CELEX: 52012PC0118
Language: en
Date: 2012-03-23
Title: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on ship recycling

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		52012PC0118
		
			Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on ship recycling /* COM/2012/0118 final - 2012/0055 (COD) */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
1.1.        General context and
grounds for the proposal
Environmentally unsound and unsafe practices for dismantling ships
remain a matter of serious concern. At the end of their operating life, most
large commercial seagoing vessels are being dismantled in facilities using
methods with significant environmental and health impacts. These negative aspects
prevent ship recycling from becoming a properly sustainable industry.
The situation is likely to worsen since
large numbers of ships are expected to be sent for dismantling in the coming
years as a result of the current overcapacity of the world fleet which is
estimated to remain for at least 5 to 10 years. In addition, the coming peak in
ship recycling that will occur around the phasing-out date for single-hull
tankers (2015) is expected to essentially benefit the most sub-standard
facilities.
The Waste Shipment Regulation[1] implements
in the European Union the requirements of the Basel Convention on the control of
transboundary movements of hazardous wastes and their disposal. It also
implements the provision of an Amendment to the Convention (the so-called ‘Ban
Amendment’) which prohibits the export of hazardous waste outside the OECD.
This Amendment has not yet entered into force at international level due to
insufficient ratification. 
According to the Waste Shipment Regulation,
EU-flagged ships going for dismantling are classified as hazardous waste since
they contain hazardous substances. As such, they can only be dismantled within countries
of OECD. However, this legislation is almost systematically circumvented by EU-flagged
ships[2] thereby rendering both International rules and Union legislation
ineffective.
Such widespread non-compliance is firstly
linked with the lack of recycling capacity available within the OECD in
particular for the largest ships. The existing capacity at European level is
used for the dismantling of small ships and governmental ships but not for
large commercial sea-going vessels. Similarly to shipbuilding, ship dismantling
has re-located during the last few decades from European countries to non-OECD
countries for economic reasons (demand for steel, low labour costs, no
internalisation of environmental costs). As a result, the option of developing
additional dismantling capacity in Europe has not been economically feasible.
A significant recycling capacity exists
outside the OECD in China, India, Pakistan and Bangladesh. It is expected that
facilities located in the OECD, in China as well as some facilities located in India
will be able to comply with the requirements of the Hong Kong Convention by
2015. 
The current existing capacity available in
China (2,83 millions LDT[3] in 2009) is, in fact, already largely sufficient to treat all EU flagged
ships until 2030 (the maximum yearly volume in the period 2012-2030 will be of
1,88 million LDT) and a new facility with a capacity of 1 million LDT will
shortly start its activities. This is the result of actions undertaken by the
public authorities to promote specifically the green ship recycling market and
close substandards facilities as well as investments made by responsible
European shipowners in safe and sound recycling facilities. 
Secondly, the
current situation of the ship recycling market favours facilities in Bangladesh,
India and (to a lesser extent) Pakistan whilst competitors in the EU, Turkey
and China with higher technical standards are only able to occupy niche markets
such as those for small ships, government vessels including warships or the
fleet of committed shipowners.
Finally, the current legislation is not
adapted to the specificities of ships. Identifying when a ship becomes waste is
difficult. Shipowners’ decisions to send their ships
for recycling are based on an economic comparison of the costs and benefits of
maintaining a ship in operation and sending it for dismantling.
If this decision is taken while the ship is
in international waters or in waters under the jurisdiction of the recycling
state, it is very difficult or impossible to apply the procedures of the Waste
Shipment Regulation. Moreover, commercial ships leaving European ports and
waters usually optimise their last voyage by delivering goods in Asia prior to
going for dismantling. If the shipowner does not declare the intention to
dismantle a ship when leaving an EU port, the relevant authorities can in
general not intervene. The Waste Shipment Regulation establishes rights and
obligations for the exporting state, the importing state and, if applicable,
the transit states. The port states are, however, not necessarily informed of
the shipowner’s intention to recycle a ship. Finally, it is also not uncommon for
a ship to be sold to another operator under the pretence that the ship will
continue trading only for it to be transferred to a ship dismantling facility.
In order to apply the current legislation
and, in particular, the ban on exporting end of life ships outside the OECD,
Member States would have to make a disproportionate effort on enforcement given
the lack of recycling capacity within the OECD as well as the legal possibility
for any ship to change its state of registration ("flag state").
In order to improve the situation, Parties to the Basel Convention
invited, in 2004, the International Maritime Organization (IMO) to develop
mandatory requirements for ship recycling[4].In 2006, the Parties to the Basel Convention welcomed the steps
taken by the IMO in developing the draft ship recycling convention and
recognised that the duplication of instruments having the same objective should
be avoided. Parties were invited to carry out an assessment of the level of
control and enforcement established by the Basel Convention in its entirety and
an assessment of the expected level of control and enforcement to be provided
by the draft ship recycling convention in its entirety, and to compare the two
conventions[5].
The Hong Kong International Convention for
the Safe and Environmentally Sound Recycling of Ships (hereinafter referred to
as the Hong Kong Convention) was adopted in May 2009 by the International
Maritime Organization. This Convention, when it comes into force, will require
the Parties (including EU Member States) to dismantle their large commercial
ships only in countries that are party to the Convention. This may include
Asian countries, whose ship dismantling facilities will need to meet
internationally accepted standards (higher than the current standards). These
facilities will have to treat ships coming from non-Parties in a similar manner
as ships flying the flags of the Parties to the Convention (‘no more favourable
treatment’ clause).
The Hong Kong Convention was adopted in 2009 but needs to be
ratified by a sufficient number of both large flag and recycling states in
order to enter into force and start producing effects. This is not expected to
happen before 2020 at the earliest. This Convention will enter into force
twenty four months after the date on which the
following conditions are met:
–                        
not less than 15 States have either signed it
without reservation as to ratification, acceptance or approval, or have
deposited the requisite instrument of ratification, acceptance, approval or
accession;
–                        
their combined merchant fleets constitute not
less than 40 per cent of the gross tonnage of the world’s merchant shipping;
and
–                        
the combined maximum annual ship recycling
volume during the preceding 10 years constitutes not less than 3 per cent of
the gross tonnage of the combined merchant shipping of the same States.
The Parties to
the Basel Convention welcomed the adoption of the Hong Kong Convention in 2010[6] and embarked on a preliminary assessment of whether the Hong Kong
Convention establishes a level of control and enforcement equivalent to that
established under the Basel Convention[7].
The European Union and its Member States finalised their assessment
in April 2010 which concluded that the Hong Kong Convention appears to provide
a level of control and enforcement at least equivalent to that provided by the
Basel Convention for ships which are classified as waste under the Basel
Convention[8].
In October 2011, Parties to the Basel
Convention encouraged the ratification of the Hong Kong Convention to enable
its entry into force[9].
The Commission adopted a Green Paper on
better ship dismantling in 2007 and a Communication proposing an EU strategy on
ship dismantling[10] in
2008. This strategy focused on measures to improve ship
dismantling conditions as soon as possible, including in the interim period
before the entry into force of the Hong Kong Convention: i.e. dealing with key
elements of the Convention, encouraging voluntary industry action, providing
technical assistance and support to developing countries and better enforcing
the current legislation. The following has been
achieved by the Strategy: 
–                        
Adoption of a Convention which will enhance ship
recycling with its procedures adapted to the specificities of ships and
detailed requirements to be met by improved recycling facilities; 
–                        
Support for the voluntary actions by the
industry prior to the entry into force of the Convention: 
·              
voluntary application of the Convention's
requirements and guidelines (for example, development of inventories of
hazardous materials), 
·              
adoption of green sales contracts, 
·              
investments in safe and sound recycling
facilities;
–                        
Studies, research and pilot projects have been
conducted to assess developments and promote better ship recycling technologies
for ships under the scope of the Hong Kong Convention and other ships, 
–                        
Actions have been undertaken by the Commission
to better implement the Waste Shipment Regulation when it was alerted that
specific ships would go for dismantling, 
–                        
Support has been provided to ship recycling
countries through a grant under the Thematic Programme for the environment and
sustainable management of natural resources including energy (ENRTP) to the "Global Programme for Sustainable Ship Recycling" jointly managed by Secretariats of the
Basel Convention, of the International Maritime Organization and of the
International Labour Organization. 
1.2.        Objective of the proposal
The objective of the Ship Recycling
Regulation is to reduce significantly the negative impacts linked to the
recycling of EU-flagged ships, especially in South Asia without creating
unnecessary economic burdens. The proposed Regulation brings into force an
early implementation of the requirements of the Hong Kong Convention, therefore
hastening its entry into force globally.
1.3.        Existing provisions in the
area of the proposal
The proposal concerns the adoption of a
regulation on ship recycling. The new regulation is intended to replace the
existing Regulation (EC) No 1013/2006/[11]
with regard to ships covered by the Hong Kong Convention. 
