The Committee on Legal Affairs adopted the interim report by Pavel SVOBODA (EPP, CZ) on the draft Council decision on the ratification and accession by Member States, in the interest of the European Union, to the Protocol of 2010 to the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea, with regard to the aspects related to judicial cooperation in civil matters.

Parliament received a letter requesting it to give its consent to the draft Council decision on the ratification and accession by Member States on behalf of the Union to the 2010 Protocol to the HNS Convention on 17 December 2015.

With this interim report, Members seek to ensure that the Parliament works towards a positive outcome with the Council and the Commission on this issue.

The committee asked the Council and the Commission to take into account the following recommendations:

• ensure that the uniformity, integrity and effectiveness of common Union rules will not be adversely affected by the international commitments undertaken by the ratification of or accession to the 2010 HNS Convention;
• pay greater attention in this regard to the overlap between the recast of Brussels I Regulation and the 2010 HNS Convention in so far as rules of procedure applicable to claims and actions under the said Convention before courts of state parties are concerned;
• ensure that the possibility for a conflict between the Directive on environmental liability and the 2010 HNS Convention;
• ensure that the risk is diminished of creating and consolidating a competitive disadvantage for the states that are ready to accede to the 2010 HNS Convention;
• ensure the removal of  the permanent co-existence of two maritime liability regimes - a Union-based one and an international one;
• ensure that a clear obligation is imposed on Member States to take all necessary steps to achieve a concrete result, namely to ratify or accede to the 2010 HNS Convention within a reasonable timeframe, which should be no longer than two years from the date of entry into force of the Council decision.

The European Parliament adopted 638 votes to 7, with 35 abstentions, a resolution on the draft Council decision on the ratification and accession by Member States, in the interest of the European Union, to the Protocol of 2010 to the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea, with regard to the aspects related to judicial cooperation in civil matters.

To recall, the aim of the 2010 HNS Convention is to ensure accountability and the payment of adequate, prompt and effective compensation for loss or damage to persons, property and the environment arising from the carriage of hazardous and noxious substances by sea through the specialised International HNS compensation fund.

Based on the interim report presented by the Committee on Legal Affairs, Parliament called on the Council and the Commission to take into consideration the following recommendations:

• ensure that the uniformity, integrity and effectiveness of common Union rules will not be adversely affected by the international commitments undertaken by the ratification of or accession to the 2010 HNS Convention in accordance with the settled case law of the Court of Justice;
• pay greater attention in this regard to the overlap between the recast of Brussels I Regulation and the 2010 HNS Convention in so far as rules of procedure applicable to claims and actions under the said Convention before courts of state parties are concerned;
• ensure that the possibility for a conflict between the Directive on environmental liability and the 2010 HNS Convention;
• ensure that the risk is diminished of creating and consolidating a competitive disadvantage for the states that are ready to accede to the 2010 HNS Convention, compared to those who might wish to delay this process and continue to be bound by the ELD only;
• ensure the removal of  the permanent co-existence of two maritime liability regimes - a Union-based one and an international one;
• ensure that a clear obligation is imposed on Member States to take all necessary steps to achieve a concrete result, namely to ratify or accede to the 2010 HNS Convention within a reasonable timeframe, which should be no longer than two years from the date of entry into force of the Council decision.

Parliament concluded that this resolution would be a further possibility for the Council and the Commission to address the recommendations set out above.

PURPOSE: to authorise Member States to ratify the Protocol of 2010 to the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea, with regard to the aspects related to judicial cooperation in civil matters.

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act.

BACKGROUND : the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea, 1996 ('1996 HNS Convention') aims to ensure adequate, prompt and effective compensation of persons who suffer damage caused by spills of hazardous and noxious substances, when carried by sea.

The 1996 HNS Convention has been amended by the Protocol of 2010. A text consolidating the 1996 HNS Convention and the Protocol of 2010 ('2010 HNS Convention') was prepared by the International Maritime Organization ('IMO') Secretariat and approved by the IMO Legal Committee. The 2010 HNS Convention will take effect once the Protocol of 2010 enters into force in Member States.

The 2010 HNS Convention provides for improved protection of the victims of damage in connection with the carriage of HNS by sea, including in the context of environmental damage, in line with the 1982 United Nations Convention on the Law of the Sea.

