Problems relating to Trade and Investment on China
22. Environmental pollution and waste disposal |
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Issue |
Issue details |
Requests |
Reference |
| (1) Nebulous PRC Version of RoHS Directive | - In the process of reviewing measures for the control of pollution from electronic information products ((PRC RoHS (Step2)) (including formulation of new administrative measures, drafting of list of major electronic information products subject to pollution control/addition of products subject to control, and implementing provisions of CCC certification, and system for the voluntary certification for control of pollution from electronic information products), hardly any forum is made available for consultation between GOC and the related enterprises. It makes it difficult for the interested parties to grasp the total system, for example, as to how Chinese RoHS differs from EU RoHS. It is also a matter of concern if PRC certification institute by itself alone is capable of performing completely the evaluation of compliance (certification system) (as regards analysis, reliability and stability in the analysis made, factory inspection, etc.) without any deficiency. - Under measures (Draft) various standards and specifications (Drafts) exist. It will likely make it difficult to grasp the total picture of the Control. |
- It is requested that GOC: -- maintains compatibility with the leading RoHS countries such as EU, etc. by adopting extension of Step 1, Self-Declaration of Compliance (e.g. IEC/TR62476, ISO/IEC17025, etc.), and -- alleviates the burden on both Certifying and Certified Parties. - In amending administrative measures, standards, specifications, it is requested that GOC makes such amendments easy to understand and follow, for example, by synchronizing the timing for implementation, preparing a comprehensive FAQ, etc.. |
- System for the Voluntary Certification for Control of Pollution from Electronic Information Products - Chinese RoHS (Measures for the Control of Pollution from Electrical and Electronic Products, etc.) |
| (Action) - Since 1 March 2007, measures for the control of pollution from electronic information products (so called PRC RoHS) have been enforced. Its enforcement takes place in two stages: (1) The first stage: Self-declaration must be made in the label or the product instruction manual concerning hazardous/toxic substances. (2) "List of Major Electronic Information Products Subject to Pollution Control" must be prepared and the products included in the List are subject to compulsory certification. - On 1 February 2008, "Administrative Measures for the Prevention and Control of Environmental Pollution by Electronic Waste" was enforced. These measures clearly hold manufacturer, importer and distributor equally responsible for recycling of electronic waste, which must be treated or disposed of by an agency or an individual designated by the government and holding the Licence. Any person failing to observe the requirements under these measures shall be subject to fines. - On 4 March 2009, "Regulation on the Administration of the Recovery and Disposal of Waste Electrical and Electronic Products" was promulgated. (Ref: Regulation on the Administration of the Recovery and Disposal of Waste Electrical and Electronic Products. - "The Second Stage" mentioned above due for execution in Summer 2010 or thereabout has delayed even now in summer 2011 without decision reached on the subject products. Its implementation is expected to delay substantially. In July 2010, on the other hand, GOC released the draft amendment for China RoHS and it is now under deliberation. The expanded scope (from electronic information products to electrical/electronic products), possibility for deregulation of the CCC acquisition requirements in the second stage, etc. are the main areas of amendment. - On 18 May 2010, "Implementation Opinions for Promoting National Unification of Voluntary Pollution Control on Electronic Information Product" (GuoRenZhengLian[2010]No.28) was promulgated. Furthermore, on 25 August 2011, "Implementing Regulation for Promoting National Unification of Voluntary Pollution Control on Electronic Information Product, Product Catalogue, Requesting Public Comment for Exceptions" was promulgated. Under the Regulation, voluntary certification system is established on finished computer, printer, television receiver and mobile telephone, parts and materials thereof. - As regards GOC's TBT notification filed on 21 October 2010, Japan, EU, and ROK expressed concerns at the TBT Committee regular meetings in March, June, and November of 2011 and in March 2012. At the bilateral meeting Japan expressed its desire that self-declaration method should suffice for certificate of compliance, the same as EU RoHS, and that motor vehicles, batteries/parts, etc be excluded from the TBT notification requirement. GOC responded that no further TBT notification is required as the catalog was already published in August 2011, and certificate of compliance is voluntary. (2013 Report on Compliance by Major Trading Partners with Trade Agreements) - After