S.L. 643.3 Art. 16Surrender and cancellation of allowances.

(1) For the period ending 31st December, 2020, and subsequent periods, an aircraft operator shall, by the 30th September of each year, surrender a number of allowances that is equal to the total emissions from aviation activities listed in Schedule 1 during the preceding calendar year as verified in accordance with regulation 13, or as determined by the Authority in accordance with regulation 14.

(2) An aircraft operator may surrender Chapter II and Chapter III allowances. Allowances issued by a competent authority of another Member State shall be recognized by the Authority for the purpose of meeting an aircraft operator’s obligations under sub-regulation (1); Provided where necessary, and for as long as is necessary, in accordance with relevant decisions and regulations adopted by the Commission pursuant to Directive 2003/87/EC, an aircraft operator shall not surrender allowances that are issued by a Member State in respect of which there are obligations arising from Directive 2003/87/ EC which are lapsing.

(3) The national registry administrator shall cancel allowances surrendered in accordance with sub-regulation (1).

(4) The national registry administrator shall cancel allowances at any time at the request of an aircraft operator holding those allowances.

(5) Surrender and cancellation of allowances shall be carried out in accordance with the relevant decisions and regulations adopted by the Commission pursuant to Directive 2003/87/EC.

(6) The Authority shall publish the name of any aircraft operator who is in breach of the requirement to surrender sufficient allowances under sub-regulation (1).

(7) Any aircraft operator who does not surrender sufficient th allowances by the 30 April of each year as required by sub-regulation (1) to cover its emissions during the preceding year shall be liable to the imposition of an administrative fine of one hundred euro (€100) for each tonne of carbon dioxide equivalent emitted, for which the aircraft operator has not surrendered allowances. From 1st January 2013, where, for the year in respect of which an aircraft operator does not surrender sufficient allowances to cover emissions during that year in accordance with sub-regulation (1), the annual average Harmonized European Index of Consumer Prices published shows a percentage increase as compared to the Harmonized European Index of Consumer Prices published for the previous year, the administrative fine shall be increased by the same percentage. The administrative fine as revised pursuant to this sub-regulation shall apply to subsequent years unless further increased in accordance with the Harmonized European Index of Consumer Prices. For the purposes of this sub-regulation, each allowance not surrendered by the aircraft operator for a tonne of carbon dioxide equivalent emitted, shall be considered as a separate contravention.

(8) The imposition of an administrative fine as prescribed in sub-regulation (6) shall not release the aircraft operator from the obligation to surrender an amount of allowances equal to those excess emissions in respect of which the administrative fine is paid when surrendering allowances in relation to the following calendar year.

(9) Where an aircraft operator fails to surrender allowances in accordance with sub-regulation (1), the national registry administrator shall not allow the transfer of allowances or any other accounting units out of the aircraft operator holding account of that aircraft operator until the aircraft operator complies with the requirement to surrender allowances:

Provided that the national registry administrator shall not prevent the surrender of allowances in accordance with sub-regulation (1) or the cancellation of allowances in accordance with sub-regulation (4), or the issuance of allowances in exchange for CERs or ERUs in accordance with regulations 17 or 18. st st