| Content： |
Article 1
These Regulations are established pursuant to Article 38, Paragraph 3 of the Climate Change Response Act (hereinafter referred to as “the Act).
Article 2
The terms used in these Regulations are defined as follows:
- Hydrofluorocarbons (HFCs) refers to the controlled substances listed in Annex F of the Montreal Protocol and announced by the central competent authority, including
pure substances and mixtures thereof, but excluding substances already contained in products.
- Products refers to goods and components, as well as systems including such components. However, the containers used for storing or transporting HFCs are excluded.
- Consumptions refers to the net quantity derived from the sum of production and imports minus exports, multiplied by the global warming potential of each substance,
expressed in carbon dioxide equivalents. This excludes the quantities entirely used as feedstock in the manufacture of other chemicals, recycled or reused, destroyed, or exempted purposes approved under the Montreal Protocol.
- Allocation Quotas refers to the total annual consumption quantity allocated by the central competent authority to Entities eligible for allocation.
- Production refers to the net quantity derived from the domestic production quantity, minus the quantities recovered, converted into other chemical substances during
the process, and the quantities destroyed by technologies to be approved by the Montreal Protocol.
- Approved Quantity refers to the quantity used as feedstock, recycled or reused, destroyed, or exempted under decisions adopted by the Meeting of the Parties to the
Montreal Protocol.
- User refers to entities that use HFCs in processes and fill HFCs into products during manufacturing or performing maintenance.
- Supplier refers to entities that imports, exports, refines or blends HFCs and supplies them to the Users or distributors.
- Implementation Record refers to data such as the usage by Users and Suppliers, import clearance volumes, export clearance volumes, procurement volumes, inventory, and
sales volumes, supported by documentary evidence.
- HCFCs Implementation Record refers to the information reported in accordance with Article 16 of the Regulations for Management of HCFC Consumption.
- Recovery refers to the act of collecting and storing HFCs from machinery, equipment, containers, or products.
- Reuse refers to the act of using recovered HFCs after the basic purification process such as filtering or drying.
Article 3:
The baseline national consumption level of hydrofluorocarbons (HFCs) is set at 24,523.8642 thousand metric tons of CO2 equivalent.
The national HFCs consumption reduction schedule and corresponding annual limits are as follows:
- From January 1, 2026, the annual consumption must not exceed 100% of the baseline, i.e., 24,523.8642 thousand metric tons of CO2 equivalent.
- From January 1, 2029, the annual consumption must not exceed 90% of the baseline, i.e., 22,071.4778 thousand metric tons of CO2 equivalent.
- From January 1, 2035, the annual consumption must not exceed 70% of the baseline, i.e., 17,166.7049 thousand metric tons of CO2 equivalent.
- From January 1, 2040, the annual consumption must not exceed 50% of the baseline, i.e., 12,261.9321 thousand metric tons of CO2 equivalent.
- From January 1, 2045, the annual consumption must not exceed 20% of the baseline, i.e., 4,904.7728 thousand metric tons of CO2 equivalent.
Article 4
The manufacturing of HFCs is prohibited from the effective date of this Regulation.
Article 5
From July 1, 2025, the import and export of HFCs without prior approval shall be prohibited. Such activities shall be restricted to countries or regions that comply with the provisions of the Montreal Protocol.
Article 6
Users or Suppliers applying for approval to import or export HFCs under the preceding Article shall submit an application form and the following documents to the central competent authority by the end of March 2025 to apply for allocation eligibility
and Allocation Quotas for the year 2025:
-
A photocopy of documents certifying approval for establishment, registration, or operation issued by the relevant competent authorities. Suppliers shall also provide a photocopy of their export/import qualification certificates.
-
Refrigeration and air conditioning Users shall provide a photocopy of their refrigeration and air conditioning engineering entities registration certificate, as well as a copy of their membership certificate from the Refrigeration and Air Conditioning
Engineering Association.
