The convention introduces strict liability for shipowners.[2]
In cases when the shipowner is deemed guilty of fault for an instance of oil pollution, the convention does not cap liability.
When the shipowner is not at fault, the convention caps liability at between 3 million special drawing rights (SDR) for a ship of 5,000 GT to 59.7 million SDR for ships over 140,000 GT.
The 2000 Amendments
Adoption: 18 October 2000
Entry into force: 1 November 2003
The amendments raised the compensation limits by 50 percent compared to the limits set in the 1992 Protocol, as follows:
For a ship not exceeding 5,000 gross tonnage, liability is limited to 4.51 million SDR (US$5.78 million)
For a ship 5,000 to 140,000 gross tonnage: liability is limited to 4.51 million SDR plus 631 SDR for each additional gross tonne over 5,000
For a ship over 140,000 gross tonnage: liability is limited to 89.77 million SDR
The HNS Convention to compensation for damages occurring from spill of dangerous goods is based on the same legal framework.[3]
As of September 2016, 136 states, representing 97.5 per cent of the world fleet, are contracting parties to the CLC Protocol of 1992, which amends the original CLC Convention.[4] Bolivia, North Korea, Honduras, and Lebanon—which are generally flag of convenience states—have not ratified the treaty.[5]
The United States of America is not a signatory to CLC, despite considerable involvement in its formulation. This is due to significant nation legislation such as the Oil Pollution Act, 1990, so signing the CLC was deemed unnecessary.[6]