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In order to strengthen the import and export management of ozone-depleting substances (ODS) and hydrofluorocarbons (HFCs), China's Ministry of Ecology and Environment (MEE) has recently released a draft amendment on the Administrative Measures for the Import and Export of Ozone-Depleting Substances (hereinafter referred to as the Measures) for public comments. The Measures has provided a legal basis for regulating the import and export management of ODS in China for years.
Background
In 1999, the State Environmental Protection Administration (now MEE) , The Ministry of Foreign Trade and Economic Cooperation (now Ministry of Commerce), and General Administration of Customs jointly released the Measures as part of China's commitment under the Montreal Protocol to effectively phase out the ODS . The Measures was then amended in 2013 and 2019 respectively.
In 2021, MEE published the revised List of Controlled Ozone-Depleting Substances in China according to the Kigali Amendment, which introduced greenhouse gas HFCs under control. In December of 2023, the executive meetings of the State Council passed the Decision of the State Council to Amend the Regulation on the Administration of Ozone-depleting Substances, laying out a solid legal foundation for China's compliance of Montreal Protocol.
What has changed?
According to the Amendment Note, the major changes are summarized below:
1. Optimize the quota management
Specify the exempted criteria for the import/export quota application, including for raw materials usage, analytical purposes for lab, customs quarantine, recycling or reuse, or special cases as determined by the authority;
Simplify administrative procedures for application of import/export approval form for exempted companies;
No redistribution of annual quota.
2. Improve application materials requirements
Adjust required materials for initial import/export quota applicant. Import/export businesses are no longer required to handle registration procedures for foreign trade operators. In addition, if the import/export ODS are hazardous chemicals, relevant hazardous chemicals production, use, or business license issued by the Ministry of Emergency Management, or hazardous chemicals registration license shall also be provided.
Detail the application materials requirement for ODS import/export approval form. The materials required for the initial application are adjusted, including the business license of the legal entity and hazardous chemicals license, etc. Additionally, import and export application form is required to be stamped with the official seal of the applying unit. It is also stipulated that applications for special purpose imports (those exempted for quota application) must include a usage certificate from the using unit, distinguishing them from the application materials for special purpose exports.
3. Clarify special provisions
It is clarified that situations such as the domestic sale of goods originally intended for export during the processing trade do not require import and export approval, including but not limited to, the domestic sale of materials, finished products, scraps generated during production, leftover materials, defective products, by-products, and disaster-affected bonded goods under processing trade, as well as the loss, shortage, and damage of the aforementioned goods during transportation, storage, and processing.
The draft Measures can be accessed here.
