Ozone-depleting substances

Document symbol
G/LIC/N/3/TON/2
Original language
English
Published on
21/09/2022

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.

The ozone-depleting substances licencing permit regulates the use of ozone depleting substances and to implement the provisions of the convention for the protection of the ozone layer and the protocol on substances that deplete the ozone layer and for related purposes.

Purposes and Coverage of Licensing

Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.

The ozone-depleting substances licensing system covers products such as any other CFCs or HBFCs(controlled substances) which has the following permits are the only exceptions to be imported into the country are: a quarantine and pre-shipment permit in relation to methyl bromide, medical permit in relation to medical products using a controlled substances, human health or safety permit or a base year permit, as mentioned in "Section 7" of the ozone layer protection act 2020. Also, a list of certain products under "Section 6" of the Act but under a condition if such products containing the controlled substances are solely used for packaging, or part of packaging of another imported goods.

Q3. The system applies to goods originating in and coming from which countries?

The application of the licensing system will apply to goods originating from countries that are parties to the Montreal Protocol. However, it is restrictive and prohibited to non-parties to the Montreal Protocol and non-complying parties to the Ozone Layer Protection Act. Article 4 of the Montreal Protocol provides that the control of trade from any state that is not a party to the Protocol shall ban importation from those states. Article 4B of the Montreal Protocol provides for the control of trade with Parties to import goods after the phase-out date for uses that are agreed by the Parties to be essential for domestic use, as well, it ceases the production of that substances and the export of used, recycled and reclaimed quantities. Section 6 of the Ozone Layer Protection Act provides the prohibition of goods or products that are imported from a non-party to the Protocol.

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?

No, the licensing system is not intended to restrict a preferred quantity or value of imports but to restrict the importation of gases that are a risk to the safety and security of the people and to the environment i.e., the possible risk of emitting controlled substances in the Kingdom. To reduce ozone depleting substances in the Kingdom complementary to the purposes of the Protocol. These purposes have been realized with the strong cooperation of the Customs and MEIDECC to monitoring and the issuance of permits and/or licences for import activities of these controlled substances into the Kingdom. Certain procedures have been adopted including investigation of these activities, seizing controlled substances without a licence or import permit.

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?

Is the licensing statutorily required?

The licensing system is cited under the Ozone Layer Protection Act 2010, revised edition 2020 [CAP.21.07]. Yes, the licensing system is statutorily required as it is provided in the Ozone Layer Protection Act for matters of importing controlled substances.

Does the legislation leave designation of products to be subject to licensing to administrative discretion?

Government or the executive branch is bound to play its role within the powers provided for them by the Constitution. Therefore, abolishing the system without legislative approval is not within their approved discretion.

Is it possible for the government to abolish the system without legislative approval?

The Ozone Layer Protection Act applies a general interpretation to licensing including the provision of information relevant to controlled substances, cancellation of license and license in relation to general provisions to licence. Additionally, it is not possible for the government to abolish the system without legislative approval unless this order does not lack the support of the legislation or the Constitution.

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):

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?

No, information regarding the restriction to the quantity or value of imports are not published, but it is found in the Ozone Layer Protection Act Part III that determines the size of quotas in a calendar year. Formalities include filing applications for licenses are done at the Climate Change Department, MEIDECC for approval of importation. It is brought to the attention of possible importers through an information outlet in the Climate Change portal or by the Customs Officers. As mentioned above, the overall amount is not published and there is no amount allocated to goods from each country. The quota size remains the same for each importer and importers are liable if the quota size exceeds the limits provided by the Ozone Layer Protection Act. Non-compliance of the quota size are liable to an offence and penalty under the Act. Quota sizes are allocated by quota periods provided in section 18A of the Ozone Layer Protection Act. Each importer is entitled to the same quota size and quota periods by the Minister responsible for Climate Change. There are exceptions included in the allocation of reserve quota by importers upon application to the Minister responsible for Climate Change and satisfaction that the application is essential for medical or public safety purposes, no practicable alternative use and the HCFC and HFC is not available for required use within a reasonable period as according to section 18H of the Ozone Layer Protection Act.

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?

The determination of quota size is determined on a yearly basis which is then subdivided into quota periods; first, second and subsequent quota periods. Yes, size of quota is predetermined in the Ozone Layer Protection Act section 18, but licenses are also issued on one calendar year before renewal. It is necessary for importers to renew their licenses every year after the cut-off date for the procedures of the Ministry responsible for Climate Change and the Environment as well as accordingly to the requirements of permits and license to use quotas.

