Combatting waste crime

The Hong Kong Convention, which has not yet entered into force, covers the design, the construction, the operation and the preparation of ships with a view to facilitating safe and environmentally-sound recycling as well as the “operation of ship recycling facilities in a safe and environmentally sound manner” (preamble, recital No 4).

In order to facilitate early ratification of the Hong Kong Convection both within the Union and in third countries by applying proportionate controls to ship and ship recycling facilities on the basis of that Convention the EU has adopted Regulation (EC) No 1257/2013 on ship recycling (SRR).

The Hong Kong Convention will enter into force only 24 months after the date of ratification by at least 15 states representing a combined merchant fleet of at least 40 per cent of the gross tonnage of the world’s merchant shipping and whose combined maximum annual ship recycling volume during the preceding ten years constitutes not less than three per cent of the gross tonnage of the combined merchant shipping of the same states.

The top five ship recycling countries in the world, between them accounting for more than 98 % of all ship recycling by gross tonnage, are Bangladesh, China, India, Pakistan and Turkey (of these, two are now Parties to the Hong Kong Convention - India and Turkey). India became the 15th member of the Hong Kong Convention in November 2019 - India's accession brings this important convention a significant step closer to entering into force, with the required 15 States now party to it and with India's ship recycling volume considerably contributing to the capacity of recycling needed.

The purpose of SRR - to prevent, reduce, minimise and, to the extent practicable, eliminate accidents, injuries and other adverse effects on human health and the environment caused by ship recycling - could be obviously only achieved if all the states as mentioned above accede to the Hong Kong Convention.

Before the SRR entered into force, the ship recycling was only regulated by the WSR, the Basel Convention and also the OECD Decision. None of the Waste Shipment Rules specifically deal with the recycling of ships, but instead manage rules for the transboundary movement of waste. The SRR is different from the Waste Shipment Rules in that the SRR only regulates the recycling of ships and not waste in general, so the SRR takes precedence over the WSR and Basel Convention for EU flagged ships. However, ships outside of the scope of the SRR may be subject to the Waste Shipment Regulation and the Basel Convention.

It will require an individual assessment in each specific case to determine whether the WSR will apply to the movement of the ship, and it is of the most importance that this is considered prior to the decision to reflag the ship to a non-EU flag, if the ship is destined for recycling. If the WSR applies, the relevant procedures for the transport of waste must be observed.

The Basel Convention may apply in parallel to the SRR. This is the case when European List includes facilities in third state. If a ship is to be recycled at a recycling facility located outside the EU, the SRR will not be applicable in that country. If the third state has not acceded to the Hong Kong Convention, the Basel Convention may instead be applied for recycling of ships within that country. And if a non-EU flagged ship is destined for recycling, the SRR will not apply, but the Waste Shipment Rules will apply for the transboundary movement of the ship from one state to another.