Decision ID: 002181

In October 1980 the 1971 Fund Assembly approved the proposed interpretation by the 4th intersessional Working Group of the circumstances under which contributing oil should be considered as ‘received’ according to Article 10.1 of the 1971 Fund Convention. Under the approved interpretation, discharge of oil into a floating tank (considered to be a ‘dead’ ship, ie not ready to sail) within the territorial waters of a Contracting State would constitute a receipt of oil irrespective of whether the tank was connected with onshore installations via pipeline or not, but that ship-to-ship transfers should not be considered as receipt, irrespective of where the transfer took place and whether it was done solely by using the ships’ equipment or by means of a pipeline passing over land, unless the oil passed through a storage tank before being loaded to the other ship, in which case it should be reported as received oil. As regards the question of which person had to be included in the report as ‘receiver’ of the oil, the Assembly decided that Contracting States should have some flexibility to adopt a practical reporting system, but that failing payment by persons reported other than the physical receivers, the physical receivers should ultimately be liable for contributions. With respect to the interpretation of Article 11 of the 1971 Fund Convention the Assembly, whilst recognising that some persons, under specific circumstances, had been burdened twice with the costs of initial contributions (ie having paid when the State in which they resided became a Member of the Fund, and again in the form of a pipeline charge for oil received via a neighbouring State when it became a Member of the Fund), decided by majority vote that an interpretation could not be made in which this situation could be avoided.

Date: 30.09.1980
Category: Application of the Conventions
Subject: Interpretation of 'received' in Article 10.1 of the 1971 and 1992 Fund Conventions