The SOLAS AmendmenT in The POrT Of AnTwerP Transposition to national regulations

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1 The SOLAS Amendment in the Port of Antwerp On July the SOLAS amendment will come into effect, concerning the requirement for shippers to verify the gross mass of a container carrying cargo. The carrier and the terminal operator must not load a packed container aboard a ship unless they have the verified gross mass (VGM) for that container. The rules prescribe two methods by which the shipper may obtain the VGM of a packed container: Method 1, upon the conclusion of packing and sealing a container, the shipper may weigh, or have arranged that a third party weigh, the packed container. Method 2, the shipper or, by arrangement of the shipper, a third party may weigh all packages and cargo items, including the mass of pallets, dunnage and other packing and securing material to be packed in the container, and add the tare mass of the container to the sum of the single masses of the container s contents. In respect of both Method 1 and 2, the weighing equipment used must meet the applicable accuracy standards and requirements of the State in which the equipment is being used. This document has been compiled by Alfaport, the platform from and for enterprises and professional associations from the port of Antwerp, bringing together frequently asked questions and their answers on the application of this new regulation in Belgium, with some specificities for the port of Antwerp. Transposition to national regulations This international regulation is currently being transposed to Belgian regulations, by the Competent Authority FDS Mobility & Transport, DGS. A Royal Decree and a circular are expected to be published in September 2016, including further explication and practical agreements to apply the regulation consistently. Latest information can be found on: (only in Dutch or French) The International Maritime Organisation published the circular MSC.1/ Circ.1548, advising national public authorities to adopt a practical and pragmatic approach when verifying compliance with the requirements of SOLAS regulations for a period of three months after 1 July 2016, with a view to permitting packed containers that are loaded on a ship before 1 July 2016 and are transhipped on or after 1 July 2016 to be shipped to their final port of discharge without the VGM; providing flexibility to all the stakeholders in containerized transport to refine, if necessary, procedures for documenting, communicating and sharing VGM information. DGS stated that this circular does not imply a delay of the implementation of new legislation, but only serves to tackle the aforementioned practical start-up issues.

2 1. GENERAL 1.1. Responsibilities for the VGM start with the shipper. But who is the shipper in the context of this new procedure? Under the SOLAS requirements, the shipper named on the ocean bill of lading is the party responsible for providing the maritime (ocean) carrier and/or the terminal operator with the VGM of a packed container. The shipper is defined as a legal entity or person named on the bill of lading or sea waybill or equivalent multimodal transport document as shipper, and/or who (or in whose name or on whose behalf ) a contract of carriage has been concluded with a shipping company Is there an agreed format to communicate VGM? The VGM of the packed container is to be communicated in the Shipping Document, that can be part of the shipping instructions or be a separate communication. In either case, the document should clearly highlight that the gross mass provided is the verified gross mass, signed by the shipper or a person duly authorised by the shipper. The information and signature may be transmitted electronically, or the signature may consist of the last name of the responsible person in capital letters. The form of exchange and precise substance should be agreed between the commercial parties. The information to be provided by the shipper is the same under Method 1 and Method Is there a deadline for when the information must be received by the carrier and the terminal operator? Deadlines are subject to commercial agreements and will differ according to a number of factors; shippers should obtain information on documentary cut-off times from their carriers in advance of shipment How will port terminals respond to containers without a VGM, entering the terminal? There is no legal requirement for the terminal operator to hold or send back the container without a VGM. In practice, container terminals in the port of Antwerp are likely to hold the container at the terminal. Nevertheless, without a VGM, the container will not be loaded onto the ship If the shipper communicates the VGM as required by this regulation, is there then an obligation under either Method 1 or Method 2 on the carrier (or terminal operator) to check the value given for that gross mass and report to the authorities any discrepancy that may be found? The requirements are for the carrier and the terminal to ensure that the VGM has been communicated sufficiently in time to be used in the ship stow planning process. There is no legal obligation to weigh a packed container for which the shipper has already provided the VGM. There is no requirement for the VGM to be notified to governmental authorities If goods are put onto a feeder ship that proceeds to Antwerp for transshipment to a further destination, in which port will the VGM have to be established? VGM is required before loading the packed container on board a ship covered by the SOLAS requirements at its initial port of loading, unless driven onto a ro-ro ship on a chassis or trailer. If the container has been loaded onto a feeder ship before 1 July 2016, it can be shipped to its final destination without a VGM, even if the container is being transshipped to another ship after 1 July 2016.

3 1.7. The requirement is for accurate gross mass; is there a margin of error defined for this accuracy? The SOLAS regulations provide that VGM shall be obtained under both Method 1 and 2 by using weighing equipment that meets the applicable accuracy standards and requirements in the State in which the equipment is being used. Belgian authorities have published Royal Decrees, containing standards and requirements that determine the acceptable level of accuracy of the weighing equipment: Royal Decree of 12 April 2016 regarding non-automatic weighing equipment: accuracy class III or IV; Royal Decree of 15 April 2016 regarding automatic weighing equipment: accuracy class Y(a) or Y(b). The competent authority is the Federal Public Service Economy, Metrology Regulation, metrology.regulation@economie.fgov.be 1.8. Will authorities apply an enforcement tolerance threshold for determining compliance with the SOLAS requirements? Belgian enforcement agents exercise a tolerance of 5% in deciding when to initiate further investigations or penalty action. This government s enforcement threshold should not be confused with the issue of the required accuracy that needs to be applied by the shipper when determining the VGM. Enforcement tolerances are simply a means by which a government decides how best to allocate its enforcement resources; as such, they have no effect on how the shipper goes about determining the VGM The SOLAS requirement derives from safety aspects. Cargo mass information may also be required for Customs purposes. SOLAS does not regulate Customs matters. Shipping lines will continue to issue their Bill of Lading using gross weights of the goods. The weights as shown in the Bill of Lading will also be part of the manifest usually being used for customs at destination. In the current situation, there is no link between VGM data for loading at the origin terminal and Ocean B/L-manifest data. The mass required under SOLAS versus Customs requirements may be different; e.g, Customs may require cargo mass, while SOLAS requires the total weight of the packed container.