2.           RESULTS OF CONSULTATIONS WITH THE
INTERESTED PARTIES AND IMPACT ASSESSMENT
2.1.        Consultation of interested
parties
In developing the impact assessment
supporting this legislative proposal, the Commission consulted stakeholders and
drew upon external expertise through a public consultation from April to June
2009 and four expert workshops.
Most stakeholders clearly supported prompt
ratification of the Hong Kong Convention by the EU Member States in order to hasten
its entry into force by encouraging ratification by other States. Many
stakeholders are in favour of early implementation of the Convention by the EU
since they consider that waiting for its entry into force is unacceptable when
ship-breaking workers continue to be killed or injured at work and considerable
environmental damage occurs. Some consider that the EU should not impose
additional requirements that go beyond the Convention. The contributions, the
summary of the responses to the public consultation and the reports on the
stakeholders’ workshop are available on the Internet[12].
The European Parliament, the European
Economic and Social Committee and the Council debated the Communication and
adopted respectively a resolution on 26 March 2009[13], an opinion on 13 May 2009[14] and conclusions on 21 October
2010[15]
concerning an EU strategy for better ship dismantling. 
2.2.        Impact assessment
An
impact assessment was conducted by the Commission to consider the options for a
ship recycling regime which can be effectively enforced. The analysis
considered the economic, social and environmental impacts of different options.
The recommendations of the impact
assessment board (IAB) were taken into account, with the main modifications
concerning the need for a clearer problem definition, clearer presentation of
the actions already taken in ship recycling countries in the baseline scenario,
strengthening of the intervention logic and a better link between the specific
and operational objectives and the problems and drivers, and strengthened
assessment of the policy options regarding in particular the potential future
enforcement and compliance difficulties.
Only the policy package D fully satisfies
the identified objectives as demonstrated in the impact assessment.
This option consists in introducing an
ad-hoc Regulation covering the ships under the Hong Kong Convention (large
commercial seagoing vessels). This Regulation would cover the whole life cycle
of EU-flagged ships, implement early the requirements of the Hong Kong
Convention and, as allowed by the Convention, include more stringent
environmental requirements for ship recycling facilities. Ships flying the flag
of EU Member States would only be allowed to be recycled in facilities meeting requirements.
EU Member States will be informed in
writing and in due time of the shipowner’s intention to send a ship for
recycling. This requirement as well as the introduction of sanctions, which
would be at least equivalent to those applicable under the current legislation,
will ensure compliance. While it is difficult to expect the current ‘beaching’
facilities to be able to meet these requirements, it is possible that upgraded
facilities might be able to fulfil these criteria in the future. In order to
avoid confusion, overlaps and administrative burden, ships covered by this new
legislation would no longer come under the Waste Shipment Regulation.
This policy package constitutes the basis
for this proposal.
3.           LEGAL ELEMENTS OF THE PROPOSAL
3.1.        Summary of the proposal
This legislative proposal addresses, by
means of a new ad-hoc Regulation, ships which fall within the scope of the Hong
Kong Convention (large commercial seagoing vessels). It covers the whole life
cycle of EU-flagged ships, implement some of the requirements of the Hong Kong
Convention (establishment of an inventory of hazardous materials, obligation to
recycle ships in safe and sound facilities, general requirements applicable to
ships prior to recycling) and, as allowed by the Convention, include more
stringent environmental provisions which are necessary prior to the entry into
force of the Convention (requirements for ship recycling facilities,
establishment of an European list of ship recycling facilities, establishment
of a contract between the shipowner and the ship recycling facility).
Obligation to
establish and maintain an inventory of the hazardous materials present on board
ships
Ships flying the flag of an EU Member State
will have to establish and maintain during their whole operating life an
inventory of the hazardous materials present on board. While new ships flying
the flag of a Member State are requested to establish an inventory immediately,
existing ships will have five years to do so except if they are sent for
dismantling earlier.
The inventory has to be updated and
completed prior to sending the ship for recycling so as to ensure that the
selected ship recycling facility is able and authorised to manage all the
hazardous materials and waste present on board.
Ships flying the
flag of Member States will have to be dismantled in safe and environmentally
sound ship recycling facilities
A list of requirements defining the
requirements to be fulfilled by the ship recycling facilities has been
developed on the basis of the technical requirements of the Hong Kong
Convention. Additional requirements have been added in order to protect better
human health and the environment and, in particular, ensure that all hazardous
waste will be treated in an environmentally sound manner both in the ship
recycling facilities and if it is transferred to waste management facilities.
Individual recycling facilities fulfilling
these requirements will apply for inclusion in a European list of ship
recycling facilities. Ships flying the flag of an EU Member State will only be
allowed to be recycled in facilities present on the European list. 
When the Hong Kong Convention will enter
into force, Parties will have to establish and transmit lists of ship recycling
facilities that they have authorized according to the Convention. These lists
will be transmitted to the International Maritime Organisation for
dissemination as appropriate. It will be necessary to review the Regulation on
ship recycling when these lists of facilities will become available at
international level in order to avoid administrative burden and duplication of
work with the European list of ship recycling facilities. A mechanism of mutual
recognition could, for example, be introduced.
Specific
requirements prior to recycling 
Ships flying the flag of Member States will
have to minimise the amount of hazardous waste present on board (which can also
be present in cargo residues, fuel oil, etc.) prior to delivery to a ship
recycling facility.
In the specific case of tankers, the
shipowners will have to ensure that ships arrive at the ship recycling facility
in a condition which is ready for certification as Safe-for-entry and
Safe-for-hot-work so as to prevent explosions and (fatal) accidents amongst
workers in ship recycling facilities.
Improving
compliance with the Union legislation
Contrary to the existing legislation, the
proposed Regulation is based on the system of control and enforcement of the
Hong Kong Convention, which is specifically designed for ships and
international shipping (certificates, surveys, specific obligations for the
flag state, etc.).
By allowing ships to be recycled in
facilities located outside of the OECD group of countries as long as they comply
with the requirements and are included in the European list, this Regulation
will also address the current problem of the lack of recycling capacity legally
accessible to shipowners.
In addition, EU Member States will be
informed in writing and in due time of the shipowner’s intention to send a ship
for recycling, thus removing the difficulty of identifying when a ship turns
into waste. Member States will receive information about the planned start and
about the completion of recycling. By comparing the list of ships for which
they have issued an inventory certificate with the list of ships which have
been recycled in authorized facilities, they will be able to identify more
easily illegal recycling. In addition, sanctions which are more specific and
precise than the ones provided for under the current legislation will be
introduced. These requirements, coupled with the availability of sufficient
legally accessible safe and sound recycling and of a system of control well
adapted to the specificities of ships will ensure a better compliance with the
legislation.
Finally, in order to avoid confusion,
overlaps and administrative burden, ships covered by this new legislation would
no longer be covered by the Waste Shipment Regulation.
3.2.        Legal basis
The proposal is based on Article 192(1)
TFEU.
3.3.        Subsidiarity principle
The
subsidiarity principle applies insofar as the proposal does not fall under the
exclusive competence of the EU.
Ship recycling
is already covered by European legislation, namely the Waste Shipment
Regulation.
The European Union
cannot become a party to the Hong Kong Convention since this is reserved to
States which are members of the International Maritime Organization. The EU
Member States will therefore have a key role, mainly as flag states, in the
ratification and achievement of the entry into force of the provisions of this
Convention.
Individual action by Member States will not
be sufficient since not all Member States consider the ratification of the Hong
Kong Convention to be a priority. There is a clear risk of having different
legal requirements applied to large commercial EU-flagged ships depending on
the different Member States concerned. This situation could result in change of
flags and unfair competition between the Member States acting as flag states. 
The establishment of a European list of
ship recycling facilities fulfilling requirements will avoid duplication of
work between EU Member States and facilitate their control procedures as flag
states.
Incorporating the Hong Kong Convention into
European legislation would promote harmonised decision-making and speed up the
ratification process amongst the Member States. In addition, early action by
the EU would influence third countries much more than action by individual
Member States and thus is more likely to bring the Hong Kong Convention quickly
into force. A proposal for a Council decision authorising Member States to
ratify or to accede to, in the interests of the European Union, the Hong Kong
International Convention for the Safe and Environmentally Sound Recycling of
Ships, 2009 is therefore presented jointly with this proposal for a Regulation.

3.4.        Proportionality principle
The proposal complies with the
proportionality principle. The additional burdens for economic operators and
national authorities are limited to those necessary to ensure that ship
recycling is undertaken in a safe and environmentally sound manner. While the
proposal entails additional costs for shipowners (development of the inventories
of hazardous materials and surveys), these costs are expected to be offset by
the substantial social and environmental benefits obtained.
3.5.        Choice of instrument
The proposed instrument is a Regulation.
A Regulation is the appropriate legal
instrument as it imposes on shipowners and Member States, directly and within a
short time frame, precise requirements to be implemented at the same time and
in the same manner throughout the Union. The development of requirements for
safe and environmentally sound ship recycling facilities and of a European list
of ship recycling facilities would, in particular, ensure harmonised
implementation of the Hong Kong Convention.
