1 Status China ratified the Montreal Protocol and the London amendment on June 14, It is an Article 5 country.

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1 (Information provided in August 2000) 2 1 Status ratified the Montreal Protocol and the London amendment on June 14, It is an Article 5 country. 2 ODS Focal Point The State Environmental Protection Administration (SEPA) has the main responsibility for implementing ODS phase-out strategies. Main contact person: Mr. Yi Liu, Deputy Director Foreign Economic Co-operation Office State Environmental Protection Agency No. 115 Nanxiaojie Xizhimennei Beijing People s Republic of Tel: (86-10) Fax: (86-10) SEPAFECO@public.bta.net.cn 3 Regulations and Guidelines 3.1 Regulations 1 Law on Air Pollution Prevention and Control Amended on April 29, The amendment includes provisions requiring companies to respect quotas relating to production and import of ODS. 2 Notice on the Control of the Development of CFC Aerosol Products 1991 (Ministry of Light Industry 1991 No. 32). Cited here as MLI (1991)No Notice on Strengthening the Management of CFC and Substitute Production, 1993 (Ministry of Chemical Industry 1993 No. 843). Cited here as MCI (1993) No Notice on Reporting Data of Production, Consumption and Import/Export of ODS (SEPA 1994 No. 529). Cited here as SEPA (1994) Environmental Labelling Policy on Products, 1994 (SEPA 1994 No. 410). Cited here as SEPA (1994) No Ban on New Installations for Halon Extinguishers for Non-Essential Uses 1994 (Ministry of Public Security 1994 No. 94). Cited here as MPS (1994) No Notice on Implementation of Ban on New Installations for Halon Extinguishers for Non- Essential Uses, 1995 (Ministry of Public Security 1995 No. 300). Cited here as MPS (1995) No Notice on Strengthening the Management of CFC Production Expansion, 1995 (Ministry of Chemical Industry 1995 No. 340). Cited here as MCI (1995) No Circular on Promoting the Application of Halon Substitutes, MPS (1996) No 169. Cited here as Halon Substitute. 10 Notice of Implementation of Pollutant Registration System, 1997 (SEPA 1997 NO. 020). Cited here as SEPA (1997) No English translations were not available for all the regulations described in this section. SEI has had access to SEPA (1997) No. 733, SEPA (1997) No 764, SEPA (1999) No. 128, and SEPA (1999) No The text on any other regulations is based on s answers to the questionnaire and subsequent comments to the draft text. 39

2 Regulations to Control Ozone-Depleting Substances: A Guidebook 11 Notice on Strengthening the Monitor Function of Local EPB in Ozone Layer Protection, 1997 (SEPA 1997 No.115). Cited here as SEPA (1997) No Ban on Consumption of CFC in Aerosol Sector, 1997 (SEPA 1997 No. 366). Cited here as SEPA (1997) No Ban on New Construction of ODS Production and Consumption Facilities, 1997 (SEPA 1997 no. 733). Cited here as SEPA (1997) No Tradable Production Quota System for Halon Agent Producers, 1997 (SEPA 1997 No. 764). Cited here as SEPA (1997) No Ban on CFC Consumption in the Manufacture of New Automobiles in Automobiles Sector, 1997 (Ministry of Machinery Industry 1997 No. 099). Cited here as MMI (1997) No. 99. Replaced in 1999 by SEPA (1999) No Publication of First Batch of the List on Seriously-Polluting-Environment (Atmosphere) Processes and Facilities to be Phased-Out, 1997 (State Economic and Trade Commission (1997) No Cited here as List of Polluting Facilities. 17 Notice on Gradually Phasing out Halon Fixed Systems and Halon Fire Extinguishers, 1999 (MPS 1999 No. 031). Cited here as MPS (1999) No Supplementary Notice on the Ban on New Construction of ODS Production and Consumption facilities, 1999 (SEPA 1999 No. 147). Cited here as SEPA (1999) No Notice on Implementation of CFC Production Quota System, 1999 (SEPA 1999 No. 128). Cited here as SEPA (1999) No Ban on Consumption of CFC 12 in Mobile Air-Conditioners in New Vehicles in the Automobile Sector, 1999 (SEPA 1999 No. 267). Cited here as SEPA (1999) No Regulations on Import and Export of ODS 1999 (SEPA 1999 No. 278). Cited here as SEPA (1999) No Notice on Publication of the List of Controlled ODS for Import and Export (first batch), 2000, (SEPA 2000 No. 10) Cited here as SEPA (2000) No Regulation to Strengthen the Management of ODS Import and Export, SEPA Official number: 85. Cited here as SEPA (2000) No 85. A circular and a notice have the same status of subordinate legislation. Some circulars or notices are issued by Ministries and others by departments in the Ministries. 