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Recycling Council of Ontario 1 1 China's Environmental Measures Affecting Trade in Waste, Scrap, and Recycled Materials Jo-Anne St. Godard Executive Director Recycling Council of Ontario Host Featuring Julie Croteau Head, International Section Environment & Climate Change Canada Andrew Wright Trade Policy Officer Global Affairs Canada Special Webinar Presentation 1 – 2 p.m. March 15, 2018

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Page 1: China's Environmental Measures Affecting Trade in Waste, Scrap, …rco.on.ca/wp-content/uploads/2018/04/RCO_ECCC_GAC_Webinar_Pr… · Highlight = China imported an annual average

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China's Environmental Measures Affecting Trade in Waste, Scrap, and Recycled Materials

Jo-Anne St. GodardExecutive Director

Recycling Council of Ontario

Host Featuring

Julie CroteauHead, International Section

Environment & Climate Change Canada

Andrew WrightTrade Policy Officer

Global Affairs Canada

Special Webinar Presentation1 – 2 p.m.

March 15, 2018

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Recycling Council of Ontario • Not-for-profit membership-based organization with charitable

status

• Involved in policy development, program development &management, research & pilot project

• Campaigns for greater transparency and information exchange toinform meaningful multi-stakeholder engagement

• Facilitates discussions/agreements: Government > Industry >Public

• Neutral and principles-based policy making

• Advocate for verifiable environmental outcomes

rco.on.ca

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• July 2017: filed notice with the World Trade Organizationannouncing its decision to stop importing 24 types of foreign waste

• November 2017: notified World Trade Organization of stricterstandards, which included contamination rates not to exceedcertain levels for various material exported material to China.

• March 1, 2018: November 2017 standards applied

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Statistics at a glance2015: China imported more than 46 million tonnes of waste material

2012 – 2016: UK shipped 65% of the country's exported plastic waste - half a million tonnes annually - to China.

2016: U.S. reported shipping 16 million tons of recyclable waste to China.

Of 56.4 million tons of paper EU discarded - 8 million purchased by China-based recyclers and sent back as packaging for Chinese exports.

EU collected 8.4 million tons of plastic waste, and sent 1.6 million tons to China.

Canada sent ~21% of plastic waste to China

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Market Shifts and Concerns• Market strength of the materials we are considering and defining

as recyclable.

• What is really being processed and what is ending up as residualand landfilled.

• Sorting and processing practices and capacity to sort material inorder to meet these new standards.

• Vulnerability as it relates to reliance on off shore processing.

• Lack of investment in domestic processing.

• Opportunity to expand in domestic processing.

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China’s Updates to Import Prohibitions and Restrictions on

Solid Waste

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What We Know• Context: Push by China’s government to improve environmental conditions

– New measures an extension on existing prohibitions and standards

• Import ban – notified to WTO on July 18, 2017, in effect on December 31, 2017

• Revised standards – notified to WTO on November 15, 2017, in effect on March 1, 2018

• 5 types of scrap plastic (HS 3915) appear on both lists – scrap plastic from “non-industrial source* on banned list vs. “industrial source” in revised standards

*The Chinese WTO notification in English lists plastic (H S 3915) “from living sources” as prohibited. However, based on unofficial translations of the related Chinese-language documents, Canada has interpreted this term as “non-industrial” from a clarity standpoint. Please note that this interpretation has not been officially confirmed by China.

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Newly banned productsHS Code Description39151000 Waste and scrap of ethylene polymers (from non-industrial source)39152000 Styrene polymer waste and scrap materials (from non-industrial source)39153000 Vinyl chloride polymer waste and scrap materials (from non-industrial source)39159010 PET waste and scrap, excluding PET bottles (brick) (from non-industrial source)

39159090Other plastic waste and scraps, not including scrap disc broken material (from non-industrial source)

26190000

1) Smelting of steel produced vanadium-containing scum, slag, vanadium pentoxide content of> 20% (except for the production of granular slag by smelting steel)2) Other vanadium-bearing scum produced from smelting of steel, slag (except for the generation of granular slag from smelting of steel)

