Round table on Phase-out of leaded fuels in BiH Sarajevo, November 06, 2006

1. Round table on Phase-out of leaded fuels in BiHSarajevo, November 06, 2006 Decision on quality of liquid fuels Bosko Kenjic, associate expert Phone: +387 33 663 863 ext. 492 Fax: 033 206 141 e-mail: kbosko1@yahoo.com Ministry of Foreign Trade and Economic Relations Musala 9, 71 000 Sarajevo Bosnia and Herzegovina

2. Decision on Quality of liquid Fuels Decision is adopted by Council of Ministry with aim to define unique BH market of liquid oil fuels (LOF), protection of domestic products and consumers, protection of environment and consumers, as well as for prevention of abuses during import and distribution of liquid fuels of bad quality (Official Gazette 27/02, 28/04, 16/05 i 14/06) Decision defines: • Quality which has to be reached for LOFs for SUS engines and LOFs for heating, • Standards for defining physical-chemical characteristics for LOFs, • Limiting values of main characteristics of LOF, • Methods for testing of physical-chemical characteristics of LOF, • Methods for marking and proving that quality of LOF is harmonized with requirements of Decision, • Mmonitoring and way of authorising of authorities, which will check harmonization

3. Implementation • Unleaded Gasoline • Leaded Gasoline • Petroleum for heating and lighting • Diesel fuel • Oils for heating: • extra light, • Light special, • light, • Middle and • Heavy

4. Way of marking of LFO • PREMIUM unleded gasoline 95 BAS EN 228 • NORMAL or REGULAR unleded gasoline 91 BAS EN 228 • SUPER PLUS unleded gasoline 98 BAS EN 228 • DIZEL BAS EN 590 • BAS 1001 - leaded Super • BAS 1002 – LEUL

5. Current standards • Unleaded Gasoline • BAS EN 228 - Addition II • Total aromas 45%; benzene 5% - till December 31, 2006 • Leaded Gasoline • BAS 1001 - AdditionI • Total sulfur 0,1 % m/m; Pb 0,6 g/l – till December 31, 2006 • Petrolej za loženje i rasvjetu • Total sulfur 0,04 % m/m; • Total aromas 18 % m/m; • Diesel Fuels • BAS EN 590 - AdditionII • Total sulfur 1%; water 500 mg/kg – till December 31, 2006 • LUEL • BAS 1002 - AdditionI • Total sulfur 1%; water 500 mg/kg – till December 31, 2006 • LS, L, S and T • Addition I • Total sulfurfor"LS" i "L" do 1,5 % m/m; za "S" do 3,0 % m/m; za "T" do 3,5 % m/m – do 31.12.2006.

6. Inspection of harmonization of quality I • Inspection of harmonization of quality is implemented based on Programme for inspection of harmonization • Programme is defined by entity Ministries for energy and competent authority of Brcko District • Evaluation of harmonization is performed by inspection bodies • MOFTER BiH nominated inspection bodies based on proposal of competent ministry of energy and economy in both BiH entities

7. Requirements for nomination of Inspection Body • Legal or physical entity registered for such operations; • Residence in Bosnia and Herzegovina; • That Institute for accrediting issued to that legal entity accreditation for inspection bodies, type A, which means that has to fulfill requirements of standard BAS ISO/IEC 17020; • Laboratory used by Inspection body for evaluation of fuel quality needs to have accreditation issued by Institute for accrediting BiH, which means that laboratory has to fulfill requirements of standard BAS EN ISO/IEC 17025

8. Inspection of harmonization of quality II • Inspection is performed in two seasons: • Summer May 01 – September 30 • Winter October 01 – April 30 • Inspection bodies issue to supplier Certificate on harmonization at least 10 days from the days of sampling • Inspection bodies reports to entity ministries for energy at least every three months • Costs of Inspection are covered by supplier

9. Penalities For suppliers • 10.000 ÷ 20.000 KM • 40.000 KM for repeated violated • For third violation – deprivation of working permit • 5.000 KM responsible person For inspection bodies and laboratories • 20.000 KM • 5.000 KM responsible person • for repeated violated deprivation of working permit

10. Transitional and Final regulations • Monitoring for implementation of Decision is performed by Inspectors of competent ministries for energy/energetic in both entities and competent inspection of Brcko District BiH • MOFTER BiH is authorized for issuing of permits for import of certain quantity of Fuel of worse quality in the case that is not possible to find/buy adequate quality of fuel on world market

11. Implementation results

12. Further activities • System of control should be improved; • Decision should be extended to other products; • Clearly define competencies of certain inspection bodies for control of quality of Fuels; • Define treatment for Fuels which do not fulfill required BiH standards; • Define relation between supplier and inspection bodies; • Prepared refined text of Decision on quality of liquid fuels;

13. Round table on Phase-out of leadewd fuels in BiHSarajevo, November 06, 2006 Thank you for your attention!!! Bosko Kenjic, associate expert Phone: +387 33 663 863 ext. 492 Fax: 033 206 141 e-mail: kbosko1@yahoo.com Ministry of Foreign Trade and Economic Relations Musala 9, 71 000 Sarajevo Bosnia and Herzegovina