3.2 Guidelines 1 Implementation Guideline for Multilateral Fund Projects, Cited here as Project Guideline. 2 Fire Protection Code for Design of Tall Buildings, 1997 Cited here as GB Fire Protection Code for Design of Buildings, Cited here as GBJ Code for Fire Extinguishers in the Design of Buildings, Cited here as GBJ Fire Protection Code in Underground Engineering, Cited here as GBJ Implementation Guideline for CFC Production Permit System, Cited here as CFC Permit System. 4 Controls on ODS in Bulk 4.1 Controls on production of CFCs and halons is an ODS producer. The production of CFC and halon is controlled by the SEPA with the intention to phase out production by It is prohibited to construct any new facilities or to extend existing facilities for the production of halon or CFC (SEPA (1997) No. 733). The national quota for halon, as well as the individual quotas, are decided annually by the SEPA and the Ministry of Public Security. The national and individual quotas for CFC production are determined by the SEPA and the State Administration of Petro- Chemical Industry (SAPCI). 40

3 The initial halon quota is based on factors including: the actual amount of production, sales, storage and export of halons within the company; the financial conditions and salaries of the workers at the company in the previous three years; and the national total quota amount in The CFC quota is based on the company s actual production during The national quota will be a maximum of MT ODP. After 1999 the individual quota for CFC production will be determined on the basis of: the total national quota of the subsequent year; quota trading; licence compliance, and the outcome of the bidding process. Halon and CFC producers must apply for a quota licence which will allow them to be allocated a share of the national production quota (SEPA (1997) No 764. sect. 1 and SEPA (1999) No. 128, sect. 1). It is prohibited to produce these substances without a quota licence. Those who obtain a quota will also get funding to cut down production either partially or wholly. The funding for the phase out is provided through the Multilateral Fund under the Montreal Protocol. The SEPA decides which companies shall obtain funding to phase out production completely and which shall phase out only partially. Trade in production quotas is allowed after an approval from the SEPA has been obtained. Buyers of halon production quotas also have to obtain an approval from the provincial Environmental Protection Bureau (EPB). The company may become subject to a fine imposed by the local department in charge, if a company s production exceeds the allocated quota. In serious cases the production quota may be cancelled (the amendment to the law on Air Pollution Prevention and Control and SEPA (1999) 128, Art. 10, SEPA (1997) 764, Art 10). In addition, the qualification for the Multilateral Fund Grant will be cancelled (SEPA (1999) 128, Art. 10, SEPA (1997) 764, Art 10) Monitoring production of ODS A system for registering emissions in general is instituted under SEPA (1992) No. 10 a. Everyone engaged in activities that cause pollution must report to the authorities on emissions, type of pollutant, quantities, concentration and what treatment facilities they have. In order to make these reporting requirements applicable to ODS, SEPA (1997) No. 20 was adopted introducing reporting requirements applying to CFCs, halon, carbon tetrachloride, 1,1,1,-trichloroethane, HCFC and methyl bromide. It requires ODS producers to report on produced quantities, value output, and from where ODS comes, where it goes and for what application it is being used. SEPA has two ways to collect this information: through industry sector organisations or through the local EPBs. This information has not yet been used for cross checking against the information obtained under the halon and CFC quota system (see below) because to date, there has only been limited information obtained under the emission registration system. Producers of halon must report to SEPA quarterly on the production in each month. SEPA will inform the provincial EPBs, Fire Fighting Departments and the authorities exercising