DexMetal

Contract Requirements

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Basel Article 6(3)(b) explicitly requires a contract between the waste generator or exporter and the disposer specifying the environmentally sound management of the waste. This contract is not optional—it is a mandatory attachment without which competent authorities cannot approve your notification. Understanding what must be in the contract, who must sign it, and how it must be executed is essential for notification approval.

Legal Basis

BASEL ARTICLE 6(3)(b) REQUIREMENT:

  • State of export shall not allow movement to commence until written confirmation received that exporter has received written confirmation from disposer of existence of contract
  • Contract must specify environmentally sound management of wastes
  • Contract is between generator or exporter and disposer
  • Must exist before notification submission
  • Importer may be party to contract but is not always required signatory

PURPOSE OF CONTRACT REQUIREMENT:

  • Establishes clear chain of responsibility for waste management
  • Ensures disposer has agreed to accept waste and perform specified operations
  • Documents ESM commitments
  • Provides legal basis for enforcement if mismanagement occurs
  • Addresses financial arrangements and liability allocation

Required Contract Parties

MANDATORY SIGNATORIES:

  • Generator or Exporter (at minimum one, preferably both if different entities)
  • Disposer (facility that will perform final recovery or disposal operation)
  • Contract date must be before or concurrent with notification submission date

OPTIONAL SIGNATORIES:

  • Importer (beneficial to include but not always required)
  • Carrier (typically not contract party—separate transport agreement)
  • Broker or trader (if involved in transaction)
  • Parent companies (if guaranteeing performance)

GENERATOR VS. EXPORTER:

  • Generator: Entity that produces or holds the waste
  • Exporter: Entity legally exporting the waste (may be different from generator)
  • If different entities, best practice is both sign contract or contract explicitly assigns exporter rights
  • Some competent authorities require both generator and exporter signatures

Essential Contract Elements

WASTE IDENTIFICATION:

  • Basel waste codes (Y-codes, Annex VIII/IX codes)
  • Physical and chemical description
  • Hazardous characteristics (H-codes)
  • Estimated quantity (must match notification form)
  • Generation source and process
  • Reference to notification tracking number if available (can be added as amendment after submission)

OPERATIONS TO BE PERFORMED:

  • Specific disposal or recovery operations using Basel D-codes or R-codes
  • D-codes for disposal operations (D1-D15)
  • R-codes for recovery operations (R1-R13)
  • Description of actual processing methods
  • Material outputs expected (for recovery operations)
  • Cannot be vague—must specify exact operations as in notification Block 17

SeeBlock 17: Disposal/Recovery Operationsfor operation code guidance.

ESM COMMITMENTS:

  • Statement that waste will be managed in environmentally sound manner
  • Facility commitments to operate per permit conditions
  • Compliance with national environmental laws
  • Worker health and safety provisions
  • Emergency response procedures
  • Environmental monitoring commitments

FINANCIAL TERMS:

  • Price per unit (per metric ton, per shipment, etc.)
  • Payment terms and schedule
  • Currency and payment method
  • Conditions for payment (upon receipt, after processing, etc.)
  • Who bears costs if shipment rejected or returned

INSURANCE AND LIABILITY:

  • Insurance requirements for transport and processing
  • Liability allocation if damage occurs during transport
  • Liability for environmental contamination
  • Indemnification provisions
  • Financial guarantee amounts and forms

ILLEGAL TRAFFICKING PROVISIONS (ARTICLE 9):

  • Exporter's obligation to re-import waste if movement deemed illegal per Article 9(2)
  • Disposer's obligation not to proceed if notification not approved
  • Financial responsibility for re-import costs
  • Conditions triggering re-import obligation
  • Timeframe for completing re-import if required

CONTRACT TERM AND TERMINATION:

  • Start and end dates (should cover notification validity period)
  • Quantity authorized under contract (match or exceed notification quantity)
  • Termination conditions and notice requirements
  • What happens if notification rejected or approved with conditions
  • Extension or renewal provisions

Contract Formats and Templates

NO STANDARD CONTRACT FORM:

  • Basel Convention does not specify contract format
  • Contracts may be separate documents or incorporated into broader commercial agreements
  • Key requirement: Must include all essential elements listed above
  • Can range from simple 2-page agreements to comprehensive 20+ page contracts

SIMPLE CONTRACT APPROACH:

  • Standalone waste management agreement specifically for notification
  • Clearly identifies as "Basel Convention Article 6(3)(b) Contract"
  • 5-10 pages typical for straightforward transactions
  • Easier for competent authorities to review
  • Best for first-time notifications or single waste streams

COMPREHENSIVE COMMERCIAL AGREEMENT:

  • Full supply/purchase agreement with Basel compliance section
  • May include pricing, quality specifications, delivery schedules, dispute resolution
  • Basel-required elements clearly identified in contract
  • Common for ongoing business relationships
  • May need summary sheet highlighting Basel-required provisions for competent authority

