10.7.1998 EN Official Journal of the European Communities L 194/16 AGREEMENT between the European Community, the European Space Agency and the European Organisation for the Safety of Air Navigation on a European Contribution to the development of a global navigation satellite system (GNSS) THE EUROPEAN COMMUNITY, hereafter referred to as the ‘Community’, represented by and THE EUROPEAN SPACE AGENCY, established by the Convention of the European Space Agency opened for signature in Paris on 30 May 1975 (hereafter referred to as ‘ESA’), represented by Antonio Rodotà, Director-General, and THE EUROPEAN ORGANISATION FOR THE SAFETY OF AIR NAVIGATION, established by the Convention relating to Cooperation for the Safety of Air Navigation of 13 December 1960, as amended by the Protocol of 12 February 1981 (hereafter referred to as ‘Eurocontrol’), represented by Yves Lambert, Director-General, (hereafter collectively referred to as ‘the Parties’), TAKING NOTE that studies on navigation by satellite are evolving from research to the definition of an operational application system and that these have reached a sufficient degree of maturity for a European contribution to a global navigation satellite system thereby enhancing the involvement of European industry in this field; TAKING NOTE of the interest expressed by European Governments in a European contribution to satellite navigation as expressed on the occasion of the European Civil Aviation Conference meeting of 10 June 1994; HAVING REGARD to the communication from the Commission of the European Communities (hereafter referred to as the ‘Commission’) on satellite navigation services of 14 June 1994, the European Parliament Resolution of 13 November 1994, the Resolution of the Council of the European Union of 19 December 1994 on the European contribution to the development of a Global Navigation Satellite System (GNSS), the conclusions of the Council of the European Union of 14 March 1995, inviting the European Commission to contribute to the implementation of the Global Navigation Satellite System (GNSS 1) by taking all necessary measures for the leasing of the AOR-E and IOR Inmarsat III transponders, and Decision No 1692/96/EC of the European Parliament and of the Council of 23 July 1996 on Community guidelines for the development of the trans-European transport network; HAVING REGARD to the ESA Council's approval of this Agreement on 24 June 1997 under Article 14(1) of the Convention of the European Space Agency; HAVING REGARD to Measure 83/22 taken by the Eurocontrol Permanent Commission on 31 January 1995, pursuant to Article 11 of the Convention relating to Cooperation for the Safety of Air Navigation, as amended on 12 February 1981; RECOGNIZING the necessity of coordinating further their activities in order to ensure the credibility and effectiveness of a European involvement in this domain, in particular with regard to the development of a satellite navigation system using Inmarsat III navigation payloads for which the Parties submitted a proposal entitled the European Geostationary Navigation Overlay Service (EGNOS) which was accepted by the Inmarsat Council on 21 November 1994 and also on 15 November 1995, HAVE AGREED AS FOLLOWS: Article 1 Purpose The purpose of this Agreement shall be to establish cooperation between the Parties with a view to providing a European contribution to the development of a Global Navigation Satellite System. That concerted effort shall be aimed at placing Europe in a position to allow provision for a satellite navigation service which, as far as practicable, satisfies the requirements of civil users for operational use independently of other means of radio navigation and position. Article 2 Definitions For the purpose of this Agreement: ‘Global Navigation Satellite System’ hereafter referred to as ‘GNSS’ means a satellite-based worldwide position-, velocity-, and time-determination system which fulfils on a permanent basis potential user requirements for civil applications. ‘GNSS I’: means an initial implementation of GNSS, based upon the existing United States of America and Russian military satellite navigation systems, augmented by civil systems, designed to provide the user with sufficient independent monitoring of the whole system. ‘GNSS 2’: means a worldwide civil navigation satellite system to be internationally controlled and managed, which meets the requirements of all categories of users for position, velocity and time determination. ‘European Geostationary Navigation Overlay Service’ (EGNOS): means a European augmentation of existing satellite navigation and positioning systems, using geostationary satellites with the aim of enhancing the performance of these systems over Europe and providing a capability over the whole geostationary broadcast areas. EGNOS is a European component of GNSS 1. Article 3 Scope The scope of cooperation between the Parties is covered by this Agreement and further detailed in Annexes I and II. It covers the following activities: (a) the development and validation of an operational capability of a European contribution to GNSS 1, using existing satellite systems and any appropriate augmentation to fulfil users requirements; (b) coordination of each Party's actions for the attainment of a full operational capability of GNSS 1; (c) in parallel with GNSS 1, preparatory work for the definition and design of GNSS 2. Article 4 The Parties' contributions to GNSS 1 The Parties shall take the appropriate measures, in accordance with their respective rules and procedures, and shall use their best endeavours, to contribute in due time to GNSS 1 as specified in Annex II, as follows: (a) ESA shall contribute through the implementation of its Advanced Research in Telecommunication Systems (ARTES) Programme, in particular element 9, which includes the technical developments of EGNOS and its operation for testing and technical validation purposes; (b) Eurocontrol shall provide the civil-aviation user requirements and validate the resulting system in the light of these requirements. Eurocontrol shall also support the European efforts to ensure that GNSS 1 is operationally acceptable for civil aviation; (c) the Community shall contribute to the consolidation of the requirements of all users and to the validation of the resulting system in the light of such requirements, in particular in the framework of its Trans-European Networks and Research and Development actions, without prejudice to legislation on the technical harmonisation procedures such as those on aircraft and air traffic management equipment. The Community shall, in particular, also provide for the establishment of EGNOS by taking all appropriate measures, including the leasing of geostationary transponders. Article 5 Working arrangements between the Parties 1. To ensure progressive development of their cooperation, a Joint Tripartite Committee composed of the Parties is hereby set up with the objective of monitoring the implementation of this Agreement and formulating guidelines and coordinating common approaches towards the realisation of this Agreement. The Joint Tripartite Committee shall meet at least once a year or more frequently, if necessary, at the request of one of the Parties, and shall adopt its own rules of procedure. 2. The Joint Tripartite Committee shall be assisted by a Secretariat to provide day-to-day administrative support and, upon request, organise technical support. The Parties shall undertake, in accordance with their respective rules and procedures, to contribute jointly to such administrative support. 3. The Joint Tripartite Committee shall carry out the tasks specified in this Agreement, by: (a) exchanging information on the progress made in activities related to the scope of this Agreement and exchanging relevant documentation and results emanating from the contributions of the Parties under this Agreement; (b) inviting representatives from each of the Parties to participate in meetings relating to those activities which form the basis of this Agreement; (c) exchanging information and coordinationg, as far as possible, before contacts with non-European third parties when such contacts are relevant to this Agreement; (d) formulating proposals towards arrangements necessary for the future operational service of positioning and navigation; (e) submitting proposals for the organisation of the Secretariat support. 4. Any modification or update on the technical contents of Annexes I and II which have no impact on the scope of this Agreement, especially on its financial and operational provisions, may be approved by the Joint Tripartite Committee, by a unanimous decision. Article 6 Exchange of information and disclosure 1. Each Party shall exchange with the other Parties all information at its disposal which may be required for the implementation of this Agreement, subject to its own rules on exchange of information. 2. Except as otherwise provided, no Party shall disclose any information exchanged in connection with this Agreement to any person other than those employed by them or officially entitled to handle such information (including the Member States of each organisation) nor use it for commercial purposes. Such disclosure shall extend only so far as may be necessary for the purpose of this Agreement and shall be in strict confidence. Article 7 Rights and properties 1. Each Party shall, in accordance with its own rules and procedures, administer or retain the property and commercial rights in the software, equipment and documentation which it has financed and developed within the framework of its own activities in implementing this Agreement. 2. Specific arrangements between the Parties may be required for joint developments made for the purpose of this Agreement. Article 8 Financial arrangements 1. Each Party shall ensure that the appropriate financial arrangements are made in good time and in accordance with its own procedures, in order to discharge its own responsibilities under this Agreement and Annexes. 2. Upon completion of the EGNOS testing and technical validation, new financial arrangements shall be required to be in place. Article 9 Contract authority and procedures All contracts that are required for the implementation of this Agreement and are concluded by one party shall be concluded in accordance with the normal procedures of that Party, without prejudice to Article 7(2). Article 10 Liability 1. The Parties hereby agree that, with respect to activities undertaken pursuant to this Agreement, no Party shall make any claim against any other Party with respect to injury or death of its employees, or any person acting on its behalf, or with respect to damage of any kind to or loss of its property, caused by any of the Parties, whether such injury, death, damage or loss arises through negligence or otherwise, except in the case of gross negligence or wilful misconduct. 2. In the event of a claim from a third party resulting from the Parties' implementation of their respective contributions as specified in Annex II, each Party shall be liable only to the extent that the claim relates to that Party's contribution. 3. The parties hereby agree that only the Party that has contracted with a third party in the context of the execution of the Parties' contributions as specified in Annex II shall be liable for any claims from that third party resulting from the contract in question. Article 11 Force majeure No Party shall be considered in breach of this Agreement if any failure to provide its contribution hereunder arises from or is caused by force majeure. Article 12 Public relations 1. Each Party shall undertake to coordinate with the others in advance concerning its own or joint public-relations activities relating to subjects covered by this Agreement. 2. In all relevant media activities, the role of each Party in this Agreement shall be clearly identified and mentioned. 3. The detailed arrangements for implementing public-relations activities provided for in this Article shall be adopted jointly. Article 13 Amendments 1. This Agreement shall be amended only by unanimous written agreement of the Parties. 