
1.
imported from a third country or due to
constructed,
leave the waterways mentioned in Article 2(2)(a), (b) or (c),
may be brought into service subject to the condition (the
‘old-for-new' rule) that the owner of the vessel to be
brought into service:

(cid:190) either scraps, without receiving a scrapping premium,
tonnage in line with the ratio between old and new
tonnage set by the Commission,

(cid:190) or pays into the Fund covering the new vessel, or into
the Fund chosen by the vessel-owner in accordance
with Article 5(2), a special contribution based on the
abovementioned ratio or,
scraps a
tonnage smaller than required by the abovementioned
ratio, pays the difference between the tonnage of the
new vessel and the tonnage scrapped.

the owner

if

3.
Each Fund shall have a reserve fund consisting of
three separate accounts; one for dry cargo carriers, one for
tanker vessels and one for pusher craft.

2.
The ratio may be set at different levels for different
sectors of the market, i.e. dry cargo carriers, tanker vessels
and pusher craft.

This reserve fund shall be financed by:

(cid:190) the surplus funding from the structural improvement
schemes conducted up until 28 April 1999, consisting
solely of financial contributions from the industry,

(cid:190) the special contributions referred to in Article 4,
(cid:190) the financial resources which could be made available
in the event of serious disturbance of the market, as
referred to in Article 7 of Directive 96/75/EC.

4.
The reserve fund may be used in connection with
the suitable measures referred to in Article 7 of Directive
96/75/EC and, in particular, in the course of the improve-
ment measures organised at Community level in accord-
ance with the procedure defined in paragraph 6 and
Article 6 of the Regulation.

5.
The reserve fund may be used in the course of
measures referred to in Article 8 if unanimously requested
by the organisations representing inland waterway trans-

The ratio shall be constantly reduced to bring it as
quickly as possible and in regular stages to zero no later
than 29 April 2003.

Once the ratio has been set at zero, the arrangements
shall become a standby mechanism and may be react-
ivated only in the event of a serious disturbance of the
market, as provided for by Article 6.

The owner of

3.
the vessel must have the choice
between paying the special contribution or scrapping old
tonnage:

(cid:190) either at the time that the firm order for construction
of the new vessel is placed or at the time the applica-
is
tion for import
brought into service within twelve months thereafter,

is lodged, provided the vessel

(cid:190) or at the time that the new or imported vessel is

brought into service.

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The choice of time must be stated when ordering or
applying to import the vessel.

Article 6

The vessel offered for scrapping as compensatory tonnage
must have been scrapped before the new vessel is brought
into service.

Owners of vessels to be brought into service who have a
higher tonnage than necessary scrapped shall receive no
financial compensation for this surplus.

Any Member State concerned may permit vessels defin-
itively withdrawn from the market for use for purposes
other than the carriage of goods, such as vessels for
humanitarian purposes, museum ships, vessels for devel-
oping countries outside Europe or vessels placed at the
disposal of non-profit-making bodies, to be counted as
compensatory tonnage, i.e. treated as if they had been
scrapped. It shall communicate such permission to the
Commission, which shall inform the other Member States
concerned.

In the case of pusher craft, the concept of ‘tonnage'

4.
shall be replaced by that of ‘motive power'.

5.
The conditions laid down in paragraph 1 shall also
apply to increases in capacity resulting from the length-
ening of a vessel or the replacement of pusher-craft
engines.

After consulting the Member States and the organ-
6.
at
isations
Community level, the Commission may exempt special-
ised vessels from the scope of paragraph 1.

inland waterway

representing

transport

The specialised vessels must be specially and technically
designed to carry a single type of goods and technically
unsuitable for carrying other goods, it must be impossible
to carry this single type of goods in vessels without special
technical installations and the owners of the vessels must
give a written undertaking that no other goods will be
carried in their vessels as long as the ‘old-for-new' rule
applies.

Article 5

1.
For vessels registered in one of the Member States
concerned, the special contribution shall be paid into the
Fund of the Member State where the vessel is registered.
For non-registered vessels operated by an undertaking
established in one of the Member States concerned, the
special contribution shall be paid into the Fund of the
Member State in which the undertaking is established.

2.
The special contribution for vessels registered in a
Member State other than a Member State concerned or for
non-registered vessels operated by an undertaking estab-
lished in a Member State other than a Member State
concerned shall be paid into one of the Funds set up in
the Member States concerned, at the choice of the vessel-
owner.