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.)

In the case of importation, there are permits for certain goods as provided in section 5 and section 6 of the Ozone Layer Protection Act but there are exceptions for imported goods if importers have applied for permits. Certain goods that contain methyl bromide and HCFC are not prohibited according to the Act. The initial procedure before a license is allocated for imports is under the direction of the Minister to direct Ozone Officers to investigate on the importer whether the imported goods will pose any risk to public health and safety before the license is allocated. Additionally, importer must fulfil the requirements of handling-controlled substances before the license is granted by the Minister. Yes, the identity of the importers is made known to stakeholders i.e., relevant members that are responsible to importation of goods but not to the general public.

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?

The period of time allocated for the submission of applications for licences is before 1 January, the following year in order for the importer to be allocated a quota for the timetable of the quota periods to be sufficient. After every succeeding year, a license must be submitted for the purpose of the next initial succeeding year.

Q6.V. What are the minimum and maximum lengths of time for processing applications?

In accordance with the Ozone Layer Protection Act, there is no minimum and maximum lengths of processing applications. It all depends on the submission made by the applicant and the requirement from the Ministry for any further information before approval.

Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?

As mentioned above, it will depend on the eligibility of the importer to the conditions or requirements of the licensing system before the period of importation which is 14 days prior to importation date or it is before 30 January, at the beginning of the calendar year.

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, the consideration for the license application is affected by a single administrative organ and that is the Ministry responsible for Climate Change and the Environment. Yes, the importer must approach Customs and the Ministry regarding the imported goods but the consideration for the license will stay with the designated authority provided in Part 4 (g) (1).

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?

Every demand for licences must be fully satisfied in order to allocate a quota limit to the applicants. If it is not satisfied, the Ministry by notice to the applicant should inform the applicant that his or her application was not approved. Considering if the applicant is a first-time applicant, the Ministry will consult with the applicant on the necessary requirements of the application, for instance. However, the basis for the allocation to the application will depend on the quota size of the goods imported for consideration of the licence. Yes, there is a maximum amount allocated to each importer, but it is not determined by import goods. The basis of the quota size is determined by the phase-out period or the transfer of quotas in section 18D and 18E of the Ozone Layer Protection Act. Each quota size allocated for an importer is determined by calculations of the total amount of the importer or applicant. Both. On the event, the goods are needed or essential for medical purposes or public safety purposes, applications will be examined on receipt. However, it can also be examined simultaneously if required.

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?

Yes, export permits are different from import licenses. However, import licenses are made when the goods arrive in the country. What is required to be issued before the importation of goods are import permits i.e., provides information about the goods that will arrive in the country as well as the amount of controlled substances before it arrives. Section 12 of the Ozone Layer Protection Act provides for the permits made in response to the importation of controlled substances into the country. Licenses are issued on receipt or simultaneously or after investigation that the location of the storage of these goods are safe and will not become a risk to the residents in the area and the public as well.

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?

This is usually by notice to the importing country that these goods will be imported into the country. This notice must be provided 14 days prior to the import period by the exporting country to the importing country. However, procedure-wise, an import permit must be issued to the importing country providing the necessary information regarding the imported goods. As mentioned, vice versa, if the import is not satisfied then the imported goods will not be accepted in the Kingdom by Customs upon notification from the Ministry responsible for Climate Change and Environment.

Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?

Yes, in relation to Article 4 of the Montreal Protocol certain goods are labelled as prohibited which is the same for section 5 and section 6 of the Ozone Layer Protection Act. Exportation of goods are only allowed if the goods are exported for the purpose of destruction but not for the purpose of sale in the domestic market. As it is provided by section 10 of the Ozone Layer Protection Act, there is a prohibition on sale of controlled substances in the Kingdom.

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)?

As mentioned above, licences cannot be obtained within a shorter time-limit or for goods arriving at the port. Licenses are obtained once all the requirements of licensing is satisfied, given two weeks of ensuring that the licence can be granted to the importer.

Q7.b. Can a licence be granted immediately on request?

No, it cannot be granted immediately on request.

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.

The application is dependent upon the issuance of the licensing period and that is before the beginning of the calendar year or after the succeeding year before 30 January. This is to ensure that there is ample time for the calculation of the allocated quotas measured for every importer and the reporting of the phase-out period to the Montreal Protocol.