MASTER AGREEMENT WITH TRANSACTION SCHEDULES:

  • Master service agreement covering Basel requirements
  • Individual transaction schedules for each notification
  • Efficient for repeat waste streams to same facility
  • Submit master agreement plus relevant schedule with each notification

Signature and Execution Requirements

SIGNATURE AUTHORITY:

  • Signatories must have legal authority to bind their companies
  • Corporate officers, authorized representatives, or power of attorney holders
  • Include title and company name under each signature
  • Some countries require proof of signatory authority (board resolution, power of attorney)

ORIGINAL SIGNATURES VS. ELECTRONIC:

  • Most competent authorities require wet ink signatures on original
  • Electronic signatures accepted in some jurisdictions (check requirements)
  • Scanned copies of signed originals often acceptable for electronic submission
  • Keep original signed contract for potential future verification requests

NOTARIZATION:

  • Not required by Basel Convention itself
  • Required by some importing countries (Latin America, Middle East common)
  • Notarization requirements vary by jurisdiction
  • May require notarization in country of execution
  • Apostille certification may be required for use in foreign countries
  • Verify importing country requirements before finalizing contract

LANGUAGE:

  • Contract may be in any language but must be translated for non-English importing countries
  • Bilingual contracts with both English and importing country language helpful
  • If translation provided, both original and translation submitted
  • Professional certified translation recommended

Timing and Coordination

CONTRACT MUST EXIST BEFORE NOTIFICATION SUBMISSION:

  • Article 6(3)(b) requires contract in place before movement authorized
  • Contract date should be before notification submission date
  • Cannot submit notification saying "contract to be provided later"
  • Facility must review and approve notification content before signing contract

COORDINATION WITH NOTIFICATION PREPARATION:

  • Draft notification and contract concurrently to ensure consistency
  • Waste descriptions, quantities, operations must match between documents
  • Contract can reference "notification to be submitted" and add tracking number later
  • Get facility commitment to contract terms before investing in full notification preparation

CONTRACT AMENDMENTS:

  • If notification approved with conditions, contract may need amendment
  • If notification modified, contract should be amended to reflect changes
  • Submit contract amendments with notification amendments
  • Keep signed record of all contract amendments

Common Contract Pitfalls

VAGUE OPERATIONS DESCRIPTIONS:

  • Contract says "recycling" without specifying R-codes
  • Generic "waste management services" insufficient
  • Must specify exact operations matching notification Block 17
  • Competent authorities will reject vague contracts

MISSING ESM COMMITMENTS:

  • Contract focuses on commercial terms but omits environmental management provisions
  • Basel explicitly requires ESM specification in contract
  • Include facility's ESM commitments even if obvious
  • Generic ESM statement insufficient—be specific

INCONSISTENT QUANTITIES:

  • Contract specifies 100 tons but notification says 150 tons
  • Creates doubt about which quantity is accurate
  • Contract quantity should match or exceed notification quantity
  • If contract broader than single notification, clearly note notification covers subset

MISSING ILLEGAL TRAFFICKING PROVISIONS:

  • Contract doesn't address Article 9 re-import requirements
  • Competent authorities concerned about who pays if illegal trafficking occurs
  • Include clear exporter obligation to re-import and bear costs
  • Strengthens notification by showing serious compliance commitment

WRONG SIGNATORIES:

  • Carrier signs instead of disposer
  • Broker signs but generator/exporter doesn't
  • Unauthorized representative signs without proper authority
  • Verify signatory roles and authority before finalizing

Practical Guidance

FOR NEGOTIATING CONTRACTS:

  • Share sample Basel-compliant contract with facility early
  • Negotiate commercial terms separately from Basel compliance provisions
  • Basel requirements are non-negotiable—facility must accept them
  • Build in flexibility for notification amendments (quantity adjustments, etc.)
  • Include provisions for multiple shipments if general notification

FOR FIRST-TIME RELATIONSHIPS:

  • Simple standalone waste management agreement works best
  • Focus contract on Basel requirements and ESM
  • Keep commercial terms straightforward initially
  • Can expand to comprehensive agreement once relationship established
  • Consider pilot shipment under smaller contract/notification first

FOR ONGOING RELATIONSHIPS:

  • Develop master agreement covering Basel requirements once
  • Transaction schedules for each specific notification more efficient
  • Update master agreement when regulations change
  • Annual review of master agreement provisions

Common Errors

  • Submitting notification without attached contract
  • Contract signed after notification submission date
  • Missing required ESM provisions
  • Vague operations descriptions not matching notification form
  • Inconsistent waste quantities or descriptions between contract and notification
  • Wrong parties signing (carrier instead of disposer, etc.)
  • Not obtaining required notarization for countries that require it
  • Missing illegal trafficking re-import provisions
  • Contract in wrong language without translation
  • Unsigned or incomplete contract submitted

References

Section: Supporting Docs · Type: reference