-
Firefighting equipment entities shall provide a photocopy of their certificate for conducting fire extinguisher performance inspections and agent refilling operations, or other relevant documents.
-
Users supplying HFCs to repair service providers for product maintenance shall provide a list of repair service providers and photocopies of their business registration certificates.
-
Supporting documents, such as invoices for the domestic purchase of HFCs, customs release forms for imports/exports from 2020 to 2022, and similar documents for HCFCs from 2009 to 2010. Those failing to submit such documents will have their Implementation
Record deemed zero.
-
Other documents as specified by the central competent authority.
Applicants who could not to apply for allocation eligibility as required in the preceding paragraph, or who reapply under this Regulation, must submit the application form along with the documents specified in Subparagraphs 1 through 4 and 6 of the preceding
paragraph in this Article, as well as the following supporting documents for the full previous year and the first half of the current year, in order to apply for allocation eligibility for the year 2026 and subsequent years:
-
Invoices for domestic purchase of HFCs or customs release forms for imports/exports.
-
Users using HFCs as refrigerants, firefighting agents, or foaming agents shall provide copies of the product tax declaration forms or engineering contracts as proof. Users supplying HFCs to repair service providers shall also provide a list of repairer
service providers and photocopies of their business registration certificates.
-
Users who do not have supporting documents as required in the preceding two subparagraphs shall provide documentation explaining the use of HFCs in processes and fill HFCs into products during manufacturing or maintenance. Suppliers shall provide proof
of being commissioned by domestic Users to purchase HFCs.
-
Other documents as specified by the central competent authorities.
If multiple entities belong to the same legal entity, one entity shall be selected as the representative to jointly submit the application in accordance with the requirements of the preceding two paragraphs.
Applicants with incomplete or non-compliant documents shall make corrections within the deadline specified by the central competent authority, with a maximum of two attempts allowed for corrections. Failure to comply within the deadline or exceeding the
allowed correction attempts will result in the rejection of the application.
Entities who have obtained allocation eligibility shall report any changes in company or factory name, address, or responsible person to the central competent authority within sixty days of such change, along with photocopies of supporting documents,
such as approval of establishment, registration or operation. Reapplication for allocation eligibility is not required.
Article 7
The allocation of HFCs for 2025 shall, in principle, be determined by the central competent authority, based on the consumption limit specified in Paragraph 1 of Article 3, as the total quotas. The total quotas shall first be allocated to Users who have
obtained allocation eligibility in accordance with Paragraph 1 of the preceding article, followed by eligible Suppliers.
Article 8
The baseline calculation for HFCs Allocation Quotas for 2025 shall be conducted in accordance with the consumption baseline calculation rules under the Montreal Protocol. The calculation formula is as follows:
Allocation Baseline
=
[(Total HFCs implementation record from year 2020 to 2022)
÷
3] +
65%
×
[(Total HCFCs implementation record for year 2009 and 2010)
÷
2]
The allocation methods for Users are as follows:
-
If the requested quantity is lower than the allocation baseline calculation outlined in the preceding paragraph, the allocation shall be based on the requested quantity.
-
If the requested quantity exceeds the allocation baseline calculation outlined in the preceding paragraph, the allocation shall be based on the allocation baseline calculation.
The remaining quantity after the allocation outlined in the preceding paragraph shall be allocated to Suppliers based on the allocation baseline calculation value specified in Paragraph 1. However, if the total calculated value exceeds the remaining quantity,
the allocation shall be distributed proportionally among all entities eligible for allocation, based on their respective shares of the total calculated value.
Article 9
The principle of HFCs allocation after 2026 shall be as follows:
-
The central competent authority may reserve 15% of the HFCs consumption limit for the current year as the national reserve, to be used for civil aviation fire extinguishers, emergency response, or other
purposes approved by the central competent authority.
-
The HFCs consumption limit outlined in Paragraph 2 of Article 3, after deducting the national reserve prescribed in the preceding subparagraph, shall be the total Allocation Quotas quantity for the current year.
