HNS Convention 2010
In 2010, an International Conference adopted a Protocol to the1996 HNS
Convention, which was designed to address the practical problems that had been
perceived to prevent many States from ratifying the Convention. This Overview is
a revision of the original document, taking into account changes introduced by
the 2010 Protocol. Together, these constitute the 2010 HNS Convention.
Main reasons for the changes introduced into the 1996 Convention by the2010
Protocol
It may be an aid to the understanding of the 2010 HNS Convention to explain
briefly the underlying causes inhibiting the entry into force of the HNS
Convention, 1996 and the solutions adopted in the 2010Protocol, namely:
I. The heavy burden on States of having to report the vast range of packaged
substances received by them. The remedy adopted was to differentiate
between bulk and packaged HNS goods by excluding packaged goods from
the definition of contributing cargo, and exempting receiving States from
the obligation to make contributions to the HNS Fund for them.
Nevertheless, damage caused by packaged goods remains covered under
the compulsory insurance of the ship-owner, and any excess is met from the
HNS Fund. In order to maintain the two-tier system, in view of the exclusion
from contributions to the Fund, the ship-owner’s limitation amount for
carrying packaged goods was also increased;
Introduction to the 2010 HNS Convention
1. Compensation for damage caused by the carriage by sea of hazardous and
noxious substances (HNS) is regulated by the 2010 HNS Convention. The
regime established by the 2010 HNS Convention is largely modelled on the
existing regime for oil pollution from tankers set up under the International
Convention on Civil Liability for Oil Pollution Damage, 1992 (CLC) and the
International Convention on the Establishment of an International Fund for
Compensation for Oil Pollution Damage, 1992 (Fund Convention), which
covers pollution damage caused by spills of persistent oil from tankers.
2. The HNS regime is governed by the 2010 HNS Convention, the purpose of
which is to provide adequate, prompt and effective compensation for loss
or damage to persons, property and the environment arising from the
carriage of HNS by sea. The Convention covers both pollution damage and
damage caused by other risks, e.g. fire and explosion.
3. Under the 2010 HNS Convention, the ship-owner is liable for the loss or
damage up to a certain amount, which is covered by insurance (1st tier). A
compensation fund (the HNS Fund) will provide additional compensation
when the victims do not obtain full compensation from the ship-owner or
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HNS Convention 2010
its insurer (2nd tier). The HNS Fund will be funded by those companies and
other entities which receive HNS after sea transport in a Member State in
excess of the thresholds laid down in the Convention, which is 20000 MT
per annum.
Limitation of liability
The ship-owner is entitled to limit his liability under the 2010 HNS Convention in
respect of anyone incident to an aggregate amount calculated on the basis of the
units of gross tonnage (GT) of the ship, as follows:
A. Where the damage has been caused by HNS in BULK:
i. 10 million Special Drawing Rights (SDR) for a ship not exceeding 2,000 GT;
and
ii. For a ship in excess of 2000 GT, 10 million SDR plus;
For each unit of tonnage from 2,001 to 50,000 GT, 1500 SDR; and
For each unit of tonnage in excess of 50,000 GT, 360 SDR; provided,
however, that this aggregate amount shall not in any event exceed 100
million SDR.
B. Where the damage has been caused by HNS in PACKAGED Form:
i. 11.5 million SDR for a ship not exceeding 2,000 GT; and
ii. For a ship with a tonnage in excess thereof, the following amount in
addition to that mentioned in (i):
For each unit of tonnage from 2,001 to 50,000 GT, 1,725 SDR; and
For each unit of tonnage in excess of 50,000 GT, 414 SDR; provided,
however, that this aggregate amount shall not in any event exceed 115
million SDR.
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HNS Convention 2010
IOPC – HNS FUND
Tanker Owner - PACKAGED
Tanker Owner - BULK
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