Thailand to control import and use of HFCs from Jan 2024

On 7^th December 2023, the Department of Industrial Works (DIW), Ministry of Industry of Thailand released following two draft notifications to control import and usage of hydrofluorocarbons (HFCs) in accordance with the the Kigali Amendment to the Montreal Protocol.

1. Draft Notification of the Department of Industrial Works regarding Determination of qualifications for applicants for licenses to import hazardous substances and criteria for consideration of permission to import HFCs B.E. XXXX
2. Draft Notification of the Department of Industrial Works regarding the Guidelines for permitting the use of HFCs in Thailand B.E. XXXX

Overview of the draft notifications

1. The draft specifies the qualifications of applicants for licenses to import HFCs as follows:

• Must be a person with a history of importing HFCs (HFCs) or mixtures containing HFCs (HFCs) between 2020 – 2022 for at least 1 year.
• Applicants for import licenses must prepare a plan for importing HFCs with purposes for use and submit it to the Department of Industrial Works by 31 August of each year for consideration in the allocation of quantity rights to import each type of HFCs in the following year.
• In cases where the applicant for an import license has never had a history of importing HFCs and has a need to use HFCs, they must notify the reason for their use of such substances as well as prepare details of end users and a plan to reduce the use of HFCs by clearly specifying the amount of demand and the period for reducing the use of such substances and presenting them to the Department of Industrial Works for consideration of permission.

In addition, the draft sets out criteria and conditions for allocating rights to import quantities of HFCs (HFCs) as follows:

• The highest main import volume refers to the average amount of HFCs used in Thailand during 2020 – 2022. DIW will allocate main import volume rights to importers. The sum of main import volume rights of all importers will not exceed 90 percent of the maximum main import volume each year. The proportion of main import rights of each importer shall be calculated by dividing the annual average of all types of HFCs of each importer by the sum of the annual average of all HFCs. All types of HFCs from all importers during the year 2020 – 2022.
• Maximum additional import volume means the import volume in addition to the above main import volume calculated from 65% of the average annual consumption of HCFCs during the year 2009 – 2010. Those eligible to be allocated rights for additional import volumes are those who are allocated rights for the main import volume that imports HFCs with a global warming potential value not exceeding 2,000 between 2020 – 2022.

The Department of Industrial Works will hold a meeting at least once within September of every year regarding the allocation of rights to import HFCs in the next year.

2. The draft specifies guidelines for permitting the use of HFCs in the country as follows:

• The amount of use is the amount of imports minus the amount of exports.
• DIW will limit the duration of import licenses and export licenses for HFCs to no more than 1 year, with the license expiring at the end of the calendar year.
• From 1 January 2024, DIW will allow the use of such substances not exceeding the country’s consumption amount that can be used each year, as follows;