2. Should any Party encounter problems in the course of its respective contribution, including financial contribution, the Parties agree to examine, in the framework of the Joint Tripartite Committee, ways of achieving the planned contributions and review, to the extent necessary, the objectives and the content of this Agreement. Article 14 Participation by third parties This Agreement may be opened to participation by other parties that are able to contribute to the fulfilment of the tasks under this Agreement. Amendments in accordance with the procedure laid down in Article 13 shall then be made for that purpose. Article 15 Settlement of disputes 1. Any disputes which may arise between the parties relating to the interpretation or application of this Agreement or its Annexes shall be submitted for direct negotiations within the Joint Tripartite Committee. 2. If is is not possible to settle the dispute in accordance with paragraph 1, any Party may notify the others of the appointment of an arbitrator; the other Parties shall then each appoint their own arbitrator within two months. 3. The Joint Tripartite Committee shall appoint two additional arbitrators by unanimous decision. 4. The arbitrators' decisions shall be taken by majority vote. 5. Each party to the dispute shall take the appropriate steps required to implement the arbitrators' decisions. Article 16 Annexes This Agreement contains Annexes I and II which shall form an integral part hereto. Article 5(4) contains the procedure for the updating and modification of the Annexes. Article 17 Entry into force and termination 1. This Agreement shall enter into force on the date on which the Parties sign it, and shall remain in force until completion of the activities specified in Annexes I and II or until such time as this Agreement is replaced by another cooperation agreement. 2. Notwithstanding paragraph 1, any Party may nevertheless terminate the Agreement upon completion of the EGNOS technical and operational validation, by notifying the other Parties of its intention six months in advance. 3. In the event of termination of the Agreement by one of the parties in accordance with paragraph 2, the Parties shall agree on all appropriate measures to be taken. Article 18 Authentic texts This Agreement is signed in three original copies in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish and Swedish languages, each text being equally authentic. En fe de lo cual, los abajo firmantes, debidamente facultados, han firmado el presente Acuerdo. Til bekræftelse heraf har undertegnede befuldmægtigede underskrevet denne aftale. Zu Urkund dessen haben die hierzu gehörig befugten Unterzeichneten dieses Übereinkommen unterzeichnet. Προς πίστωση των ανωτέρω, οι υπογράφοντες, δεόντως εξουσιοδοτημένοι, υπέγραψαν την παρούσα συμφωνία. In witness whereof, the undersigned, duly empowered to that effect, have signed this Agreement. En foi de quoi, les soussignés, dûment habilités, ont signé le présent accord. In fede di che, i sottoscritti, debitamente autorizzati, hanno firmato il presente accordo. Ten blijke waarvan de ondergetekenden, daartoe naar behoren gemachtigd, deze overeenkomst hebben ondertekend. Em fé do que, os abaixo assinados, devidamente autorizados para o efeito, assinam o presente acordo. Tämän vakuudeksi alla mainitut täysivaltaiset edustajat ovat allekirjoittaneet tämän sopimuksen. Till bevis härpå har undertecknade befullmäktigade undertecknat detta avtal. Hecho en Luxemburgo, el dieciocho de junio de mil novecientos noventa y ocho. Udfærdiget i Luxembourg, den attende juni nitten hundrede og otteoghalvfems. Geschehen zu Luxemburg am achtzehnten Juni neunzehnhundertachtundneunzig. 'Έγινε στο Λουξεμβούργο, στις δεκαοκτώ Ιουνίου χίλια εννιακόσια ενενήντα οκτώ. Done at Luxembourg on the eighteenth day of June in the year one thousand nine hundred and ninety-eight. Fait à Luxembourg, le dix-huit juin mil neuf cent quatre-vingt-dix-huit. Fatto a Lussemburgo, addì diciotto giugno millenovecentonovantotto. Gedaan te Luxemburg, de achttiende juni negentienhonderd achtennegentig. Feito no Luxemburgo, em dezoito de Junho de mil novecentos e noventa e oito. Tehty Luxemburgissa kahdeksantenatoista päivänä kesäkuuta vuonna tuhatyhdeksänsataayhdeksänkymmentäkahdeksan. Som skedde i Luxemburg den artonde juni nittonhundranittioåtta. Por la Comunidad Europea For Det Europæiske Fællesskab Für die Europäische Gemeinschaft Για την Ευρωπαϊκή Κοινότητα For the European Community Pour la Communauté européenne Per la Comunità europea Voor de Europese Gemeenschap Pela Comunidade Europeia Euroopan yhteisön puolesta För Europeiska gemenskapen Por la Agencia Espacial Europea For Den Europæiske Rumorganisation Für die Europäische Weltraumorganisation Για την Ευρωπαϊκή Υπηρεσία Διαστήματος For the European Space Agency Pour l'Agence spatiale européenne Per l'Agenzia spaziale europea Voor het Europees Ruimteagentschap Pela Agência Espacial Europeia Euroopan avaruusjärjestön puolesta För Europeiska rymdorganisationen Por la Organización Europea para la Seguridad de la Navegación Aérea For Den Europæiske Organisation for Luftfartssikkerhed Für die Europäische Organisation zur Sicherung der Luftfahrt Για τον Ευρωπαϊκό Οργανισμό για την Ασφάλεια της Αεροναυτιλίας For the European Organisation for the Safety of Air Navigation Pour l'Organisation européenne pour la sécurité de la navigation aérienne Per l'Organizzazione europea per la sicurezza della navigazione aerea Voor de Europese Organisatie voor de veiligheid van de luchtvaart Pela Organização Europeia para a Segurança da Navegação Aérea Euroopan lentoturvallisuusjärjestön puolesta För Europeiska organisationen för luftfartssäkerhet ANNEX I 1. Introduction The scope of cooperation between the Parties, as set out in Article 3 of this Agreement, is detailed in the activities below. 2. European contribution to GNSS 1: Article 3(a) This contribution involves the development of augmentation systems to the current satellite-based radio-navigation and positioning systems in order to meet civil user requirements (land, sea, air, and other non-transport user requirements) over Europe and over the whole geostationary broadcast areas. It is composed of the following major activities: — identification of user requirements, — development, testing, technical and operational validation of the European Geostationary Navigation Overlay Service (EGNOS), which is a wide-area augmentation of existing satellite-based radio-navigation and positioning systems, relying on the use of geostationary satellites, providing additional satellite-ranging capability, integrity and wide-area differential information to users, — additional augmentation (e.g. local area augmentation, receiver autonomous integrity monitoring, etc.), — development, testing and validation of user equipment, — certification of European GNSS 1 elements. A more detailed description of the European contribution to GNSS 1 is provided in Annex II. 3. Transition to a full operational capability of GNSS 1: Article 3(b) The Parties undertake to identify mechanisms to accomodate possible further inputs to attain a full operational capability of GNSS 1, which will require in particular additional space capacity. 4. Preparatory work for GNSS 2: Article 3(c) The parties will liaise on preparatory work for the definition and design of GNSS 2, including studies for the preparation of an in-orbit demonstration to be undertaken in the time-frame 1997-2000. Candidate system configurations shall be studied to subsequently identify and initiate critical research and technology developments and carry out early trials of selected GNSS 2 concepts. The preparatory work for GNSS 2 includes the following: — mission definition (identification of additional user requirements, signal design requirements, demonstration system applications definition), — system definition (system options, demonstration system design, definition of demonstration programme), — predevelopment activities in preparation of the GNSS 2 technology, — development of an experimental navigation payload and the performance of system simulation tests and in-orbit flight demonstrations, — GNSS 2 architectural design (design of a complete navigation satellite system including its logistic and operational aspects). ANNEX II 1. Introduction This Annex provides a breakdown of the contributions of the Parties referred to in Article 4. They are related to the design, development and implementation of EGNOS up to the completion of a first implementation phase involving the use of at least two geostationary navigation transponders. A description of EGNOS is given below. The EGNOS system is an augmentation of existing satellite-based radio-navigation and positioning systems using geostationary satellites that will enhance the performance of these systems over Europe and more generally over the whole geostationary broadcast area(s). By using navigation transponders on geostationary satellites and processing data from a network of terrestrial monitoring stations, EGNOS shall provide additional satellite ranging capability, service integrity and wide area differential (WAD) correction data. The aim of the WAD service is to improve the accuracy of existing satellite-based radio-navigation systems, in particular over Europe. The EGNOS system will improve the overall satellite navigation service availability. The EGNOS infrastructure will consist of: — mission control centres (MCCs), — navigation transponders on geostationary satellites, — navigation land earth stations (NLESs) for accessing the navigation transponders, — ranging and integrity monitoring stations (RIMSs), — upgraded RIMSs for accurate orbit determination of the geostationary satellites hosting the navigation transponders, — a network of reference stations for verifying the integrity of the WAD corrections computed by EGNOS. Simplified RIMSs will be used as reference stations. 2. ESA contribution ESA shall contribute through the implementation of its ARTES programme, in particular Element 9 thereof. In particular, ESA shall undertake the following activities: — EGNOS project management, — mission analysis and system definition, — early trials, — test and simulation, — ranging-system development, — integrity-system development, — WAD system development, — testing and technical validation of EGNOS, including provisions for ground communications and MCCs running costs during the testing and validation period. 3. Eurocontrol contribution Eurocontrol shall undertake, in the context of its satellite navigation applications activities and in close cooperation with the International Civil Aviation Organisation (ICAO), the following: — provision of civil aviation user requirements, — operational testing and validation for civil aviation GNSS 1 users. This will include static ground measurements, dedicated flight trials and data recording campaigns on commercial airliners, — support to the European activities to ensure that GNSS is operationally acceptable for civil aviation. This work shall be carried out with the widest cooperation possible within the civil aviation environment, including the Joint Aviation Authorities (JAA). 4. Community contribution The Community shall undertake, in accordance with its relevant procedures in the context of the Trans-European Network and the framework programmes on research and development, to contribute to the following tasks: — consolidation of user requirements relative to GNSS 1, — design, development and support of the standardization effort of GNSS 1 user equipment, for all types of application (maritime, civil aviation, land transport), — analysis of the integration aspects in the user vehicles, in preparation of validation trials, — provision of at least two satellite links for the implementation of EGNOS (in particular lease of AOR-E and IOR Inmarsat III transponders and of necessary facilities in corresponding NLESs), — performance of trials in operational conditions to validate user requirements and user equipment prototypes.

