HNS Convention implemented in the Belgian Shipping Code
The Belgian legislator has implemented the international HNS Convention 2010 in the Belgian Shipping Code. It concerns the international convention on liability and compensation for damage in connection with the carriage by sea of hazardous and noxious substances. "hazardous and noxious substances" (HNS). The HNS Convention 2010 ensures adequate, prompt and effective compensation of persons, property and the environment for damage caused in connection with the carriage of hazardous and noxious substances by sea. Currently there is no coverage for certain types of damage caused by certain substances, the HNS Convention aims to remedy this.
The Convention consists of three parts, of which the establishment of the HNS fund is the most relevant for chemical companies. The larger recipients of hazardous and noxious substances will have to make a contribution as from 2024 (expected) in proportion to their imported hazardous substances by sea. Apart from the annual administrative costs, which are marginal (approximately € 10,000 per million tonnes), these are the costs in case of a major incident. The HNS fund will only request for contributions after such a major incident, so companies will not have to pay money in advance.
The shipowner remains objectively liable for the loss or damage up to a certain amount, which is covered by the mandatory insurance he has to take out. The Compensation Fund provides additional compensation when victims have not received full compensation from the shipowner or its insurer.
The HNS Convention thus implements the "polluter pays" principle by placing liability for damages falling within the scope of the Convention on the one hand on the shipowner and on the other hand on the HNS industry.
The 2010 HNS Convention requires the shipowner to provide proof of insurance cover when entering a port of a state party to the Convention with a certificate. The Belgian Shipping Act adds the certificate for the HNS Convention to the existing list of certificates related to other international conventions in case of shipping incidents. A Royal Decree will further specify the modalities of issue, conditions and validity of these certificates.
The Act will enter into force on the day the HNS Convention 2010 enters into force. The HNS Convention 2010 will enter into force 18 months after the date on which the 2010 Protocol has been ratified by at least 12 States.
