Part VII consists of 32 paragraphs outlining the compliance verification regime for Schedule 2 chemicals and facilities related to them, including declarations, inspections, and special rules for transfers to non States Parties. Generally speaking Schedule 2 chemicals include those produced for peaceful purposes by industry in relatively small amounts that nevertheless pose a significant risk to the objectives of the Convention because of their toxicity or their potential as precursors for production of chemical weapons.
Section A (paragraphs 1 through 11) of Part VII sets forth the contents of declarations of aggregate national data, plant sites producing, processing or consuming Schedule 2 chemicals, and past production of Schedule 2 chemicals for chemical weapons purposes.
Paragraph 1 of Part VII states that initial and annual declarations provided by each State Party pursuant to paragraphs 7 and 8 of Article VI (i.e. the main provisions requiring declarations) shall include aggregate national data for the previous calendar year on the quantities produced, processed, consumed, imported and exported of each Schedule 2 chemical, as well as a quantitative specification of import and export for each country involved. (The Preparatory Commission is expected to develop specific formats for such declarations.)
Paragraph 2 of Part VII provides deadlines for submitting initial and annual declarations –– not later than 30 days after the Convention enters into force for the State Party and thereafter, starting in the following calendar year, not later than 90 days after the end of the previous calendar year.
Paragraph 3 of Part VII states that initial and annual declarations are required for all plant sites comprising one or more plants that during the previous three calendar years produced, processed, or consumed or are anticipated to produce, process, or consume in the next calendar year more than: 1 kilogram of chemicals identified in Part A of Schedule 2 as of higher risk requiring more stringent verification (currently only BZ, a chemical stockpiled as a chemical weapon but also used in pharmaceutical production); more than 100 kilograms of any other chemical listed in Part A of Schedule 2; or more than 1 metric ton of a precursor chemical listed in Part B of Schedule 2. (The terms "plant" and "plant site" are defined in subparagraphs 6(a) and (b) of Part I of this Annex, respectively.)
Note that these thresholds govern both whether a particular plant site or plant (pursuant to paragraph 7) must be declared as well as, pursuant to paragraph 8, whether particular activities and chemicals must be declared.
Paragraph 4 of Part VII requires that each State Party submit initial declarations for Schedule 2 facilities not later than 30 days after the Convention enters into force for it. It also provides that, starting in the following calendar year, it shall submit:
–– annual declarations on past activities not later than 90 days after the end of the previous calendar year;
–– annual declarations on anticipated activities not later than 60 days before the beginning of the following calendar year;
–– declarations on activities subsequently planned after submission of the annual declaration not later than 5 days before the start of such activity.
(The details of declarations are expected to be determined by the Preparatory Commission for approval by the Conference.)
Paragraph 5 of Part VII states that the initial and annual declarations for Schedule 2 facilities are generally not required for mixtures containing a low concentration of a Schedule 2 chemical. (The precise level is expected to be determined by the Preparatory Commission for approval by the Conference.) It further states that they will only be required, in accordance with guidelines, in cases where the ease of recovery from the mixture of the Schedule 2 chemical and its total weight are deemed to pose a risk to the object and purpose of the Convention. Finally it states that these guidelines will be considered and approved by the Conference pursuant to paragraph 21(i) of Article VIII, i.e. based on reports developed by the Preparatory Commission .
Paragraph 6 of Part VII states that declarations of a Schedule 2 plant site shall include: the name of the plant site and the name of the owner, company, or enterprise operating it; its precise location including the address; and the number of plants within the plant site which are declared pursuant to Part VIII of this Annex, i.e. for Schedule 3 purposes. The purpose of this identification of Schedule 3 plants is to facilitate verification and monitoring, e.g. it allows the Technical Secretariat to identify other potentially chemical weapons–related activities on the site.
Paragraph 7 of Part VII requires Schedule 2 plant site declarations to also include, for each plant which is located within the plant site and that meets the criteria set forth in paragraph 3:
(a) The name of the plant and the name of the owner, company, or enterprise operating it;
(b) Its precise location within the plant site including the specific building or structure number (if any);
(c) Its main activities (e.g. type of product being created, such as detergents, synthetic fibers, plastics);
(d) Whether the plant produces, processes, or consumes the declared Schedule 2 chemical(s); is dedicated to such activities or is multi–purpose; and performs other activities with regard to the declared Schedule 2 chemical(s), including a specification of such other activity, for example, storage; and
(e) The production capacity of the plant for each declared Schedule 2 chemical. (The term "production capacity" and the terms "produce", "process" and "consume" are defined in paragraphs 10 and 12 of Article II, respectively.)