Summary: Safe air navigation: Contributing to a Global Navigation Satellite System (GNSS) Safe air navigation: Contributing to a Global Navigation Satellite System (GNSS) SUMMARY OF: Agreement between the European Community, the European Space Agency and the European Organisation for the Safety of Air Navigation on a European contribution to the development of a global navigation satellite system Decision 98/434/EC concerning the Agreement between the European Community, the European Space Agency and the European Organisation for the Safety of Air Navigation on a European contribution to the development of a global navigation satellite system (GNSS) WHAT IS THE AIM OF THE AGREEMENT AND OF THE DECISION? The agreement creates the conditions for the European Community (now the EU), the European Space Agency (ESA) and the European Organisation for the Safety of Air Navigation (Eurocontrol) to contribute to developing a Global Navigation Satellite System (GNSS)* to meet the needs of civil users independently of other means of radio navigation and positioning. The decision approves the agreement on behalf of the EU. KEY POINTS Studies on navigation by satellite are evolving and have reached a sufficient degree of maturity for a European contribution to a global navigation satellite system to be created independent of other means of radio navigation and positioning, thereby allowing greater involvement of European industry in this field, including through projects such as Europe's 2 satellite navigation systems, Galileo and EGNOS*, as well as GNSS Market. The agreement covers: developing operational capability for a European contribution to GNSS 1*, using existing satellite systems and any appropriate augmentation of these systems; coordination to achieve full operational capability for GNSS 1; parallel preparatory work on GNSS 2*. The parties agree to the following: The ESA contributes by implementing its Advanced Research in Telecommunication Systems (ARTES) programme, in particular developing and operating the European Geostationary Navigation Overlay Service (EGNOS) for testing and technical validation; Eurocontrol determines the requirements of civil aviation ensuring that GNSS 1 is operationally acceptable; The European Community (now the EU) helps to integrate the requirements of all users and provides for EGNOS to be set up, including leasing the AOR-E and IOR Inmarsat III geostationary transponders. A Joint Tripartite Committee meets at least yearly to monitor implementation, formulate guidelines and coordinate common approaches to achieving the terms of the agreement. The EU is represented by the European Commission. Each party must: share all the necessary information at its disposal; not disclose any exchanged information to any person other than those employed by it or officially entitled to handle such information; not use such information for commercial purposes. In addition, the agreement: outlines the property rights of the three organisations, who undertake to make the necessary financial arrangements to implement the agreement; sets up a liability mechanism for activities undertaken under the agreement; obliges public relations activities to be coordinated between the parties, with roles clearly identified; may only be amended by unanimous written agreement; is open to the participation of relevant third parties. Disputes between the parties may be: submitted to the Joint Tripartite Committee for direct negotiation; or settled by 5 arbitrators, 3 appointed by the parties and 2 by the committee. DATE OF ENTRY INTO FORCE The agreement entered into force on 18 June 1998. BACKGROUND See also: European GNSS Agency (GSA) (European Global Navigation Satellite Systems Agency). KEY TERMS Global Navigation Satellite System (GNSS): a worldwide satellite-based system to determine position, velocity, and time, designed to permanently meet potential user requirements for civil applications. European Geostationary Navigation Overlay Service(EGNOS): European augmentation of existing satellite navigation and positioning systems, using geostationary satellites (i.e. satellites appearing to be stationary above a certain point on earth) with the aim of enhancing their performance in the skies over Europe and providing capability over the whole geostationary broadcast areas. EGNOS is a European component of GNSS 1. GNSS 1: an initial implementation of GNSS, based upon the existing US and Russian military satellite navigation systems, augmented by civil systems, designed to provide the user with sufficient independent monitoring of the whole system. GNSS 2: a worldwide civil navigation satellite system to be internationally controlled and managed, which meets the requirements of all categories of users to determine position, velocity and time. MAIN DOCUMENTS Agreement between the European Community, the European Space Agency and the European Organisation for the Safety of Air Navigation on a European Contribution to the development of a global navigation satellite system (GNSS) (OJ L 194, 10.7.1998, pp. 16-24) Council Decision 98/434/EC of 18 June 1998 concerning the Agreement between the European Community, the European Space Agency and the European Organisation for the Safety of Air Navigation on a European contribution to the development of a global navigation satellite system (GNSS) (OJ L 194, 10.7.1998, p. 15) RELATED DOCUMENTS Regulation (EU) No 1285/2013 of the European Parliament and of the Council of 11 December 2013 on the implementation and exploitation of European satellite navigation systems and repealing Council Regulation (EC) No 876/2002 and Regulation (EC) No 683/2008 of the European Parliament and of the Council (OJ L 347, 20.12.2013, pp. 1-24) Regulation (EU) No 912/2010 of the European Parliament and of the Council of 22 September 2010 setting up the European GNSS Agency, repealing Council Regulation (EC) No 1321/2004 on the establishment of structures for the management of the European satellite radio navigation programmes and amending Regulation (EC) No 683/2008 of the European Parliament and of the Council (OJ L 276, 20.10.2010, pp. 11-21) Successive amendments to Regulation (EU) No 912/2010 have been incorporated into the original text. This consolidated version is of documentary value only. last update 10.09.2020


EUR-Lex - 31998L0029 - EN Avis juridique important | 31998L0029 Council Directive 98/29/EC of 7 May 1998 on harmonisation of the main provisions concerning export credit insurance for transactions with medium and long-term cover Official Journal L 148 , 19/05/1998 P. 0022 - 0032 COUNCIL DIRECTIVE 98/29/EC of 7 May 1998 on harmonisation of the main provisions concerning export credit insurance for transactions with medium and long-term coverTHE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof,Having regard to the proposal from the Commission,(1) Whereas medium and long-term export credit insurance plays a crucial role in international trade and constitutes a major commercial policy instrument;(2) Whereas medium and long-term export credit insurance plays an important part in trade with developing countries and thus fosters their integration into the world economy, which is an objective of Community development policy;(3) Whereas the differences between the official medium and long-term export credit insurance systems currently operating in the Member States with regard to the main constituents of cover, premiums and cover policy may result in distorsions of competition among enterprises within the Community;(4) Whereas it seems appropriate that the measures provided for in this Directive should not go beyond what is necessary to achieve the objective of the harmonisation necessary to ensure that export policy is based on uniform principles and that competition between enterprises in the Community is not distorted;(5) Whereas in order to lessen existing distorsions of competition, it is desirable that the different official export credit insurance systems be harmonised, as envisaged in Article 112 of the Treaty, on the basis of uniform principles and in such a way as to form an integral part of the common commercial policy;(6) Whereas the provision by governments (or special institutions controlled by governments) of export credit guarantee or insurance programmes at premium rates which are inadequate to cover the long-term operating costs and losses of the programmes are classified as prohibited export subsidies in the Agreement on Subsidies and Countervailing Measures concluded in the framework of the Uruguay Round of multilateral trade negotiations (1986 to 1994) (1), in particular under Article 3(1)(a) and paragraph (j) of Annex I thereto;(7) Whereas the premium charged by credit insurers should correspond to the risk insured;(8) Whereas harmonisation would foster cooperation among the credit insurers acting on behalf of the State or with State support, and enhance cooperation among enterprises within the Community as envisaged by Article 130 of the Treaty;(9) Whereas both harmonisation and cooperation are major and crucial factors in the competitiveness of Community exporters on non-Community markets;(10) Whereas the Commission White Paper on completing the internal market adopted by the European Council in June 1985 stresses the importance of an environment conducive to cooperation among enterprises in the Community;(11) Whereas, by a Decision (2) dated 27 September 1960, the Council set up a Policy Coordination Group for Credit Insurance, Credit Guarantees and Financial Credits;(12) Whereas on 15 May 1991 the said Policy Coordination Group mandated experts from each of the Member States at that time who, as the Single Market 1992 Experts' Group, submitted reports containing a set of proposals on 27 March 1992, 11 June 1993 and 9 February 1994;(13) Whereas by Decision 93/112/EEC (3), the Council implemented into Community law the OECD Arrangement on Guidelines for Officially Supported Export Credits;(14) Whereas Council Directive 70/509/EEC of 27 October 1970 on the adoption of a common credit insurance policy for medium- and long-term transactions with public buyers (4) and Council Directive 70/510/EEC of 27 October 1970 on the adoption of a common credit insurance policy for medium and long-term transactions with private buyers (5), should be replaced by this Directive;(15) Whereas this initial harmonisation of export credit insurance should be considered as a step towards convergence of the various systems of the Member States,HAS ADOPTED THIS DIRECTIVE:Article 1 Scope This Directive applies to cover for transactions related to the export of goods and/or services originating in a Member State, in so far as this support is provided directly or indirectly for the account of, or with the support of, one or more Member States, involving a total risk period of two years or more, that is to say, the repayment period including the manufacturing period.This Directive does not apply to cover for bid, advance payment, performance and retention bonds. Neither does it apply to cover for risks relating to construction equipment and material when locally used for the performance of the commercial contract.Article 2 Obligations of the Member States Member States shall ensure that any institution providing cover directly or indirectly in the form of export credit insurance, guarantees or refinancing for the account of the Member State or with the support of the Member State representing the government itself or controlled by and/or acting under the authority of the government providing cover, hereinafter referred to as 'insurers`, covers transactions related to the export of goods and/or service in accordance with the provisions set out in the Annex, when destined for countries outside the Community and financed by buyer credit or supplier credit or paid on cash terms.Article 3 Implementing decisions The decisions referred to in point 46 of the Annex shall be taken by the Commission, in accordance