-
Allocation shall first be given to Users who have obtained allocation eligibility, followed by Suppliers who have obtained allocation eligibility.
-
If there is still a remaining quantity after the allocation outlined in the preceding subparagraph, the central competent authority may carry out additional allocation procedures.
Article 10
Starting from 2025, the central competent authority shall approve the HFCs allocation for the following year for entities who have obtained allocation eligibility by the end of each October.
The calculation baseline for the Allocation Quotas prescribed in the preceding paragraph shall be 50% of the Implementation Record from the previous full year, plus the Implementation Record for the first half of the current year, for entities that have
obtained allocation eligibility. However, if the total calculation baseline for Allocation Quotas exceeds 85% of the national consumption limit for the current year, the Allocation Quotas may be determined proportionally based on the Implementation Record
of each eligible entity.
Article 11
For Users in the manufacturing industry, the Approved Quantity for HFCs feedstock usage in their processes must be cerified by the Industrial Development Administration, Ministry of Economic Affairs. The certification document shall specify the intended
use and include the following details:
-
Name and address of the applicant User.
-
Name of the responsible person of the applicant User.
-
Type of HFCs.
-
Category of intended use.
-
Imported weight of HFCs for feedstock use.
-
Validity period for the import of HFCs for feedstock use.
-
Country of origin.
For any Approved Quantity other than those specified in the preceding paragraph, the application shall be submitted by Suppliers or Users to the central competent authority, using the designated format and required documents.
Article 12
Entities with allocation eligibility or holding Allocation Quotas shall, by the end of each January, April, July, and October, report the Implementation Record of the previous quarter to the central competent authority, along with relevant verifiable
supporting documents:
-
Users shall report the names of procured HFCs items, quantities, sources, usage amount, explanations of intended use, inventory levels, usage status, a list of repair service providers, and quantities used, along with any other documents designated by
the central competent authority. Additionally, the information required under Article 6, Paragraph 2, Subparagraph 1 and 2 shall also be submitted.
-
Suppliers shall report the names of imported and exported HFCs items, quantities, sources, a list of distributors with their basic information, sales volume, sales targets, explanations of intended use, corresponding items names, quantities, inventory
levels, along with any other document designated by the central competent authority. Additionally, the information required under Article 6, Paragraph 2, Subparagraph 1 shall also be submitted.
Those who use the national reserve volume approved by the central competent authority under Article 9 shall report to the central competent authority the purchase quantity, usage amount, inventory levels for the previous half-year, along
with any other designated documents, by the end of each January and July.
Those who have obtained the Approved Quantity under the previous article shall report the following information to the central competent authority by the end of each January and July:
1. Users: Report purchase quantity, usage amount, intended use, inventory levels, gas utilization rate, emissions, and destruction and removal rates, and any other data and documents required by the central competent authority
2. Suppliers: Report the imported quantities, a list of distributors with their basic information, sales volume, sales targets, explanations of intended use, corresponding sales item names, quantities, inventory levels, and any other data
and documents required by the central competent authority.
Entities eligible for allocation that report their Implementation Record for the first time pursuant to Paragraph 1 of this Article shall submit supporting documents for their full-year Implementation Record from the previous year and the Implementation
Record for the first half of the current year.
Entities that fail to submit the Implementation Record by the deadline, submit incomplete documents, or submit documents that do not comply with the regulations shall make corrections within the period specified by the central competent authority. The
number of corrections shall be limited to two. If an entity fails to make corrections within the specified period or exceeds the allowed number of corrections, the Implementation Record for that quarter shall be deemed zero.
If an entity reports an Implementation Record of zero for eight consecutive quarters, the central competent authority shall revoke its allocation eligibility and deduct any unutilized allocated quantity for the current year. If an entity whose allocation
eligibility has been revoked reapplies, it shall comply with the provisions set forth in Paragraph 2 of Article 6.
