Ozone Depleting Substances – Import and Export Controls

Caitríona Collins BSc, MSc(Agr.), HDip(Mgt)InspectorOffice of Climate, Licensing and Resource Use

Irish Exporters AssociationWaterford, 31st March 2010

Overview

Introduction to ozone depleting substances (ODS) Relevant legislation and controls on ODS Restrictions and prohibitions

Who’s who in ODS controls? Import and export licensing

Procedures and timeframes CN codes and Commission guidance Reporting by importers and exporters

Inspections, investigations and illegal trade Conclusions Further information

Introduction to ozone depleting substances (ODS)

Ozone depleting substances are chemicals which damage the ozone layer when released to the atmosphere

Examples: CFC/HCFC refrigerants, halon fire extinguishers, methyl bromide fumigant, certain solvents…

The ozone layer acts as a filter to protect us from the sun’s harmful rays

Chlorine and bromine in ozone depleting substances react with ozone (O3) causing it to beak down

Ozone depleting substances remain in the atmosphere for decades – their effect is long term

Relevant legislation and controls on ODS

Montreal Protocol – most successful global environmental agreement, with universal participation Phasing out production and use of ozone depleting substances Approximately 95% phase out achieved to date

EU Regulation – Regulation 1005/2009 (replaced previous Regulation 2037/2000) Directly binding on all Member States More strict than Montreal Protocol Controls on production, import, export, placing on the market, use,

recovery, recycling, reclamation and destruction of ODS, or products and equipment containing/relying on ODS

Irish Regulations – currently being revised

Restrictions and prohibitions

General prohibition on production and placing on the market of ODS or products and equipment containing/relying on ODS

But, various derogations and exemptions Set out in Articles 7 – 14 of the Regulation

Examples: Non-virgin HCFCs for use as refrigerants in maintenance/servicing Halons in defined critical use applications (e.g. aircraft, military) Essential laboratory and analytical uses

General prohibition on import and export of ODS or products and equipment containing/relying on ODS

But, various derogations and exemptions Set out in Article 15 and Article 17 of the Regulation

Who’s who in ODS controls?

European Commission Set up and operate electronic licensing system Process and issue import/export licences Publish manuals to explain import/export licensing procedures

Environmental Protection Agency – competent authority Responsible for implementation and enforcement in Ireland Does not issue or make decisions on licence applications

Customs – competent body Responsible for checking import/export licences at entry/exit

Importers and exporters Must operate within import and export licensing mechanisms established

by the European Commission

Import and export licensing (1)

Where ODS are permitted to be imported or exported, they must be accompanied by the relevant licence

ODS imports are subject to quantitative limits, set by the European Commission annually

Quotas are assigned, based on these limits, to specified importers

ODS exports are not subject to any such limits

Import and export licensing (2)

Licensing of imports and exports is set out in detail in Article 18 of the Regulation

Applications for licences must include detailed data such as: Name and address of importer/exporter Country of import and export Detailed description of the ODS or products/equipment containing ODS Appropriate CN (Combined Nomenclature) code Purpose of proposed import Intended date of import/export Relevant Customs office where goods will be declared Plus more…

Import and export licensing (3)

The Commission: May share data with relevant Member State competent authorities

May reject a licence application on specific grounds set out

Will decide on licence applications within 30 days of receipt

Will copy the licence to the competent authorities in the relevant Member States

Procedures and timeframes (1)

All importers/exporters must register in Commission’s Main ODS Database: http://ec.europa.eu/environment/ozone/ods.htm Download a form from the Commission’s website, complete it and return to

Commission

Registration is essential for: Declaring intention to import or export ODS Applying for licence to import or export ODS

Procedures and timeframes (2)

To request an import or export licence, importers/exporters should log in to the Main ODS Database, open the link "My Home" and click on the button "Request" or "New" next to the corresponding import or export license type.

