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1. Member States shall ensure that the costs of operating port reception facilities for the reception and treatment of waste from ships, other than cargo residues, are covered through the collection of a fee from ships. Those costs include the elements listed in Annex 4.

2. The cost recovery systems shall provide no incentive for ships to discharge their waste at sea. To this end, the Member States shall apply all of the following principles in the design and operation of the cost recovery systems:

(a) ships shall pay an indirect fee, irrespective of delivery of waste to a port reception facility;

(b) the indirect fee shall cover:

(i) the indirect administrative costs;

(ii) a significant part of the direct operational costs, as determined in Annex 4, which shall represent at least 30 % of the total direct costs for actual delivery of the waste during the previous year, with the possibility of also taking into account costs related to the traffic volume expected for the coming year;

(c) in order to provide for a maximum incentive for the delivery of MARPOL Annex V waste other than cargo residues, no direct fee shall be charged for such waste, in order to ensure a right of delivery without any additional charges based on the volume of waste delivered, except where the volume of waste delivered exceeds the maximum dedicated storage capacity mentioned in the form set out in Annex 2 to this Directive; passively fished waste shall be covered by this regime, including the right of delivery;

(d) in order to avoid that the costs of collection and treatment of passively fished waste are borne exclusively by port users, Member States shall cover, where appropriate, those costs from the revenues generated by alternative financing systems, including by waste management schemes and by Union, national or regional funding available;

(e) in order to encourage the delivery of residues from tank washing containing high-viscosity persistent floating substances, Member States may provide for appropriate financial incentives for their delivery;

(f) the indirect fee shall not include the waste from exhaust gas cleaning systems, the costs of which shall be covered on the basis of the types and quantities of waste delivered.

3. The part of the costs which is not covered by the indirect fee, if any, shall be covered on the basis of the types and quantities of waste actually delivered by the ship.

4. The fees may be differentiated on the following basis:

(a) the category, type and size of the ship;

(b) the provision of services to ships outside normal operating hours in the port; or (c) the hazardous nature of the waste.

5. The fees shall be reduced on the following basis:

(a) the type of trade the ship is engaged in, in particular when a ship is engaged in short sea shipping trade;

(b) the ship’s design, equipment and operation demonstrate that the ship produces reduced quantities of waste, and manages its waste in a sustainable and environmentally sound manner. By 28 June 2020, the Commission shall adopt implementing acts to define the criteria for determining that a ship meets the requirements stated in point (b) of the first subparagraph in relation to the ship’s on-board waste management. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 20(2).

6. In order to ensure that the fees are fair, transparent, easily identifiable, non-discriminatory, and that they reflect the costs of the facilities and services made available, and, where appropriate, used, the amount of the fees and the basis on which they have been calculated shall be made available in an official language of the Member State where the port is located and, where relevant, in a language that is internationally used to the port users in the waste reception and handling plan.

7. Member States shall ensure that monitoring data on the volume and quantity of passively fished waste are collected, and shall report such monitoring data to the Commission. The Commission shall, on the basis of those monitoring data, publish a report by 31 December 2022 and every two years thereafter. The Commission shall adopt implementing acts to define monitoring data methodologies and the format for reporting. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 20(2).