4 2. METHOD Where can we use publically available weighbridges? A number of calibrated and certified weighing facilities are publicly available in the port of Antwerp, as well as in certain inland terminals. An overview is available on Additionally, some parties (e.g. port terminals) will provide weighing facilities to their customers. SOLAS only requires that the weighing equipment used to obtain the VGM meets the applicable accuracy standards and requirements, defined under Some weighbridges do not produce tickets. Would a gross mass being written on a driver s consignment note, signed and stamped by the load point be acceptable? There is no requirement under SOLAS that a weighing ticket or similar must be provided. What SOLAS requires is that the shipper communicates the VGM in a shipping document that can be part of the shipping instructions or be a separate communication, as specified under 1.2. It is the task of the shipper to evaluate whether he has sufficient documentation on file to prove that he duly and accurately applied either Method 1 or Method Where a third party (including potentially a port terminal) starts weighing freight containers, will it have to become a verified weigher in order to issue a valid weight ticket? There is no such concept as a verified weigher and the only obligation under SOLAS for a party weighing a packed container is to use calibrated and certified equipment that meets the accuracy standards and requirements of the state in which the equipment is being used. SOLAS does not make any additional requirements of the party weighing a packed container.

5 3. METHOD Which rules and regulations apply for determining the VGM using Method 2? When using Method 2, the VGM is determined as the sum of the following items: mass of the product without any packaging mass of primary packaging (if any) mass of all other packaging, pallets, dunnage, space fillers and securing material tare container mass The tare mass of the container is indicated on the door end of the container and does not need to be determined by weighing. For other elements, it is possible to rely on mass information provided by a supplier. In all other cases, the mass must be determined by weighing, using weighing equipment that meets the applicable accuracy standards and requirements in the State in which the equipment is being used. Method 2 is considered inappropriate and impractical for certain types of cargo items, e.g., scrap metal, unbagged grain and other cargo in bulk, that do not easily lend themselves to individual weighing of the items to be packed in the container. Method 2 is also inappropriate for liquid and gaseous cargoes, whether carried in ISO tank containers or flexitanks. Volumetric flow systems may be acceptable for other purposes but gross mass may not be accurately determined due to other variables. The SOLAS requirements do not include registration or approval in order to use Method 2, but this may be part of national implementation measures to achieve compliance. In Belgium, 3 certified procedures for calculation under method 2 are recognized: procedures certified as part of ISO certification (FPS Economy); procedures certified as part of AEO certification (FPS Finance); procedures approved by DGS (FPS Mobility and Transport). In the latter case, approval should be applied for at VGM@mobilit.fgov.be. The request should describe how the separate weights are determined and with which accuracy. A retribution of 700 has to be paid for the administrative work. DGS will publish a list of approved shippers on the website. Shippers can provide, on a voluntary basis, following information to DGS: name and address of the shipper; used method; in case of method 2: reference to ISO or AEO certification; In case of approval by DGS, the shipper will automatically be put on the list.

6 3.2. Can I deliver freight to my freight forwarder without knowing the mass and ask them to weigh it and establish the VGM of the cargo and issue the appropriate documents? The shipper under the contract of carriage remains responsible for accurately establishing VGM of a packed container. If your freight forwarder is the shipper on the maritime carrier s bill of lading, it may weigh the cargo, using Method 1 or 2, and provide the carrier with the VGM of the container. If you are the shipper on the bill of lading, you are responsible for providing the carrier with the VGM. Where the VGM is obtained by a third party, such as a freight forwarder, the shipper will remain responsible that the VGM provided to the carrier is correct. Parties in the maritime containerised supply chain are encouraged to ensure that their contractual arrangements take account of the SOLAS requirements. Further information on the role of the freight forwarder in this regard can be found in the Practical Guide for Forwarders, published by the Antwerp Forwarding Association VEA: Our company only ever provides part loads/less than container load (LCL), never a full container load (FCL) so what is our position? This will depend on the contractual arrangement with the co-loading freight forwarder that enters into the contract of carriage with the carrier and thus becomes the shipper to the carrier. If permitted under the terms of the contract with the master forwarder, your company may use Method 2 to verify the actual mass of the goods being shipped and pass that information on to the party completing the packing of the container. However, responsibility for providing the accurate, VGM of a co-loaded container remains with the shipper named on the maritime carrier s bill of lading, i.e. the master freight forwarder If Method 2 is chosen and international transactions take place (e.g. the producing / dispatching entity is based in another country than the consolidation port where the bill of lading is drawn up for export), which national rules and regulations regarding Method 2 should be applied? The national rules and regulations regarding Method 2 of the State in which the packing and sealing of the container is completed should be applied What if the tare mass appearing on containers is lacking or inaccurate due to wear and tear, etc.? What remedy is available? The tare mass of every container is marked on the exterior of the container at the time of manufacture. Shippers should solely rely on the tare mass value marked on the container. Where it is missing, or believed or established to be inaccurate, the container operator should be contacted to take appropriate remedial action. Container carriers may decide to publish the tare mass of their container equipment.