with the procedure laid down in Article 4.Article 4 Committee The Commission shall be assisted by a committee composed of the representatives of the Member States and chaired by the representative of the Commission.The representative of the Commission shall submit to the committee a draft of the measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 148(2) of the Treaty in the case of decisions which the Council is required to adopt on a proposal from the Commission. The votes of the representatives of the Member States within the committee shall be weighted in the manner set out in that Article. The chairman shall not vote.The Commission shall adopt measures which shall apply immediately. However, if these measures are not in accordance with the opinion of the committee, they shall be communicated by the Commission to the Council forthwith. In that event:- the Commission shall defer application of the measures which it has decided for a period which may not exceed one month from the date of communication,- the Council, acting by a qualified majority, may take a different decision within the time limit referred to in the first indent.Article 5 Report and review The Commission shall submit a report to the Council by 31 December 2001 on the experience gained and the convergence achieved in applying the provisions laid down in this Directive.Article 6 Relationship to other procedures The procedures laid down by this Directive supplement those established by Decision 73/391/EEC (6).Article 7 Repeal Directive 70/509/EEC and Directive 70/510/EEC are hereby repealed.Article 8 Transposition Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 1 April 1999. They shall forthwith inform the Commission thereof.When Member States adopt these measures, they shall contain a reference to this Directive or shall be accompanied by such reference on the occasion of their official publication. The methods of making such reference shall be laid down by Member States.Article 9 Entry into force This Directive shall enter into force on the 20th day following its publication in the Official Journal of the European Communities.Article 10 Addressees This Directive is addressed to the Member States.Done at Brussels, 7 May 1998.For the CouncilThe PresidentM. BECKETT(1) OJ L 336, 23. 12. 1994, p. 156.(2) OJ 66, 27. 10. 1960, p. 1339/60.(3) OJ L 44, 22. 2. 1993, p. 1. Decision as last amended by Decision 97/530/EC (OJ L 216, 8. 8. 1997, p. 77).(4) OJ L 254, 23. 11. 1970, p. 1. Directive as last amended by the 1994 Act of Accession.(5) OJ L 254, 23. 11. 1970, p. 26. Directive as last amended by the 1994 Act of Accession.(6) OJ L 346, 17. 12. 1973, p. 1. Decision as amended by Decision 76/641/EEC (OJ L 223, 16. 8. 1976, p. 25).ANNEX COMMON PRINCIPLES FOR EXPORT CREDIT INSURANCE CHAPTER I: CONSTITUENTS OF COVER Section 1: General principles and definitions 1. Scope of the common principles (a) The common principles laid down in this Annex shall apply to cover for supplier credit transactions with public or private buyers and to cover for buyer credit transactions with public or private borrowers.(b) The common principles shall apply to cover for all risks as defined in point 4. Nevertheless, the insurer may decide in each individual case to limit its cover to certain risks only.(c) When all the obligations of a private debtor are wholly and unconditionally guaranteed by an entity which is considered public in accordance with point 5 of this Annex, the common principles for public debtors shall apply.When used in this Annex, the term 'debtor` means either the buyer or borrower as referred to in point 1(a), or their guarantor with regard to the insured transaction.2. Characteristics of supplier credit (a) The term 'supplier credit` shall apply to a commercial contract providing for an export of goods and/or services originating in a Member State between one or more suppliers and one or more buyers, whereby the buyer(s) undertake to pay the supplier(s) on cash terms or on credit terms.(b) Cover provisions for supplier credit shall apply where cover is given to enterprises established in a Member State in accordance with Article 58 of the Treaty.(c) If a commercial contract is being financed by means of a buyer credit or any other financing arrangement, cover given to the exporter for the commercial contract itself shall follow the provisions for cover for supplier credits.3. Characteristics of buyer credit (a) The term 'buyer credit` shall apply to a loan agreement between one or more financial institutions and one or more borrowers financing a commercial contract providing for an export of goods and/or services originating in a Member State, whereby the lending institution(s) undertake to pay the supplier(s) under the underlying transaction on cash terms on behalf of the buyer(s)/borrower(s), while the buyer(s)/borrower(s) will reimburse the lending institution(s) on credit terms.(b) Cover provisions for buyer credit shall apply where cover is given to financial institutions, irrespective of their place of establishment or registration, provided that the buyer credit constitutes an unconditional obligation of the borrower to repay its debt, irrespective of the performance of the commercial contract to be financed.(c) Cover provisions for buyer credit shall apply to cover given to a financial institution in respect of negotiable instruments properly held by that financial institution and payable by a buyer pursuant to any arrangement for the financing of a commercial contract.4. Definition of the risks involved (a) The commercial risk for private debtors is determined by points 14, 15 and 16.(b) The political risk for private debtors is determined by points 17 to 22, and for public debtors by points 15 to 22.(c) The manufacturing risk is determined by point 6(b).(d) The credit risk is determined by point 6(c).5. Status of the debtor (a) Any entity which, in whatever form, represents the public authority itself and which cannot, either judicially or administratively, be declared insolvent, shall be considered as a public debtor. This may either be a sovereign debtor, i.e. an entity which represents the full faith and credit of the State, e.g. the Ministry of Finance or the Central Bank, or any other subordinate public entity, such as regional, municipal or parastatal authorities or other public institutions.(b) When assessing the status of a debtor, the insurer shall take into account:- the legal status of the debtor,- the real effectiveness of any legal action against the debtor,- the debtor's sources of finance and revenue; this shall take account of the fact that a public debtor may also discharge his debts by using sources which are not related to central government funds, for example through revenues raised by local taxation, or by providing public services,- the degree of influence or control over the debtor that can be exercised by the host country government.(c) Any debtor which is not public, according to the aforementioned criteria, shall be, in principle, considered as private.Section 2: Scope of cover 6. Covered risk (a) The covered risks shall be the risk of loss arising from the manufacturing and the credit risk.(b) Loss arising from manufacturing risk materialises when the performance of the contractual obligations of the policyholder, or the manufacture of the goods ordered, has been suspended for a period of six consecutive months, provided that such suspension is caused directly and exclusively by the occurrence of one or more of the covered causes of loss listed in points 14 to 22.(c) Loss arising from credit risk materialises when the policyholder has been unable to obtain payment of any amount due to it under the relevant commercial contract or loan agreement during a period of three months after the due date, provided that such non-payment is caused directly and exclusively by the occurrence of one or more of the covered causes of loss listed in points 14 to 22.(d) Where the risk related to a buyer credit is guaranteed unconditionally the insurer shall follow the principles and procedures laid down in points 32, 33, and 47(a).7. Extent of cover (a) Cover for manufacturing risk shall include, within the limit of the contract amount, the costs incurred by the policyholder either in performing its contractual obligations or in manufacturing the goods subject to the contract, provided that such costs are properly attributable to the performance of the contract.Cover for the manufacturing risk shall not include:- costs incurred in respect of goods and/or services for which cover of the credit risk has already taken effect,- amounts paid by the policyholder following the calling of a bond issued in respect of the covered contract; however, this does not prevent the insurer from covering such risks outside the scope of this Directive, and- amounts corresponding to penalties and damages paid by the policyholder to the debtor.(b) Cover for credit risk shall include the amount (principal and interest) owed by the buyer under the commercial contract or by the borrower under the loan agreement, including interest accruing after the due date (post-maturity interest).Cover for credit risk shall exclude amounts corresponding to penalties and damages paid by the policyholder to the debtor.8. Percentage of cover (a) The percentage of cover and the basis for determining the maximum amount of the indemnity for which the insurer may be liable shall be expressly laid down in the credit insurance policy issued by the insurer.(b) If an insurer gives a cover percentage higher than 95 %, it shall follow the principles and procedures laid down in points 32, 33 and 47(a).9. Uninsured percentage Without prejudice to the provisions of point 8(b), the policyholder shall retain for its own account any uninsured percentage. The insurer may decide to allow the policyholder to wholly or partially lay off such uninsured percentage.10. Cover for transactions in foreign currency If transactions provide for payment or financing in one or more foreign currencies, cover may be given in any such currency.11. Foreign supplies Subcontracts with parties in one or more Member States are automatically included in the cover in accordance with Council Decision 82/854/EEC of 10 December 1982 on the rules applicable, in the fields of export guarantees and finance for export, to certain subcontracts with parties in other Member States or in non-member countries (1).12. Effective date of cover (a) In case of a buyer credit, cover shall take effect on the date of entry into force of the loan agreement, provided that the conditions precedent stipulated in the credit insurance policy and the loan agreement have been met.