4.           BUDGETARY IMPLICATION
The proposal has no implications for the EU
budget.
2012/0055 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
on ship recycling
THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 192(1) thereof,
Having regard to the proposal from the
European Commission,
After transmission of the draft legislative
act to the national Parliaments,
Having regard to the opinion of the
European Economic and Social Committee,
Acting in accordance with the ordinary
legislative procedure,
Whereas:
(1)       Ships which constitute
waste and which are subject to a transboundary movement for recycling are
regulated by the Basel Convention on the Control of the Transboundary Movements
of Hazardous Wastes and their Disposal ('the Basel Convention') and Regulation
(EC) No 1013/2006 of the European Parliament and of the Council of 14 June 2006
on the shipment of waste[16].
Regulation (EC) No 1013/2006 implements the Basel Convention as well as an
amendment[17]
to the Convention adopted in 1995, which has not yet entered into force at
international level, and which establishes a ban on exports of hazardous waste
to countries that are not members of the Organisation for Economic Co-operation
and Development (OECD). Since ships contain hazardous materials, they are
generally classified as hazardous waste and are therefore prohibited from being
exported for recycling in facilities in countries not members of the OECD.
(2)       The mechanisms for
controlling and enforcing the current legislation at international and European
level are not adapted to the specificities of ships and international shipping
and have proved to be ineffective in preventing unsafe and unsound ship
recycling practices.
(3)       Current ship recycling
capacity in OECD countries which is legally accessible to ships flying the flag
of a Member State is insufficient. Safe and sound recycling capacity which
already exists in countries which are not members of the OECD is sufficient to
treat all EU-flagged ships and is expected to expand further by 2015 as the
results of actions taken by recycling countries to meet the requirements of the
Hong Kong Convention. 
(4)       The Hong Kong
International Convention for the Safe and Environmentally Sound Recycling of
Ships ('the Hong Kong Convention') was adopted on 15 May 2009 under the
auspices of the International Maritime Organization at the request of the
Parties to the Basel Convention. The Hong Kong Convention will only enter into
force 24 months after the date of ratification by at least 15 States
representing a combined merchant fleet of at less 40 per cent of the gross
tonnage of the world’s merchant shipping and whose combined maximum annual ship
recycling volume during the preceding 10 years constitutes not less than three
per cent of the gross tonnage of the combined merchant shipping of the same
States. The Member States should ratify the Convention at the earliest
opportunity in order to hasten its entry into force. The Convention covers the
design, construction, operation and preparation of ships so as to facilitate
safe and environmentally sound recycling without compromising ship safety and
operational efficiency; it also covers the operation of ship recycling
facilities in a safe and environmentally sound manner, and the establishment of
an appropriate enforcement mechanism for ship recycling.
(5)       The Hong Kong Convention provides
explicitly for its Parties to take more stringent measures consistent with
international law, with respect to the safe and environmentally sound recycling
of ships, in order to prevent, reduce or minimise any adverse effects on human
health and the environment. The establishment of a European list of ship
recycling facilities fulfilling the requirements set out in this Regulation
would contribute to that objective as well as to better enforcement by
facilitating the flag states’ control of ships going for recycling. Those
requirements for ship recycling facilities should be based on the requirements
of the Hong Kong Convention.
(6)       Flag states which are
sending their ships to upgraded recycling facilities meeting the requirements
of the Hong Kong Convention have an economic interest in ensuring that the Hong
Kong Convention enters into force as soon as possible, in order to ensure a
worldwide level playing field. 
(7)       The ships not covered by
the scopes of the Hong Kong Convention and this Regulation should continue to be
recycled in accordance with the requirements of Regulation (EC) No 1013/2006
and of Directive 2008/98/EC of the European Parliament and of the Council of 19
November 2008 on waste and repealing certain Directives[18] respectively,
(8)       It is necessary to clarify
the respective scopes of this Regulation, Regulation (EC) No 1013/2006 and
Directive 2008/98/EC in order to avoid the duplication of regulatory
instruments that have the same objective
(9)       When interpreting the
requirements of this Regulation, consideration should be given to the
guidelines developed by the International Maritime Organization to support the
Hong Kong Convention. 
(10)     Member States should take measures
to prevent circumvention of ship recycling rules and to enhance transparency of
ship recycling. As provided for by the Hong Kong Convention, Member States
should report information concerning ships to which an inventory certificate
has been issued, ships for which a statement of completion has been received
and information regarding illegal recycling and follow up actions that they
have undertaken.
(11)     Member States should lay
down rules on penalties applicable to infringements of this Regulation and
ensure that these penalties are applied so as to prevent circumvention of ship
recycling rules. The penalties, which may be of a civil or administrative
nature, should be effective, proportionate and dissuasive. 
(12)     In order to take into
account developments regarding the relevant international conventions, the
power to adopt acts in accordance with Article 290 of the Treaty on the Functioning
of the European Union should be delegated to the Commission in respect of the
updating of the Annexes to this Regulation. It is of particular importance that
the Commission carry out appropriate consultations during its preparatory work,
including at expert level. The Commission, when preparing and drawing up
delegated acts, should ensure a simultaneous, timely and appropriate
transmission of relevant documents to the European Parliament and to the Council.

(13)     In order to ensure uniform
conditions for the implementation of this Regulation, implementing powers
should be conferred on the Commission. Those powers should be exercised in
accordance with Regulation (EU) No 182/2011 of the European Parliament and of
the Council of 16 February 2011 laying down the rules and general principles
concerning mechanisms for control by the Member States of the Commission's exercise
of implementing powers[19].
(14)     Since the objective to
prevent, reduce or eliminate adverse effects on human health and the
environment caused by the recycling, operation and maintenance of ships flying
the flag of a Member State cannot be sufficiently achieved by the Member States
due to the international character of shipping and ship recycling, and can
therefore be better achieved at Union level, the Union may adopt measures, in
accordance with the principle of subsidiarity as set out in Article 5 of the
Treaty. In accordance with the principle of proportionality, as set out in that
Article, this Regulation does not go beyond what is necessary in order to
achieve that objective,
HAVE ADOPTED THIS REGULATION:
Title i - Scope and definitions
Article 1
Objective
The purpose of this Regulation is to
prevent, reduce or eliminate adverse effects on human health and the
environment caused by the recycling, operation and maintenance of ships flying
the flag of a Member State.
Article 2
Definitions
1.           For the purposes of this
Regulation, the following definitions shall apply:
(1)                   
‘ship’ means a vessel of any type whatsoever
operating or having operated in the marine environment, and includes
submersibles, floating craft, floating platforms, self-elevating platforms,
Floating Storage Units (FSUs), and Floating Production Storage and Offloading
Units (FPSOs), as well as a vessel stripped of equipment or being towed;
(2)                   
‘new ship’ means either of the following:
(a)         
a ship for which the building contract is entered
into on the day of the entry into force of this Regulation or thereafter; 
(b)         
a ship where, in the absence of a building
contract, the keel is laid or the ship is at a similar stage of construction on
the day of entry into force of this Regulation or six months thereafter; 
(c)         
a ship whose delivery takes place on the day of entry
into force of this Regulation or thirty months thereafter;
(3)                   
‘tanker’ means an oil tanker as defined in Annex
I to the Convention for the Prevention of Pollution from Ships (MARPOL) or an
NLS tanker as defined in Annex II to that Convention;
(4)                   
‘hazardous material’ means
any material or substance which is liable to create hazards to human health or
the environment, including any substance which is
considered to be dangerous under Council Directive 67/548/EEC[20] and Regulation 1272/2008 of
the European Parliament and of the Council[21];
(5)                   
‘ship recycling’ means the activity of complete
or partial dismantling of a ship at a ship recycling facility in order to
recover components and materials for reprocessing and re-use, whilst taking
care of hazardous and other materials, and includes associated operations such
as storage and treatment of components and materials on site, but not their
further processing or disposal in separate facilities;
(6)                   
‘ship recycling facility’ means a defined area
that is a site, yard or facility located in a Member State or in a third
country and used for the recycling of ships;
(7)                   
‘recycling company’ means, the owner of the ship
recycling facility or any other organisation or person who has assumed the
responsibility for the operation of ship recycling from the owner of the ship
recycling facility;
(8)                   
‘administration’ means a governmental authority
designated by a State as responsible, within a specified geographical area or
area of expertise, for duties related to ships entitled to fly its flag or to
ships operating under its authority; 
(9)                   
‘competent authority’ means a governmental
authority designated by a State as responsible, within a specified geographical
area or area of expertise, for duties related to ship recycling facilities
operating within the jurisdiction of that State; 
(10)               
‘gross tonnage’ means the gross tonnage (GT)
calculated in accordance with the tonnage measurement regulations contained in
Annex I to the International Convention on Tonnage Measurement of Ships or any
successor convention;
(11)               
‘competent person’ means a person with suitable
qualifications, training, and sufficient knowledge, experience and skill, for
the performance of the specific work; 
(12)               
‘employer’ means a natural or legal person that
employs one or more workers engaged in ship recycling;
(13)               
‘shipowner’ means the natural or legal person
registered as the owner of the ship, including the natural or legal person
owning the ship for a limited period pending its sale or handover to a ship
recycling facility, or, in the absence of registration, the natural or legal
person owning the ship or any other organisation or person who has assumed the
responsibility for operation of the ship from the owner of the ship as well as
a legal person operating a state-owned ship;
(14)               
‘new installation’ means the installation of
systems, equipment, insulation or other material on a ship after the day of
entry into force of this Regulation;
(15)               
‘safe-for-entry’ means a space on a ship that
meets the following criteria:
(a)         
the oxygen content of the atmosphere and the
concentration of flammable vapours are within safe limits;
(b)         
any toxic materials in the atmosphere are within
permissible concentrations;
(c)         
any residues or materials associated with the
work authorised by the competent person will not produce uncontrolled release
of toxic materials or an unsafe concentration of flammable vapours under
existing atmospheric conditions while maintained as directed;
(16)               
‘safe-for-hot work’ means a space on a ship that
meets the following criteria:
(a)         
a safe, non-explosive condition, including
gas-free status, exists for the use of electric arc or gas welding equipment,
cutting or burning equipment or other forms of naked flame, as well as heating,
grinding, or spark-generating operations;
(b)         
the safe-for-entry criteria set out in point 15
are met;
(c)         
existing atmospheric conditions will not change
as a result of the hot work; 
(d)         
all adjacent spaces have been cleaned or treated
sufficiently to prevent the start or spread of fire;
(17)               
‘site inspection’ means an inspection of the ship
recycling facility confirming the condition described by the verified
documentation;
(18)               
‘statement of completion’ means a confirmatory
statement issued by the ship recycling facility that the ship recycling has
been completed in accordance with this Regulation;
(19)               
‘worker’ means any person who performs work,
either regularly or temporarily, in the context of an employment relationship,
including the personnel working for subcontractors;
(20)               
‘recognised organisation’ means an organization recognized in accordance with Regulation (EC)
No 391/2009 of the European Parliament and of the Council[22];
2.           For the purposes of point
11 of paragraph 1, a competent person may be a trained worker or a managerial
employee capable of recognising and evaluating occupational hazards, risks, and
employee exposure to potentially hazardous materials or unsafe conditions in a ship
recycling facility, and who is capable of specifying the necessary protection
and precautions to be taken to eliminate or reduce those hazards, risks or
exposures. 
