Decision VII/9: Basic domestic needs

The Seventh Meeting of the Parties decided in Dec. VII/9:

Recognizing that the Montreal Protocol requires each Party operating under Article 5 to freeze its production and consumption of chlorofluorocarbons by 1 July 1999 and of other Annex A and B substances thereafter,

Recognizing the needs of Parties operating under Article 5 for adequate and quality supplies of ozone-depleting substances at fair and equitable prices,

Recognizing the need to take steps to avoid any monopoly of supplies of ozone-depleting substances to Parties operating under Article 5,

Recognizing that the needs above could be met by calculating the production baselines of Parties operating under Article 5 separately from the consumption baseline and that paragraph 3 of Article 5 of the Protocol should be amended to reflect this,

At the same time, the Parties should consider introducing a mechanism to ensure that imports and exports of controlled substances should only be permitted between Parties to the Montreal Protocol which have reported data and demonstrated their compliance with all relevant provisions of the Protocol. The Parties should also consider whether to extend the terms of the present decision to all other controlled substances covered under the Montreal Protocol.

1. That until the first control measure for each controlled substance in Annex A and B becomes effective for them (e.g., for chlorofluorocarbons, until 1 July 1999), Parties operating under Article 5 may supply such substance to meet the basic domestic needs of Parties operating under Article 5;
2. That after the first control measure for each controlled substance in Annex A and B becomes effective for them (e.g., for chlorofluorocarbons, after 1 July 1999), Parties operating under Article 5 may supply such substance to meet the basic domestic needs of Parties operating under Article 5, within the production limits required by the Protocol;
3. That in order to prevent oversupply and dumping of ozone-depleting substances, all Parties importing and exporting ozone-depleting substances should monitor and regulate this trade by means of import and export licences;
4. That in addition to the reporting required under Article 7 of the Protocol, exporting Parties should report to the Ozone Secretariat by 30 September each year on the types, quantities and destinations of their exports of ozone-depleting substances during the previous year;
5. That the determination of the eligible incremental costs for phase-out projects in the production sector should be consistent with paragraph 2 (a) of the indicative list of incremental costs and based on the conclusions of the Executive Committee’s guidelines on phase-out of the production sector;
6. That the Executive Committee should as a priority agree on modalities to calculate and verify production capacity in Parties operating under Article 5;
7. That from 7 December 1995, no Party should install or commission any new capacity for the production of controlled substances listed in Annex A or Annex B of the Montreal Protocol;
8. To incorporate appropriately into the Protocol by the Ninth Meeting of the Parties:
   1. A licensing system, including a ban on unlicensed imports and exports; and
   2. The establishment of a production sector baseline for Parties operating under Article 5 calculated:
      1. For Annex A substances, as the average of the annual calculated level of production during the period of 1995 to 1997 inclusive or the calculated level of consumption of 0.3 kg per capita, whichever is lower; and
      2. For Annex B substances, as the average of the annual calculated level of production for 1998 to 2000 inclusive or a calculated level of consumption of 0.2 kg per capita, whichever is lower;