(b) In case of a supplier credit, cover of the manufacturing risk shall take effect on the date of entry into force of the commercial contract, provided that the conditions precedent stipulated in the credit insurance policy and the commercial contract have been met.Cover of the credit risk shall take effect on the date on which full completion of the contractual obligations of the policyholder entitles the latter to payment, provided that the conditions precedent stipulated in the credit insurance policy and the commercial contract have been met. However, cover of the credit risk may take effect on the date of each partial delivery or partial dispatch, provided that the policyholder, under the terms of the contract, is entitled to payment of a fixed and definitive amount corresponding to the value of the goods and/or services delivered or dispatched.Section 3: Causes of loss and exclusions of liability 13. Liability of the insurer The insurer shall be liable if the loss is directly and exclusively attributable to one or more of the covered causes of loss laid down in points 14 to 22.14. Insolvency Insolvency of the private debtor and, if any, its guarantor, either de jure or de facto.15. Default Default of the debtor and, if any, its guarantor.16. Arbitrary repudiation or refusal Decision of the buyer under a supplier credit to interrupt or cancel the commercial contract, or to refuse to accept the goods and/or services, without being entitled to do so.17. Decision of a third country Any measure or decision of the government of a country other than the country of the insurer, or the country of the policyholder, including measures and decisions of public authorities which are deemed to constitute government interventions, which prevents performance of the loan agreement or the commercial contract, respectively.18. Moratorium General moratorium decreed either by the government of the country of the debtor, or by that of a third country through which payment in respect of the loan agreement or the commercial contract is to be effected.19. Prevention or delay in the transfer of funds Political events, economic difficulties, or legislative or administrative measures which occur or are taken outside the country of the insurer, and which prevent or delay the transfer of funds paid in respect of the loan agreement or the commercial contract.20. Legal provisions in the debtor's country Legal provisions adopted in the country of the debtor declaring payments made by the debtor in local currency to be valid discharge of the debt, notwithstanding that, as a result of fluctuations in exchange rates, such payments, when converted into the currency of the commercial contract or of the loan agreement, no longer cover the amount of the debt at the date of transfer of funds.21. Decision of the country of the insurer or of the policyholder Any measure or decision of the government of the country of the insurer or of the policyholder, including measures and decisions of the European Community, relating to trade between a Member State and third countries, such as a ban on exports, in so far as its effects are not covered otherwise by the government concerned.22. Force majeure Cases of force majeure occurring outside the country of the insurer, which could include war including civil war, revolution, riot, civil disturbance, cyclone, flood, earthquake, volcanic eruption, tidal wave, and nuclear accident, in so far as its effects are not insured otherwise.23. General exclusion from liability The insurer should be entitled to decline liability for any loss that is directly or indirectly attributable to the following:(a) any action or omission by the policyholder, or by any person acting on its behalf;(b) any provision restricting the policyholder's rights, which is included in the loan agreement, the commercial contract, or any associated document including any document relating to the guarantee or security arrangements involved;(c) any further agreement between the policyholder and the debtor after conclusion of the loan agreement or the commercial contract, which prevents or delays the payment of the debt;(d) in the case of a supplier credit, any failure of subcontractors, co-contractors, or other suppliers to perform their obligations, provided that such failure is not a consequence of political events as described in causes of loss listed in points 17 to 22.Section 4: Provisions for the indemnification of claims 24. Claim waiting period (a) The claim waiting period shall correspond to the period of time set for the covered risk to materialise, as laid down in point 6(b) and (c).(b) No claim waiting period need apply:- when, in the case of a private debtor, the non-payment is due to the debtor's insolvency, either de jure or de facto,- in case of a bilateral intergovernmental debt restructuring agreement.25. Indemnification and assignment (a) The policyholder is entitled to indemnification at the end of the claim waiting period as defined in point 24, provided that the conditions precedent to the insurance and the indemnification have been fulfilled, the claim is legally valid, and the policyholder has managed the risk with due diligence.(b) The insurer is entitled to assignment of the policyholder's rights under, respectively, the loan agreement or the commercial contract.26. Secured obligations If the debtor's obligations to the policyholder have been secured by means of a guarantee or other security, the policyholder must have taken all necessary measures as required in the policy to ensure not only that the guarantee or other security is valid and enforceable, but also to actually enforce the security.27. Calculation of the claim Without prejudice to the provisions of point 31, the insurer shall, in calculating the payment of a claim, not pay the policyholder an amount exceeding the actual amount of its total loss, and/or exceeding the amount which the policyholder was actually entitled to receive from the borrower under the loan agreement or from the buyer under the commercial contract, respectively.28. Payment of the claim The claim shall be paid without delay, at the latest, however, within one month of the end of the claim waiting period, provided that the insurer has been notified promptly of the occurrence of the claim and received all necessary information, documents, and evidence in order to establish the validity of the claim in good time.In the case of cover for manufacturing risk, the claim shall be paid within one month either of the end of the claim waiting period, or of the date of receipt of an expert's report, where relevant, or of the date of agreement by the policyholder and the insurer on the amount of the claim, whichever is later.29. Disputes relating to the claim If losses subject to an application for indemnification by the policyholder relate to rights which are in dispute, the insurer may defer the payment of the claim until the dispute is settled in favour of the policyholder by the court or arbitration body provided for in the loan agreement or the commercial contract, respectively.30. Bilateral intergovernmental debt restructuring agreement (a) If the covered loan agreement or commercial contract is subject to a bilateral intergovernmental debt restructuring agreement, the policyholder shall follow the conditions of the restructuring agreement in respect of both the insured and the uninsured portions of that loan agreement or commercial contract, respectively. The policyholder shall give any necessary assistance to the insurer for the performance of the restructuring agreement.(b) If the insured amount is included in a bilateral intergovernmental debt restructuring agreement, the insurer may waive the one-month period provided for in point 28, once the bilateral agreement is effective.31. Additional costs Additional costs resulting from action to minimise or avoid loss shall be covered proportionally to the percentage of cover under the credit insurance policy, provided that they have been approved by the insurer. Additional costs include costs of court action and other legal expenses to minimise or avoid loss but exclude costs of establishing the validity of a claim.However, if such costs also relate to amounts or maturities not covered by the insurer, they shall be attributed proportionally to the insured and uninsured amounts or maturities.CHAPTER II: PREMIUM 32. General principles for setting the premium Premiums shall converge. To this end the premium charged for export credit insurance shall:- correspond to the risk (country, sovereign, public and/or private risk) covered,- adequately reflect the scope and the quality of the cover granted,- not be inadequate to cover long-term operating costs and losses.33. Quality of cover When determining the quality of cover as mentioned in point 32, the insurer shall duly take into account the percentage of cover, the conditionality of cover, and any other condition affecting the quality of cover.34. Country risk assessment The level of premium charged for each country or each country category shall be based on an appropriate country risk assessment.35. Creditworthiness of the debtor When setting premium rates, the insurer shall appropriately take the creditworthiness of the debtor including its status as set out in point 5 into account.36. Risk period When calculating the premium, the insurer shall take account of the total risk period as well as the repayment profile and interest.37. Chargeable amount (a) Premium shall be paid on the chargeable amount and shall be based, as far as possible, on minimum premium benchmarks. The benchmarks shall be expressed in percentages of a reference value as if the premium were collected in full at the date of the insurance or guarantee; for credit risk this reference value shall at least be, respectively, the amount of the principal of the loan or the (re-)financed portion of the commercial contract, and for manufacturing risk the total contract value minus the downpayment.(b) In the case of manufacturing risk, the chargeable amount may be reduced to the expected maximum loss.38. Payment of premium (a) The total premium amount shall be due on the date of the credit insurance policy or guarantee or when the contract or loan agreement becomes fully effective.(b) The premium may be paid in instalments or by adding a spread to the interest rate, provided that this corresponds, in net present value terms, to the premium amount referred to in point 38(a) above.CHAPTER III: COUNTRY COVER POLICY 39. Determination of the country cover policy (a) The insurer shall, in the light of its size and the structural economic constraints, base its country cover policy on its assessment of the risk by country, its total outstanding exposure for each country, and the composition of its country risk portfolio.(b) In setting its country cover policy, the insurer shall take into account each debtor country's classification.(c) Nevertheless, the insurer shall be free to stop or limit insuring business for a particular country, regardless of the country classification.40. Definition of total outstanding exposure The total outstanding exposure shall, within the limits of the percentage of cover, be determined on the basis of the amounts for medium and long-term business, as defined in Article 1 of the Directive.41. Country risk (a) As regards the group of countries which constitute the best risk, the insurer shall, in principle, set no restrictions on its cover policy.(b) For other countries, the insurer may set restrictions on its cover policy.(c) An insurer which, in principle, does not offer cover for a country or a particular group of countries, may, however, exceptionally cover certain transactions for reasons of bilateral policy or national interest, or where sufficient freely convertible foreign exchange is available for the transaction in question.(d) Concerning the countries referred to in point (b) above, insurers may set risk limits, in cumulative or alternative manner, for example:- the total outstanding exposure for that country,- the total value of offers of cover,- the value of new contracts to be covered,- the maximum amount covered per transaction.Insurers may also increase the applicable premium.Below the risk limits for a particular country, there shall in principle be no limit on cover policy.42. Specific conditions for country cover In any case, the insurer may routinely apply to a particular country, irrespective of the corresponding country category, certain cover conditions such as:- payment and/or transfer guarantee by the Central Bank or the Finance Ministry of the relevant country,- irrevocable letter of credit or bank guarantee,- extension of the claim waiting period,- reduction in the cover percentage,- restriction of the cover for certain sectors of activity or for certain types of projects.CHAPTER IV: NOTIFICATION PROCEDURES 43. Scope of the notification procedures (a) Insurers shall apply the following procedures to the common principles set out in Chapters I, II and III.