Alert

Who does this affect?

Companies involved in the manufacture or use of chemicals in Hong Kong or the import or export of chemicals to or from Hong Kong, including manufactured products with high concentrations of PCBs.

What do you need to do?

Affected companies should ensure that they are ready to comply with the requirements of the Ordinance when in comes into operation on 1 April 2008, and seek specialist legal advice if necessary.

Author
Kate Trumbull  (沈沛琪)
Solicitor

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Christopher Tung
(董彥華)
Partner
T +852 3443 1082

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The Hazardous Chemicals Control Ordinance will come into effect on 1 April 2008. There will be a transitional period of three months before the provisions of the Bill that create offences come into effect on 1 July 2008. The Ordinance provides a framework for the control of chemicals that have potentially significant adverse effects on human health and the environment in Hong Kong.

These chemicals are set out in the Schedules to the Act, and are:

• ‘Type 1’ chemicals, which are regulated under the Stockholm Convention:

• ‘Type 2’ chemicals, which are regulated under the Rotterdam Convention:

Under the new Ordinance, and related amendments to the Import and Export Ordinance:

• Permits will be required for the manufacture, use, import and export of the scheduled chemicals. An exception applies to Type 2 chemicals that are in transit.
• Licences will be required, in addition to permits, for the import and export of the scheduled chemicals. Exceptions apply to transit and transhipment cargo.

This new Ordinance will bring Hong Kong’s regulation of hazardous chemicals into line with the requirements of:

• the Stockholm Convention, which aims to restrict the manufacture and use of persistent organic pollutants with a view to eventually eliminating them, and
• the Rotterdam Convention, which aims, broadly, to promote international cooperation and shared responsibility in the trade in hazardous chemicals.

Products not subject to the new Ordinance

Pesticides are not covered by the new Ordinance, as they are already subject to control under the Pesticides Ordinance. Other chemicals that are already subject to control under existing law, including food additives, pharmaceutical products, and narcotic drugs, are not covered by the Ordinance.

Manufactured products that contain the scheduled chemicals are exempt from the permit requirements, unless they contain polychlorinated biphenyls (PCBs) with concentrations higher than 50 parts per million or a total volume of more than 50 millilitres.

Exemption for transit and transhipment cargo

As a result of concerns expressed by the logistics trade during public consultation on the Bill:

• the requirements for import and export licences will be waived for both Type 1 and Type 2 chemicals in transit and transhipment cargo; and
• the requirements for import and export permits will be waived for Type 2 chemicals in transit cargo only. Permits will still be required for Type 1 chemicals in transit; and for both Type 1 and Type 2 chemicals in transhipment.

The EPD has indicated that it plans to introduce a number of additional requirements as licence and permit conditions for these transit and transhipment cargos. Import and export permits will require carriers to have obtained explicit permission from both exporting and importing countries, and to notify the EPD within seven days of the arrival of the cargo along with details of the cargo and supporting documents. Export licences will be granted subject to conditions that the exporter provide information such as a safety data sheet, labelling, and information on precautionary measures in handling.