Chapter II (Incurrence of excise duty, Articles 7 to 13) clarifies and specifies the rules and procedures applicable in the case of shortages and irregularities, and the conditions for the reimbursement and remission of excise duty: the occurrence of shortages under a duty suspension arrangement automatically constitutes a release for consumption (Article 7(1)); excise goods shall not be considered released for consumption in case of their total destruction or irretrievable loss, and it will no longer be necessary for the competent authorities to establish the reason for the occurrence of the shortage, in terms of fortuitous events or force majeure (Article 7(4)); Member States are competent to define the procedures for reimbursement and ...[+++]remission of excise duty as well (Article 8); the procedure to identify the Member State entitled to recover excise duty in case of irregularities is simplified by defining the term "irregularity" and removing the term "offence", and by generalising the rule that in that situation the release for consumption is deemed to have occurred in the Member State of dispatch (Article 9); as regards the conditions for reimbursement or remission of excise duty, the proposal lays down as a general principle that it is for Member States to determine these conditions (Article 10);

It also establishes major principles such as an obligation to handle waste in a way that does not have a negative impact on the environment and human health, the waste hierarchy and, in accordance with the polluter-pays principle, a requirement that the costs of disposing of waste must be borne by the holder of waste, by previous holders or by the producers of the product from which the waste came.

It also establishes major principles such as an obligation to handle waste in a way that does not have a negative impact on the environment and human health, an encouragement to apply the waste hierarchy and, in accordance with the polluter-pays principle, a requirement that the costs of disposing of waste must be borne by the holder of waste, by previous holders or by the producers of the product from which the waste came.

It is also necessary to define the notion of a revenue-generating project and to identify the community principles and rules for calculating the contribution from the Funds; for some investments it is objectively not possible to estimate the revenue in advance and it is therefore necessary to define the methodology for ensuring that this revenue is excluded from public funding.

The exchange rate applicable on the date of the operative event for the premiums should be fixed in such a way as to ensure in principle that such premiums do not undergo any sharp fluctuations on conversion into national currency due to the exchange rate on a single date.

The common principles relating to the constituents of cover concern the general principles and definitions, the scope of cover, causes of loss, exclusions of liability and the provisions applicable to indemnification of claims.