26209990

1) Slag, ash and residues containing other metals and their compounds, vanadium pentoxide> 20% (except for steel smelting)2) Slag, ash and residue containing other metals and their compounds, 10% <Vanadium pentoxide ≤20% (except for steelmaking)

47079000 Other Recycled Paper or Paperboard (including Unsorted Waste Products)51031090 Other animals fine hair falling hair51032090 Other fine animal waste (including waste yarns, excluding recycled fibers)51033000 Other animal shag Waste (including waste yarns, excluding recycled fibers)51040090 Recycled fibers of other fine or coarse hairs of animals52021000 Waste cotton yarn (including waste cotton thread)52029100 Cotton recovered fibers 52029900 Other waste cotton55051000 Synthetic waste (including falling cotton, waste yarn and recycled fiber)55052000 Man-made fiber waste (including falling cotton, waste yarn and recycled fiber)

63101000Sorted shredded fabrics, etc., of new or unused textile materials (new or unused, including waste threads, cords, cables, cables and their products)

63109000Other scrap fabrics, of new or unused textile materials, etc. (new or unused, including waste threads, cords, cables, cables and their products)

Highlight = China imported an annual average of more than $1 million from Canada during 2014-2016

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Newly revised standardsHS Code Description

26180010

The main manganese-containing smelting of steel produced granular slag, manganese content greater than 25% (including slag sand)

26190000

1) Rolled steel oxide produced2) Slag steel produced from smelting steel containing more than 80% iron

39151000Waste and scrap ethylene polymers and remnants (from industrial source)

39152000Waste and scrap vinyl benzene polymers and remnants (from industrial source)

39153000Waste and scrap cholroethylene polymers and remnants (from industrial source)

39159010Waste and scrap poly(ethylene terephthalate) and remnants (from industrial source)

39159090Other waste and scrap plastic and remnants (from industrial source)

44013100 Wood chips44013900 Other sawdust, wood waste and debris45019010 Cork waste

47071000Recycled (scrapped) unbleached cowhide, corrugated cardboard or cardboard

47072000Recycled (scrapped) bleached chemical pulp paper and board (without bulk staining)

47073000

Recycled (scrapped) paper or board made of mechanical wood pulp (eg used newspapers, magazines, and similar prints)

72041000 Cast iron scrap72042100 Stainless steel scrap72042900 Other alloy steel scrap72043000 Tin-plated steel scrap

72044100

Steel scrap generated in machining (machining refers to car, planing, milling, grinding, sawing, filing, shearing, punching)

HS Code Description

72044900

1) Not listed steel scrap2) To recycle steel-based scrap metal appliances3) Waste auto parts

72045000 For remelting of scrap steel ingots

74040000

1) Other copper scrap (excluding scrap metal electrical appliances, waste wire and cable, waste electrical)2) To recover copper-based waste motor3) To recover copper-based wires, cables4) To recover copper-based scrap metal appliances

75030000 Nickel scrap

76020000

1) Other aluminum scrap (excluding scrap metal electrical appliances, waste wire and cable, waste electrical)2) To recycle aluminium-based wires, cables3) To recycle aluminium-based scrap metal appliances

79020000 Zinc waste scrap80020000 Tin waste scrap81019700 Waste tungsten scrap81033000 Tantalum scrap81042000 Magnesium waste and scrap81060010 Other unwrought bismuth scrap81083000 Titanium waste and scrap81093000 Zirconium scrap81129210 Germanium scrap unwrought81129220 Unwrought vanadium waste and scrap81129240 Niobium scrap

811292901) Unwrought halfnium waste and scrap2) Unwrought gallium, rhenium scrap

81130010 Particles or powdered tungsten carbide waste and scrap81130090 Other tungsten carbide scrap, granule or powder except

Highlight = China imported an annual average of more than $1 million from Canada during 2014-2016

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What We Don’t Know

• How China will determine “non-industrial” vs. “industrial” sources for plastics

• Testing procedures for revised standards

• How much import licenses will be reduced

• Potential future restrictions

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Global Affairs Canada’s Engagement

• Multilateral Engagement – Raised at WTO Technical Barriers to Trade and Export/Import

