Measures Governing the Production of Dangerous Chemicals in Guangdong

        Since December 2005, the Guangdong Government has implemented measures governing the production of dangerous chemicals. Representatives of the Federation and the Hong Kong Economic & Trade Office in Guangdong held a meeting with the Guangdong Provincial Administration of Safe Production (廣東省安全生產監督管理局) this Monday (19 June).  Major points discussed at the meeting are summarised as follows:

Progress of Implementation of the Measures

1.           The Administration official stated that enterprises engaging in the production of dangerous chemicals should obtain the safety production permits before 30 June 2006 in accordance with “Measures Governing the Production of Dangerous Chemicals in Guangdong”.  Production of factories failing to obtain the permits will be stopped immediately after the date. Of the 2,042 enterprises which have applied for the permits, 840 enterprises passed inspection and over 200 enterprises have entered into the inspection process.  It is expected that about 1,100 enterprises can eventually obtain the permits.

2.           The Administration official pointed out that Design Institutes for chemical industries (化工設計院) are professionally qualified to give advice on renovation/restructuring of factories to meet safety standards. Other assessment institutions are not qualified. He noted that the Guangdong Safety Production and Administration Association (廣東省安全生產監督管理協會Tel: 86-20-8332 5869, or 86-20-83343650) would consider providing names of reliable assessment institutions.  

Deadline of Remedial Actions

3.           The Office of Safety Production Commission of the PRC has issued “Notice on Issues Relating to Closure of Enterprises Engaging in the Production of Dangerous Chemicals, Firework and Crackers” (Decree No. 17 [2006]) (For details, please refer to the website: www.jssafety.gov.cn/text_safety/anquanjianguan/200606/aqjg0606151525/f1.htm). This notice stipulates the working standards, procedures and requirements of ordering the closure of enterprises which fail to obtain safety production permits.  Guangdong Province issued Decree No. 58 [2006] to relate the message (For details, please click here (Chinese version only).) The Administration official stressed that the provisions stated in the notice were national requirements and therefore would be duly implemented in Guangdong.

4.           According to the official, enterprises would be informed of the results within 45 days of their applications submitted before 30 June 2006.  During the period before a result is given, the factory is allowed to carry on with its remedial work and production.  However, the official stressed that this is not a grace period. Once the permit application is rejected, the factory has to stop production immediately after 30 June. He anticipated the final list of factories having successfully obtained the safety production permits will be announced in the late July 2006.

5.           After 30 June, if a factory wants to resume production after remedial works have finished, it has to submit new application for production permit of which the set of requirements and standards are for newly designed and built factories. Prior approval of design assessment report and safety assessment report will be needed. It is expected that the Administration will start accepting applications for safety production permits of newly-established enterprises in early August 2006.

Relocation of Factories

6.           To attract manufacturers of dangerous chemicals to move into Shaoguan, the municipal government has offered a range of incentive measures including tax reduction scheme and preferential land price. (For details, please click here (Chinese version only).) According to the Administration official, other cities like Qingyuan, Huizhou, Zhongshan and Zhuhai are also devising plans to lure dangerous chemicals factories to relocate to their cities.  

Policy, Research and Communications Division