In the event of serious disturbance on the market, as
defined in Article 7 of Directive 96/75/EC and, at the
request of a Member State, after the Committee referred
to in Article 8 of the said Directive has given its opinion
and following the procedure laid down in the same
Article, the Commission may reactivate the ‘old-for-new'
rule for a limited period, in accordance with Article 7 of
the said Directive, accompanied or not by structural
improvement measures.

Under such structural improvement measures owners of
vessels referred to in Article 2(1) who scrap a vessel, i.e.
who have the hull of the vessel broken up totally or, in
the case of pusher craft, destroy the hull and the engine,
may receive a scrapping premium at the rate set by the
Commission under the conditions laid down in Article 7
from the Fund covering the vessel insofar as the financial
resources are available.

However, this premium may be granted only in respect of
vessels which the owner proves form part of his active
fleet, i.e.:

(cid:190) vessels which are in good working order, and

(cid:190) vessels for which the owner can produce valid certi-
ficates of water worthiness and tonnage or an author-
isation to engage in national transport issued by the
competent authority of one of the Member States
concerned, and

(cid:190) vessels which have made at least ten voyages during
the 24 months preceding application for the scrap-
ping premium.
‘Voyage' shall mean a commercial
transport operation over a distance normal for the
carriage of goods of the same type (over 50 km) and
carrying a volume of cargo in reasonable proportion to
the cargo capacity of the vessel (at least 70 %).

No premium shall be granted in respect of vessels which,
as a result of a wreck or other damage suffered, are no
longer repairable or for which the repair costs are higher
than the amount of the scrapping premium.

Where the competent authorities have well-founded
reasons to doubt that the vessel covered by the application
for the scrapping premium is in good working order, they
may request a surveyor to certify that the vessel concerned
is in a technical condition to carry goods. The scrapping
premium shall be refused if the vessel fails to meet this
requirement.

Article 7

representing

After consulting the Member States and the organ-
1.
isations
at
Community level, the Commission shall lay down sep-
arately for dry cargo carriers, for tankers and for pusher
craft:

inland waterway

transport

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(cid:190) the ratios for the ‘old-for-new' rule for the vessels

referred to in Article 2,

(cid:190) the rate of the special contributions,
(cid:190) the period during which scrapping premiums referred
to in Article 6 will be paid, the conditions for granting
them and the rates,

(cid:190) the adjustment coefficients (equivalent tonnage) for
each type and category of inland waterway vessel.

2.
The special contributions and scrapping premiums
shall be expressed in euros. The rates applying shall be
the same for each Fund.

The special contributions and scrapping premiums
3.
shall be calculated for cargo-carrying vessels on the basis
of the deadweight tonnage and for pusher craft on the
basis of the motive power of the vessel.

representing

After consulting the Member States and the organ-
4.
at
isations
Community level,
lay down
detailed rules for the mutual financial support referred to
in Article 3(6).

inland waterway
the Commission shall

transport

5.
The decisions reached by the Commission shall also
take account of the results of observation of the transport
markets
in the Community and of any foreseeable
changes therein, as well as of the need to avoid any
distortion of competition to an extent which is contrary
to the common interest. In order to contribute to observa-
tion of the market, owners of vessels built or imported
must inform the Funds six months before these vessels
are brought into service.

Article 8

(cid:190) make it easier for inland waterway carriers leaving the
industry to obtain an early retirement pension or to
transfer to another economic activity,

(cid:190) organise vocational training or re-training schemes for

workers leaving the industry,

(cid:190) encourage private owner-operators to join trade asso-

ciations,

(cid:190) encourage adaptation of vessels to technical progress
in order to improve working conditions and promote
technical safety requirements,

(cid:190) improve operators’ skills in order to safeguard the

development and future of the trade.

Article 9

1. Member States shall adopt the measures necessary to
implement this Regulation and shall notify the Commis-
sion thereof.

These measures shall provide, inter alia, for permanent
and effective verification of compliance with the obliga-
tions imposed on undertakings by this Regulation and the
national provisions adopted in implementation thereof,
and for appropriate penalties in the event of infringe-
ment.

2. Member States shall communicate to the Commis-
sion annually all relevant information on progress with
the ‘old-for-new' scheme and on the financial position of
the Funds and of their reserve fund.

The Commission shall adopt the decisions which it

3.
is required to take under Article 7.

The Commission shall ensure that the Funds apply
4.
this Regulation uniformly and shall ensure coordination
thereof.

Without prejudice to Article 3(5), any Member State may
take measures in particular to:

Article 10

This Regulation shall enter into force on 29 April 1999.

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

Done at Brussels, 29 March 1999.

For the Council

The President

F. M(cid:154)NTEFERING