Governing Regulations 2-2
6. "Importer" refers to an entity that imports HCFCs and provides it to the user.
7. "Producer" refers to a domestic entity that produces HCFCs and provides it to the user.
Article 3 Baseline consumption level of HCFCs is 638,156 ODP tons. The HCFCs consumption control time table and limits for each year are as follows:
1. For the twelve-month period commencing on 1st January 2004, and in each twelve-month period thereafter, the calculated level of consumption of HCFCs shall not exceed 65% of the baseline consumption level, which is 414,801 ODP tons.
2. For the twelve-month period commencing on 1st January 2010, and in each twelve-month period thereafter, the calculated level of consumption of HCFCs shall not exceed 35% of the baseline consumption level, which is 223,355 ODP tons.
3. For the twelve-month period commencing on 1st January 2015, and in each twelve-month period thereafter, the calculated level of consumption of HCFCs shall not exceed 10% of the baseline consumption level, which is 63,816 ODP tons.
4. For the twelve-month period commencing on 1st January 2020, and in each twelve-month period thereafter, the calculated level of consumption of HCFCs shall not 0.5% of the baseline consumption level, which is 3,191 ODP tons, and such consumption shall be restricted to the serving of refrigeration and air conditioning equipment during this period.
5. For the twelve-month period commencing on 1st January 2030, and in each twelve-month period thereafter, the calculated level of consumption of HCFCs shall not exceed zero.
Article 4 Baseline production of HCFCs is 638,156 ODP tons.
For the twelve-month period commencing on 1st January 2004, and in each twelve-month period thereafter, the calculated level of consumption of HCFCs shall not exceed the baseline production level.
Each producer shall report its forthcoming 6 months production scheme on every January and July of each year, which should include the quantity of HCFCs produced, amount of HCFCs used as feedstock in the manufacture process for other chemicals, and the amount of these chemicals produced, to the central competent authority.
Article 5 The importing and exporting of HCFCs is limited to states or regions that act in accordance with the terms set by the Montreal Protocol and have been approved and publicly announced by the central competent authority.
The central competent authority, in consultation with the relevant authorities, shall revise and publicly announce the states or regions mentioned in the previous paragraph.
Article 6 Commencing on 1st January 2004, and thereafter, users that apply HCFCs as foaming agent in manufacturing of soft and semi-rigid polyurethane foaming plastic, non-insulation purpose polyurethane foaming plastic, insulation purpose polyurethane foaming plastic, and as cleaning agent in manufacturing of the electronic appliance for information technology and non- electronical appliance, are required to cease the use of HCFC-141b.
The central competent authority will cease approving the aforementioned use of HCFC-141b as of 1st January 2004.
Article 7 HCFCs users, importers and producers must submit the following documents to the central competent authority to apply for quotas before the end of July of each year:
1. Photocopy of corporate license (importers shall have importer/exporter qualifications) 2. Photocopy of business registration
3. Photocopy of factory registration (Refrigeration and air conditioning engineering businesses shall attach a photocopy of their refrigeration or air conditioner engineering business license.)
4. Documents verifying actual use (the import or actual use of HCFCs from January to June of the current year) 5. Other documents as specified by the central competent authority
If any application documents are incomplete or not in compliance with regulations, the business entity shall submit the required documents within the time frame specified by the central competent authority. An application that is not complete or corrected within the specified time frame will be rejected.
The central competent authority shall cancel the quota allocation of any business entity whose actual consumption is zero for two consecutive years.
Article 8 The central competent authority shall reserve ten per cent of the annual HCFCs consumption quota for the requirements of national development, national defense and the military, and emergencies.
The total consumption quota for a given year shall be the consumption level for that year minus the reserved quota, and shall be allocated for users on a first priority basis. The remainder shall be allocated to importers and producers on a proportional basis.
Article 9 Before the end of every October, the central competent authority shall establish the preliminary annual HCFCs quota allocation and the projected purchase volume for the first and second quarter （Q1 and Q2 respectively） for the following year for each applicant.
The standards used to calculate the aforementioned preliminary annual HCFCs quota allocation are as follows:
1. Business entities with existing quota allocations: The sum of the actual consumption during the first and second quarters plus projected purchases volume for the third and fourth quarters of the current year.
2. Businesses entities applying for quota allocations: Double the amount imported or actually used from January to June of the current year.