Paragraph 8 of Part VII requires that declarations of a Schedule 2 plant site include the following information on each Schedule 2 chemical above the declaration threshold:
(a) The chemical name, common or trade name used by the facility, structural formula, and Chemical Abstracts Service registry number, if assigned;
(b) In the initial declaration: the total amount produced, processed, consumed, imported or exported by the plant site in each of the three previous calendar years;
(c) In the annual declarations on past activities: the total amount produced, processed, consumed, imported and exported by the plant site in the previous calendar year;
(d) In annual on anticipated activities: the total amount anticipated to be produced, processed or consumed by the plant site in the following calendar year, including the anticipated time periods for production, processing or consumption;
(e) The purposes for which the chemical was or will be produced, processed or consumed, specifically:
(i) processing and consumption on site with a specification of the product types;
(ii) Sale or transfer within the territory or to any other place under the jurisdiction or control of the State Party, with a specification whether to other industry, trader or other destination and, if possible, of final product types;
(iii) Whether direct export, with a specification of the States involved;
(iv) Other, including a specification of these other purposes.
Paragraphs 9 and 10 of Part VII require special declarations for plant sites that have produced Schedule 2 chemicals for chemical weapons purposes.
Paragraph 9 of Part VII requires each State Party to, within 30 days of entry into force of the Convention for it, declare all plant sites comprising plants that produced at any time since 1 January 1946 a Schedule 2 chemical for chemical weapons purposes. Note that this could include plant sites declared pursuant to paragraph 3. Note also that the plant sites are not considered to be chemical weapons production facilities. To qualify as a chemical weapons production facility under paragraph 8 of Article II, the material flow for the facility must contain either a Schedule 1 chemical or any other chemical that has no use, above 1 metric ton per year on the territory of a State Party or in any other place under the jurisdiction or control of a State Party, for purposes not prohibited under the Convention, but which can be used for chemical weapons purposes. Schedule 2 chemicals do have non–chemical weapons related uses above one metric ton.
Paragraph 10 of Part VII states that declarations of such a plant site shall include:
(a) The name of the plant site and the name of the owner, company, or enterprise operating it;
(b) Its precise location including the address;
(c) For each plant site which is located within the plant site, and which falls under the specifications set forth in paragraph 9 (i.e. produced Schedule 2 chemicals for chemical weapons purposes at any time since 1 January 1946), the same information as required under subparagraphs (a) through (e) of paragraph 7; and
(d) For each Schedule 2 chemical produced for chemical weapons purposes:
(i) The chemical name, common or trade name used by the plant site for chemical weapons production purposes, structural formula, and Chemical Abstracts Service registry number, if assigned;
(ii) The dates when the chemical was produced and the quantity produced; and
(iii) The location to which the chemical was delivered and the final product produced there, if known.
Paragraph 11 of Part VII requires the Technical Secretariat to transmit to States Parties the following information upon request:
–– the name of the plant site containing Schedule 2 plants and the name of the owner, company, or enterprise operating it; its precise location including the address; and the number of plants within the plant site declared for Schedule 3 purposes;
–– the declared Schedule 2 plants' main activities; and whether the plant produces, processes, or consumes the declared Schedule 2 chemical(s); and performs other activities with regard to the declared Schedule 2 chemical(s), including a specification of that other activity (e.g. storage);
–– for each declared Schedule 2 chemical: the chemical name, common or trade name used by the facility, structural formula, and Chemical Abstracts Service registry number, if assigned;
–– for plant sites containing plants which produced Schedule 2 chemicals for chemical weapons purposes since January 1, 1946: all the information required under paragraph 10.
Note that the Technical Secretariat is required to transmit to States Parties only some of the information submitted by other States Parties. This provision is intended to protect information sensitive to chemical industry while providing information necessary for confidence building and verification purposes.
Section B (paragraphs 12 through 30) of Part VII sets forth specific provisions for verification of Schedule 2 plant sites, including general rules, inspection aims, initial inspections, regular inspections, inspection procedures, and notification.
Paragraph 12 of Part VII states that verification for Schedule 2 chemicals shall be through on–site inspection at declared plant sites comprising at least one plant which produced, processed, or consumed in any of the three previous calendar years or are anticipated to produce, process, or consume in the next calendar year 10 kilograms of particular chemicals in Part A of Schedule 2 identified as of higher risk requiring more stringent verification (currently only BZ), 1 metric ton of any other chemical in Part A of Schedule 2, or 10 metric tons of a chemical in Part B of Schedule 2. Note that these thresholds for verification are ten times higher in each category than the ones for declaration of Schedule 2 plant sites in paragraph 3. Thus, some plant sites that are declared are, nevertheless, not subject to routine inspection. The higher limits for verification reflect the recognition that, while as much information about Schedule 2 plants as possible should be provided, it is impractical to attempt to verify small amounts of production and such amounts pose less of a risk to the purposes of the Convention.
Paragraph 13 of Part VII states that the program and budget of the Organization shall contain a program and budget for verification of Schedule 2 chemicals as a separate item. Note that the program and budget for both Schedule 2 and 3 chemicals are separate. This was done to help ensure that sufficient resources are devoted to inspections of Schedule 2 facilities, which are considered to pose a higher risk to the objectives of the Convention.
This paragraph also states that in allocation of resources for chemical industry verification, the Technical Secretariat shall give priority during the first three years after the Convention's entry into force to initial inspections of plant sites declared under Section A (i.e. Schedule 2 plant sites). Finally, this paragraph states that the allocation of resources is thereafter to be reviewed on the basis of the experience gained.
Paragraph 14 of Part VII states that the Technical Secretariat shall conduct initial inspections and subsequent inspections in accordance with paragraphs 15 to 22.
Paragraph 15 of Part VII states that the general aim of inspections shall be to verify that activities are in accordance with obligations under the Convention and consistent with the information to be provided in declarations. It also states that particular aims of inspections at plant sites declared under Section A (i.e. Schedule 2 plant sites and/or Schedule 2 plant sites used for chemical weapons purposes) shall include verification of:
(a) the absence of any Schedule 1 chemical, especially its production, except if in accordance with Part VI of the Annex, i.e. permitted production at single small–scale facilities and other Schedule 1 production facilities, as well as laboratory synthesis;
(b) consistency with declarations of levels of production, processing or consumption of Schedule 2 chemicals; and
(c) non–diversion of Schedule 2 chemicals for activities prohibited under the Convention.
Note that, as discussed in paragraph 12, not all plant sites declared under Section A are subject to routine inspection.
Paragraph 16 of Part VII states that each plant site to be inspected pursuant to paragraph 12 shall receive an initial inspection as soon as possible, preferably not later than three years after entry into force of the Convention. However, there are no mandatory inspection deadlines set for these facilities. It also states that plant sites declared after this three–year period shall receive an initial inspection not later than one year after production, processing or consumption is first declared. Finally, this paragraph states that selection of plant sites for initial inspections shall be made by the Technical Secretariat in such a way as to preclude the prediction of precisely when the plant site is to be inspected.
Paragraph 17 of Part VII states that during the initial inspection, a draft facility agreement for the plant site shall be prepared unless the inspected State Party and the Technical Secretariat agree that a facility agreement is not needed. Note that this means that the inspected State Party may not unilaterally decide that a facility agreement is not needed.
This provision provides flexibility for the Technical Secretariat to take into account varying degrees of risk posed by differing facilities and the desires of the State Party. Some facilities may be judged unlikely to pose a threat, and therefore unlikely to require further inspections. Note that, by contrast, facility agreements are absolutely required for chemical weapons storage, destruction and production facilities, as well as Schedule 1 production facilities, while they are not required for Schedule 3 and other chemical production facilities unless the State Party requests them.
Paragraph 18 of Part VII establishes that with regard to the frequency and intensity of subsequent inspections, inspectors shall, during the initial inspection, assess the risk to the object and purpose of the Convention posed by the relevant chemicals, the characteristics of the plant site and the nature of the activities carried out there. It also provides that in doing so they shall, inter alia, take into account:
(a) the toxicity of the scheduled chemicals and of the end–products produced with it, if any;
(b) the quantity of the scheduled chemicals typically stored at the inspected site;
(c) the quantity of feedstock chemicals for the scheduled chemicals typically stored at the inspected site;
(d) the production capacity of the Schedule 2 plants; and
(e) the capability and convertibility for initiating production, storage and filling of toxic chemicals at the inspected site.
Paragraph 19 of Part VII provides that after receiving the initial inspection, each plant site to be inspected pursuant to paragraph 12 shall be subject to subsequent inspections.
Paragraph 20 of Part VII states that the Technical Secretariat, in selecting particular plant sites for inspection and in deciding on the frequency and intensity of inspections, shall take into consideration the risk to the object and purpose of the Convention posed by the relevant chemical, the characteristics of the plant site and the nature of the activities carried out there, taking into account the respective facility agreement as well as the results of the initial and subsequent inspections.
Paragraph 21 of Part VII requires the Technical Secretariat to choose a particular plant site to be inspected in such a way as to preclude the prediction of exactly when it will be inspected.
Paragraph 22 of Part VII establishes a quota for routine inspections of Schedule 2 facilities. Specifically, it states that a plant site shall not receive more than two routine inspections per year under this Section. It also states that this quota does not, however, limit the number of challenge inspection that might be conducted. Note that a declared plant site may include a number of declared plants within the site. However, since the quota is based on plant sites, the quota could be met by inspection of two different plants, so long as both plants were part of the same declared plant site.