Without prejudice to Directive 2005/36/EC of
the European Parliament and of the Council[23],
the competent authority may define appropriate criteria for the designation of
such persons and may determine the duties to be assigned to them.
Article 3
Scope
1.           This Regulation shall
apply to ships entitled to fly the flag of a Member State or operating under
its authority.
2.           This Regulation shall not
apply to:
(a)         
any warships, naval auxiliary, or other ships
owned or operated by a Member State and used, for the time being, only on
government non-commercial service;
(b)         
ships of less than 500 GT;
(c)         
ships operating throughout their life only in
waters subject to the sovereignty or jurisdiction of the State whose flag the
ship is entitled to fly.
Title ii -
Ships
Article 4
Control of hazardous materials
1.           The new installation of
materials which contain asbestos or polychlorinated biphenyls shall be
prohibited in accordance with Council Directive 96/59/EC[24] on all ships.
2.           New installations of materials
which contain controlled substances as defined in Regulation (EC) No 1005/2009
of the European Parliament and of the Council[25]
shall be prohibited on all ships.
3.           The new installation of
materials containing perfluorooctane sulfonic acid (PFOS) and its derivatives
(PFOS) shall be prohibited in accordance with Regulation (EC) No 757/2010 of
the European Parliament and of the Council[26].
4.           Member States shall take
all of the following measures: 
(a)         
prohibit or restrict the installation or use of
hazardous materials referred to in paragraphs 1 to 3 on ships entitled to fly
its flag or operating under its authority; 
(b)         
prohibit or restrict the installation or use of
such materials on ships whilst in its ports, shipyards, ship repair yards or
offshore terminals;
(c)         
effectively ensure that ships comply with the
requirements set out in points (a) and (b).
Article 5
Inventory of hazardous materials
1.           An inventory of hazardous
materials shall be kept on board of each new ship.
2.           An inventory of hazardous
materials shall be established before a ship goes for recycling and kept on
board.
3.           Existing ships registered
under the flag of a third country and applying to be registered under the flag
of a Member State shall ensure that an inventory of hazardous materials is kept
on board.
4.           The inventory of hazardous
materials shall:
(a)         
be specific to each ship;
(b)         
provide evidence that the ship complies with the
prohibition or restrictions on installing or using hazardous materials in
accordance with Article 4;
(c)         
identify, at least, the hazardous materials referred
to in Annex I and contained in the structure or equipment of the ship, their
location and approximate quantities.
5.           In addition to paragraph
4, for existing ships a plan shall be prepared describing the visual/sampling
check by which the inventory of hazardous materials is developed.
6.           The inventory of hazardous
materials shall consist of three parts:
(a)         
a list of hazardous materials referred to in
Annex I and contained in the structure or equipment of the ship, their location
and approximate quantities (Part I);
(b)         
a list of the waste present on board the ship,
including waste generated during the operation of the ship (Part II); 
(c)         
a list of the stores present on board the ship
once the decision to recycle it has been taken (Part III). 
7.           Part I of the inventory of
hazardous materials shall be properly maintained and updated throughout the
operational life of the ship, reflecting new installations containing any hazardous
materials referred to in Annex I and relevant changes in the structure and
equipment of the ship.
8.           Prior to recycling, the inventory
shall, in addition to the properly maintained and updated Part I, incorporate
Part II for operationally generated wastes and Part III for stores, and be
verified by the Member State whose flag the ship is flying.
9.           The Commission shall be
empowered to adopt delegated acts in accordance with Article 26 concerning the
updating of the list of items for the inventory of hazardous materials in Annex
I.
Article 6
Preparation for recycling: general
requirements
1.           Shipowners shall ensure
that ships:
(a)         
prior to publication of the European List, are
only recycled in ship recycling facilities that are located in the Union or in
a country member of the OECD. ;
(b)         
after publication of the European List, are only
recycled at ship recycling facilities that are included in the European list;
(c)         
conduct operations in the period prior to
entering the ship recycling facility in such a way as to minimise the amount of
cargo residues, remaining fuel oil, and ship generated wastes remaining on
board;
(d)         
update and complete the inventory of hazardous
materials in accordance with Article 5;
(e)         
hold a ready for recycling certificate issued by
the Member State whose flag they are flying prior to any recycling activity.
2.           Shipowners shall also
ensure that tankers arrive at the ship recycling facility with cargo tanks and
pump rooms in a condition that is ready for certification as safe-for-entry and
safe-for-hot work.
Article 7
Ship recycling plan
1.           A ship-specific ship recycling
plan shall be developed prior to any recycling of a ship.
2.           The ship recycling plan shall:
(a)         
be developed by the ship recycling facility taking
into account information provided by the shipowner in accordance with point (b)
of Article 9(3);
(b)         
be drawn up in an official language of the
country authorizing the ship recycling facility and where the language used is
not English, French or Spanish, the Ship Recycling Plan shall be translated into
one of those languages ;
(c)         
include information concerning the
establishment, maintenance and monitoring of the safe-for-entry and safe-for-hot
work criteria and other necessary information;
(d)         
include information on the type and amount of
hazardous materials and waste generated by the recycling of the specific ship,
including those materials identified in the inventory of hazardous materials,
and on how these hazardous materials and waste will be managed in the facility
as well as in subsequent waste management facilities;
(e)         
where more than one ship recycling facility is used,
identify the ship recycling facilities to be used and specify the recycling
activities and the order in which they occur at each authorised ship recycling
facility.
Article 8
Surveys
1.           Surveys shall be carried by
out by officers of the administration or of a recognised organisation acting on
behalf of the administration. 
2.           Ships shall be subject to
the following surveys:
(a)         
an initial survey; 
(b)         
a renewal survey;
(c)         
an additional survey; 
(d)         
a final survey.
3.           The initial survey shall
be conducted before the ship is put in service, or before the inventory
certificate is issued. The officers carrying out that survey shall verify that
Part I of the inventory of hazardous materials complies with the requirements
of this Regulation.
4.           The renewal survey shall
be conducted at intervals specified by the administration, which however shall
not exceed five years. The officers carrying out that survey shall verify that
Part I of the inventory of hazardous materials complies with the requirements
of this Regulation.
5.           The additional survey,
either general or partial, may be conducted at the request of the shipowner
after a change, replacement, or significant repair of the structure, equipment,
systems, fittings, arrangements and material. The officers carrying out that survey
shall ensure that any such change, replacement, or significant repair has been
made in a manner that allows the ship to comply with the requirements of this
Regulation, and they shall verify that Part I of the inventory of hazardous
materials has been amended accordingly.