Time Import procedure Export procedure

Spring Commission publishes in the OJ a notice to importers who wish to import ODS into EU in the following year

Commission publishes in the OJ a notice to importers who wish to export ODS from EU in the following year

June – August Importers who wish to import ODS in the following year must submit an import declaration in the Main ODS Database

Exporters who wish to export ODS in the following year must submit an export declaration in the Main ODS Database

October – December

Commission adopts the Decision on import quotas for the following year, publishes in OJ and notifies importers

(No quotas apply to ODS export)

During year of import/export

During the year of import, importers may request licences in the ODS Database, based on the quota allocated to them

During the year of export, exporters need to request an export license in the ODS Database, based on the export declaration

Common Nomenclature (CN) codes

Unique CN codes are assigned to each ozone depleting substance (Annex IV of Regulation)

CN codes for ODS and potential ODS have been presented by the Commission in a non-exhaustive list

The importer/exporter must be satisfied that goods are either not ODS, or are accompanied by the necessary licence

All these CN codes have been flagged in TARIC database – the online Customs tariff database (integrated across EU)

What to do if your import/export is stopped… (1)

Reason… CN code is flagging ODS Regulation "Import prohibition" and/or "Export prohibition“ text appears

Two things to check: If the good is an ODS (or product/equipment containing/relying on ODS),

then the appropriate licence is required

If the good is not an ODS (or product/equipment containing/relying on ODS), then the trader must declare this by inserting additional codes in Box 44 and/or Box 33 of the SAD, depending on the commodity

What to do if your import/export is stopped… (2)

Box 44: Imports

E 013: Export licence "controlled substances" (ozone), issued by the Commission. (License required and present)

Y 902: Goods other than those described in the footnotes linked to the measure (Licence not required)

Exports Y 902: Goods other than those described in the footnotes linked to the measure 

(Licence not required) L 100: Import licence "controlled substances" (ozone), issued by the Commission

(Licence required and present)

Box 33: 4115: Goods, excluding waste, with ozone-depleting substances or relying on ozone-

depleting substances 4116: Waste with ozone-depleting substances, or relying on ozone-depleting

substances 4999: Other

Helpdesk

Customs AEP Helpdesk

Available to answer all queries on SAD codes and CN codes

Lo-call number: 1890-204-304

The Helpdesk is available from 9am to 5pm Mon-Fri.

Queries may also be emailed to: aephelpdesk@revenue.ie

Commission guidance

Commission has published Licensing Manuals General information Importers Exporters Producers Laboratories Customs These are “living” documents and the most up to date versions are available on

Commission’s website

Commission Frequently Asked Questions http://ec.europa.eu/environment/ozone/faq.htm

These are very useful information resources and should be used by all relevant parties

Reporting by importers and exporters

Article 27 of the Regulation Reporting requirements set out for all importers and exporters of ODS

or products/equipment containing/relying on ODS

Reports due by 31st March each year, relating to previous calendar year

Reporting format is determined by Commission and available to download (MS Excel file) from website: http://ec.europa.eu/environment/ozone/reporting.htm

Illegal trade

Inspections and investigations to combat illegal trade in ODS Responsibility of EPA, as competent authority With cooperation from Customs Cooperation also with other Member States

Member State responsibility to report on cases of illegal trade and any relevant investigations

Conclusions

Some ODS imports/exports are prohibited Some are allowed with proper licence Potential ODS will flag in TARIC Licences are issued by the European Commission Registration in ODS Database is essential Guidance Manuals and FAQs are available on Commission

website All imports/exports must be reported to the Commission

annually by 31 March

Further information

Web links: EPA - www.epa.ie and www.ozone.ie European Commission - http://ec.europa.eu/environment/ozone/index.htm Department of Environment, Heritage and Local Government - www.environ.ie

http://www.environ.ie/en/Environment/Atmosphere/ProtectionoftheOzoneLayer/

Contact EPA:

Caitríona Collins or Celine Horner Environmental Protection AgencyJohnstown Castle Estate, Wexford, Tel: 053 9160600Email: ods@epa.ie

Contact Customs

AEP HelpdeskLo-call number: 1890-204-304(The Helpdesk is available from 9am to 5pm Mon-Fri)

Queries may also be emailed to:E-mail: aephelpdesk@revenue.ie