Chemicals and chemical substances imported and classified under the Chemical Control Order (CCO)
- Document symbol
- G/LIC/N/3/PHL/15/Rev.1
- Original language
- English
- Published on
- 21/02/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
Chemicals and chemical substances that are classified under the Chemical Control Order (CCO) must secure CCO Registration prior to the application of the CCO Importation Clearance prior to the release of shipment by the Bureau of Customs (BOC). The applicant must apply under the Online Permitting and Monitoring System (OPMS) or the link found at https://opms.emb.gov.ph/
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Chemicals and chemical substances imported and classified under the CCO are the following that have importation process:
a) Mercury, mercury compounds and mercury-added products – to phase out mercury-added products based on schedule;
b) Arsenic and arsenic compounds;
c) Cyanide and cyanide compounds;
d) Asbestos;
e) Lead and lead compounds;
f) Ozone Depleting Substances (ODS) - to phase out in compliance to Montreal Protocol on Substances that Deplete the Ozone Layer (Most of the ODS are already phased out/banned to import except for HCFCs and HCFC blends).
(g) Cadmium and Cadmium Compounds;
(h) Chromium VI and its compounds; and
(i) Hydrofluorocarbons – to phasedown HFCs in compliance with the Kigali Amendment of the Montreal Protocol.
Q3. The system applies to goods originating in and coming from which countries?
The permit system applies to chemicals and chemical substances coming from all countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
Importation of chemical and chemical substances listed under the CCO does not restrict the quantity or value of import as long as the volume request does not exceed the allowance given to an applicant which is based on their annual capacity or request.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
Licensing procedures on the CCO were cited on the following laws:
(a) DENR Administrative Order No.1997-39, "CCO for Cyanide and Cyanide Compounds";
(b) DENR Administrative Order No.2000-02, "CCO for Asbestos";
(c) DENR Administrative Order No.2013-24, "CCO for Lead and Lead Compounds";
(d) DENR Administrative Order No.2013-25, "Revised Regulations on CCO for ODS";
(e) DENR Administrative Order No.2019-17, "CCO for Arsenic and Arsenic Compounds";
(f) DENR Administrative Order No.2019-20, "Revised CCO for Mercury and Mercury Compounds";
(g) DENR Administrative Order No.2021-08, "CCO for Cadmium and Cadmium Compounds";
(h) DENR Administrative Order No.2021-09, "CCO for Chromium (VI) Compounds"; and
(i) DENR Administrative Order No.2021-31, 'CCO for Hydrofluorocarbons'.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Applicable only for the importation of Ozone-depleting substances (ODS) under the DENR Administrative Order No. 2013-25 & Hydrofluorocarbons (HFCs) under DENR Administrative Order No. 2021-31.
See Answers 6.1-6.11.
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Information has been provided to the stakeholders during the public consultations and likewise published 15 days after the approval of the administrative order.
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Quota allocation for the importation of HCFCs and HFCs has been established based on the Montreal Protocol. For HFCs, a phase out schedule and control of importation of ODS, based on the baseline consumption from 2009 and 2010 average importation while for HFCs phasedown schedule and control of the importation based on the baseline consumption of HFCs in 2020, 2021 and 2022 Plus 65% of HCFC baseline production/consumption. Quota allocation is stipulated in the issued Certificate of Registration per substance per calendar year for every importer.
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
A certificate of registration issued by the Department's Environmental Management Bureau is valid only for the calendar year when it was obtained. An application for the renewal of registration for every succeeding period prior to any importation must be submitted within the last 30 days of the current calendar year.
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Upon approval of the CCO Registration with the Department's Environmental Management Bureau where the quota for the year was also specified, the importer may apply Importation Clearance and submit the required documents for evaluation and approval of the bureau prior to importation.
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Twenty working days maximum for processing applications.
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
The recommended time for submitting applications for the CCO Importation Clearance is two months prior to the importation.
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Yes, only one government agency approves the certificate of registration. Any person who imports ODS and HFCs (regardless of source as allowed under the agreements of the Montreal Protocol, as amended) for any industry, such as those listed in Appendix IV of DAO 2013-25, must register with the Department's Environmental Management Bureau.
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Eligible importers are only those importers who imported HCFCs in 2009 and 2010 and imported HFCs for the year 2020, 2021 and 2022.
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
The recommended time for submitting applications for the CCO Importation Clearance is one month prior to the importation.
However, please take note that a CCO Registration is required prior to application of a CCO Importation Clearance which is processed within 20 working days.
Q7.b. Can a licence be granted immediately on request?
Submission of complete documentary requirements of an applicant may result for immediate approval of the CCO Registration Certificate and CCO Importation Clearance.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
Application is done online; thus the applicant can apply any time of the day. However, processing days of application are counted based on the working days of the EMB.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Yes, only a single administrative organ.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
The CCO Registration, CCO Importation Clearance, Certificate of Registration (COR) and Pre-shipment Importation Clearance (PSIC) of ODS may be refused if the applicant does not submit the complete documentary requirements and has pending environmental violations.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
All industries that are importing, distributing, using, manufacturing, recycling and waste service provider are required to secure a CCO Registration Certificate.
Those classified as importer must then apply for CCO Importation Clearance/PSIC. Importers of Mercury-added products must secure clearance from appropriate government agencies which are specified in Section 8.1.b of the Revised CCO.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
Company name, company address, contact person, contact number, chemical name, trade name, CAS number, volume and chemical use. Other requirements that needs to be submitted by the applicant are the following:
(a) Notarized Registration Form (also for COR for ODS);
(b) Chemical Management Plan;
(c) GHS-compliant Safety Data Sheet (also for COR for ODS);
(d) Copy of Environmental Permits (also for COR for ODS);
(e) Copy of SEC Registration (also for COR for ODS);
(f) Copy of Business Permit;
(g) Certificate of Liabilities;
(h) Process flow;
(i) Bill of Lading (also for PSIC for ODS with previous issued PSIC);
(j) Import Entry Internal Revenue Declaration (IEIRD) or Single Administrative Documents (SAD)(for PSIC for ODS with previous issued PSIC);
(k) Export Permit (for PSIC for ODS);
(l) Proforma Invoice (for PSIC for ODS);
(m) Commercial Invoice (for PSIC for ODS with previous issued PSIC);
(n) Training Certificate for PCO and handling of chemicals (for COR for ODS);
(o) Payment.
Q11. What documents are required upon actual importation?
The approved CCO Registration Certificate and CCO Importation Clearance is required for the actual importation of chemical or chemical substances prior to their release by the Bureau of Customs.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Is there any licensing fee or administrative charge?
Yes
What is the amount of the fee or charge?
Fees and charges for the clearances/certificates are as follows:
| Clearances/Certificates | Fees/Charges |
|---|---|
| CCO Registration Certificate | Php2,800.00 |
| Certification of Registration (COR) · New · Renewal | · Php2,800.00 · Php2,000.00 |
| Pre-shipment Importation Clearance (PSIC) | Php1,700.00 |
| Documentary Stamp – Php30.00 Legal Research Fee – Php10.00 |
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
No deposit or advance payment accepted for applications.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The CCO Importation Clearance is valid for 6 months. The PSIC for ODS is valid for a calendar year.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
The CCO Importation Clearance has terms and conditions that an applicant must comply with.