1. Ozone Depleting Substances – Import and Export Controls
Caitríona Collins BSc, MSc(Agr.), HDip(Mgt)
Inspector
Office of Climate, Licensing and Resource Use
Irish Exporters Association
Waterford, 31st March 2010

2. 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

3. 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

4. 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

5. 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
Set out in Article 15 and Article 17 of the Regulation

6. 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

7. 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

8. 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…

9. 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

10. Procedures and timeframes (1)
All importers/exporters must register in Commission’s Main ODS Database:
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

13. 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

14. 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)

16. 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

17. 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

18. Helpdesk Customs AEP Helpdesk
Available to answer all queries on SAD codes and CN codes
Lo-call number:
The Helpdesk is available from 9am to 5pm Mon-Fri.
Queries may also be ed to:

19. 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
These are very useful information resources and should be used by all relevant parties

21. 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:

22. 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

23. 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

24. Further information Contact EPA: Contact Customs Web links:
EPA - and
European Commission -
Department of Environment, Heritage and Local Government -
Contact EPA:
Caitríona Collins or Celine Horner
Environmental Protection Agency
Johnstown Castle Estate, Wexford,
Tel:
Contact Customs
AEP Helpdesk Lo-call number:
(The Helpdesk is available from 9am to 5pm Mon-Fri)
Queries may also be ed to: