Decision 75/64

The Executive Committee decided:

1. To note:
   1. The progress report on the implementation of the second tranche of stage I of the HCFC phase-out management plan (HPMP) in Saudi Arabia;
   2. With concern, the delay of more than one year in the customs clearance of equipment for Saptex, HESCO and SPF, the associated demurrage fees, and the corresponding delay in implementation of the conversion of those enterprises, despite decision 22/5(b) and decision 26/3(a), which urged all recipient Governments operating under Article 5 to expedite customs clearance and to refrain from levying any taxes or duties;
   3. The new arrangement established by UNIDO in consultation with the Government of Saudi Arabia whereby enterprises would pay the import duty on guarantee, and would claim it back from customs after the release of the equipment and completion of the required paperwork, thereby ensuring that the customs clearance process would be smooth and the potential for any demurrage cost would be minimized;
2. Not to approve any further funding for activities under subsequent tranches of stage I of the HPMP until assurances had been provided by the Government of Saudi Arabia or by UNEP and UNIDO that the problems with customs clearance had been resolved, and that, in cases where customs duties were required to release shipments purchased with Multilateral Fund funding, such duties would be covered from other sources outside the Multilateral Fund;
3. To urge the finalization of the agreement between the Presidency for Meteorology and Environment and UNEP so that the activities addressing HCFC consumption in the servicing sector could commence; and
4. To approve the third tranche of stage I of the HPMP for Saudi Arabia, and the corresponding 2015–2016 tranche implementation plan, in the amount of US $1,200,000, plus agency support costs of US $84,000 for UNIDO, on the understanding that the approved funds would not be transferred to UNIDO until the agreement between the Presidency for Meteorology and Environment and UNEP had been finalized and signed.