SPAIN Law and Practice Contributed by: José Antonio Domínguez, Mikel Garteiz-Goxeaskoa, Enrique Ortiz and Irantzu Sedano Beitia, Aiyon Abogados SLP
90%, together with other tax advantages such as bonuses in Social Security.
Should a Harbour Master detect an infringement of these limits, normally in the course of a Port State Control inspection, a sanctioning proceeding will be initiated against the Master and ISM Manager of the vessel, which may result in a penalty of up to EUR120,000. The Spanish Marine Authorities are very active in monitoring sulphur content in marine fuel oils, and penalties have already been imposed for breaching the limit. 9.3 Trade Sanctions Spain implements all the international trade sanctions of both the UN and the EU. Spain does not have an autonomous sanctions regime. The international trade sanctions adopted by the EU are implemented and/or adopted through national measures. The national competent authorities are responsible for establishing internal sanctions in the case of violation of restrictive measures, granting exceptions, receiving and co-operating with other member states and acting as a liaison with the sanc - tions’ committees. The Spanish competent authorities are the Secretariat of Commerce and the Secretariat of Treasury, both belonging to the Ministry of Eco - nomic affairs, and the Secretariat of Taxes, belonging to the Ministry of Finance and Civil Service. As part of the European Union, Spain has implement - ed all the sanctions imposed by the EU upon Russia and Belarus, which complement and extend the sanc - tions imposed between 2014 and 2020, and which were based on EU Regulation 833/2014 of 31 July. 9.4 International Conflict The war in Ukraine and Spain’s enforcement of trade sanctions have compelled Spanish companies to source suppliers and loading ports outside Russia, increasing costs and prompting cancellations or renegotiations of supply, affreightment and logistics contracts. In Spanish chartering practice, Ukraine and Russia are designated war risk areas, leading to amendments in charterparties to exclude these regions from trading limits. Standard clauses are commonly incorporated to address these risks, such
9. Implications of Non-Performance, IMO 2020, Trade Sanctions and International Conflict 9.1 Force Majeure and Frustration Under Spanish law, pursuant to Article 1105 of the Civil Code, non-performance of a shipping contract in maritime law – such as late delivery, non-arrival of a chartered vessel or slow cargo operations – may be excused as force majeure if caused by extraordi - nary, unforeseeable and unavoidable events, such as severe weather, natural disasters or similar events. In addition, under the rebus sic stantibus principle, fun - damental and unforeseeable changes in maritime cir - cumstances altering the contractual equilibrium may justify seeking modification, withdrawal or termination of the contract. 9.2 Enforcement of the IMO 2020 Rule Limiting the Sulphur Content of Fuel Oil Spain has implemented IMO 2020, which limits the sulphur content of fuel oil used on board ships from 3.5 to 0.5% m/m (mass by mass). The authorities responsible to enforce sulphur content limitations are the Directorate General of the Merchant Navy (DGMM) and the Harbour Master Offices that are subordinated to the DGMM. According to Articles 10 and 11 of Royal Decree 61/2006 (as amended by Royal Decree 290/2015), there are two limits: • a limit of 0.10% m/m for vessels within Spanish ports or operating in territorial waters and exclusive economic zone (EEZ) waters within the emission control areas (ECAS); and • a limit of 0.5% m/m for territorial waters and EEZ waters outside the emission control areas (ECAS). However, Spain does not have any ECAS at the pre - sent time. Therefore, the current limit is 0.10% m/m for vessels at Spanish ports and 0.5% m/m for ves - sels operating in Spanish territorial waters or in waters within the Spanish jurisdiction.
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