soliciting the Public Comment in May 2015. (Enforced since 1 July 2016), Ministry of Industries and Information Technology (MIIT) promulgated on 21 January 2016 "measures for the administration of the restricted use of the hazardous substances contained in electrical and electronic products (RoHS Chinese Version)," jointly with the National Development and Reform Commission (NDRC), the Ministry of Science and Technology (MST), the Ministry of Finance (MOF), the Ministry of Environmental Protection (MEP), the Ministry of Commerce (MOC), the General Administration of Customs (GAC) and the General Administration of Quality Supervision, Inspection and Quarantine (GAQSIQ), (8-in-all). The main amendments include without limitation: Expanded scope of RoHS, increased types of hazardous substance, reinforced policy support, improved hazardous substance control system, etc. |
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| (2) Uniformity in application of Chinese WEEE between Public Consumers and Enterprises | - Under "the regulation on the administration of the recovery and disposal of waste electrical and electronic products (Chinese WEEE)", the final governmental procedures are now under way to include additionally in the new catalogue, copiers/printers/facsimiles (the products). It remains unclear, however, after affixation of the catalogue creation, how deliberations and decisions are going to be made, (including consultation and decision making with the industries in concern, as to the funding scheme, the amount, steps to take, schedule formulation, fund management, etc.) It is also necessary to consider in parallel improvement in the fund management under the 1st catalogue. Furthermore, in light of the fact that the used equipment market in general is already established, it is considered particularly difficult to improve the effective efficiency of collection/disposal of the products destined to industries (B to B). In addition, after use management method of the products destined to consumers (B to C) is different from that destined to enterprises (B to B). It is, therefore, imperative, in total of all using the products in the society, to consider structuring of the social framework to enhance effective efficiency of collection and disposal of the used products. | -It is requested that GOC: -- takes steps in construction and management of the transparent process that amply reflects the voices of electric/electronic industry and the relevant industries in considering the funding under the new catalogue, -- further improves the tasks, in the 1st catalogue, into the system that enhances visibility for the fund flow and the status of cash management, -- establishes the funding system that amply reflects individually the respective collection status separately for B to B products and B to C products, and -- builds up the total system for the entire society, with each Interested party performing the respective individual role toward enhancement of the effective collection of the used products. |
- PRC Regulation on the Administration of the Recovery and Disposal of Waste Electrical and Electronic Products (02-25-2009), Articles 4, 5, 7, 11 and 21. |
| (Action) - On 25 February 2009, 9-Ministries and Agencies, including Ministry of Environmental Protection, jointly promulgated "Regulation on the Administration of the Recovery and Disposal of Waste Electrical and Electronic Products" (State Council 551), entered into force on 1 January 2011. - In September 2010, "Catalogue for Disposal of Waste Electrical and Electronic Products (First Products List)" was promulgated, naming 5- products: television receivers, refrigerators, laundry machines, air-conditioners, personal computers, as products subject to this Catalogue. - On 1 July 2012, GOC implemented "Measures for the Administration of Fund for the Recovery and Disposal of Waste Electrical and Electronic Products", whereby the Chinese Version of WEEE is effectively put into operation. = GOC collects fixed amounts as fund per unit from domestic manufacturers and importers: (TV - RMB 13, Refrigerators - RMB 12, Laundry Machines - RMB 7, Air conditioners - RMB 7, Personal Computers RMB 10), and pays fixed amounts as subsidy to Certified Wastes Collectors for disposal, (TV - RMB 85, Refrigerators - RMB 80, Laundry Machines - RMB 35, Air conditioners - RMB 35, Personal Computers RMB 85). - On 25 February 2015, released "Waste Electrical and Electronic Equipment (WEEE) catalogue 2014", enforced from 1 March 2016. The products listed in this catalogue are subject to the PRC Regulation on the administration of the recovery and disposal of waste electrical and electronic products (02-25-2009). |
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| (3) Shortage in Capacity for Disposal of Pollutants and Wastes | - An Japanese enterprise in PRC desiring to acquire the ISO qualification is faced with the problem of the shortage of the authorised waste disposal contractors, causing delays in and increased cost for the waste disposal. - Under the central government's control, regional governments implement restrictions on emission control of pollutants by industrial enterprises and the motor vehicles operational measures. Governments have established the cap on the volume of emissions, wastes and pollutants, so that any excess remains piled up within the factory premises all over, while the cost of wastes disposal soars, due to the shortage of enterprises qualified to operate the wastes disposal business. |