(b) These procedures shall supplement those established under Council Decision 73/391/EEC of 3 December 1973 on consultation and information procedures in matters of credit insurance, credit guarantees and financial credits (2).44. Types of notification procedures There shall be four types of notification procedures, destined to the Commission and the other insurers:- annual notification for information,- notification for decision,- ex-ante notification for information, and- ex-post notification for information.The data provided shall not be disclosed to third parties.45. Annual notification for information (a) At the end of each year, at the latest however by 30 April of the following year, each insurer shall report to the other insurers and to the Commission on its activity over the previous year on a retrospective basis. This report shall cover all debtor countries and shall contain, for each of these countries:- the total amount of cover the insurer has offered,- the total outstanding exposure as defined in point 40,- the premium earned,- the amount of recoveries made, and- the amount of claims paid.(b) At the beginning of each year, at the latest by 31 January, each insurer shall report to the other insurers and to the Commission on its cover policy, including the type and level of ceilings as well as the conditions the insurer intends to routinely impose on cover, as envisaged or applicable for the year to come.46. Notification for decision (a) In case of competing offers from Community exporters or banks, an insurer involved shall respond promptly to any request for information from another insurer involved on the status of the debtor of the transaction in question - as defined in point 5.(b) In case of disagreement on the status of the debtor, the insurers involved shall make the information available to the other insurers in a bid to settle on a mutually agreed status.(c) If insurers cannot agree on the status of the debtor within 10 working days from the request for information, the insurers involved shall bring the matter with the relevant information to the attention of the Commission, which shall take a decision in accordance with the procedure laid down in Article 4 of this Directive.47. Ex-ante notification for information (a) An insurer which intends to derogate from the provisions of this Annex by giving more favourable cover conditions either for a particular transaction or a set of transactions, or for a certain sector or sectors, or for a certain country or countries, or for its overall system, shall notify the other insurers and the Commission of its intention at least seven working days before its decision becomes effective, stating the reasons for the intended derogation, for example the need to match international competition, and the corresponding premium rate to be charged.(b) An insurer which intends to charge a lower premium than that set out in its annual notification in accordance with point 45(b), shall notify the other insurers and the Commission of its intention at least seven working days before its decision becomes effective.(c) An insurer which, following another insurer's notification in accordance with point (a) or (b) above, intends to give more favourable conditions than the initiating notifier, shall notify the other insurers and the Commission of its intention at least seven working days before its decision becomes effective, stating the premium rate it intends to charge.(d) An insurer which, in accordance with point 41(c), intends to cover transactions with debtors in countries, for which it normally does not offer cover, shall notify the other insurers and the Commission of its intention at least seven working days before its decision becomes effective, stating the premium rate it intends to charge.48. Ex-post notification for information (a) An insurer which decides to derogate from the provisions of this Annex by giving less favourable cover conditions either for a particular transaction or a set of transactions, or for a certain sector or sectors, or for a certain country or countries, or for its overall system, should at the latest by 31 January notify the other insurers and the Commission accordingly for the preceding calendar year.(b) An insurer which decides to adjust one or more elements of its country cover policy set out in its annual notification in accordance with point 45(b), shall promptly notify the other insurers and the Commission accordingly.(c) An insurer which, following a notification in accordance with points 47(a) and/or (b), decides to give the same conditions as the initiating notifier, shall promptly notify the other insurers and the Commission accordingly.(d) Each insurer shall promptly give detailed replies to any request from other insurers or the Commission for clarification or information on its activity.49. Use of an electronic mail system All notifications shall normally be made via an electronic mail system, or, if necessary, by other appropriate means of instant written communication.(1) OJ L 357, 18. 12. 1982, p. 20.(2) OJ L 346, 17. 12. 1973, p. 1. Decision as last amended by the 1994 Act of Accession.

Summary: Export credit insurance Export credit insurance SUMMARY OF: Directive 98/29/EC — export credit insurance for transactions with medium and long-term cover WHAT IS THE AIM OF THE DIRECTIVE? It harmonises different national official export credit insurance systems* to ensure there is no distortion of competition between EU companies. It establishes common principles for insurance coverage, premiums, country cover policies and notification procedures. KEY POINTS The legislation applies to insurance cover for the export of goods and services. All institutions providing the cover, either directly or indirectly, must comply with its terms. The risks covered may be commercial, political, manufacturing or credit-related. Insurers are liable if the loss is directly or indirectly due to various causes such as a debtor’s insolvency or political or economic developments. Insurers are not liable for any loss that may be due to factors such as: behaviour or omissions by the policyholder; or the failure of subcontractors to fulfil their obligations. Claims should be paid without any delay, or, at the latest, within 1 month of the waiting period*. Premiums should: correspond to the country, sovereign, public and/or private risk covered; reflect adequately the scope and quality of the cover granted; be able to cover long-term operating costs and losses. Country cover policy should reflect an assessment of the risks involved, notably a country’s total outstanding exposure and/or the value of new contracts to be covered. Notification procedures designed to ensure transparency in the system apply to: annual notification for information; notification for a decision; ex-ante and ex-post notification for information. The legislation does not apply to insurance cover for: bids; advance payments; performance or retention bonds*; locally used construction equipment and material. FROM WHEN DOES THE DIRECTIVE APPLY? It has applied since 8 June 1998. EU countries had to incorporate it into national law by 1 April 1999. * KEY TERMS Export credit insurance systems: these protect an exporter of products and services against the risk of non-payment by a foreign customer. In giving the exporter conditional assurance that payment will be made if the foreign buyer is unable to pay, they reduce the payment risks associated with doing business abroad. Waiting period: the period of time set for the covered risk to materialise. Performance or retention bonds: bonds that protect a customer once a job or project is completed. They guarantee that the contractor will do any work needed to remedy defects discovered immediately after completion of the contract, even if the contractor has been fully paid. MAIN DOCUMENT Council Directive 98/29/EC of 7 May 1998 on harmonisation of the main provisions concerning export credit insurance for transactions with medium and long-term cover (OJ L 148, 19.5.1998, pp. 22-32) Successive amendments to Directive 98/29/EC have been incorporated into the original text. This consolidated version is of documentary value only. RELATED DOCUMENTS Council Decision 2006/789/EC of 13 November 2006 on consultation and information procedures in matters of credit insurance, credit guarantees and financial credits (Codified version) (OJ L 319, 18.11.2006, pp. 37-45) last update 30.01.2017


EUR-Lex - 31998L0041 - EN Avis juridique important | 31998L0041 Council Directive 98/41/EC of 18 June 1998 on the registration of persons sailing on board passenger ships operating to or from ports of the Member States of the Community Official Journal L 188 , 02/07/1998 P. 0035 - 0039 COUNCIL DIRECTIVE 98/41/EC of 18 June 1998 on the registration of persons sailing on board passenger ships operating to or from ports of the Member States of the Community THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 84(2) thereof,Having regard to the proposal from the Commission (1),Having regard to the opinion of the Economic and Social Committee (2),Acting in accordance with the procedure laid down in Article 189c of the Treaty (3),(1) Whereas within the framework of the common transport policy further measures must be taken to enhance safety in maritime transport;(2) Whereas the Community is seriously concerned by shipping accidents involving passenger ships which have resulted in massive loss of life, particularly those involving the Herald of Free Enterprise and the Estonia; whereas persons using passenger ships and high-speed passenger craft throughout the Community have the right to expect and to be able to rely on an appropriate level of safety and upon an adequate information system which will facilitate search and rescue and the efficient handling of the aftermath of any accident that might occur;(3) Whereas it is necessary to ensure that the number of passengers on board a passenger ship does not exceed the number for which the ship and its safety equipment have been certified; whereas companies should be able to inform the search and rescue services of the number of persons involved in an accident;(4) Whereas information must be compiled on passengers and crew in order to facilitate search and rescue and the efficient handling of the aftermath of an accident, i.e. identifying the persons involved, providing clearer information on related legal issues and contributing to more appropriate medical care for rescued persons; whereas such information would prevent unnecessary anxiety on the part of relatives and other persons concerned regarding persons on board passenger ships involved in marine accidents in waters for which Member States bear responsibility under the 1979 International Convention on Maritime Search and Rescue (SAR);(5) Whereas passengers should therefore be counted and registered before any ship departs;(6) Whereas Chapter III of the International Convention on the Safety of Life at Sea (the SOLAS Convention) provides for the counting and registration of all persons on board all passenger ships sailing on international voyages, from 1 July 1997 and 1 January 1999 respectively, while permitting Administrations to exempt passenger ships sailing in sheltered waters from those requirements and from the requirement to register if the scheduled voyages of such ships render it impracticable for them to prepare such records; whereas that Chapter of the SOLAS Convention does not apply to domestic voyages and leaves important points of interpretation to the discretion of individual Member States;(7) Whereas this Directive is in accordance with the right of Member States to impose on passenger ships sailing to or from their ports certain requirements more stringent than those laid down in the SOLAS Convention;(8) Whereas in view, in particular, of the internal-market dimension of maritime passenger transport, action at Community level is the most effective way of establishing a common minimum level of safety for ships throughout the Community;(9) Whereas, in view of the principle of proportionality a Council Directive is the appropriate legal instrument as it provides a framework