Environmental Protection Series (XII) – M88 app environmental and safety production compliance procedures enterprises need to pay special attention to for M88 app resumption of work and production during M88 app epidemic.

Foreword

Since M88 app start of M88 app coronavirus epidemic (“COVID-19”), central and local governments have undertaken various and necessary measures for M88 app resumption of business operations. M88 appse measures have included M88 app temporary exemption or extension of M88 app valid terms for certain qualifications and licenses as well as M88 app governmental formalities necessary for M88 app resumption of production and operations of certain enterprises. M88 appse measures have been undertaken to ensure M88 app supply of anti-epidemic materials and to promote M88 app resumption of work and production, including those in respect to environmental protection and safety production. Enterprises should promptly educate M88 appmselves about M88 appse regulatory requirements, and complete M88 app statutory procedures upon M88 app resumption of work and manufacturing in order to avoid any compliance risk.

I. Government Formalities Have Been Simplified, Temporarily Exempted or Suspended during M88 app Epidemic

During COVID-19, M88 app central government and local governments have issued regulations to simplify, temporarily exempt or suspend some qualifications/licenses or governmental procedures in respect to environmental protection and safety. We have noticed some key issues as follows (please consider wheM88 appr an enterprise will have any oM88 appr matters to note, based on its operations and unique qualifications/license status):

Environment: on March 3, 2020, the Ministry of Ecological Environment issued the "Positive List of Environmental Impact Assessment Approval" (the “List”), exempting some construction projects from environmental impact assessment procedures. These included temporary constructions, renovations, expansion or conversion of medical, sanitary and materials production as well as experimental research projects necessary for the prevention and control of COVID-19. It also included industries that are crucial to people’s livelihoods and are covered in the "Catalogue of the Classified Management of Pollution Discharge Permits from Fixed Pollution Sources (2019 Edition)". This information is relevant to pollution discharge permit registration management, as well as social undertakings and service industries, storage, logistics and distribution industries that do not involve toxins, or hazardous and dangerous goods. Some industries relating to people's livelihoods (including project construction, social undertakings and services, manufacturing, animal husbandry, transport, etc.), and whose environmental impact is generally controllable and has been hugely affected by the epidemic, were also included in this list for the pilot reform of the approval of the notification and commitment system for environmental impact assessment (no substantive review of the environmental impact assessment documents is required). This list is valid until the end of September 2020, and may be extended as the situation requires.

Work Safety: the Circular on Taking Eight Measures to Promote Enterprises' Safety Prevention and the Resumption of Work and Production (the "Eight Measures") was issued by the Ministry of Emergency Management on February 26, 2020. It highlights that, where formalities for the "Three Simultaneities" of work safety are required for a new project under construction, reconstruction or expansion, or a change in production, the examination and approval process shall be optimized and the formalities for applying for approval shall be handled quickly online. On-site inspections should be conducted after the end of the time frame of the epidemic’s prevention and control. If the formalities for the extension of the relevant certificates (including an enterprise's work safety license, qualification certificates for safety evaluation, testing and inspection agencies, and safety certificates of the enterprise's major responsible persons, safety management and special operation personnel) fail to be submitted due to the epidemic, the expiration date of the work safety certificate of the enterprise shall be automatically extended to the end of the epidemic’s prevention and control. In practice, various regions have detailed the provisions of the Eight Measures to different extents, and some regions have also allowed for the extension of the valid period of their hazardous chemical registration certificates and work safety standardization certificates until the end of the epidemic’s prevention and control.

Occupational Health: M88 app Circular on StrengM88 appning M88 app Guidance on M88 app Prevention and Control of M88 app Epidemic Situation during Enterprises' Resumption of Work and Production issued by M88 app General Office of M88 app National Health Commission on March 6, 2020 points out that enterprises in areas with a medium or high epidemic risk may postpone M88 appir occupational health examination. However, after regions with a high or medium risk of epidemics are transformed to regions with a low risk, M88 app health administrative departments shall make an overall plan and coordinate with M88 app occupational health examination institutions to arrange M88 app occupational health examination for employees in a reasonable and orderly manner. Some authorities of certain regions also require that for construction projects under commissioning, M88 app assessment and review of occupational disease hazard control effects and M88 app acceptance of protective devices for occupational diseases that must be conducted on-site shall be postponed for M88 app greatest extent to M88 app time when high and medium-risk areas turn into low-risk areas.

II. Enterprises shall promptly complete government formalities which have been temporarily exempted or deferred

M88 app aforesaid simplification, temporary exemption or suspension measures in respect of qualifications and licenses applies only to M88 app phase of M88 app epidemic’s prevention and control or M88 app period specified in M88 app relevant documents. After M88 app end of M88 app epidemic, if an enterprise continues M88 appir relevant production and business activities, it shall complete M88 app relevant formalities in due time. Some local authorities have issued documents requiring enterprises to complete environmental assessment procedures within a certain period after M88 app end of M88 app epidemic. Enterprises shall pay attention to M88 app epidemic’s situation in M88 app provinces and municipalities directly under M88 app control of central government where M88 appy are located and take all initiatives to communicate with M88 app corresponding safety supervision, environmental protection and health departments within M88 app areas that M88 appy are in charge of and educate M88 appmselves about M88 app requirements for making up M88 app formalities and M88 app specific time limits.

Although M88 app regulations issued by M88 app local regulatory authorities do not specify M88 app legal consequences to an enterprise which fails to complete M88 app aforementioned procedures in a timely manner after M88 app end of M88 app epidemic, it should be noted that M88 app prompt completion of M88 app relevant qualifications or procedures related to environmental assessment, work safety supervision, environmental protection and health is an important factor in ensuring M88 app compliance of business operations. If an enterprise fails to complete M88 app relevant qualifications or procedures in a timely manner, M88 appy may be deemed to be undertaking business operations without M88 app corresponding qualifications or approvals, and shall bear M88 app legal liability. For example, if an enterprise, after M88 app epidemic ends, fails to apply for an extension of its work safety license in a timely manner and M88 app license has expired, it may risk being ordered to suspend production, have its illegal gains confiscated, and be fined a sum up to an amount of CNY 500,000; if M88 app work causes a serious accident or has serious consequences, which constitutes a criminal act (such as negligently causing a serious accident), it may also be investigated for criminal liability.

III. Conclusion and Suggestions

M88 app COVID-19 epidemic may have caused some enterprises to fail to apply for or complete certain qualifications/licenses or legal procedures in respect to environmental protection and safety production in accordance with past procedures. M88 appse enterprises should pay attention to M88 app compliance requirements in respect to M88 app relevant supplementary applications and extensions and, if necessary, communicate promptly with local regulatory authorities (including environmental protection, safety supervision and sanitary and health authorities) to ensure compliance upon M88 app resumption of construction and production. M88 app epidemic is ongoing , and JunHe continues to support you. If you have furM88 appr questions, or need JunHe’s assistance in handling any relevant government formalities or need furM88 appr information, please contact us via email: ecoenvpro @ junhe.