- It is requested that GOC beefs up the ISO certified contractors for waste disposal nationwide. - Should GOC need to exercise control on enterprises' operational hours, it is appreciated, if GOC does it under the well-organised planning. - It is requested that GOC: -- improves the pollutants disposal capacity, and -- makes the relative legislation more stringent. |
- Rules and Regulations enforced By Local Regional Government on Measures to Curb Atmospheric Pollution. |
| (Action) - In October 2007, MOF and State Administration of Environmental Protection (SAEP, currently Ministry of Environmental Protection (MOEP)) promulgated "Circular on Tightening Environmental Supervision and Control Concerning Export Enterprises" addressed to each district agency of MOF/SAEP). - On 1 May 2008, MOEP enforced "Measures for the Disclosure of Environmental Information (for Trial Implementation)". These Measures compel MOEP and enterprises discharging the polluted waste of a serious degree to disclose the environment related important information to the public, while encouraging enterprises discharging the polluted waste of less serious degree to disclose the environment related information to the public. - Since 1 January 2009, "Circular Economy Promotion Law" has been enforced with the view to develop the recycling economy. - On 25 February 2009, the State Council promulgated "Regulation on the Administration of the Recovery and Disposal of Waste Electrical and Electronic Products" for enforcement from 1 January 2011, so-called "Recycling law on Electric Home Appliance" that includes provisions concerning the accreditation process for the qualification of enterprises for disposal of waste electrical and electronic products, observance of environmental protection related legislation, governmental encouragement, supervision, control, fines, etc. - On 15 December 2010, Ministry of Environment Production (MEP) promulgated "Administrative Measures for Eligibility License for Disposal of Waste and Discarded Electrical and Electronic Products" (enforced on and after 1 January 2011) that sets forth the terms and conditions for filing application and acquisition of eligibility license for disposal of waste and discarded electrical and electronic products, listed in the "Catalogue of Major Electrical/Electronic Products Subject to Disposal". These Administrative Measures serve as detailed rules of implementation for the Chinese version of WEEE Directive (EU legislation restricting the use of hazardous substances in electrical and electronic equipment (Directive 2002/95/EC)), and provides, among others, for the responsibility of the competent governmental agencies, terms for acquisition of qualification certificate, procedures, supervision and control, and legal responsibility. |
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| (4) Insufficiency of Measures against Atmospheric Pollution | - Atmospheric pollution in Shanghai / Beijing has gotten worse. While a member film's subsidiary (MFS) takes measures by distributing masks and air cleaning devices, it is difficult to compel employees to report to office when the pollution index is overly high. Management is concerned about the negative impact the atmospheric pollution gives upon normal work from now on. Temporary return of expatriates' family members, including the welfare issue, confronts MFS management. In Jiangsu Province, MFS received request for turning off boilers from the Municipal Authority. It is beginning to impact factory operation. - MFS is concerned about the health damage of its employees from the factory effluent or proliferation of PM2.5. - Aggravated atmospheric pollution and anxiety over the health damage. |
- It is requested that GOJ approaches GOC, urging GOC to expedite taking drastic measures for prevention of environment issues. - It is requested that GOC: -- improves pollution, and -- moderates traffic congestion. - It is requested that GOC takes step to improve atmospheric pollution at point of release. |
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| (Action) - In July 2014, "Regulations of Shanghai City on the Prevention and Control of Atmospheric Pollution" was approved and enforced since 1 October 2014. It provides, among others, for stricter penal provisions and cooperation for prevention of atmospheric pollution in the Yangzijiang Delta region. - On 6 August 2014, MOFCOM, State Administration of Taxation (SAT) and Ministry of Industry and Information Technology (MIIT) jointly promulgated "Announcement No. 53 [2014] on the Exemption of Vehicle Purchase Tax on New Energy Vehicles", exempting Vehicle Purchase Tax on Full Electric Vehicles, Plug-In Hybrid Vehicles, and Fuel Cell Vehicles. - On 1 January 2015, Environmental Protection Law of the People's Republic of China (2014 Revision) came into force. The 2014 Revision added new provisions, concerning management of pollutant discharge Right (Article 45), Cost of Pollutant Discharge (Article 43) , Control on Total Volume of Pollutant Discharge (Article 44), and the National Pollutant Discharge Standards (Article 16), tightening the administrative supervision and control upon business operators. |