6.           The final survey shall be
conducted prior to the ship being taken out of service and before the recycling
of the ship has started. 
            The officers carrying out that
survey shall verify that:
(a)         
the inventory of hazardous materials complies
with the requirements of this Regulation;
(b)         
the ship recycling plan properly reflects the
information contained in the inventory of hazardous materials;
(c)         
the ship recycling plan contains the following
information:
(1)         
the establishment, maintenance and monitoring of
the safe-for-entry and safe-for-hot work criteria; 
(2)         
the treatment of the hazardous materials and
waste generated by the recycling of the specific ship in the ship recycling
facility as well as in any authorized waste treatment facility; 
(d)         
there is a contract between the shipowner and
the ship recycling facility complying with Article 9,
(e)         
the ship recycling facility where the ship is to
be recycled is included in the European List.
7.           For existing ships intended
for dismantling, the initial survey and the final survey shall be conducted at
the same time. 
Article 9
Contract between the shipowner and a
ship recycling facility
1.           The shipowner and a ship recycling
facility complying with the requirements set out in Article 12 shall enter into
a contract in relation to any ship which needs to be recycled.
2.           The contract shall be
effective at the latest from the time of the request for the final survey
referred to in Article 8(1)(d) and until the recycling is completed.
3.           The contract shall include
the following obligations for the shipowner:
(a)         
to apply the general requirements for the
preparation of recycling referred to in Article 6;
(b)         
to provide the ship recycling facility with all
the ship-relevant information necessary for the development of the ship recycling
plan required by Article 7;
(c)         
to take back the ship prior to the start of the
recycling or after the start of the recycling, where technically feasible, in
case the content of hazardous materials on board does not substantially
correspond to the inventory of hazardous materials and does not allow for
appropriate recycling of the ship.
4.           The contract shall include
the following obligations for the ship recycling facility:
(a)         
to develop, in collaboration with the shipowner,
a ship-specific ship recycling plan in accordance with Article 7;
(b)         
to report the planned start of ship recycling to
the shipowner in accordance with the form laid down in Annex II;
(c)         
to prohibit the start of any recycling of the
ship prior to submission of the report referred to in point (b);
(d)         
when preparing to receive a ship for recycling,
to notify in writing at least 14 days prior to the planned start of the
recycling the relevant competent authorities of the intention to recycle the
ship concerned:
(i) name of the State whose flag the ship is
entitled to fly;
(ii) date on which the ship was registered
with that State;
(iii) ship’s identification number (IMO
number);
(iv) hull number on new-building delivery;
(v) name and type of the ship;
(vi) port at which the ship is registered;
(vii) name and address of the shipowner as
well as the IMO registered owner identification number;
(viii) name and address of the company as well
as the IMO company identification number;
(ix) name of all classification society(ies)
with which the ship is classed;
(x) ship’s main particulars (Length overall
(LOA), Breadth (Moulded), Depth (Moulded), Lightweight, Gross and Net tonnage,
and engine type and rating);
(xi) Inventory of hazardous materials; and
(xii) draft ship recycling plan; 
(e)         
to transfer all waste generated in the ship
recycling facility only to waste treatment facilities which are authorised by
the competent authorities to deal with their treatment and disposal in a safe
and environmentally sound manner;
(f)           
when the partial or total recycling of a ship is
completed in accordance with this Regulation, to report the completion of the
ship recycling to the shipowner in accordance with the form laid down in Annex III.
5.           The Commission shall be
empowered to adopt delegated acts in accordance with Article 26 concerning the updating
of the form of the report of planned start of ship recycling laid down in Annex
II.
6.           The Commission shall be
empowered to adopt delegated acts in accordance with Article 26 concerning the
updating of the form of the statement of completion of ship recycling laid down
in Annex III.
Article 10
Issuance and endorsement of certificates
1.           After completion of an
initial or renewal survey or of an additional survey conducted at the request
of the shipowner, a Member State shall issue an inventory certificate in
accordance with the form laid down in Annex IV. This certificate shall be
supplemented by Part I of the inventory of hazardous materials.
The Commission shall be empowered to adopt
delegated acts in accordance with Article 26 concerning the updating of the
form of the inventory certificate laid down in Annex IV.
2.           After successful
completion of a final survey in accordance with Article 8(6), the
administration shall issue a ready for recycling certificate in accordance with
the form laid down in Annex V. This certificate shall be supplemented by the
inventory of hazardous materials and the ship recycling plan. 
3.           The Commission shall be
empowered to adopt delegated acts in accordance with Article 26 concerning the updating
of the form of the ready for recycling certificate laid down in Annex V. A
ready for recycling certificate issued after a survey conducted in accordance
with paragraph 2 shall be accepted by the other Member States and regarded for
the purposes of this Regulation as having the same validity as a certificate
issued by them. 
4.           The ready for recycling
certificates shall be issued or endorsed either by the administration or by a
recognised organisation acting on behalf of the administration.
Article 11
Duration and validity of certificates
1.           An inventory certificate
shall be issued for a period specified by the administration, which shall not
exceed five years.
2.           An inventory certificate
issued under Article 10 of this Regulation shall cease to be valid in any of
the following cases:
(a)         
where the condition of the ship does not
correspond substantially with the particulars of the certificate, including
where Part I of the inventory of hazardous materials is not properly maintained
and updated, reflecting changes in ship structure and equipment;
(b)         
where the renewal survey is not completed at
intervals specified by the administration but not exceeding five years; 
(c)         
where the certificate is neither issued nor
endorsed in accordance with Article 10 of this Regulation.
3.           A ready for recycling certificate
issued under Article 10 of this Regulation shall cease to be valid where the
condition of the ship does not correspond substantially with the particulars of
the certificate.
4.           A ready for recycling
certificate shall be issued by the administration for a period not exceeding
three months. The ready for recycling certificate may be extended by the
administration or by a recognised organisation acting on behalf of the
administration for a single point to point voyage to the ship recycling
facility.
Title iii - Ship
recycling facilities
Article 12
Requirements for ship recycling
facilities 
Ships shall only be
recycled in ship recycling facilities which have been included in the European list. 
In order to be included in the European list,
a ship recycling facility shall comply with the
following requirements:
(a)                   
be designed, constructed and operated in a safe
and environmentally sound manner;
(b)                   
establish management and monitoring systems,
procedures and techniques which do not pose health risks to the workers
concerned or to the population in the vicinity of the ship recycling facility and
which will prevent, reduce, minimise and to the extent practicable eliminate
adverse effects on the environment caused by ship recycling;
(c)                   
prevent adverse effects on human health and the
environment ;
(d)                   
develop and approve a ship recycling facility plan;
(e)                   
establish and maintain an emergency preparedness
and response plan;
(f)                     
provide for worker safety and training,
including ensuring the use of personal protective equipment for operations
requiring such use;
(g)                   
establish records on incidents, accidents,
occupational diseases and chronic effects and, if requested by its competent authorities,
report any incidents, accidents, occupational diseases or chronic effects causing,
or with the potential for causing, risks to workers’
safety, human health and the environment;
(h)                   
ensure safe and environmentally sound management
of hazardous materials;
(i)                     
be authorised to conduct its operations by its competent authorities;
(j)                     
ensure access for emergency response equipment
such as fire-fighting equipment and vehicles, ambulances and cranes to all
areas of the ship recycling facility;
(k)                   
ensure the containment of all hazardous
materials present on board of a ship during the recycling process so as to
prevent any release of these hazardous materials into the environment and in
particular in intertidal zones;
(l)                     
demonstrate the control of any leakage, in
particular in intertidal zones; 
(m)                 
handle hazardous materials and waste only on
impermeable floors with effective drainage systems;
(n)                   
ensure that all wastes generated from the
recycling activity are only transferred to waste management facilities authorised
to deal with their treatment and disposal without endangering human health and
in an environmentally sound manner. 
For the purposes of point (n), environmentally
sound management may be assumed as regards the waste recovery or disposal
operation concerned, where the ship recycling facility can demonstrate that the
waste management facility which receives the waste will be operated in
accordance with human health and environmental protection standards that are
equivalent to standards established in Union legislation.
Article 13
Evidence to be provided by ship
recycling facilities
The ship
recycling facility shall provide evidence that it complies with the requirements
set out in Article 12 in order to conduct ship recycling and to be included in
the European List. 
