Law Summary
Objectives of the Chemical Control Order (CCO)
- Provide legal framework to implement the Philippine Hydrochlorofluorocarbon (HCFC) Phase-out Management Plan (HPMP).
- Sustain the phase-out of other ozone-depleting substances.
Coverage of the Chemical Substances
- Regulates substances listed in Annexes A, B, and C of the Montreal Protocol, including their forms and mixtures.
- Excludes Annex E substances like Methyl Bromide when managed under agriculture-related laws.
Definitions of Key Terms
- Alternative Substance: Zero Ozone Depleting Potential (ODP) replacements like hydrofluorocarbons (HFCs).
- Article 5 Country: Developing country party to Montreal Protocol with per capita controlled substance consumption below 0.3 kg.
- Back Conversion: Charging equipment designed for non-CFC/HCFC with CFC or HCFC.
- Controlled Substance: Chemicals subject to phase-out under the Montreal Protocol.
- Dealer, Importer, Exporter, Service Provider: Entities involved in trade, handling, and servicing ODS.
- Destruction: Effectively removing unwanted ODS with approved technologies.
- Essential Use: Exception granted for critical uses with no alternatives.
- HCFC Phase-out Management Plan (HPMP): Sectoral strategy supported by international agencies to phase-out HCFCs.
- Phase-out: Ceasing production and consumption of controlled substances.
- Recycling and Reuse: Processes to reduce contaminants in used refrigerants.
- Venting and Flushing: Prohibited practices releasing ODS into the atmosphere.
Importation Ban on Certain ODS
- Absolute ban on importation of specified CFCs and other substances by set dates starting 1996 through 2010.
- Total prohibition of CFC-11 imports since 2005 and all CFC imports since 2010.
Phase-Out Schedule and Import Control for HCFCs
- Gradual reduction of HCFC imports based on baseline consumption with scheduled cutbacks in 2013, 2015, 2020, 2025, 2030, and complete ban by 2040.
- Implementation of annual non-cumulative import quota system.
- Potential acceleration of phase-out by Department authority.
Registration of Importers
- Mandatory annual registration with the Department through Bureau of Environmental Management for importers.
- Requirements include proof of knowledge, compliance with environmental laws, and documentation.
- Registration renewal to be submitted within last 30 days of calendar year.
Pre-Shipment Importation Clearance (PSIC)
- PSIC required before any ODS importation.
- Any ODS shipments without PSIC considered illegal and subject to confiscation.
- Application must include commercial details, previous inventory and transactions, and proof of fee payment.
Registration of Dealers, Retailers, and Resellers
- Registration on an enterprise and site-specific basis.
- Proof of knowledge and training in handling ODS required.
- Registration valid only for one calendar year with annual renewal.
- Only registered entities may trade ODS.
Registration of Service Providers
- Service providers must register and obtain certification from TESDA or relevant accrediting body.
- Must demonstrate competence in handling ODS, minimizing emissions, and promoting alternatives.
- Three-year validity for registration with renewal provisions.
Regulation of ODS Export
- Export of controlled substances requires licensing and compliance verification.
- Export to non-Parties of the Montreal Protocol prohibited.
Registration and Pre-Shipment Export Clearance (PSEC)
- Exporters must register annually and secure PSEC prior to export.
- Application to include substance details, required documents, and fee payment proof.
- PSEC issuance on per-substance per shipment basis with validity up to one calendar year.
Record-Keeping and Reporting Requirements
- All stakeholders must keep transaction records and submit annual reports to the Bureau.
- Records subject to inspection by authorized officers.
Public Access and Confidentiality
- Reports are considered public documents accessible during normal business hours.
- Confidential information exceptions apply under specific administrative order provisions.
Capability-Building Program
- Department to promote research, information dissemination, and training to support HCFC phase-out and alternative substances usage.
Administrative Violations
- Prohibited acts include back conversion, installing CFC systems, use and sale of banned containers and substances, venting, and possession of unregistered refrigerants.
Penal Provisions
- Violators liable under relevant environmental laws with penalties including cancellation of registrations and certifications.
- Department may issue interim orders to stop violations.
Separability Clause
- Invalidity of any provision does not affect the remainder of the CCO.
Repealing Clause
- Previous related administrative orders repealed or amended accordingly.
Effectivity
- CCO effective 15 days after publication and acknowledgment by the Office of the National Administrative Register.