China Proposes to Revise Implementation Rules Regulating Controlled Chemicals

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March 19, 2018 - Xiaolu Wang

China's Ministry of Industry and Information Technology (MIIT) published the Invite for Response to the Proposed Amendments to the Implementation Rules for the Regulation on the Administration of Chemicals Subject to Supervision and Control (公开征求对《中华人民共和国监控化学品管理条例》实施细则(修订征求意见稿)的意见) on 13 March 2018. The proposed amendments further detail the procedures and timelines for the authorities to issue administrative permits for the production and use of controlled chemicals. Additional record-keeping requirements will also be imposed on companies that manufacture controlled chemicals. A public consultation period on the proposed amendments is open until 13 April 2018.

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Compared to the current version of the Implementation Rules for the Regulation on the Administration of Chemicals Subject to Supervision and Control (监控化学品管理条例实施细则) (the Rules), the proposed amendments introduce the following revisions:

  • Manufacturers of Class II Controlled Chemicals would be specifically prohibited from selling these chemicals to companies or individuals that/who do not hold a license for the sale or use thereof.
  • Additional record-keeping requirements would be imposed on activities involving Class II, III, and IV Controlled Chemicals. For instance, companies that manufacture or use Class II Controlled Chemicals would need to keep records of information on site for at least three years concerning the production, sales, and usage of these chemicals. These companies would also need to submit these records to the Commission of Economy and Information Technology at the municipal level, if they cease their business operations.
  • Requirements for the storage and transport of controlled chemicals would be removed from the Rules, as similar requirements have been provided under other regulations, such as the Safety Management Regulation on Hazardous Chemicals (危险化学品安全管理条例).

In addition to the substantive revisions to the Rules, the amendments further clarify procedural aspects related to the supervision of controlled chemicals, specifically related to the administrative agencies that are responsible for supervising activities related to controlled chemicals. The proposed amendments also further detail the application procedures and timelines for the authorities to process and issue administrative permits for the production or use of controlled chemicals.

Interested parties may submit comments on the proposed amendments via one of the following methods by 13 April 2018:

Background Information

As defined under the Regulation on the Administration of Chemicals Subject to Supervision and Control, controlled chemicals are divided into the following four classes:

  • Class I: chemicals that can be used as chemical weapons;  
  • Class II: chemicals that can be used as precursors of chemical weapons; 
  • Class III: chemicals that can be used as the major raw materials for the production of chemical weapons;  
  • Class IV: specially designated organic chemicals other than explosives and pure hydrocarbons.

Detailed information on the designated controlled chemicals is provided under the Catalog of Controlled Chemicals (各类监控化学品名录).

Business Impact

Companies that manufacture or use controlled chemicals in China should note that the MIIT has proposed revisions to the Implementation Rules for the Regulation on the Administration of Chemicals Subject to Supervision and Control. Major proposed changes include additional record-keeping requirements and the removal of requirements for the storage and transport of controlled chemicals. Affected parties are recommended to review the proposed amendments and submit any comments that they might have to the MIIT by 13 April 2018.

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