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CircularsNews
January 2016

Algeria - new ban on the import of vehicles, cement and steel debars

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1st January 2024.

The EU ETS is limited by a 'cap' on the number of emission allowances. Within the cap, companies receive or buy emission allowances, which they can trade as needed. The cap decreases every year, ensuring that total emissions fall.

Each allowance gives the holder the right to emit:

  • One tonne of carbon dioxide (CO2), or;
  • The equivalent amount of other powerful greenhouse gases, nitrous oxide (N2O) and perfluorocarbons (PFCs).
  • The price of one ton of CO2 allowance under the EU ETS has fluctuated between EUR 60 and almost EUR 100 in the past two years. The total cost of emissions will vary based on the cost of the allowance at the time of purchase, the vessel’s emissions profile and the total volume of voyages performed within the EU ETS area. The below is for illustration purposes:
  • ~A 30.000 GT passenger ship has total emissions of 20.000 tonnes in a reporting year, of which 9.000 are within the EU, 7.000 at berth within the EU and 4.000 are between the EU and an outside port. The average price of the allowance is EUR 75 per tonne. The total cost would be as follows:
  • ~~9.000 * EUR 75 = EUR 675.000
  • ~~7.000 * EUR 75 = EUR 525.000
  • ~~4.000 * EUR 75 * 50% = EUR 150.000
  • ~~Total = EUR 1.350.000 (of which 40% is payable in 2024)
  • For 2024, a 60% rebate is admitted to the vessels involved. However, this is reduced to 30% in 2025, before payment is due for 100% with effect from 2026.
  • Emissions reporting is done for each individual ship, where the ship submits their data to a verifier (such as a class society) which in turns allows the shipowner to issue a verified company emissions report. This report is then submitted to the administering authority, and it is this data that informs what emission allowances need to be surrendered to the authority.
  • The sanctions for non- compliance are severe, and in the case of a ship that has failed to comply with the monitoring and reporting obligations for two or more consecutive reporting periods, and where other enforcement measures have failed to ensure compliance, the competent authority of an EEA port of entry may issue an expulsion order. Where such a ship flies the flag of an EEA country and enters or is found in one of its ports, the country concerned will, after giving the opportunity to the company concerned to submit its observations, detain the ship until the company fulfils its monitoring and reporting obligations.
  • Per the EU’s Implementing Regulation, it is the Shipowner who remains ultimately responsible for complying with the EU ETS system.

There are a number of great resources on the regulatory and practical aspects of the system – none better than the EU’s own:

‍https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20230605

‍https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-shipping-sector_en

‍https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/what-eu-ets_en‍

Sayın yetkili,

Grup Kluplerinden Skuld aşağıdaki sirküleri göndermiş olup bilgilerinize sunarız.

Cezayir Hükümeti 12 Ocak 2016 tarihinde, motorlu araçların, çimento yükünün ve çubuk demir yükünün ithalatına yasak getirmiştir. Bu ürünler şu an için aşağıdaki miktarda sınırlandırılmıştır;

-          Şöför dahil 10 veya üzeri yolcu taşıma mahsatlı motorlu araçlar,

-          Yük taşıma maksatlı morotlu araçlar,

-          Çimento (gray portlant tipi) miktarı 1.5 milyon ton

-          Çubuk demir miktarı 2 milyon ton.

Bu listeye başka ürünlerin ve yük cinsleri gerek görüldüğü takdirde eklenecektir.

Bu ürünlerin ithalatının yapılabilmesinin yeni ithalat ruhsatının alınmasına vabeste olduğu belirtilmektedir.

Bu yüklerin Cezayir’e taşınması öncesi yükleyicilerden Cezayir makamlarında istenilen ruhsatlarının olduklarına dair resmi teyidleri mutlaka alınmalıdır.

Klübün bu mealde sirküleri aşağıda olup ayrıca yine aşağıdaki URL bağlantısından daha detaylı bilgiye ulaşılabilinir.

http://www.skuld.com/topics/voyage--port-risks/port-news/africa/algeria-restrictions-on-import-of-vehicles-cement-and-steel-debars/?utm_source=Newsletter&utm_medium=Email&utm_campaign=Algeria%3A%20Restrictions%20on%20import%20of%20vehicles%2C%20cement%20and%20steel%20debars

Dear Sirs,

Skuld has sent the following circular and we find it important to share with you.

On 12 January 2016 we advised that there was a ban on the import of vehicles, cement and steel debars and that same was put in effect pending the new import licence rules soon to enter into force. We have now been informed that the suspension has been replaced with a set of restrictions in the said licence rules.

Algeria will greatly reduce imports of vehicles and the quota has been set at 152,000 units for 2016. In comparison Algeria imported nearly 300,000 vehicles in 2015 against 439,637 units in 2014.

This quota relates to motor vehicles for the transport of ten or more people (including the driver), passenger cars and other motor vehicles principally designed for the transport of persons and also vehicles for the transport of goods.

The quantity of gray portland cement has been set at 1,5 million tonnes, and as for the steel debars the quantity has been set at 2 million tonnes.

Any economic operator, physical or legal person fulfilling the conditions provided in the law and applicable regulations, may apply for an import license of a product or commodity.

The notice of initiation of the quotas is from 14 January to 3 February 2016.

This list can possibly be extended to other products and goods.

Before carrying such cargo to Algeria we recommend that the members obtain official confirmation from the shippers that the import license has been obtained.

=======

As of 6 January 2016 Algerian banks have been instructed to formally suspend imports of new vehicles, cement and steel rebar.

This is an instruction that was provided by the Bank of Algeria to all Algerian and foreign banks in Algeria. This suspension is made in the wake of the established import licenses which should enter into force soon.

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