administrative power over the company. Reports should contain information on procurement of raw materials as HCFC- 22, bromide and chlorine; as well as records on quantities of halon produced, sold, exported and held in stock. The local EPBs and fire fighting agencies perform controls on site from time to time (SEPA (1997) No. 764, sect. 8). CFC producers must report quarterly to SEPA, SAPCI, the provincial EPBs, the provincial administration of petroleum and chemical industries and the authorities exercising administrative power over the company. Reports shall contain information on procurement of raw materials, records of CFC quantities produced and sold and shall be submitted on a particular form provided in Annex II to SEPA (1999) No 128 (SEPA (1999) No 128, sect. 7 and 8). There is a particular national regulation specifying how shall report on its ODS consumption to the Ozone Secretariat under the Montreal Protocol, namely the SEPA (1994) No

4 Regulations to Control Ozone-Depleting Substances: A Guidebook 4.2 Controls on import of ODS in bulk From April, 2000, banned all import of carbon tetrachloride (SEPA (2000) No. 10). SEPA and the Ministry of Foreign Trade and Economic Cooperation (MOFTEC), together with the General Customs Administration, has determined a list of ODS that are controlled for import and export (SEPA (2000) No. 10). Substances listed in Annex A Group I and Annex B Group II of the Montreal Protocol as well as CFC-13 are covered. Based on the mandate in SEPA (1999) No. 278 s. 3, SEPA and MOFTEC jointly decide on a yearly import quota for listed ODS (SEPA (1999) No. 278, Art.5). Importers of substances that are listed must apply to the SEPA and the MOFTEC for a share of the total annual quota. Their applications shall be accompanied by reports on ODS sale and use during previous years (SEPA (1999) No. 278 Art. 4). Only importers who have imported the specific ODS during previous years may be allocated a part of the import quota. If an application is accepted, MOFTEC and SEPA issue an Approval Form on Import/Export of Controlled ODS, which the importer may use to apply for an import permit. The application for a permit should be made to the authority which MOFTEC has chosen to approve import permits (Regulation on Import and Export of ODS and SEPA (2000) No. 10). MOFTEC Quota Licence Bureau for Import/Export Licences issues the permit on a per shipment basis. Quotas and permits may not be transferred or sold (SEPA (1999) No. 278 Art. 9). Import over the quota limit is punishable by a fine imposed by the local department in charge. In serious cases the import quota will be cancelled (see the amendment to the Law on Air Pollution Prevention and Control, 1987). Exporters do not need to apply for a quota share as there are no quotas for export of ODS, however, exporters need to apply for an export permit for each shipment of ODS they want to export out of. A company that wishes to export recycled ODS must also have a certificate of recycling and apply to the authority, designated for this purpose by MOFTEC and SEPA, for a specific import/ export licence for recycled substances (SEPA (1999) No. 278 Art. 7). Containers that are used to store recycled ODS for export must carry a label marked with the word RECYCLED ODS made and issued by the SEPA. The label should also carry the name and content of the recycled substance (SEPA (1999) No. 278, sec. 7). SEPA, MOFTEC and the General Customs Administration have the right to supervise and inspect import and export activities, including whether ODS marked as recycled is really recycled material. The establishment of an ODS Import and Export Management Office has been approved by the State Council. The following contact persons may be adjusted in the future: Mr. Yuansheng Fan, Deputy Director Ms. Xiaolin Fan Pollution Control Department General Administration of Customs SEPA Tel: (86-10) Tel: (86-10) Fax: (86-10) Fax: (86-10) Mr. Ke Li, Division Chief Trade Management Department MOFTEC Tel: (86-10) Fax: (86-10) Monitoring ODS import When applying for an approval form on import/export of controlled ODS, the applicant must provide SEPA and MOFTEC with information and certificates of sale, use, import and export of specific ODS during the years and also for the year preceding the year of application (SEPA (1999) No. 278 Art.4). The information is recorded at the import/export management office and cross checked with customs statistics. The customs codes have been adjusted to facilitate monitoring of ODS import and export. In April 2000 SEPA (2000) No. 85 was promulgated. It stipulates that the importer is required to fill in an import plan form, and an application form for ODS import. The importers are required to fill out 42