Paragraph 23 of Part VII specifies that paragraphs 24 to 30 shall apply (i.e. shall govern inspections of Schedule 2 facilities), as well as agreed guidelines to other relevant provisions of the Verification Annex, and the Confidentiality Annex.
Paragraph 24 of Part VII states that a facility agreement for the declared plant site should be concluded between the inspected State Party and the Organization within 90 days of completion of the initial inspection unless the inspected State Party and the Technical Secretariat agree that it is not needed, i.e. in accordance with paragraph 17 of Part VII. (Note that the term "declared plant site" refers to only those declared plant sites that are also subject to routine inspection.)
This paragraph further states that the facility agreement shall be based on a model agreement and shall govern the conduct of inspections at the declared plant site. Finally, this paragraph states that the agreement shall specify the frequency and intensity of inspections as well as detailed inspection procedures, consistent with paragraphs 25 through 29.
Paragraph 25 of Part VII states that the focus of the inspection should be the declared Schedule 2 plant(s) within the declared plant site and that if the inspection team requests access to other parts of the plant site, access to these areas shall be granted in accordance with the obligation to provide clarification of ambiguities arising during an inspection (pursuant to paragraph 51 of Part II of this Annex) and in accordance with the facility agreement, or, in the absence of a facility agreement, in accordance with the rules of managed access as specified in Section C of Part X of this Annex.
Note that Section C of Part X of this Annex also contains the general rules of access, including the right to take into account constitutional limitations in providing access pursuant to paragraph 41 of Part X of this Annex. This means that, in the absence of a facility agreement, access to areas within the plant site that are not declared Schedule 2 plants will be negotiated between the inspection team and the inspected State Party.
Paragraph 26 of Part VII states that access to records shall be provided, as appropriate (i.e. as needed and allowed by facility agreements) to provide assurance that there has been no diversion of the declared chemical and that production has been consistent with declarations. This means the inspectors may have access to production records to ensure that the declarations are accurate.
Paragraph 27 of Part VII requires that sampling and analysis be undertaken to check for the absence of undeclared scheduled chemicals. Note that, consistent with the inspection aims set forth in paragraph 15 of Part VII, the focus of this sampling would not be on what chemicals are being produced, but rather on the detection of the presence of chemicals that are required to be declared but were not.
Paragraph 28 of Part VII specifies that the following areas to be inspected may (i.e. the inspection team has the right to inspect) include:
(a) areas where feed chemicals (reactants) are delivered and stored;
(b) areas where manipulative processes are performed upon the reactants prior to addition to the reaction vessels;
(c) feed lines as appropriate from the areas referred to in subparagraph (a) or subparagraph (b) to the reaction vessels together with associated valves, flow meters, etc.;
(d) the external aspect of the reaction vessels and ancillary equipment;
(e) lines from the reaction vessels leading to long– or short–term storage or to equipment further processing the declared Schedule 2 chemicals;
(f) control equipment associated with any of the items under subparagraphs (a) to (e);
(g) equipment and areas for waste and effluent handling; and
(h) equipment and areas for disposition of chemicals not up to specification.
Paragraph 29 of Part VII places a time limit of 96 hours on the period of inspection, with the possibility of extensions as agreed between the inspection team and the inspected State Party.
Paragraph 30 of Part VII requires the Technical Secretariat to notify the inspected State Party not less than 48 hours before the arrival of the inspection team at the plant site to be inspected.
Section C (paragraphs 31 and 32) of Part VII contains special obligations with regard to the transfer and receipt of Schedule 2 chemicals by States Parties.
Paragraph 31 of Part VII mandates that beginning three years after entry into force of the Convention, Schedule 2 chemicals may only be transferred to or received from States Parties, i.e. non States Parties will not be able to export Schedule 2 chemicals to States Parties nor import them from States Parties. The purpose of this provision is both to limit the ability of non States Parties to obtain chemicals that are useful for chemical weapons purposes and to encourage such States to join the Convention in order to preserve their ability to trade in these chemicals.
Paragraph 32 of Part VII states that during the interim three–year period, each State Party must require an end–use certificate for transfers of Schedule 2 chemicals to non States Parties and that for such transfers, each State Party must adopt the necessary measures to ensure that the transferred chemicals will only be used for purposes not prohibited under the Convention. (These purposes are defined in paragraph 9 of Article II.)
This paragraph further states that, included in such measures, the State Party is required to obtain from the recipient State a certificate stating: that the transferred chemicals will only be used for purposes not prohibited under the Convention; the transferred chemicals will not be re–transferred; the types and quantities of such chemicals; their end–use(s); and the name(s) and address(es) of the end–user(s).
The purpose of this three–year delay and these interim measures is to allow for the possibility that not all states will be able to become States Parties immediately, while at the same providing for some controls on such chemicals, i.e. by facilitating the monitoring of their final use by non States Parties, before the total ban with regard to such states goes into effect.