The Seventh Meeting of the Parties decided that:
(1) the determination of the eligible incremental costs for phase-out projects in the production sector should be consistent with paragraph 2 (a) of the indicative list of incremental costs and based on the conclusions of the Executive Committee's guidelines on phase-out of the production sector;
(2) that the Executive Committee should as a priority agree on modalities to calculate and verify production capacity in Parties operating under Article 5;
(3) that from 7 December 1995, no Party should install or commission any new capacity for the production of controlled substances listed in Annex A or Annex B of the Montreal Protocol;
(4) to incorporate appropriately into the Protocol by the Ninth Meeting of the Parties:
(a) a licensing system, including a ban on unlicensed imports and exports; and
(b) the establishment of a production sector baseline for Parties operating under Article 5 calculated:
(i) for Annex A substances, as the average of the annual calculated level of production during the period of 1995 to 1997 inclusive or the calculated level of consumption of 0.3 kg per capita, whichever is lower; and
(ii) for Annex B substances, as the average of the annual calculated level of production for 1998 to 2000 inclusive or a calculated level of consumption of 0.2 kg per capita, whichever is lower;
(5) at the same time, the Parties should consider introducing a mechanism to ensure that imports and exports of controlled substances should only be permitted between Parties to the Montreal Protocol which have reported data and demonstrated their compliance with all relevant provisions of the Protocol. The Parties should also consider whether to extend the terms of the present decision to all other controlled substances covered under the Montreal Protocol.
(UNEP/OzL.Pro.7/12 Decision VII/9 (paras. 5-8).
The Ninth Meeting of the Parties decided to request the Executive Committee to accelerate the formulation of the guidelines for funding the production sector and the subsequent approval of relevant projects in this sector.
(UNEP/OzL.Pro.9/12, Decision IX/15).