In particular, the ship recycling facility
shall:
(1)                   
identify the permit, license or authorization
granted by its competent authorities to conduct ship recycling and specify the size limitations (maximum length, breadth and
lightweight) of the ships it is authorized to recycle as well as any applicable
limitations;
(2)                   
certify that it will only accept a ship flying
the flag of an European Member State for recycling in accordance with the
provisions of this Regulation;
(3)                   
provide evidence that the ship recycling facility is capable of establishing,
maintaining and monitoring of the safe-for-hot work and safe-for-entry criteria
throughout the ship recycling process;
(4)                   
attach a map of
the boundary of the ship
recycling facility and the location of ship
recycling operations within it;
(5)                   
for each material referred to in Annex I and
additional hazardous material which might be part of the structure of a ship
specify: 
(a)         
if the facility is authorized to carry out the
removal of the hazardous material. In this case, the
responsible personnel authorized to carry out the removal shall be identified
and evidence of its competence shall be provided;
(b)         
which waste management process will be applied
within the facility: incineration, landfilling or other waste treatment method
and provide evidence that the applied process will be carried out without
endangering human health, without harming the environment and, in particular:
(i)         without risk to water, air, soil,
plants or animals;
(ii)         without causing a nuisance through
noise or odours; 
(iii)        without adversely affecting the
countryside or places of special interest;
(c)         
which waste management process will be applied if
the hazardous materials is destined for a subsequent waste treatment facility
outside the ship recycling facility. The following information shall be
provided regarding each subsequent waste treatment facility: 
(i)         name and address of the waste
treatment facility;
(ii)         evidence that the waste treatment
facility is authorized to treat the hazardous material;
(iii)        description of the waste treatment
process;
(iv)        evidence that the waste treatment
process will ensure that carried out without endangering human health, without
harming the environment and, in particular:
–              
without risk to water, air, soil, plants or
animals;
–              
without causing a nuisance through noise or
odours; 
–              
without adversely affecting the countryside or
places of special interest.
Article 14
Authorization of ship recycling
facilities located in a Member State
1.           Competent authorities
shall authorize ship recycling facilities located on their territory that
comply with the requirements set out in Article 12 to conduct ship recycling.
That authorization may be given to the respective ship recycling facilities for
the maximum period of five years.
2.           Member States shall
establish and update a list of the ship recycling facilities that they have
authorised in accordance with paragraph 1.
3.           The list referred to in
paragraph 2 shall be notified to the Commission without delay and not later
than one year from the date of the entry into force of this Regulation.
4.           Where a ship recycling facility
ceases to comply with the requirements set out in Article 12, the Member State
shall withdraw the authorization given to the ship recycling facility concerned
and shall inform the Commission thereof without delay. 
5.           Where a new ship recycling
facility has been authorized in accordance with paragraph 1, the Member State
shall inform the Commission thereof without delay. 
Article 15
Ship recycling facilities located
outside of the Union 
6.           A recycling company
located outside the Union wishing to recycle ships flying the flag of a Member
State shall submit an application to the Commission for inclusion of its ship
recycling facility in the European List. 
7.           That request shall be
accompanied by the information and supporting evidence required by Article 13
and Annex VI that the ship recycling facility complies with the requirements
set out in Article 12. 
The Commission shall be empowered to adopt
delegated acts in accordance with Article 26 concerning the updating of the
form on the identification of the ship recycling facility provided for in Annex
VI.
8.           By applying for inclusion
in the European List, ship recycling facilities accept the possibility of being
subject to a site inspection by the Commission or agents acting on its behalf
prior or after their inclusion in the European list in order to verify their
compliance with the requirements set out in Article 12. 
9.           Based on an assessment of
the information and supporting evidence provided in accordance with paragraph
2, the Commission shall decide by means of an implementing act whether to
include a ship recycling facility located outside of the Union in the European
list. Those implementing acts shall be adopted in accordance with the
examination procedure referred to in Article 27. 
Article 16
Establishment and updating of the
European list 
1.           The Commission shall establish
by means of an implementing act in accordance with the examination procedure
referred to in Article 27 a European List of the ship recycling facilities
which:
(a)         
are located in the Union and have been notified
by the Member States in accordance with Article 14(3);
(b)         
are located outside the Union and whose
inclusion has been decided in accordance with Article 15(4).
2.           The European list shall be
published in the Official Journal of the European Union and on the website
of the Commission at the latest thirty-six months after the day of entry into
force of this Regulation.
3.           Once adopted, the
Commission shall update the European List regularly by means of implementing
acts in accordance with the examination procedure referred to in Article 27:
(a)         
to include a ship recycling facility in the
European list in any of the following cases:
(i) where it has been authorized in accordance
with Article 13; 
(ii) where its inclusion in the European list
has been decided in accordance with Article 15(4); 
(b)         
to remove a ship recycling facility from the
European list in any of the following cases:
(1)         
where the ship recycling facility ceases to
comply with the requirements set out in Article 12; 
(2)         
where the ship recycling facility has been included
in the list for more than five years and has not provided evidence that it
still complies with the requirements set out in Article 12 
4.           Member States shall
communicate to the Commission all information that may be relevant in the
context of updating the European list. The Commission shall forward all
relevant information to the other Member States.
Title iv - General administrative provisions
Article 17
Language
The inventory certificate and the ready for
recycling certificate shall be drawn up in an official language of the issuing
Member State and where the language used is not English, French or Spanish,
they shall be translated into one of those languages
Article 18
Designation
of competent authorities
Member States shall designate the competent
authorities responsible for the implementation of this Regulation and shall
notify the Commission of those designations.
Article 19
Designation of contact persons
1.           Member States and the
Commission shall each designate one or more contact persons responsible for
informing or advising natural or legal persons making enquiries. The contact
person of the Commission shall forward to the contact persons of the Member
States any questions received which concern the latter, and vice versa.
2.           Member States shall notify
the Commission of the designation of contact persons. 
Article 20
Meeting of contact persons
The Commission shall, if requested by
Member States or where it considers it appropriate, periodically organize a
meeting of the contact persons to discuss the questions raised by the
implementation of this Regulation. Relevant stakeholders shall be invited to
such meetings, or parts of meetings, where all Member States and the Commission
are in agreement that this is appropriate.
Title v -
Reporting and enforcement
Article 21
Notification and reporting requirements
for shipowners
A shipowner shall: 
(a)                   
notify the administration in writing at least 14
days before the planned start of the recycling of the intention to recycle a
ship in order to enable the administration to prepare for the survey and
certification required by this Regulation;
(b)                   
transmit to the administration the report of the
planned start of the ship recycling established by the ship recycling facility
as required by Article 9(4)(b); 
(c)                   
transmit to the administration the report of the
completion of the ship recycling established by the ship recycling facility as
required by Article 9(4)(f). 
Article 22
Reports by the Member States
1.           Each Member State shall
send to the Commission a report containing the following information:
(a)         
a list of the ships flying their flag to which
an inventory certificate has been issued, and the name of the recycling company
and the location of the ship recycling facility as shown in the ready for recycling
certificate;
(b)         
a list of the ships flying their flag for which
a statement of completion has been received;
(c)         
information regarding illegal recycling and
follow-up actions undertaken by the Member State.
2.           Each Member State shall
transmit the report by 31 December 2015 and every two years thereafter. 
3.           The reports shall be
submitted to the Commission electronically.
Article 23
Enforcement in Member States
1.           Member States shall ensure
that effective, proportionate and dissuasive penalties are applicable to ships
that:
(d)         
do not have on board an inventory of hazardous
materials required by Articles 5 and 28;
(e)         
were sent for recycling without complying with
the general requirements for the preparation set out in Article 6;
(f)           
were sent for recycling without an inventory certificate
required by Article 6;
(g)         
were sent for recycling without a ready for
recycling certificate required by Article 6;
(h)         
were sent for recycling without a notification
to the administration in writing as required by Article 21;
(i)           
were recycled in a manner which did not conform
with the ship recycling plan required by Article 7.
2.           The penalties shall be
effective, proportionate and dissuasive. In particular, where a ship is sent
for recycling in a ship recycling facility which is not included in the
European list the applicable penalties shall, as a minimum, correspond to the
price paid to the shipowner for its ship.
3.           Member States shall
cooperate, bilaterally or multilaterally, with one another in order to
facilitate the prevention and detection of potential circumvention and breach
of this Regulation.
4.           Member States shall
designate those members of their permanent staff responsible for the
cooperation referred to in paragraph 3. That information shall be sent to the
Commission, which shall distribute to those members a compiled list.
5.           Where a ship is sold and,
within less than six months after the selling, is sent for recycling in a
facility which is not included in the European list, the penalties shall be: 
(a)         
jointly imposed to the last and penultimate
owner if the ship is still flying the flag of an European Member State;
(b)         
only imposed to the penultimate owner if a ship
is not flying anymore the flag of an European Member State. 
6.           Exemptions to the
penalties mentioned in paragraph 5 may be introduced by Member States in the
case where the shipowner has not sold its ship with the intention to have it
recycled. In that case, Member States shall request evidence supporting the
shipowner's claim including a copy of the sales contract. 
7.           Member States shall
regularly notify the Commission of their national legislation relating to the
enforcement of this Regulation and the applicable penalties. 