The Union therefore has exclusive competence in relation to Articles 38, 39 and 40 of the 2010 HNS Convention inasmuch as that Convention affects the rules laid down in Regulation (EU) No 1215/2012 of the European Parliament and of the Council on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters 

In order for States to become Contracting Parties to the Protocol of 2010, and thereby to the 2010 HNS Convention, they have to submit to the Secretary-General of the IMO, at the same time as their instrument of consent, relevant data on the total quantities of contributing cargo under the 2010 HNS Convention during the preceding calendar year.

At its 100th meeting in 2013, the IMO Legal Committee endorsed Guidelines on the reporting of HNS contributing cargo.

CONTENT: by this draft Decision, Member States would be authorised to ratify or accede to, as appropriate, the Protocol of 2010 in the interest of the Union with regard to the aspects related to judicial cooperation in civil matters for which the Union has exclusive competence, subject to the conditions laid down in this Decision.

Member States should:

• endeavour to take the necessary steps to deposit the instruments of ratification of, or accession to, the Protocol of 2010 within a reasonable time and, if possible, within four years after the date of entry into force of the Decision;
• inform each other and the Council and the Commission in an appropriate manner when the system for the reporting of HNS contributing cargo becomes operational;
• seek to exchange best practices, in particular on the system for the reporting of HNS contributing cargo under the Protocol of 2010.

The United Kingdom and Ireland are bound by Regulation (EU) No 1215/2012 and are therefore taking part in the adoption and application of this Decision. On the other hand, Denmark is not taking part in it.

It should be noted a draft decision presented in parallel to this one aims to ratify the 2010 Protocol, with the exception of the aspects related to judicial cooperation in civil matters.

PURPOSE: i) ratification by Member States on behalf of the Union to the Protocol of 2010 to the International Convention on Liability and Compensation for Damage in connection with the Carriage of Hazardous and Noxious Substances by Sea ii) accession by Member States to the said Protocol with regard to aspects related to judicial cooperation in civil matters.

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act.

BACKGROUND: the adoption and entry into force of international rules on liability for non-contractual damages arising from the carriage of hazardous and noxious substances (HNS) by sea is crucial in view of the significant share HNS cargo represents in maritime freight transport worldwide.

The International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea, ('1996 HNS Convention') was aimed at ensuring adequate, prompt and effective compensation of persons who suffer damage caused by spills of hazardous and noxious substances, when carried by sea.

The Protocol of 2010 to the 1996 HNS Convention contained necessary amendments to address problems identified in the 1996 HNS Convention. The 2010 Protocol and the provisions of the Convention, are to be read, interpreted and applied together as one single instrument.

Neither the 1996 HNS Convention, nor the 2010 Protocol to the HNS Convention has entered into force. The latter has no contracting parties to it to this day.

The 2010 Protocol, and thereby the consolidated 2010 HNS Convention, will enter into force 18 months after the date on which at least 12 States, 4 of which with no less than 2 million units of gross tonnage each, have ratified it, and the relevant data on contributing cargo have been submitted to the IMO Secretary-General showing no less than 40 million tonnes of cargo contributing to the general HNS account received in total in those States during the preceding calendar year.

The main changes from the 1996 HNS Convention to the 2010 HNS Convention are:

• excluding packaged HNS from the definition of contributing cargo to the HNS Fund, while damage caused by packaged HNS remains covered by the two-tier system of compensation established in the Convention;
• increasing the liability limits of the ship owner for ships carrying packaged HNS in order to accommodate better the exclusion of packaged HNS as contributing cargo to the HNS Fund;
• making the physical receiver of LNG the responsible party for payment of the relevant contributions to the HNS Fund, unless there is a different agreement between the titleholder and the receiver;
• making payment of compensation by the HNS Fund in case of a covered incident conditional upon the fulfilment by the State concerned of its obligation to submit reports on contributing cargoes for all years prior to the incident

Given that issues related to judicial to judicial cooperation in civil matters do not apply to Denmark, the Council must adopt two separate decisions. Accordingly, a parallel draft decision aims to ratify the Protocol of 2010 with the exception of aspects related to judicial cooperation in civil matters.

IMPACT ASSESSMENT: whilst no formal impact assessment was required, several options have been examined and weighed. The Commission considers that the conclusion of the 2010 Protocol to the HNS Convention will ensure:

• uniform application of rules on liability and compensation in connection with accidents caused by ships carrying HNS at sea across the EU;
• availability of sufficient funds for compensation of victims of such accidents.

Using an international regime rather than regional solutions for these purposes better suits the nature of shipping as a global business.

