[XQuery] BEA_030

XQuery: specification unclear

Section: 3.7.1.2 paragraph two says:

"A namespace declaration attribute is used inside a direct element 
constructor, and serves to add a namespace to the in-scope namespaces 
for the constructed element, or to specify the default element/type 
namespace within the scope of the constructed element."

What does it mean "within the scope of the constructed element"? Does 
the scope refer to the
XML forest rooted at the given element constructor or the XQuery 
expressions that are lexically placed
within the "{" and the "}" ? Or both ?

This a very important point and the notion of "scope" is too fuzzy.