5 the import plan form after they receive the import quota. The import plan form includes the following information: name of importer; name of imported ODS and Series Number; estimated date of arrival; and the planned import amount. After the shipment arrives in the import and export office adds information on the approved amount and actual imported amount to the import plan form. The application form for ODS import must be filled out before the import of each shipment and contains the following items: name of importer; name of imported ODS; source of imported ODS; amount for import; estimated import date; port of arrival; contact details of the importer; contact details of the exporter; and contact details of the producer. The government authority primarily responsible for compiling information on ODS import is the ODS Import and Export Management Office (established by SEPA, the Ministry of Foreign Trade and Economic Cooperation and Customs and located at SEPA). Ms. Lei Li, Deputy Division Chief Office on Management of Import and Export of ODS Tel: (86-10) Fax: (86-10) ODS import from and export to non-party countries Import from and export to non-party countries is prohibited (SEPA (2000) No. 85). 5 Controls on Import and sale of Products Containing, Made with or Using ODS has no regulations or guidelines banning or controlling the import or sale of products containing or made with ODS. It is also intended that ODS products will be included on the list of controlled ODS for import and export (SEPA (2000) No. 10) in the near future. 6 Controls on the Use of ODS (other than methyl bromide) - End use Controls SEPA (1992) 10 requires that anyone who is engaged in an activity which causes pollution must report on emissions. SEPA (1997) No. 20 makes this law specifically applicable to manufacturing processes using ODS. It is prohibited to build new factories, or extend existing production lines using the substances below for the following applications (SEPA (1997) No. 733): Substance CFC (as refrigerant or blowing agent) Halon (as an extinguishing agent) CFC, trichloromethane or carbon tetrachloride (as a solvent) CFC (as a propellant) CFC (as an expansion agent) Application Refrigerators Freezers Mobile air-conditioners PU, PE/PS extruded foam Portable fire extinguishers Fixed fire extinguishing systems All applications Aerosols (except for medical uses where no alternatives are available) Tobacco industry 43

6 Regulations to Control Ozone-Depleting Substances: A Guidebook In addition, SEPA has prohibited the use of ODS for the following applications: The use of CFC-12 and HCFC in the manufacture and sale of: Aerosols from January 1998 (SEPA (1997) 366 sec. A 17). 3 Mobile air-conditioning, new installations from January 2002 (SEPA (1999) No 267 Section A 27). No exemptions are allowed. The use of halon 1211 in the manufacture and sale of: Fire extinguishers, new installations (MPS (1994) No 94 sec. A 6) since November Exemptions are allowed for essential uses. The authority responsible for granting exemptions is the Ministry of Public Security Fire Fighting Bureau. Mr. Jicheng Chen, Senior Engineer Sector Management Office of Fire Fighting Bureau Tel: (86-10) Fax: (86-10) has several guidelines aiming to reduce the use of ODS for fire extinguishing. They are: Fire Protection Code for Design of Tall buildings. Applies to halon 1211 and Fire Protection Code for Design of Buildings. Applies to halon 1211 and Code for Fire Extinguishers for Design of Buildings. Applies to halon Fire Protection Code in Underground Buildings. Applies to halon 1211 and Control on Service and Installation of Refrigeration and Air-Conditioning Equipment SEPA (1999) No. 267, section A 26 prohibits the installation of mobile air-conditioning equipment using CFC-12 in new vehicles as of The regulation applies to service and installation enterprises. The authority responsible for implementing these rules is the State Bureau of Machinery Industry. Ms. Xu Yi, Senior Engineer Planning and Development Department Tel: (86-10) Fax: (86-10) There are no rules outlining how service and maintenance should be undertaken or who should carry out such service or maintenance. There is no co-operation between the authorities and trade associations for the promotion of reduction of use and emission of ODS refrigerants. Nor are there any codes of good practice for this purpose being developed by industry. 