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| (5) Restricted Use of 2-wheel Motor Cycles in Urban Areas | - GOC prohibits use of 2-wheel motor cycles in urban areas for the sake of traffic safety and environmental protection, including those that satisfy the emission control. It does not stand to reason that electric 2-wheel motorcycles are allowed to run on public road (on the car lanes). | - It is requested that GOC repeals or deregulates restrictions on use of 2-wheel motorcycles in the urban areas. | - Individuals restrictions implemented in each municipality. |
| (6) Issues Concerning Calculation of Company Average Fuel Consumption | - GOC does not allow grouping between imports and locally manufactured vehicles in calculating the corporate average under the 3-step Fuel Efficiency Requirements (3-SFER). As it now remains, it is difficult for the enterprises that deal only with imported vehicles to satisfy 3-SFER. | - It is requested that GOC allows grouping of imported and locally manufactured vehicles. | - Administrative Measures for the 3-Step Fuel Efficiency Requirements |
| (7) Default by Designated Pollutant Discharge Operators | - MFS is unable to discharge pollutants in waigaoqiao bonded zone. While the pollutant discharge application is accepted at customs, the designated pollutant operator would not execute discharge. Because of this, MFS has a choice of keep paying tax for the pollutant products destined to discharge, or move them to another area for physical destruction into pieces. Incidentally, apart from pollutant discharge, abandonment of assets is another choice open to MFS. While this is possible in theory, MFS is unable to take this step, lest the abandoned products are released to the market. | - It is requested that GOC makes possible physical discharge of the pollutants. | |
| (8) Delayed Action on Environmental Issues | - MFS moving its factory to development zone, is confronted with the concern expressed by its neighbouring residents on the environment issue, due to the GOC's delay in implementing the development plan. | - It is requested that GOC: -- advances the development plan, and -- grants subsidy for taking measures to appease the environmental concern expressed by the neighbours. |
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| (9) Increased Burden for responding to the Environmental Control | - MFS has incurred much expenses and work-time for introduction of painting facilities for its factory, due to the tightened environment control exercised by Huadong district (Jiangsu Province) authority. MFS has incurred RMB100,000 for production of "Evaluation Report on Environmental Impact", requiring consignment to an operation specialized in evaluation. Furthermore, MFS has incurred similar financial burden on "Occupational Disease Evaluation". - Manufacturing enterprises face the declining profitability caused by the expenditures on account of environmental issues that necessitates rapid replacement of production facilities (such as boilers) with the view to improve the environmental issues. |
- It is requested that GOC fragmentalises the approval application steps commensurate with the level of the substance impacting upon environment. - It is requested that GOC considers the grant of preferential measures by type of industry for prioritising the environmental issues. |
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| (10) Nebulous Legislative Implementation on the Marking Requirements | - The marking standard "SJ/T11364-2006" under "Measures for the administration of the restricted use of the hazardous substances contained in electrical and electronic products (China RoHS) was replaced by marking requirement, SJ/T11364-2014" in July 2014, due for enforcement from 1 January 2015. However, around September 2014, GOC made a verbal notice, announcing the delay in announcement of measures by around September. In the end, on 8 January 2015, past the due date, public announcement for adjournment was published. During this period, concerned enterprises were thrown into confusions, whether to take responsive actions. Moreover the reason for the delay, being, China RoHS, the law in the upper order, was under deliberation. This reason was amply foreseeable to administration, prior to announcement of the marking standard. | - It is requested that the authorities in concern gives notification after completing due deliberation to the contents and the timing of announcement to allow the concerned enterprises to respond without confusion after announcement. | - Marking Requirements for Control of Pollution Caused by Electronic Information Products, SJ/T 11364-2014. |
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