Licensing Committees (and intend to raise again at upcoming meetings)

– Written comments and questions to China on revised standards – Coordination with like-minded countries

• Bilateral Engagement– Meeting with Ministry of Environmental Protection

• Engagement with Stakeholders– Information gathering to inform Government of Canada position

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Continuing Support• GAC will continue to seek answers through official channels

• Trade Commissioner Service offers services to exporters via offices in Canada and abroad –http://tradecommissioner.gc.ca/index.aspx

• Appreciate detailed information from industry directly involved in exports to China

• Recycling Council of Ontario will help pass along any additional questions or information you have

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China’s solid waste import prohibition and restriction

Waste Reduction and Management Division Webinar: Recycling Council of Ontario March 15, 2018

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Purpose

§ To inform you of the Basel Convention on the control of transboundary movements of hazardous waste and their disposal

§ To inform you of Canada’s laws and regulations applicable to China’s prohibition and restriction

§ To share our understanding of China’s prohibition and restrictions on the import of solid waste.

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Basel ConventionBasel Convention

§ The Basel Convention on the control of transboundary movements of hazardous waste and their disposal is an international environmental treaty under the United Nations

§ Negotiated in the late 1980s in reaction to worldwide concern about the transboundary movement and disposal of hazardous wastes from industrialized nations to other nations where environmental awareness was less developed and regulations and enforcement mechanisms were lacking

§ Canada participated in the development of the Convention and was one of the original signatories on March 22, 1989. The Convention entered into force in 1992 and currently has 186 Signatories

Objectives

§ Minimize the generation of hazardous waste in terms of quantity and hazard§ Control and reduce the movement of hazardous waste§ Promote the environmentally sound management of hazardous waste

Two main components§ Control of transboundary movements of hazardous wastes and other wastes through Prior Informed

Consent between the exporting, transit, and importing countries, before any shipment of hazardous wastes and other wastes is permitted

§ Promotion of environmentally sound management of such waste

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Basel ConventionDefinition of hazardous waste and other wastes under Basel§ Hazardous waste: Waste that contains mercury and lead compounds or clinical waste, wastes

from the production of solvent etc. (Annex I). These wastes also have a hazard characteristic such as corrosive, flammable etc. (Annex III)

§ Other wastes: Wastes requiring special consideration such as waste collected from households (Annex II)

§ Wastes that are considered to be hazardous waste by the domestic legislation of the Party of export, import, or transit

§ Exclusions: Radioactive wastes and wastes from the normal operations of ships* This is a partial definition. Refer to the text of the Convention for a complete definition

General obligations on import/export

§ Parties to the Basel Convention have the right to prohibit and restrict the import of hazardous waste or other wastes for disposal, final disposal, and/or recycling operations

§ Note that for the purpose of importation to Canada, household waste is not consideredhazardous waste by Canada.

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Canadian law and legislations ▪ Under the Canadian Environmental Protection Act (CEPA) the transboundary movement (import, export or

convey in transit) of hazardous waste or hazardous recyclable material, or prescribed non-hazardous waste for final disposal is prohibited; except if a valid permit from the Minister of the Environment has been obtained before any movement and the conditions prescribed in the Regulations are followed.

▪ Canada’s Regulations for the international movement of hazardous waste and hazardous recyclable materials is found in the Export and Import of Hazardous Waste and Hazardous Recyclable Material Regulations (EIHWHRMR)

• Under the Regulations, waste and recyclable material to be exported for disposal or recycling are considered hazardous waste or hazardous recyclable material if:

o they are defined as, or considered to be, “hazardous” under the legislation of the importing country or the country of transit, or

o they are one of the “hazardous wastes” or “other wastes” listed in the Basel Convention, and the importing country is a party to the Basel Convention, or

o their importation is prohibited under the legislation of the importing country

* This is a partial definition of hazardous waste and hazardous recyclable material, Refer to the EIHWHRMR for a complete definition

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China under the Basel Convention

§ China as been a Party to the Basel convention since 1992

§ Mainland of China and the special administrative regions of Hong Kong and Macau could have different measures to implement the Basel Convention (e.g. solid waste and hazardous waste definition)

§ Mainland of China’s domestic definitions:

• Solid waste: Solid waste refers to any solid, semisolid, or contained gaseous substance or material resulting from production, daily life and other activities, which lose its original utilization value, or which does not lose utilization value but is discarded, and substance or material regulated as solid waste by laws and regulations.