Article 10 Before the end of every April, the central competent authority shall establish the actual annual HCFCs quota allocation and the projected purchase volume for the third and fourth quarter （Q3 and Q4 respectively）of the following year for each applicant.
The actual annual HCFC quota allocation for each applicant shall be calculated based on the actual consumption of the applicant for the preceding year.
Article 11 A business entity with a quota allocation and HCFCs quota allocation permit issued by the central competent authority may apply, or commission an importer to apply, to the Bureau of Foreign Trade, Ministry of Economic Affairs, for an import permit. The
importing of such goods is limited to the current quarter only.
A business entity with a quota allocation and HCFCs quota allocation permit issued by the central competent authority may produce, or commission a manufacturer to produce, HCFCs, the acquisition of goods for which is limited to the current quarter only.
If the goods, as mentioned in the previous two paragraphs, are not imported or are not domestically acquired during the current quarter, and the business entity does not apply to the central competent authority for a permit extension, the central competent authority shall withdraw the allocated quota for that quarter. If the goods are not imported or are not acquired domestically during the fourth quarter of a given year, the central competent authority shall subtract double the difference from the actual annual quota allocation of a business entity for the following year.
Article 12 User quotas may not be transferred.
Importers and manufacturers may transfer quotas among themselves after approval by the central competent authority. In the event a business entity transfers its quota without approval, the central competent authority may subtract double the transferred amount from the actual annual quota for the following year of that business entity, or may revoke the quota qualifications of that business entity.
Article 13 A business entity with a quota allocation that changes the name of its goods or source of goods or that relinquishes its quota allocation shall report such to the central competent authority for future reference.
Article 14 A business entity with a quota allocation shall report their projected Q3 and Q4 HCFCs purchase for the current year to the central competent authority before 5th March of each year. It shall also report its projected Q1 and Q2 purchases for the following year before 5th September of each year (as per Appendix 1).
Projected HCFCs purchases during the first half (Q1 and Q2) and second half (Q3 and Q4) of the year shall separately be equivalent to one-half of the annual preliminary quota plus or minus twenty percent However, those who have applied and received approval from the central competent authority are exempted from this restriction.
Article 15 Business entities with quota allocations shall prepare the following documents (as per Appendix 2) as proof of actual consumption and report to the central competent authority before the end of January, April, July, and October respectively each year the actual implemented quota during the preceding quarter. Failure to make such a report on time shall be deemed as an entity not having completed the importation or domestic acquisition of allocated quota.
1. Users shall submit a Domestic Purchase Declaration Form from the domestic acquiring entity if HCFCs were purchased domestically. An Import Arrival Declaration Form filled out by said business entity or a commissioned importer shall be submitted if the HCFCs were imported. Also, an Application and Consumption Statistics Form, detailing the specific way the HCFCs were used, such as for refrigerants, refrigerants in new construction or a maintenance project, foaming, or PU material supply or cleaning.
2. Importers shall submit an Import Arrival Declaration Form and Domestic Vending Declaration Form.
3. Producers shall submit a Production Declaration Form and a Domestic Supply and Demand Statistics Form.
If any report documents are incomplete or not in compliance with regulations, the business entity shall submit the required documents within the specified time frame set by the central competent authority. Failure to do so within the specified time frame shall be deemed as not having submitted a report.
Article 16 The central competent authority may hire specialists, scholars, or relevant government agency representatives to perform review tasks in connection with accepted quota qualification applications, quota review, and actual consumption and projected purchase reports. The central competent authority shall complete review within 30 days after the acceptance cut-off date. The period for submitting supplemental materials will not be included as part of the review period.
Article 17 Those who violate regulations stipulated in Paragraph 2 of Article 4, Paragraph 1 of Article 5, Paragraph 1 of Article 6, Paragraphs 1 or 2 of Article 11, or Article 12 shall be punished in accordance with Article 59 of this Act.
Article 18 A business entity that has received a HCFCs permit document from the central competent authority or competent authority for the relevant industry prior to the promulgation of these Regulations is not subject to the quota qualification application
requirements in Paragraph 1 of Article 7 within the valid period of such permit document, unless the business entity or factory has changed its name, such change shall be reported to the central competent authority for future reference.
Article 19 These Regulations shall be enforced from the date of promulgation.