Article 24
Request for action
1.           Natural or legal persons
affected or likely to be affected by a breach of this Regulation or having a
sufficient interest in environmental decision‑making relating to the
breach of the Regulation, or, alternatively, alleging the impairment of a
right, where administrative procedural law of a Member State requires this as a
precondition, shall be entitled to submit to the contact persons of a Member
State any observations relating to instances of breach of this Regulation or an
imminent threat of such a breach of which they are aware of and shall be
entitled to request the competent authority to take action under this
Regulation 
The interest of any non-governmental
organisation promoting environmental protection and meeting any requirements
under national law shall be deemed sufficient for the purpose of having a
sufficient interest in environmental decision making relating to the breach of
the Regulation. Such organisations shall also be deemed to have rights capable
of being impaired for the purpose of alleging the impairment of a right, where
administrative procedural law of a Member State requires this as a
precondition.
2.           The request for action
shall be accompanied by the relevant information and data supporting the
observations submitted in relation to the breach of the Regulation in question.
3.           Where the request for
action and the accompanying observations show in a plausible manner that a
breach of the Regulation exists, the competent authority shall consider any
such observations and requests for action. In such circumstances, the competent
authority shall give the recycling company an opportunity to make its views
known with respect to the request for action and the accompanying observations.
4.           The competent authority shall,
without delay and in any case in accordance with the relevant provisions of
national law, inform the persons referred to in paragraph 1, who submitted
observations to the authority, of its decision to accede to or refuse the
request for action and shall provide the reasons for it.
5.           Member States may decide
not to apply paragraphs 1 and 4 to cases of imminent breach of this Regulation.
Article 25
Access to
justice
1.           Member States shall ensure
that the persons referred to in Article 24(1) shall have access to a court or
other independent and impartial public body competent to review the procedural
and substantive legality of the decisions, acts or failure to act of the
competent authority under this Regulation.
2.           This Regulation shall be
without prejudice to any provisions of national law which regulate access to
justice and which require that administrative review procedures be exhausted
prior to recourse to judicial proceedings.
Title vi – final
provisions
Article 26
Exercise of the delegation
1.           The power to adopt
delegated acts is conferred on the Commission subject to the conditions laid
down in this Article.
2.           The power to adopt
delegated acts referred to in Articles 5, 9, 10 and 15 shall be conferred on
the Commission for an indeterminate period of time from the date of entry into
force of this Regulation. 
3.           The delegation of power
referred to in paragraph 2 may be revoked at any time by the European
Parliament or by the Council. A decision to revoke shall put an end to the
delegation of the power specified in that decision. It shall take effect the
day following the publication of the decision in the Official Journal of the
European Union or at a late date specified therein. It shall not affect the
validity of any delegated acts already in force. 
4.           As soon as it adopts a
delegated act, the Commission shall notify it simultaneously to the European
Parliament and to the Council.
5.           A delegated act adopted
pursuant to paragraph 2 shall enter into force only if no objection has been
expressed either by the European Parliament or the Council within a period of
two months of notification of that act to the European Parliament and the
Council or if, before the expiry of that period, the European Parliament and
the Council have both informed the Commission that they will not object. That
period shall be extended by two months at the initiative of the European
Parliament or of the Council. 
Article 27
Committee procedure
1.           The Commission shall be
assisted by a committee. That committee shall be a committee within the meaning
of Regulation (EU) No 182/2011.
2.           When reference is made to
this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. 
Article 28
Transitional
provision
1.           An inventory of hazardous
materials shall be established for all ships not later than five years after
the entry into force of this Regulation.
2.           Member States may, prior
to the publication of the European list, authorise the recycling of ships in
facilities located outside the Union subject to the verification that the ship
recycling facility complies with the requirements set out in Article 12 based
on the information provided by the shipowner, the ship recycling facilities or
acquired by other means. 
Article 29
Amendment to Regulation (EC) No
1013/2006
In Article 1(3) of Regulation (EC) No
1013/2006, the following point is added:
'(i)        Ships
falling under the scope of Regulation (EU) No XX [insert full title of this
Regulation](*). 
________________
(*) OJ L […], […],
p. [..]'
Article 30
Review
The Commission shall review this Regulation
not later than two years after the date of entry into force of the Hong Kong
Convention. This review shall consider the inclusion of facilities authorized
by the Parties to the Hong Kong Convention in the European List of ship
recycling facilities in order to avoid duplication of work and administrative
burden.
Article 31
This Regulation shall enter into force on
the 365th day after its publication in the Official Journal of
the European Union.
This Regulation shall be binding
in its entirety and directly applicable in all Member States.
Done at Brussels, 
For the European Parliament                       For
the Council
The President                                                 The
President
ANNEX I
LIST OF ITEMS FOR THE INVENTORY OF HAZARDOUS MATERIALS
1.           Materials containing
asbestos
2.           Ozone-depleting:
controlled substances defined in Article 1(4) of the Montreal Protocol on
Substances that Deplete the Ozone Layer, listed in Annexes A, B, C or E to that
Protocol in force at the time of application or interpretation of this Annex.
Ozone-depleting substances that may be found on board ship include, but are not
limited to:
·              
Halon 1211 Bromochlorodifluoromethane
·              
Halon 1301 Bromotrifluoromethane Halon 2402
1,2-Dibromo-1,1,2,2-tetrafluoroethane (also known as Halon 114B2)
·              
CFC-11 Trichlorofluoromethane CFC-12
Dichlorodifluoromethane CFC-113 1,1,2-Trichloro-1,2,2-trifluoroethane
·              
CFC-114 1,2-Dichloro-1,1,2,2-tetrafluoroethane
CFC-115 Chloropentafluoroethane
3.           Materials containing
Polychlorinated biphenyls (PCB)
4.           Anti-fouling compounds and
systems regulated under Annex I to the International Convention on the Control
of Harmful Anti-fouling Systems on Ships (AFS Convention)
5.           Materials containing
perfluorooctane sulfonic acid and its derivatives (PFOS)
6.           Cadmium and Cadmium
Compounds
7.           Hexavalent Chromium and
Hexavalent Chromium Compounds
8.           Lead and Lead Compounds
9.           Mercury and Mercury
Compounds
10.         Polybrominated Biphenyl (PBBs)
11.         Polybrominated Diphenyl
Ethers (PBDEs)
12.         Polychlorinated
Naphthalenes (more than 3 chlorine atoms)
13.         Radioactive Substances
14.         Certain Shortchain
Chlorinated Paraffins (Alkanes, C10-C13, chloro)
15.         Brominated Flame Retardant
(HBCDD) 
ANNEX II
FORM OF REPORT OF PLANNED START OF SHIP RECYCLING
The ………………………….. (Name of ship recycling
facility)
located at ………………………….. (Full ship recycling
facility address)
included in the European list
established by Regulation (EU) No XXXX of the European Parliament and of the
Council of …. on ship recycling and authorized to conduct ship recycling under the authority of the Government of
………………………….. (Place of authorization)
by ………………………….. (Full designation of the
competent authority)
on (dd/mm/yyyy)............................................. (Date
of issue)
Hereby reports that the ship
recycling facility is ready in every respect to start the recycling of
the vessel......................................................... (IMO number)
The ready for recycling certificate
issued under the provisions of Regulation (EU) No XXXX of the European
Parliament and of the Council of …. on ship recycling under the authority of
the Government of 
………………………….. (Full designation of the State)
by ………………………….. (Full designation of the person or organization authorized under
Regulation (EU) No XXXX)
on (dd/mm/yyyy)............................................. (Date
of issue) is enclosed.
Signed………….
ANNEX III 
FORM OF THE STATEMENT OF COMPLETION OF SHIP RECYCLING
This document is a statement of completion of
ship recycling for………………………….. (Name of
the ship when it was received for recycling/at the point of deregistration)
Particulars of the ship as received for
recycling
 Distinctive number or letters ||   
 Port of registry ||   
 Gross tonnage ||   
 IMO number ||   
 Name and address of shipowner ||   
 IMO registered owner identification number ||   
 IMO company identification number ||   
 Date of construction ||   
THIS CONFIRMS THAT:
The ship has been
recycled in accordance with the ship recycling plan and Regulation (EU) No XXXX
of the European Parliament and of the Council of …. on ship recycling at: 
………………………….. (Name and location of the authorized ship
recycling facility)
and the recycling of the ship was completed on: (dd/mm/yyyy) …………………………..
(Date of completion)
Issued at …………………………..(Place
of issue of the statement of completion) on (dd/mm/yyyy) ………………(Date
of issue)
(Signature
of the owner of the ship recycling facility or a representative acting on behalf of the owner)
ANNEX IV
FORM OF THE INVENTORY CERTIFICATE
(Official seal) (State)
Issued under the provisions of Regulation (EU)
No XXXX of the European Parliament and of the Council of …. on ship recycling (hereinafter
‘the Regulation’)
under
the authority of the Government of
……………………………………………………………(Full designation
of the State)
by
………………………………(person or organization authorized under the Regulation)
Particulars of the ship
 Name of the Ship ||   
 Distinctive number or letters ||   
 Port of registry ||   
 Gross tonnage ||   
 IMO number ||   
 Name and address of shipowner ||   
 IMO registered owner identification number ||   
 IMO company identification number ||   
 Date of construction ||   
Particulars of Part I of the inventory of hazardous
materials
Part I of the inventory of
hazardous materials identification/verification number: ………………………………………………………….
