Shortly after the effectiveness of the updated management measures on China’s hazardous chemicals registration, SAWS has published last Friday on its website the revised “Measures for the Administration of Hazardous Chemicals Operation Permit” (SAWS Order 55 of 2012) and announced that the updated legislation would enter into force as of September 1, 2012. The new rules will replace the old 2002 version that had been issued by the State Economic Trade Commission (SETC). The hazardous chemicals operation permit or license (in short as “HC Operation Permit”) is one important part that underlines the License system of State Council Decree 591; it is also one core regulatory obligation targeting enterprises of hazardous chemicals operation under China’s hazardous chemicals safety control regime.

According to the third article of the new measures, all enterprises engaged in the sale and operation (including storage business) of any given hazardous chemicals listed in the Chinese C&L Inventory (also known as the Catalogue of Hazardous Chemicals) within the territory of P.R.C must, prior to their operation activities apply and obtain the HC Operation Permit. However, operations of civil explosives, radioactive materials, nuclear materials and town gas are excluded. In the two following cases, the HC Operation Permit could also be exempted: 1)   If your company has been granted a Hazardous Chemicals Safe Production Permit and the products being sold/traded are produced by your own (the company which holds the HC SP Permit) and sold within your own factory; or 2)   If you are doing business on hazardous chemicals storage and sale within the Port area and you have obtained a Port license. In comparison with the 2002 old version, the new measures have cancelled the categorized granting of the Permit. Under the 2002 version, HC Operation Permit was approved in two categories: the first type was particular for highly toxic chemicals; the second type fit for other hazardous chemicals other than highly toxic chemicals. Yet license-issuing still adopts two channels, the city level and the county level. For the application conditions, besides retained requirements for storage and facility designing, which shall be in line with several industrial GB standards, the new measures begin for the first time to stress the compliance with relevant provisions in State Council Decree 591 and a SAWS Order 40 of 2011 about interim provisions for major hazard installations of hazardous chemicals. As to legal liabilities of the affected companies, the new measures have largely increased economic penalties imposed on violations against the legislation. For example, given violations with regard to State Council Decree 591 and committed by HC companies with storage facilities could result in a fine of 50,000 - 100,000 RMB; forgery or illegal leasing of the HC Operation Permit may lead to a fine of 100,000 - 200,000 RMB.

Key licenses for hazardous chemicals businesses in China