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. Ministry of Meteorology, Energy, Information, Disaster Management, Environment, Climate Change and Communications (MEIDECC)

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?

Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?

A refusal of an application may amount from the following reasons:
- Notice from relevant stakeholders i.e., Customs to refuse licence or from the National Ozone Advisory Committee.
- Unforeseeable Circumstances i.e., circumstances beyond control of natural persons
- Character of the Applicant i.e., negligence to complete the criteria for license.

Have applicants a right of appeal in the event of refusal to issue a licence?

Applicants do have the right to appeal if he or she feels that their licenses should have been approved to the National Ozone Advisory Committee for consideration.

If so, to what bodies and under what procedures?

Applicants by notice or filling out of a form of complaint to the Ministry of Climate Change and Environment that he or she requests that their license be looked at again for approval. Applicant must also state why their licenses should be approved.

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?

If Non-Automatic, description of the notified Non-Automatic Licensing regime

Non-Automatic licensing to protect human, animal or plant life and health; protect environment; Pursue obligations under the UN Charter and other international treaties (i.e. CITES, Basel Convention, Rotterdam Convention, UNSC Resolutions etc.); Quota (including TRQ) administration; and, Control imports of refrigerants/controlled substances.

Is there a system of registration of persons or firms permitted to engage in importation?

With regards to registration, the Ministry responsible for Climate Change works in close cooperation with countries that are a party to the Montreal Protocol. It is through this connection that, whenever an importer wishes to import products or goods into the Kingdom, the Ministry shall inform the exporting country to provide information about this importer. If the importer is not in the system of the exporting country, goods are seized at port and importer will have to go through legal proceedings for providing false information and importation for national security measures.

What persons or firms are eligible to apply for a licence?

Eligibility comes from qualification of the relevant stakeholders to handle the controlled licences. Section 12A (4) provides for the requirement of stakeholders to undertake and complete good practice training. The system is operated under a restrictive licensing system where importers must undertake this training in order to apply for the license. It is important to note that the importation of controlled substances is prohibited according to the law unless it is satisfied upon permit or licence.

Is there a registration fee?

This procedure is one of the functions of the Ministry responsible for Climate Change as stated by the Ozone Layer Protection Act. As of now, there has been no registration fee for import purposes. However, it is in the process of development to recommend a fee for this registration procedure.

Is there a published list of authorized importers?

As it is mentioned before, the confidentiality of the authorized importers are kept in the records of the Ministry responsible for Climate Change. It is not published now but there is consideration for future purposes.

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?

What information is required in applications?

Information that is required in applications includes:
a. Name of Applicant
b. Date of Application
c. Residency
d. Information About Goods including purposes of importation and others
e. Eligibility of Applicant including any type of training

What documents is the importer required to supply with the application?

A form for licensing is in the process of amendments by the Ministry responsible for Climate. This form will be submitted at a later date apart from this questionnaire. It is the same with documents. These documents will include permit forms, police records of applicants and other specifications which will be included in the license form.

Q11. What documents are required upon actual importation?

Permit Forms are actually required upon actual importation that the imported products can be used by the importer in the Kingdom.

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?

As it has been mentioned before, there is yet to be a licensing fee or an administrative charge.

What is the amount of the fee or charge?

The amount has been free of charge.

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.

Expected duration of licensing procedure

Ongoing

Is there any deposit or advance payment required associated with the issue of licences?

No.

Conditions of Licensing

Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?

According to the Ozone Layer Protection Act, the period for a licence to remain valid is one year. Additionally, it cannot be extended but renewed after every calendar year.

Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?

Yes, there is a penalty as according to the Offences and Penalties provision of the Ozone Layer Protection Act.

Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?

No, according to the Ozone Layer Protection Act, no licences that will be issued under the Act shall be transferrable. The only condition towards transferring between importers is the quota size upon approval of the designated importer to transfer his or her reserve quota to another importer.

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?

Yes, there is quantitative restriction that is subject to products. As mentioned, aforethought, these quantitative restriction measures the limits of the quota size on the quota periods. This is meant to avoid exceeding the phase-out period of consumption. Every product applies to quantitative restriction as according to the objects of the Montreal Protocol.

Other Procedural Requirements

Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?

Yes, permit forms. Please refer to Part III of the Ozone Layer Protection Act where it highlights different types of permits i.e., quarantine and pre-shipment permits, medical permits, human health or safety permits, and or base-year permits.

Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?

No, not at the moment, there is further requirements of the Ozone Layer Protection Act that needs to be amended for this question.