CONTENT: under the draft Council Decision, Member States:

• are authorised to ratify or accede to, as appropriate, the Protocol of 2010 on behalf of the Union with regard to aspects related to judicial cooperation in civil matters;

• agree to be bound by the 2010 Protocol within two-year period from the entry into force of the Decision. Early adherence to the 2010 Protocol by all EU Member States will allow the threshold for entry into force concerning both the number of IMO Member States and aggregate fleet required (12 States including 4 with not less than 2 million units of gross tonnage each) to be attained.

State signature, ratification or acceptance of the 2010 Protocol nullifies any prior signature or ratification by that State of the 1996 HNS Convention. States ratifying the Protocol express their consent to be bound by the consolidated text of the 2010 HNS Convention, as a single, consolidated instrument for the Convention, which will take effect once the 2010 Protocol enters into force.

Denmark is not taking part in the adoption of the Decision and is not bound by this Decision or subject to its application.

PURPOSE: i) ratification by Member States on behalf of the Union to the Protocol of 2010 to the International Convention on Liability and Compensation for Damage in connection with the Carriage of Hazardous and Noxious Substances by Sea ii) accession by Member States to the said Protocol with regard to aspects related to judicial cooperation in civil matters.

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act.

BACKGROUND: the adoption and entry into force of international rules on liability for non-contractual damages arising from the carriage of hazardous and noxious substances (HNS) by sea is crucial in view of the significant share HNS cargo represents in maritime freight transport worldwide.

The International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea, ('1996 HNS Convention') was aimed at ensuring adequate, prompt and effective compensation of persons who suffer damage caused by spills of hazardous and noxious substances, when carried by sea.

The Protocol of 2010 to the 1996 HNS Convention contained necessary amendments to address problems identified in the 1996 HNS Convention. The 2010 Protocol and the provisions of the Convention, are to be read, interpreted and applied together as one single instrument.

Neither the 1996 HNS Convention, nor the 2010 Protocol to the HNS Convention has entered into force. The latter has no contracting parties to it to this day.

The 2010 Protocol, and thereby the consolidated 2010 HNS Convention, will enter into force 18 months after the date on which at least 12 States, 4 of which with no less than 2 million units of gross tonnage each, have ratified it, and the relevant data on contributing cargo have been submitted to the IMO Secretary-General showing no less than 40 million tonnes of cargo contributing to the general HNS account received in total in those States during the preceding calendar year.

The main changes from the 1996 HNS Convention to the 2010 HNS Convention are:

• excluding packaged HNS from the definition of contributing cargo to the HNS Fund, while damage caused by packaged HNS remains covered by the two-tier system of compensation established in the Convention;
• increasing the liability limits of the ship owner for ships carrying packaged HNS in order to accommodate better the exclusion of packaged HNS as contributing cargo to the HNS Fund;
• making the physical receiver of LNG the responsible party for payment of the relevant contributions to the HNS Fund, unless there is a different agreement between the titleholder and the receiver;
• making payment of compensation by the HNS Fund in case of a covered incident conditional upon the fulfilment by the State concerned of its obligation to submit reports on contributing cargoes for all years prior to the incident

Given that issues related to judicial to judicial cooperation in civil matters do not apply to Denmark, the Council must adopt two separate decisions. Accordingly, a parallel draft decision aims to ratify the Protocol of 2010 with the exception of aspects related to judicial cooperation in civil matters.

IMPACT ASSESSMENT: whilst no formal impact assessment was required, several options have been examined and weighed. The Commission considers that the conclusion of the 2010 Protocol to the HNS Convention will ensure:

• uniform application of rules on liability and compensation in connection with accidents caused by ships carrying HNS at sea across the EU;
• availability of sufficient funds for compensation of victims of such accidents.

Using an international regime rather than regional solutions for these purposes better suits the nature of shipping as a global business.

CONTENT: under the draft Council Decision, Member States:

• are authorised to ratify or accede to, as appropriate, the Protocol of 2010 on behalf of the Union with regard to aspects related to judicial cooperation in civil matters;

• agree to be bound by the 2010 Protocol within two-year period from the entry into force of the Decision. Early adherence to the 2010 Protocol by all EU Member States will allow the threshold for entry into force concerning both the number of IMO Member States and aggregate fleet required (12 States including 4 with not less than 2 million units of gross tonnage each) to be attained.

State signature, ratification or acceptance of the 2010 Protocol nullifies any prior signature or ratification by that State of the 1996 HNS Convention. States ratifying the Protocol express their consent to be bound by the consolidated text of the 2010 HNS Convention, as a single, consolidated instrument for the Convention, which will take effect once the 2010 Protocol enters into force.

Denmark is not taking part in the adoption of the Decision and is not bound by this Decision or subject to its application.