8 Controls on Methyl Bromide 4 has no legislation specifically controlling the use, import or export of methyl bromide. However, the Pesticide Management Regulation (1997) No. 216 states that all import of pesticides must be registered with the State Ministry of Agriculture. The said regulation also requires that all pesticides, including methyl bromide, produced, imported or sold in, obtain a pesticide registration certificate from the Ministry of Chemical Administration. Two more regulations require import licences for methyl bromide, namely the Notification on Implementing Licence for Import and Export of Pesticides and the Notification of Temporal Approval Procedure for Import of Pesticides. Construction of new production facilities for methyl bromide was prohibited in is working with UNEP on increasing the control of methyl bromide use. In 1998 a working 3 Medical aerosols are not comprised by the regulation. 4 Information in this section originates from the UNEP publication Methyl Bromide Phase-Out Strategies A Global Compilation of Laws and Regulations, UNEP,

7 group was formed by representatives from various Chinese authorities and research institutes to address the methyl bromide issue. Contact person for methyl bromide strategies: Mr. Bo Li Science and Education Department Ministry of Agriculture Tel: (86 10) Economic Incentives and Disincentives The guidelines for the Implementation of Multilateral Fund projects provide for a grant administered by the SEPA Project Management Office, aiming to fund the phase out of substances controlled by the London Amendment. All enterprises that produce halons or CFCs are encouraged to apply for such a grant. Producers of halons or CFCs are annually given the opportunity to sell their production quotas back to the government through a competitive bidding process. Companies offer to sell their quotas to a certain unit price. The government evaluates the bids and awards grants to those offering the lowest price, based on the amount available for grants for that year. If the government is able to buy back sufficient production quotas through the bidding process, those companies that did not make a successful bid get to keep their allocated quota at the same level for the next year. Should the bidding process fail to buy back a sufficient amount of quotas the government will diminish the quotas also for the remaining producers on a pro rata basis. In 2000 the government had to intervene in this way since they were not able to buy back enough quotas due to the great demand for halon on the market. Ms. Xiaozhi Song, Co-ordinator Project Management Office Tel: (86.10) Fax: (86-10) There are no economic disincentives to discourage ODS use in. 10 Labelling Requirements The Environmental Labelling Policy on Products aims to encourage the labelling of products that do not contain ODS or require ODS for their use (SEPA (1994) No. 410, sect. A 5). The authority responsible for handling labelling issues under that policy is SEPA. Ms. Jing Teng, Division Chief in Standard Division Science, Technology and Standards Department, SEPA Tel: (86-10) Fax: (86-10) The SEPA (1997) No. 366 requires that aerosols that do not contain ODS are labelled stating that fact. The statement is verified by Fre Aerosols, SEPA and the State Technical Monitoring Bureau. 11 Criteria for Selection of Alternatives has developed guidelines for the selection of acceptable alternatives to halons. The major substitutes for halon 1211 fire extinguishers, according to the guidelines, are ABC dry powder, CO2 and AFFF. The guidelines stipulate the quality requirements for ABC dry powder. The Fire Fighting Bureau is the authority responsible for the halon guidelines. Mr. Jicheng Chen, Senior Engineer Sector Management Office Fire Fighting Bureau, Ministry of Public Security Tel: (86-10) Fax: (86-10)