THIS IS TO CERTIFY:
1.           that
the ship has been surveyed in accordance with Article 8 of the Regulation; 
2.           that
the survey shows that Part I of the inventory of hazardous materials fully
complies with the applicable requirements of the Regulation.
Completion
date of survey on which this certificate is based:………………………………………………………...(dd/mm/yyyy)
This
certificate is valid until:………………………………...(dd/mm/yyyy)
Issued at:………………………………(Place of issue of certificate)
(dd/mm/yyyy)…………… …………….………………………
(Date of issue) (Signature of duly authorized
official issuing the certificate)
(Seal or stamp of the authority, as appropriate)
ENDORSEMENT TO EXTEND THE VALIDITY OF THE CERTIFICATE
WHICH IS VALID FOR LESS THAN FIVE YEARS[27]
The ship complies with the relevant
provisions of the Regulation, and this certificate shall, in
accordance with Article 10 of the Regulation, be accepted as valid until (dd/mm/yyyy):
………
Signed:............................................................ (Signature of duly authorized official)
Place:
Date: (dd/mm/yyyy)
(Seal or stamp
of the authority, as appropriate)
ENDORSEMENT WHERE THE RENEWAL SURVEY HAS BEEN
COMPLETED[28]

The ship complies with the relevant
provisions of the Regulation, and this certificate shall, in
accordance with Article 10 of the Regulation, be accepted as valid until
(dd/mm/yyyy):................................................. 
Signed:............................................................ (Signature of duly authorized official)
Place:
Date: (dd/mm/yyyy)
(Seal or stamp
of the authority, as appropriate)
ENDORSEMENT TO EXTEND THE VALIDITY OF THE
CERTIFICATE UNTIL REACHING THE PORT OF SURVEY OR FOR A PERIOD OF GRACE [29]
This certificate shall, in accordance with Article
10 of the Regulation, be accepted as valid until (dd/mm/yyyy):…………………………..
Signed: ………………………….. (Signature
of duly authorized official)
Place:.................................................................................................................................................. 
Date: (dd/mm/yyyy)............................................................................................................................. 
(Seal or stamp of the
authority, as appropriate)
ENDORSEMENT FOR ADDITIONAL SURVEY [30]
At an additional survey in
accordance with Article 8 of the Regulation, the ship was found to comply with
the relevant provisions of the Regulation.
Signed: ………………………….. (Signature
of duly authorized official)
Place:.................................................................................................................................................. 
Date: (dd/mm/yyyy)............................................................................................................................. 
(Seal or
stamp of the authority, as appropriate)
ANNEX V
FORM OF THE READY FOR RECYCLING CERTIFICATE
(Official seal)  (State)
Issued under the provisions of Regulation
(EU) No XXXX of the European Parliament and of the Council of …. on ship recycling
(hereinafter ‘the Regulation’) under the authority of the Government of: 
…………………………………………………………………………..(Full
designation of the State)
by
………………………………………………………………………….. (person or organization authorized under the Regulation)
Particulars of the ship
 Name of Ship ||   
 Distinctive number or letters ||   
 Port of registry ||   
 Gross tonnage ||   
 IMO number ||   
 Name and address of shipowner ||   
 IMO registered owner identification number ||   
 IMO company identification number ||   
 Date of construction ||   
Particulars of the ship
recycling facilities
 Name of ship recycling facility ||   
 Distinctive recycling company identity number[31] ||   
 Full address ||   
 Date of expiry of document of compliance with the Regulation ||   
Particulars of the inventory of hazardous
materials
Inventory of hazardous materials
identification/verification number:………….
Particulars of the ship recycling plan
Ship recycling plan identification/verification
number:………………….
Note: The ship recycling plan, as required by Article
7 of the Regulation, is an essential part of the ready for recycling
certificate and must always accompany the ready for recycling certificate.
THIS IS TO CERTIFY:
1.           that the ship has been
surveyed in accordance with Article 8 of the Regulation;
2.           that the ship has a valid
inventory of hazardous materials in accordance with Article 5 of the
Regulation; 
3.           that the ship recycling
plan, as required by Article 7 of the Regulation, properly reflects the information contained in
the inventory of hazardous materials as required by Article 5 of the Regulation
and contains information concerning the establishment, maintenance and
monitoring of the safe-for-entry and safe-for-hot work criteria; 
4.           that the ship recycling facility
where this ship is to be recycled is included in the European List in
accordance with Article 16 of the Regulation. 
This certificate is valid until
(dd/mm/yyyy)………………………………. (Date)
Issued at ………………………………………………………(Place of issue of certificate)
(dd/mm/yyyy) ……………………………………………………      
(Date of
issue) (Signature of duly authorized official issuing the certificate)
(Seal or stamp of the authority, as appropriate)
ENDORSEMENT TO EXTEND THE VALIDITY OF THE
CERTIFICATE UNTIL REACHING THE PORT OF THE SHIP RECYCLING FACILITY FOR A PERIOD
OF GRACE [32]
This certificate shall, in
accordance with Article 8 of the Regulation, be accepted as valid for a single
point to point voyage
from the port
of: ………………………….
to the port of:……………………………..
Signed: ………………………….. (Signature
of duly authorized official)
Place:.................................................................................................................................................. 
Date: (dd/mm/yyyy)............................................................................................................................. 
(Seal or stamp of the authority, as appropriate)
ANNEX VI
FORM ON THE IDENTIFICATION OF THE SHIP RECYCLING FACILITY 
Identification of the ship recycling facility
 Name of ship recycling facility ||   
 Distinctive recycling company identity No. ||   
 Full address of ship recycling facility ||   
 Primary contact person ||   
 Phone number ||   
 E-mail address ||   
 Name, address, and contact information of the recycling company ||   
 Working language(s) ||   
[1]               Regulation (EC) No 1013/2006 of the European
Parliament and of the Council of 14 June 2006 on shipments of waste. 
[2]               In 2009, more than 90 % of EU flagged ships were
dismantled outside the OECD, mostly in South Asia.
[3]               The weight of a scrap ship is most often expressed in
light displacement tonnes (LDT) which is calculated without cargo, fuel,
ballast water etc and roughly equals the steel weight of a vessel.
[4]               Decision VII/26 on the Environmentally sound
management of ship dismantling adopted during the 7th Conference of the Parties
to the Basel Convention.
[5]               See decision VIII/11 http://archive.basel.int/meetings/cop/cop8/docs/16eREISSUED.pdf

[6]               Decision OEWG-VII/12 on the Environmentally sound
management of ship dismantling. 
[7]               See decision OEWG VII/12 http://archive.basel.int/meetings/oewg/oewg7/docs/21e.pdf

[8]               Submission from the European Union and its Member
States available at http://archive.basel.int/ships/oewg-vii12-comments/comments/eu.doc

[9]               Decision X/ AA on the environmentally sound
dismantling of ships adopted during the 10th conference of the
Parties to the Basel Convention.
[10]             Communication COM(2008) 767 final of 19 November 2008
presenting an EU strategy for better ship dismantling, and its impact
assessment in Commission Staff Working Document SEC(2008) 2846
[11]             Regulation (EC) No 1013/2006 of the European Parliament
and of the Council of 14 June 2006 on shipments of waste. 
[12]             http://ec.europa.eu/environment/waste/ships/index.htm
[13]             http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P6-TA-2009-0195+0+DOC+XML+V0//EN&language=EN

[14]             http://eescopinions.eesc.europa.eu/EESCopinionDocument.aspx?identifier=ces\nat\nat425\ces877-2009_ac.doc&language=EN

[15]             http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/envir/110626.pdf 
[16]             OJ L 190, 12.7.2006, p. 1.
[17]             Amendment to the Basel Convention ('Ban amendment') adopted
by Decision III/1 of the Parties to the Basel Convention. 
[18]             OJ L 312, 22.11.2008, p. 3.
[19]             OJ L 55, 28.2.2011, p. 13.
[20]             OJ 196, 16.8.1967, p. 1.
[21]             OJ L 353, 31.12.2008, p. 1.
[22]             OJ L 131, 28.5.2009, p. 11.
[23]             OJ L 255, 30.9.2005, p. 22.
[24]             OJ L 243, 24.9.1996, p. 31.
[25]             OJ L 286, 31.10.2009, p. 1.
[26]             OJ L 223, 25.8.2010, p. 29.
[27]             This page of the endorsement at survey shall be
reproduced and added to the certificate as considered necessary by the
administration. 
[28]             This page of the endorsement at survey shall be
reproduced and added to the certificate as considered necessary by the
administration. 
[29]             This page of the endorsement at survey shall be
reproduced and added to the certificate as considered necessary by the
administration. 
[30]             This page of the endorsement at survey shall be
reproduced and added to the certificate as considered necessary by the administration.

[31]             Identity number as indicated in the European list. 
[32]             This page of the endorsement shall be reproduced and added to the certificate as considered necessary by the administration.