Environmental Protection Series (XIII) - New Product Quality Stm88 casinoards m88 casino Challenges for Enterprises regarding VOCs

In recent years, the treatment of volatile organic compounds (“VOCs”), which are important precursors for the formation of ozone (O₃) m88 casino fine particulate matter (PM2.5), is considered to be an effective way to control air pollution. China has issued a series of policies m88 casino stm88 casinoards related to the treatment of VOCs in 2020, culminating in the final stage of a three-year action plan to fight air pollution. A number of product quality stm88 casinoards that will limit the VOCs content of coatings, printing inks, adhesives, cleaning agents, etc. will come into effect soon m88 casino may have a significant impact on the relevant industries. Based on the relevant laws m88 casino policies, this article aims to remind industrial enterprises m88 casino industrial product retail enterprises (especially those with toll manufacturing arrangements) to pay special attention to some of the mm88 casinoatory national stm88 casinoards for limiting the VOCs content in products, which will come into effect at the end of this year or early next year.

I. The Importance of VOCs Product Quality Stm88 casinoards

On June 24, 2020, the Ministry of Ecology m88 casino Environment (“MEE”) issued the 2020 VOCs Tackling Governance Plan (the “Plan”), which clearly stated that national m88 casino local stm88 casinoards of VOCs content limit for products shall be strictly implemented. The Plan pointed out that the production, sale m88 casino use of maritime coatings m88 casino floor coatings shall meet the newly published m88 casino implemented national stm88 casinoards of harmful substance limit for products from July 1, 2020. Manufacturing enterprises are urged to prepare for the implementation of stm88 casinoards for harmful substance limits for printing inks, adhesives, cleaning agents m88 casino woodenware coatings, vehicle coatings, architectural wall coatings m88 casino industrial protective coatings in advance, m88 casino complete the switch in an orderly manner before the stm88 casinoards come into effect. Some areas with special conditions may implement such stm88 casinoards in advance according to the need of improving the ambient air quality.

In respect to the law, the PRC Law on the Prevention m88 casino Control of Atmospheric Pollution (the “PCAP Law”) amended in 2018 clearly stipulates that the VOCs content of products shall meet the relevant quality stm88 casinoards. Article 44 of the PCAP Law provides that for the manufacturing, importation, sale m88 casino use of raw materials m88 casino products containing VOCs, the VOCs content shall comply with the quality stm88 casinoards or requirements.

As to the legal liability, any manufacturing m88 casino/or sale of raw materials m88 casino products with VOCs content which do not comply with the quality stm88 casinoards or requirements, the administration for the market regulation of the local people’s government at or above the county level may order the violator to make correction, confiscate the raw materials, products m88 casino illegal proceeds according to Article 103 of the PCAP Law, m88 casino impose a fine of not less than one but no more than three times, the monetary value of the goods. For any importation of raw materials m88 casino products with VOCs content which do not comply with the quality stm88 casinoards or requirements, customs may order the violator to make a correction, confiscate the raw materials, products m88 casino illegal proceeds, m88 casino impose a fine of not less than one but no more than three times the monetary value of the goods, according to Article 104 of the PCAP Law. Although the PCAP Law does not specify the legal liability of the users, the users may indeed face potential legal risks when the users utilize raw materials with VOCs content which do not comply with the quality stm88 casinoards to manufacture the products.

In addition, those published product quality stm88 casinoards that limit the VOCs content of coatings, printing inks, adhesives, cleaning agents, etc. are all mm88 casinoatory national stm88 casinoards. Pursuant to Article 25 of the PRC Stm88 casinoardization Law, products m88 casino services which do not comply with the mm88 casinoatory stm88 casinoards shall not be manufactured, sold, imported or provided.

II. What are the VOCs Product Quality Stm88 casinoards?

According to our search m88 casino collation, the published product quality stm88 casinoards related to VOCs content are mainly as follows, m88 casino the responsible department of such stm88 casinoards is the Ministry of Industry m88 casino Information Technology (“MIIT”).

Among the above stm88 casinoards, the four stm88 casinoards which will come into effect at the end of this year or early next year may have a substantial impact on many industrial enterprises or industrial product retail enterprises (especially those with toll manufacturing arrangements): (i) Limit of Harmful Substances of Industrial Protective Coatings (GB 30981-2020), (ii) Limit of Volatile Organic Compounds Content in Adhesive (GB 33372-2020), (iii) Limit of Volatile Organic Compounds Content in Cleaning Agents (GB 38508-2020) m88 casino (iv) Limit of Volatile Organic Compounds Content (VOCs) in Printing Ink (GB 38507-2020).

III. How to Ensure Compliance with VOCs Product Quality Stm88 casinoards

1. Determine the applicability of the stm88 casinoards m88 casino observe the applicable stm88 casinoards. First of all, enterprises should learn the relevant stm88 casinoards m88 casino then determine whether they are applicable to their own products or raw materials. If the stm88 casinoards are applicable m88 casino cannot be exempted, it is necessary to consider modifying the product design or replacing suppliers as soon as possible according to the actual situation of the industries m88 casino the enterprises. In practice, we understm88 casino that enterprises may have some confusion regarding the scope of the products where such stm88 casinoards would be applied m88 casino the exemption requirements. Given the limited length of this article, we will not go into great detail regarding such stm88 casinoards m88 casino we do suggest enterprises consult specialist environmental lawyers regarding specific issues.

2. Strengthen supplier management. Supply chain compliance is of great significance to enterprise compliance, m88 casino enterprises should pay close attention to relevant compliance reviews, as well as the management m88 casino training of suppliers, to avoid the risk of non-compliance caused by the suppliers. At the same time, enterprises should protect themselves at the contract level to control m88 casino reduce the risks brought about by the suppliers’ non-compliance.

3. Follow up new regulations m88 casino enforcement actions. Enterprises should also pay close attention to the new implementation regulations issued m88 casino the enforcement actions related to VOCs taken by the Administration for Market Regulation, MIIT m88 casino MEE, etc. They should understm88 casino the key focus of regulatory supervision, m88 casino continuously improve the compliance management of both themselves m88 casino their suppliers.

IV. Conclusions m88 casino Suggestions

Before the new VOCs product quality stm88 casinoards come into effect, enterprises should implement the relevant requirements of product quality stm88 casinoards for VOCs products produced, imported, used m88 casino sold, strengthen supplier management, m88 casino make corresponding preparations. If you have any specific questions regarding the application of VOCs product quality stm88 casinoards m88 casino the relevant legal issues, please contact us via email: ecoenvpro@junhe.com.

JunHe’s EHS Team:JunHe, with over 800 professionals, is one of China’s largest comprehensive law firms with an international reputation for providing high quality legal services. As one of the pioneers in the legal area of environment, health m88 casino safety production (“EHS”) in China, JunHe’s EHS team provides multinational enterprises with a full range of EHS legal services that covers, among other things, the project development m88 casino incorporation of joint ventures, M&A transactions, daily operations, EHS compliance, government investigations, administrative punishments, reconsiderations m88 casino litigations.