ODS licensing and annual quota system relationship and differences

1. ODS licensing and annual quota system relationship and differences National ODS Import & Export Management Office, PRC. 23-25 May, 2017, Agra, India

2. Content Institutional arrangement and functions of china’s ODS export and import Criteria and timeline for setting up the quota to importer licensing system in china Monitoring of quota and licensing system

3. 1. Institutional arrangement of China’s ODS export and import and responsibilities of the I&E office Back ground-1997,MOP made a decision required all parties established license system. 1999,MOP in Beijing, China has announced implementation of the license management on ODS On July 1,2000, National Management Office of ODS Import & Export (hereinafter referred to as I/E office) was approved by Chinese Government.(Was formally established ) The I/E office was jointly organized by Ministry of Environment protection (MEP), Ministry of Commerce (MOC) and General Administration of Customs (GAC). 3

4. The Frame and Procedure of ODS Import & Export Management MEP MOC GAC License Bureau Local Customs I/E office permit licenses enterprises 4

5. Responsibilities of I/E Office Draft the policy and law of management of ODS import & export and be responsible for the implement.-revised the regulation of management on ods import and export to meet stage II phase out plan in 2014 Harmonize with international organization and treaty countries to setting IPIC Put forward the quota of ODS import Review and Approving the applicationissued the permit of ODS import and export Collect, coordinate and analyze data of ODS import & export as A7 data reported to the ozone secretariat. Organize workshops, trainings for relevant authorities and enterprises. Recent three year morn than 2000 custom officers were trained to promot the capacity on ODS monitoring and control 5

6. Management work of I/E office Organize the coordination meeting with other ministries in China every year. this mechanism ensures that the joint office is functioning properly. Coordinate with customs on investigations to combat illegal trade on ODS. In recent years, we have very close cooperation with customs, a batch of ODS illegal trade cases have been seized. Carry out some TA project to strengthen the management capacity on ODS control. –for example In 2009, the I/E office developed ODS import and export management online approval system and improved management using technical skills, which has largely increased approval efficiency;in 2014, the office upgraded the system, we have built the real-time connection among approval bill as well as license and customs clearance, and have acquired the data we need on time. Benefit to the management. 6

7. 5 Catalogs of controlled ODS in China’s Import & Export We have issued 5 batches catalogs the first batch：CFCs、Halon(2000) the second batch：CTC、TCA(2001) the third batch：HCFCs、MB (license management was implemented in 2004) the forth batch: the Mixture of CFCs(2005) The fifth batch: the Mixture of HCFCs (2009) We have issued 5 batches catalogs Above ODS listed in HS-code system, all The controlled substance under the Montreal protocol have been included in these catalogs and Implement the license management. 7

8. Samples of the regulations

10. 2. Criteria and timeline for setting up the quota to importer As a biggest HCFCs production country, when China issue the import quota follow conditions should be concerns: The material was not produced in China need for imorts To Meet the special needs of certain enterprises It is not against the National phase down plan(target) of related sector, can’t go beyond the consumption ceiling The ministry of environmental protection shall approved and publish the total amount and allocation of quotas Quota system is a management measure, it was implemented to comply the Montreal protocol and meet the country phase down target. Meanwhile promote the protocol compliance at the global level. 10

11. 2.Criteria and timeline for setting up the quota to importer The process of issuing import quotas In October 31 of each year ，Importers apply for next year‘s import quotas to the I&E office , Quota is valid for 1 calendar year and submit the following materials： Business license and import and export qualification Quota application and importing plan First time to apply for import quota shall be submitted the Consistent trade records of three years-the terms called ‘close door’ The I&E office will make a decision before 20,December each year 11

12. 2. Criteria and timeline for setting up the quota to importer Take the above principle ,the distribution of import quotas in 2017 is as follows, In order to meet the needs of some industrial and commercial cooling USES, the import limit of hcfc-123 in 2017 will be controlled by the average of the two years of 2009 and 2010, not exceeding 74 tons (1.48 ODP). Due to no production as 225 in China, to meet the needs of part cleaning purposes, as 2017-2017 import limit control imports in 2009, 2010 two years, the average of no more than 42.069 tons (1.22 ODP). The 2017 annual HCFCs import quota is the same as the annual limit for 2016, down 18.2 percent from the 2013 annual limit (3.3 ODP). Only 2 importers are eligible for import quotas 12

13. 3. The licensing system in china- a operating system for quota implementation (management tool) • Within the annual import and export quota index, importer and exporter should submit the application though the online license system to obtain the permit issued by I&E office. follow files should be needed: • Application form (online fill and printed with stamp ) • Export contract and domestic purchase contract(to proved the trade is real t and the goods from legitimate producer) • Import license (A2 countries\IPIC members\feedstock use) • Requires all importer and exporter apply export and import permit per shipment • is valid for 3 months for permit • The license is valid for this year • To keep the annual reports for NOU inspection

14. The licensing system in china permit The application form

15. License

16. Monitoring of quota and licensing system • The goods cleared for customs declaration and the import or export data will be returned to office in two hours for monitoring . • If the enterprise dose not export according to the approved items(ODS name, quantity(quota), destination and so on)we shall punish the enterprise based on related regulations. • According to the degree of violation The punishment including reduce the quota, temporarily stop the export qualification until the qualification is canceled.

17. Thank you!