for the Member States' uniform and compulsory application of safety standards while leaving each Member State the right to decide which implementation tools best fit its internal system;(10) Whereas a Member State can ensure compliance with the safety rules applicable on the part of passenger ships flying its flag and the companies that operate them; whereas those rules should not be imposed upon ships operating between ports in third countries; whereas the provisions of the SOLAS Convention apply to those voyages;(11) Whereas the only way of ensuring the safe and efficient handling of the aftermath of accidents for all passenger ships, irrespective of their flags, operating or wishing to operate from their ports, is for the Member States to require effective compliance with the relevant rules as a condition of operating from their ports; whereas the granting of exemptions from those rules cannot be left solely to the flag State since only the port State is in a position to determine the requirements for the best possible search and rescue operations for passenger ships sailing to and from a port;(12) Whereas in order to harmonise safety protection and avoid distortions of competition, Member States should not, for reasons other than those mentioned in this Directive, grant exemptions or derogations from the relevant SOLAS provisions on 'information on passengers` for voyages starting from or arriving at Community ports;(13) Whereas for reasons of practicability and to avoid distortion of competition, a uniform approach must be established to determine the voyages for which the registration of all persons on board should be mandatory; whereas the twenty-mile threshold is the result of taking into consideration general principles and specific points of concern endorsed by all Member States;(14) Whereas, for specific operational reasons, the counting of persons on board passenger ships crossing the Strait of Messina might, for a limited period of time, be done in a simpler way than individual counting; whereas Member States should enjoy the possibility of granting some relaxation from the obligation to communicate to the shore the number of persons in the case of passenger ships operating on regular services of short duration carried out exclusively in protected sea areas, as defined in this Directive; whereas passenger ships operating exclusively in protected sea areas constitute a more limited risk and should, therefore, enjoy the possibility of exemption; whereas in certain specific circumstances it may be impracticable for shipping companies to register persons on board and therefore a derogation from the obligation to register could be permitted under specific circumstances and well defined conditions;(15) Whereas the collection and processing of data concerning named individuals must be carried out in accordance with the principles of data protection laid down in Directive 95/46/EC (4); whereas, in particular, individuals should be fully informed at the time of collection of the purposes for which the data are required, and the data should be retained only for a very short period which should not in any case be any longer than necessary for the purposes of this Directive;(16) Whereas it is necessary that a committee consisting of representatives of the Member States assist the Commission in the effective application of this Directive; whereas the committee set up by Article 12 of Directive 93/75/EEC (5) can assume that function;(17) Whereas certain provisions of this Directive may be adapted by that Committee to take into account future amendments to the SOLAS Convention that have entered into force,HAS ADOPTED THIS DIRECTIVE:Article 1 The purpose of this Directive shall be to enhance the safety and possibilities of rescue of passengers and crew on board passenger ships operating to or from ports in Member States of the Community and to ensure that search and rescue and the aftermath of any accident which may occur can be dealt with more effectively.Article 2 For the purposes of this Directive:- 'persons` shall mean all people on board irrespective of age,- 'passenger ship` shall mean a sea-going ship or a sea-going high-speed craft which carries more than twelve passengers,- 'high-speed craft` shall mean a high-speed craft as defined in Regulation 1 of Chapter X of the 1974 SOLAS Convention, as in force at the time of the adoption of this Directive,- 'company` shall mean the owner of a passenger ship or any other organisation or person such as the manager or the bareboat charterer, who has assumed responsibility for operating the passenger ship from the owner,- 'ISM Code` shall mean the International Management Code for the Safe Operation of Ships and for Pollution Prevention adopted by the International Maritime Organization (IMO) through Assembly Resolution A.741(18) of 4 November 1993,- 'passenger registrar` shall mean the responsible shore-based person designated by a company to fulfil the ISM Code obligations or a shore-based person designated by a company as responsible for the keeping of information on persons who have embarked on a company passenger ship,- 'designated authority` shall mean the competent authority of the Member State responsible for search and rescue or concerned with the aftermath of an accident,- 'a mile` is 1 852 metres,- 'protected sea area` shall mean a sea area sheltered from open sea effects where a ship is at no time more than six miles from a place of refuge where shipwrecked persons can land and in which the proximity of search and rescue facilities is ensured,- 'regular service` shall mean a series of ship crossings operated so as to serve traffic between the same two or more ports, either:(a) according to a published timetable, or(b) with crossings so regular or frequent that they constitute a recognizable systematic series,- 'third country` shall mean any country which is not a Member State.Article 3 This Directive shall apply to passenger ships with the exception of:- ships of war and troop ships, and- pleasure yachts unless they are or will be crewed and carry more than twelve passengers for commercial purposes.Article 4 1. All persons on board any passenger ship which departs from a port located in a Member State shall be counted before that passenger ship departs.2. Before the passenger ship departs the number of persons on board shall be communicated to the master of the passenger ship and to the company's passenger registrar or to a shore-based company system that performs the same function.Article 5 1. The following information shall be recorded regarding every passenger ship that departs from a port located in a Member State to undertake a voyage of more than twenty miles from the point of departure:- the family names of the persons on board,- their forenames or initials,- their sex,- an indication of the category of age (adult, child or infant) to which each person belongs, or the age, or the year of birth,- when volunteered by a passenger, information concerning the need for special care or assistance in emergency situations.2. That information shall be collected before departure and communicated not later than thirty minutes after the passenger ship's departure to the company's passenger registrar or to a shore-based company system that performs the same function.Article 6 1. Each Member State shall, as regards every passenger ship that flies its flag and departs from a port located outwith the Community and is bound for a port located within the Community, require the company to ensure that the information specified in Articles 4(1) and 5(1) is provided as laid down in Articles 4(2) and 5(2).2. Each Member State shall, as regards every passenger ship that flies the flag of a third country and departs from a port located outwith the Community and is bound for a port located within the Community, require the company to ensure that the information specified in Articles 4(1) and 5(1) is collected and maintained so that it is available to the designated authority when needed for purposes of search and rescue and in the aftermath of an accident.3. Where under the relevant SOLAS provisions a Member State grants an exemption or derogation relating to the information concerning passengers to a ship flying its flag arriving at a port located within the Community from a port located outwith the Community, it may do so only under the conditions laid down for exemptions or derogations in this Directive.Article 7 Before a passenger ship departs from a port located in a Member State its master shall ensure that the number of persons on board does not exceed the number the passenger ship is permitted to carry.Article 8 Each company assuming responsibility for operating a passenger ship shall, where required under Articles 4 and 5:- set up a system for the registration of passenger information. The system shall meet the criteria laid down in Article 11,- appoint a passenger registrar responsible for the keeping and the transmission of that information should an emergency occur or in the aftermath of an accident.The company shall ensure that the information required by this Directive is at all times readily available for transmission to the designated authority for search and rescue purposes in the event of an emergency or in the aftermath of an accident.Personal data collected in accordance with Article 5 shall not be kept longer than necessary for the purposes of this Directive.The company shall ensure that information concerning persons who have declared a need for special care or assistance in emergency situations is properly recorded and communicated to the master before the passenger ship departs.Article 9 1. A Member State from a port in which a passenger ship departs may lower the twenty-mile threshold laid down in Article 5.Any decision lowering that threshold for journeys between two ports in different Member States shall be taken jointly by those two Member States.2. (a) When implementing Article 4(1) the Italian Republic may, for regular services crossing the Strait of Messina, adopt provisions for counting the maximum number of persons permitted to be carried on board a passenger ship carrying passenger-train carriages and road vehicles on the basis of the maximum number of passengers authorised to be carried by train carriages and all other vehicles on board, if the persons cannot be counted individually for operational reasons. The application of this provision shall be limited to a period of four years. Any extension shall be decided, in accordance with paragraph 3, in the light of the experience gained.(b) A Member State from a port in which a ship departs may exempt passenger ships operating, exclusively in protected sea areas, regular services of less than one hour between port calls from the obligation laid down in Article 4(2) to communicate the number of persons on board to the passenger registrar or to a shore-based company system that performs the same function.