1. Secretariat’s report on ODS sales for uses onboard ships As requested by Decision XXIII/11, the As requested by Decision XXIII/11, the Secretariat’s report (32/3 and 32/INF4) includes Secretariat’s report (32/3 and 32/INF4) includes the results of: the results of:  our review of historic documents on previous guidance provided to the parties guidance provided to the parties  our review of parties’ submissions  our consultations with IMO and WCO

2. Guidance previously provided on ODS sales to ships Decision III/9 (1991) and Decision V/5 (1993) Decision III/9 (1991) and Decision V/5 (1993) “the quantities of controlled substances used for “the quantities of controlled substances used for refilling the refrigeration and fire-extinguishing refilling the refrigeration and fire-extinguishing systems on ships in ports should be regarded as systems on ships in ports should be regarded as forming part of consumption of the country with forming part of consumption of the country with jurisdiction over the port and should therefore not jurisdiction over the port and should therefore not be included in its exports figures” be included in its exports figures” While this specific language was deleted from the While this specific language was deleted from the reporting format in 1997 (decision IX/28), most reporting reporting format in 1997 (decision IX/28), most reporting parties indicated that they are following this guidance parties indicated that they are following this guidance

3. Guidance previously provided to parties…cont. No guidance has ever been provided on how to treat ODS that are supplied to a ship in quantities that are sufficient to meet its servicing requirements but are not in fact used for servicing, or, that are supplied to ships in quantities obviously over the level necessary to meet their servicing requirements  As a consequence, some parties are treating such a supply differently treating such a supply differently

4. Summary of main findings based on the responses of 21 reporting parties (incl. the EU on behalf of its 27 member States)  Most parties seem to be conforming to the guidance  Three parties differentiate between ODS provided for servicing ships’ equipment and ODS simply for servicing ships’ equipment and ODS simply supplied to ships (in quantities that meet or supplied to ships (in quantities that meet or exceed servicing requirements) but not necessarily exceed servicing requirements) but not necessarily used to refill in port; used to refill in port;  A few parties specified that they have no official statistics on the sales/uses of ODS on flag ships statistics on the sales/uses of ODS on flag ships as those are not accounted for in their licensing as those are not accounted for in their licensing systems systems

5. Reported data on use of ODS on ships (Decision XXIII/11, para. 8) Based on data submitted by 3 parties Based on data submitted by 3 parties a HCFC amount reported by one party a HCFC amount reported by one party b Primarily HCFCs reported by one party b Primarily HCFCs reported by one party c Total HCFC amount reported by two parties c Total HCFC amount reported by two parties  To date 3 parties have specified ODS exports to foreign flag ships in some of their A7 reports; totals foreign flag ships in some of their A7 reports; totals (primarily HCFCs) range from 37 MT in 2005 to 67 MT (primarily HCFCs) range from 37 MT in 2005 to 67 MT in 2010 in 2010 ODS200820092010 Banks-242 a - Exports14.4 b 608 c 483 c

6. Main concerns expressed by parties in their submissions  Treating ODS supply to foreign flag ships as exports to the flag states could lead flag states exports to the flag states could lead flag states into non-compliance into non-compliance  Lack of recording of ODS supplied to flag ships could provide a loophole for illegal trading as could provide a loophole for illegal trading as such amounts might be passed on to other flag such amounts might be passed on to other flag ships in high seas or other ports ships in high seas or other ports

7. Additional findings Guidance previously provided to parties concerned also ODS treatment in:  Free-trade zones (Decisions III/9 and V/5)  Trans-shipment as opposed to imports and re- exports (Decisions IV/14 and IX/34) exports (Decisions IV/14 and IX/34) No Parties specifically addressed these No Parties specifically addressed these provisions in their response to decision XXIII/11 provisions in their response to decision XXIII/11 TEAP reports Traditionally, RTOC reports have provided information Traditionally, RTOC reports have provided information primarily on the types and estimated amounts of primarily on the types and estimated amounts of refrigerants used on board ships refrigerants used on board ships

8. Relevant Framework: Annex VI of the International Convention for the prevention of Pollution from ships (MARPOL)  Ships over 400 GT are required to record non sealed ODS-containing systems and equipment, and to ODS-containing systems and equipment, and to maintain a record book registering the amounts of ODS maintain a record book registering the amounts of ODS used for supply, recharging, repair, discharge and used for supply, recharging, repair, discharge and disposal operations disposal operations  IMO has no mandate to review those log books; any enforcement is undertaken by port State control officers enforcement is undertaken by port State control officers in ports of states that are parties to Annex VI of MARPOL in ports of states that are parties to Annex VI of MARPOL  There exists no international compliance obligation Consultations with IMO

9. Relevant framework: Revised Kyoto Convention on the Simplification and Harmonization of Customs Procedures  The trade of ODS for use on board ships or the use itself is not specifically addressed itself is not specifically addressed  It is recommended that ODS amounts supplied to vessels be recorded on any relevant declaration vessels be recorded on any relevant declaration required by Customs authorities; however, WCO has required by Customs authorities; however, WCO has no mandate to review no mandate to review  There exists no international compliance obligation  ODS nomenclature is now included in the WCO framework to facilitate data collection and comparison framework to facilitate data collection and comparison Consultations with WCO

10. Thank you!