Article 13
The central competent authority may invite relevant central governing authorities and appoint experts or scholars to assist in the review of each application received under this Regulation. The review shall be completed within ninety days. If the application
documents do not comply with the regulations or are incomplete, the central competent authority shall specify a deadline for corrections. The correction period shall not be counted toward the review period, and the total number of days allowed for corrections
shall not exceed ninety days.
Article 14
Entities may apply directly to the central competent authority or authorize Suppliers to apply for import/export permits only after obtaining allocation eligibility and Allocation Quotas of HFCs to conduct the import or export operations. Furthermore,
the goods must be imported or exported within the approved timeframe.
If the cumulative approved import quantities, after deducting the approved export quantities, exceed the Allocation Quotas, the central competent authority shall reject the application for export/import permits.
Entities that have obtained the Approved Quantity under Article 11 shall apply the preceding two provisions mutatis mutandis to the application for import/export permits for HFCs..
Article 15
Users who have obtained Allocation Quotas or Approved Quantity are prohibited from selling HFCs or engaging in distribution activities. However, Users who have provided a list of repair service providers for HFCs in accordance with Article 6, Paragraph
1 or 2, and have been approved by the central competent authority, may sell HFCs to the approved repair service providers listed.
Suppliers may transfer their allocations quotas to one another only after receiving approval from the central competent authority.
Users who violate the prohibition on selling as stipulated in Paragraph 1 shall have their allocation eligibility revoked by the central competent authority and may have their Allocation Quotas for the current year deducted.
If Users need to add additional repair service providers to their list, they shall reapply for allocation eligibility in accordance with Paragraph 2 of Article 6.
Article 16
Suppliers conducting HFCs repackaging or retrofit operations shall use recovery or reuse equipment.
Users conducting the dismantling of refrigeration, air conditioning, fire protection, and extinguisher equipment and systems containing HFCs, or refilling HFCs into them, shall use recovery or reuse equipment.
The recovery and reuse equipment mentioned in the above two paragraphs shall comply with the following specifications:
-
Recovery equipment shall have the function to reduce the pressure of the equipment or system to below 102 mmHG (millimeters of mercury) after extracting the refrigerant.
-
Reuse equipment shall also serve as recovery equipment, with the ability to process impurities such as moisture, lubricating oils, and air in the refrigerant, reducing their concentrations to below 20 ppm (parts per million by weight), 0.01% (by volume),
and 1.5% (by volume), respectively.
Using recovery or reuse equipment shall take the following actions, and the records of these actions shall be kept for six years for future reference:
- Before refilling the refrigerant, a leak inspection of the equipment or system shall be conducted. If any leakage is discovered, it shall be repaired first.
- The recovery containers shall be labeled with the type of refrigerant in the device.
- Regular maintenance is required for the recovery or reuse of equipment.
Article 17
For those who import hydrofluorocarbons (HFCs) without obtaining the required approval, the consignee or holder of the goods shall return the shipment within the specified period. If the goods have not yet cleared customs, the customs authority shall
issue a notice requiring their return within a specified period. If the goods have already cleared customs, the central competent authority shall issue the return notice within a specified period.
Failure to return the goods within the prescribed period, or if the consignee or holder of the goods submits a written statement of waiver, the central competent authority may proceed with the recovery, temporary storage, or destruction of the HFCs. The
relevant disposal costs shall be borne by the consignee or holder of the goods and shall be paid within the specified period.
Article 18
"If the application documents submitted pursuant to Article 6, Article 11, and Article 14, or the reporting documents submitted pursuant to Article 12, contain false or misleading information, the central competent authority shall revoke or annul the
entity’s allocation eligibility and suspend its eligibility to apply for allocation under Article 6 for five years.
Article 19
The central competent authority may commission (delegate) the relevant agencies (organizations) to handle the review, recovery, temporary storage, destruction, and auditing of HFCs.
Article 20
This regulation shall take effect on the date of its publication. |