(c) A Member State may exempt passenger ships sailing, exclusively in protected sea areas, between two ports or from and to the same port without intermediate calls from the obligations laid down in Article 5.3. In the circumstances set out in paragraph 2, the following procedure shall apply:(a) the Member State shall without delay inform the Commission of its decision to grant an exemption or a derogation from the relevant provisions of Articles 4 and 5 giving substantive reasons therefor;(b) if within six months of such notification the Commission considers that that decision is not justified or could have adverse effects on competition, it may, acting in accordance with the procedure laid down in Article 13, require the Member State to amend or withdraw its decision.4. For regular services in an area where the annual probability of the significant wave height's exceeding two metres is less than 10%, and- if the voyage does not exceed about thirty miles from the point of departure or- where the primary purpose of the service is to provide regular links to outlying communities for customary purposes,a Member State from a port in which passenger ships sail on domestic voyages or two Member States between ports in which passenger ships sail may request the Commission, if they consider it impracticable for companies to record the information specified in Article 5(1) to derogate, wholly or partly, from this requirement.To this end, evidence of such impracticability shall be provided. In addition, it shall be demonstrated that in the area where such ships operate, shore-based navigational guidance and reliable weather forecasts are provided and that adequate and sufficient search and rescue facilities are available. Derogations granted under this paragraph may not have any adverse effect on competition.A decision shall be taken in accordance with the procedure laid down in Article 13.5. A Member State shall not, under the provisions of this Directive, exempt or grant derogations to any passenger ship sailing from its ports and flying the flag of a third country that is a contracting party to the SOLAS Convention which under the relevant SOLAS provisions does not agree to the application of such exemptions.Article 10 The registration systems set up in accordance with Article 8 shall be approved by the Member States.Member States shall at least carry out random checks on the proper functioning of the registration systems set up pursuant to this Directive within their territories.Each Member State shall designate the authority to which the companies covered by Article 8 shall communicate the information required by this Directive.Article 11 1. For the purposes of this Directive registration systems shall meet the following functional criteria:(i) readability:the required data must be in a format that is easy to read,(ii) availability:the required data must be easily available to the designated authorities for which the information contained in the system is relevant,(iii) facilitation:the system must be designed in such a way that no undue delay is caused for passengers embarking and/or disembarking the vessel;(iv) security:the data must be appropriately protected against accidental or unlawful destruction or loss and unauthorised alteration, disclosure or access.2. A multiplicity of systems on the same or similar routes is to be avoided.Article 12 Without prejudice to the procedures for amending the SOLAS Convention, this Directive may be amended in accordance with the procedure laid down in Article 13, in order to ensure the application, for the purposes of this Directive and without broadening its scope, of subsequent amendments to the SOLAS Convention relating to the registration systems which have entered into force after the adoption of this Directive.Article 13 The Commission shall be assisted by the committee set up pursuant to Article 12(1) of Directive 93/75/EEC. The committee shall operate in accordance with the procedure laid down in paragraphs 2 and 3 of that Article.Article 14 Member States shall lay down systems of penalties for breaching the national provisions adopted pursuant to this Directive and shall take all the measures necessary to ensure that those penalties are applied. The penalties thus provided for shall be effective, proportionate and dissuasive.Article 15 1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 1 January 1999. They shall forthwith inform the Commission thereof. Article 5 shall be applied no later than 1 January 2000.2. When the Member States adopt those measures, they shall contain references to this Directive or shall be accompanied by such references on the occasion of their official publication. The methods of making such references shall be laid down by the Member States.3. The Member States shall immediately communicate to the Commission the texts of all provisions of national law which they adopt in the field governed by this Directive. The Commission shall inform the other Member States thereof.Article 16 This Directive shall enter into force on the twentieth day after its publication.Article 17 This Directive is addressed to the Member States.Done at Luxembourg, 18 June 1998.For the CouncilThe PresidentG. STRANG(1) OJ C 31, 31. 1. 1997, p. 5 and OJ C 275, 11. 9. 1997, p. 7.(2) OJ C 206, 7. 7. 1997, p. 111.(3) Opinion of the European Parliament of 29 May 1997 (OJ C 138, 16. 6. 1998, p. 31), Council common position of 11 December 1997 (OJ C 23, 23. 1. 1998, p. 17), and Decision of the European Parliament of 11 March 1998 (OJ C 104, 6. 4. 1998).(4) OJ L 281, 23. 11. 1995, p. 31.(5) OJ L 247, 5. 10. 1993, p. 19.

Summary: Registration of persons on board passenger ships Registration of persons on board passenger ships SUMMARY OF: Directive 98/41/EC — registration of persons sailing on board passenger ships operating to or from EU ports Directive (EU) 2017/2109 amending Council Directive 98/41/EC on the registration of persons in passenger ships WHAT IS THE AIM OF THE DIRECTIVE? It sets out rules on the registration of those on board passenger ships and high-speed craft operating in EU waters. It complements the safety rules and standards for passenger ships laid down by Directives 2009/45/EC and (EU) 2017/2108, as well as in Directive (EU) 2017/2110 on a system of inspections for the safe operation of passenger ships. It seeks to improve the safety of and the procedures for the search and rescue of passengers and crew travelling by sea in the event of an emergency, as well as the aftermath of any accident which may occur. It aims to ensure the number of persons on board does not exceed the number for which the vessel has been certified. KEY POINTS Counting of persons on board All persons on board any passenger ship which departs from a port located in an EU country must be counted before that ship departs. Before the passenger ship departs the number of persons on board must be communicated to the ship’s master and to the company’s passenger registrar or to a shore-based company system that performs the same function. The ship’s master must ensure that the number of persons on board does not exceed the number the passenger ship is permitted to carry. The rules in Directive 98/41/EC regarding the counting and registration of all individuals on board prior to departure from EU ports have been amended in December 2017 to introduce the electronic transmission and sharing of information on persons on board. Directive (EU) 2017/2109 amends Directives 98/41/EC and 2010/65/EU introducing new rules which aim at digitalising the registration of ship passengers. Its purpose is to ensure the immediate availability of the exact number of passengers and other information for the use of the search and rescue services in the event of an accident.Under the new requirements, the number of persons on board will be communicated by means of either the national single windows or, if an EU country so chooses, to the designated authority by means of the Automatic Identification System* before the ship’s departure.EU countries may decide to postpone the implementation of electronic reporting until 21 December 2023. Information on persons on board Where a passenger vessel departs from an EU port on a trip of more than 20 nautical miles (EU countries may lower this threshold), the following information must be collected and registered: first name and surname;nationality;gender;date of birth;any requirement for special assistance (when this information has been volunteered by a passenger); andcontact number (if the EU country so chooses and when this information is volunteered by the passenger). This information must be recorded within 15 minutes after the ship’s departure. The counting of and registering information about persons on board is also required for vessels which depart from a port located outside the EU but which are bound for an EU port, whether or not the vessel is flying the flag of an EU country. Exemptions or derogations EU countries may grant certain exemptions or request derogations concerning passenger counting and registration for ships provided that: Exemption from Art. 4.2: they are not high-speed craft, operate regular services of less than 1 hour between port calls exclusively in sea area D (under Directive 2009/45/EC — Article 4) and the proximity of search and rescue facilities is ensured in that sea area;Exemption from Art. 5: they are sailing between 2 ports or from and to the same port without intermediate calls, operate exclusively in sea area D and the proximity of search and rescue facilities is ensured in that sea area;Derogation: they operate regular services in an area where the probability of wave height exceeding 2 metres is less than 10% and — either the entire voyage is less than 30 miles from departure — or a public service obligation exists for outlying communities. Germany may extend the periods for the collection and reporting of information to 1 hour after departure in the case of passenger ships operating from and to the Island of Heligoland; and Denmark and Sweden may extend the periods for the collection and reporting of information to 1 hour after departure in the case of passenger ships operating from and to the Island of Bornholm. FROM WHEN DOES THE DIRECTIVE APPLY? The original Directive 98/41/EC has applied since 22 July 1998 and had to become law in the EU countries by 1 January 1999. The rules regarding ‘Additional information on persons on board’ (Article 5) had to be applied no later than 1 January 2000. The new rules on electronic reporting, introduced by Directive (EU) 2017/2109, apply from 21 December 2019, unless an EU country decided to make use of a transitional period. BACKGROUND For more information, see: Safety of passenger ships (European Commission) European Maritime Single Window environment (European Commission). KEY TERMS Automatic identification system (AIS): a maritime broadcast system, based on the transmission of very high frequency radio signals. Ships send reports with ship identification, position, and course, as well as information on cargo. In Europe, the exchange of AIS messages is done through the SafeSeaNet system. MAIN DOCUMENTS Council Directive 98/41/EC of 18 June 1998 on the registration of persons sailing on board passenger ships operating to or from ports of the Member States of the Community (OJ L 188, 2.7.1998, pp. 35-39) Successive amendments to Directive 98/41/EC have been incorporated in the original text. This consolidated version is of documentary value only. Directive (EU) 2017/2109 of the European Parliament and of the Council of 15 November 2017 amending Council Directive 98/41/EC on the registration of persons sailing on board passenger ships operating to or from ports of the Member States of the Community and Directive 2010/65/EU of the European Parliament and of the Council on reporting formalities for ships arriving in and/or departing from ports of the Member States (OJ L 315, 30.11.2017, pp. 52-60) RELATED DOCUMENTS Directive (EU) 2017/2108 of the European Parliament and of the Council of 15 November 2017 amending Directive 2009/45/EC on safety rules and standards for passenger ships (OJ L 315, 30.11.2017, pp. 40-51) Directive 2010/65/EU of the European Parliament and of the Council of 20 October 2010 on reporting formalities for ships arriving in and/or departing from ports of the Member States and repealing Directive 2002/6/EC (OJ L 283, 29.10.2010, pp. 1-10) Directive (EU) 2017/2110 of the European Parliament and of the Council of 15 November 2017 on a system of inspections for the safe operation of ro-ro passenger ships and high-speed passenger craft in regular service and amending Directive 2009/16/EC and repealing Council Directive 1999/35/EC (OJ L 315, 30.11.2017, pp. 61-77) Directive 2009/45/EC of the European Parliament and of the Council of 6 May 2009 on safety rules and standards for passenger ships (recast) (OJ L 163, 25.6.2009, pp. 1-140) See consolidated version. last update 28.05.2019