• Hazardous waste: Hazardous waste means solid wastes included in the national catalogue of hazardous waste or solid wastes which, according to the identification standards of hazardous waste, are determined as having a hazardous property.

§ Mainland of China measures and legislations on solid wastes & hazardous waste:

a) National Catalogue of Hazardous Waste

b) Measures on the Administration of Import of Solid Wastes: Catalogue of Imported Solid Waste Management

1. Catalogue of Solid Wastes Forbidden to Import in China

2. Catalogue of Restricted Import Solid Wastes that Can Be used as Raw Materials

3. Catalogue of Un-Restricted Import Solid Wastes that Can Be used as Raw Materials

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China’s recent change

§ In December 2017, China (Mainland of China, Hong Kong and Macau) submitted its annual national report to the Basel Convention. The report contains updated information on the prohibition, restriction, and definition of hazardous waste, solid waste, etc.

The Chinese national report to the Basel Secretariat can be found here:Link to China’s notification and Annual report under Basel:§ http://www.basel.int/Countries/ImportExportRestrictions/tabid/4835/Default.aspx§ http://www.basel.int/Countries/NationalReporting/NationalReports/BC2016Reports/

tabid/6145/Default.aspx

Link to the Basel Convention: http://www.basel.int/Home/tabid/2202/Default.aspx

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For waste meeting the definition of hazardous waste/recyclable under the EIHWHRMR

§ An exportation/importation/transit permit is required

§ To obtain a permit, the importing country must provide consent (for Canada’s export) or the importing province/territory must consent (for a Canadian import)

§ If a waste is prohibited/banned in the country of importation, consent would not be obtained from the competent authority and as such, a Canadian export permit would not be granted.

§ Please refer the ECCC Web site for further information about the Regulations:o EIHWHRMR: http://laws-lois.justice.gc.ca/eng/regulations/SOR-2005-149/o Waste Reduction and Management Division website:

https://www.canada.ca/en/services/environment/pollution-waste-management/managing-reducing-waste.html

o Hazardous Waste and Hazardous Recyclable Material: https://www.canada.ca/en/environment-climate-change/services/managing-reducing-waste/permit-hazardous-wastes-recyclables.html

o Online Notification System: https://ec.ss.ec.gc.ca/en/cso Key Factsheets: https://www.canada.ca/en/environment-climate-

change/services/managing-reducing-waste/permit-hazardous-wastes-recyclables/fact-sheets-international-movement.html

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If a permit is required - Key steps1. Get a GC Key and a SWIM account

2. Fill in the application form

3. Submit all relevant documents:

§ Valid insurance number

§ Valid contract between the Canadian exporters, the facility, and foreign partners

4. ECCC reviews the notice and if all is correct, ECCC sends it to the competent authority to obtain their consent

5. Competent authority renders a decision

6. Once consent is obtained, ECCC issues a permit

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Key conditions to obtain a permit1) An applicant must be a Canadian resident or have a place of business in Canada

and:§ Own or operate the facility from which the Hazardous Waste (HW) /Hazardous

Recyclable Material (HRM) will be exported, OR§ Own or operate the facility to which the HW/HRM will be imported, OR§ Buy and sell HRM for recycling in Canada or other country subject to OECD

Decision C(2001)107/Final

2) The application must relate to either HW or HRM

3) The applicant cannot delegate responsibilities and is responsible for shipments/ transportation of the waste or material, including outside Canada

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Contact Us

By mailWaste Reduction and Management Division351 St. Joseph Boulevard, 9th FloorGatineau, QC K1A 0H3

Other means:

By Notification MovementFax 819-938-4553 819-938-4554

Phone 1-844-524-5295 1-844-524-5295

Email [email protected]

[email protected]