India's industry seeks to make National Chemicals Policy a top priority.

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Following the recent election of India’s new prime minister, Narendra Modi, the country’s burgeoning industry is making the adoption and implementation of the National Chemicals Policy (NCP) a top priority. According to Chemical Watch, analysts and industry members are supportive of Modi and hopeful that the NCP will be adopted by the end of the year. The Indian Chemical Council (ICC) has reportedly already engaged with the new coalition government and plans to continue urging that the NCP and the roadmap to the Strategic Approach to International Chemicals Management (SAICM) be pursued “on a high priority basis.”

Modi has appointed Ananth Kumar at the head of the Ministry of Chemicals and Fertilizers, which he has vowed to make an engine of growth.

The NCP was to have been approved by the last coalition government in April or May, but was not addressed in the buildup to the general election.

India’s first national chemical policy expected soon.

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India will soon publish its first national policy for the chemicals sectors, according to Chemical Watch. A “final draft” of the policy was circulated in January, and the document is expected to be finalized by the government in April or May, before the general election. The policy aims to improve the competitiveness and growth of India’s chemical sector by rationalizing regulations and creating a “robust framework for promoting safety and security of chemical facilities across the value chain.”

The final draft of the policy does not specifically address whether India will adopt REACH-like legislation, as was suggested in a 2012 draft, instead tasking the new National Chemical Centre with making recommendations for a “chemicals management framework.” The final draft does maintain the country’s commitment to developing its first national chemical inventory. This inventory is currently under production by the Ministry of Commerce and Industry-appointed chemical export council, Chemexcil, and will include data on production, consumption, imports, exports, toxicology, and classifications similar to the Globally Harmonized System (GHS) for hazard classification and labelling. Chemical Watch previously quoted a government official’s estimate that the inventory contained approximately 5,000 chemicals and would resemble inventories by other countries, such as Canada, Korea, and Japan.

Under the policy, the National Chemical Centre (NCC) will assume responsibility for the inventory after its completion. The NCC’s duties will also include establishing measures for phasing out and replacing hazardous chemicals and setting standards for test methods like high-throughput screening and alternative methods independent of animal testing.

Verdant Chosen for ABA Team Reviewing Moldova's Draft Chemicals Law

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Moldova:

Verdant is pleased to announce that it was selected by the American Bar Association (ABA) to be part of a small team that will provide a legal review of Moldova’s draft law on chemicals, and provide guidance on drafting related legislation.

Verdant founder Philip Moffat said “We are pleased to have the opportunity to assist Moldova’s effort.  Our attorneys are experienced in working with the chemical control laws in most of the major markets around the globe, as well as many smaller ones.  Catherine Lin, who will be Verdant’s leading contributor, is a recognized expert in the field having previously served as in-house counsel at Pfizer on global chemical control and supply chain management issues.”

Background

The growing world-wide commitment to protect human health and the environment from dangerous chemicals and wastes has been a catalyst for action in many countries and sectors. Due to the cross sectoral nature of chemicals and waste management and the interests of various government ministries and other stakeholders in this area, well-coordinated and integrated management approaches at the national level will achieve maximum impact for the limited resources available worldwide, inclusively in the Republic of Moldova. This includes much improved links to the development planning agenda of the country. The analysis of existing mechanisms for inter-ministerial coordination in the sphere of sound management of chemicals reveals a fragmentary approach to chemicals management in different economic branches, which is an issue that will be directly addressed in this project. In this context, the UNDP “Mainstreaming of Sound Management of Chemicals in National Development Planning Processes” project aims to achieve the mainstreaming SMC priorities into national developments plans in order to strengthen country’s foundational capacities for chemicals and waste management thus minimizing the significant adverse effects of these on human health and the global environment.

Aiming at building capacities for formulation and implementation of SMC policies and fostering sustainable forms of development, the project will achieve its objective through the following outputs referring at:

  • Baseline analysis and identification of sound management of chemicals and hazardous waste priorities
  • Economic valuation of selected priorities and designing policy instruments supporting the priority SMC issues
  • Identification of opportunities for integration of SMC within national plans and subsequent mainstreaming of national SMC priorities into national development programs and plans.

The project will build-upon the UNDP-UNEP Partnership Initiative methodology to Integrating sound management of chemicals into MDG-based development planning which is a comprehensive approach to mainstreaming environmental sustainability.

National priority issues in the sphere of chemicals management in the Republic of Moldova were identified and reflected in the First National Profile on Chemicals Management in the Republic of Moldova (2008). The National Program on Sound Management of Chemicals was approved and establishes the main objectives of the sound chemicals management system to 2020. The overall aim of the program lies in developing an integrated system of chemicals management being efficient from technical, economic, social and environmental points of view.

The program further envisages harmonization of national legislations with EU legislations and sets up the necessary legal and institutional framework for establishment of Chemicals Agency in the Republic of Moldova (hereinafter referred to as the Agency). The draft Law on Chemicals will develop an integrated approach for chemicals management including import, production, processing, storage, transport, use, disposal/treatment and recycling and will be in line with the relevant international treaties. In this context, UNDP Moldova seeks to hire an international consultant (hereinafter referred to as the “consultant”) to provide legal support for revision of the draft Law on Chemicals and recommendations on relevant secondary legislation in line with EU Directives in the respective area.

Japan Revises Its Annual Notification Requirements to Provide Greater Protection for Foreign Suppliers’ Confidential Business Information

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Japan/Chemical Notification and Reporting:

Early in June 2011, Japan’s Ministry of Economy, Trade, and Industry (METI) announced a revision to the process Japanese companies use to annually notify the agency about the chemical substances that they import.  Under the new process, a foreign supplier can provide certain confidential business information (CBI) directly to METI rather than to the Japanese customer, and the Japanese customer would submit the remainder of the notification.  This joint process is a welcome approach, and although it is not a complete solution, it is an encouraging signal that METI will adopt a practical approach to implementing the 2009 amendments to the Chemical Substances Control Law (CSCL).

The annual notification requirement was adopted as part of a series of amendments to the CSCL that the government enacted in 2009 to move the country toward a more risk-based approach to chemical regulation.  For readers less familiar with the CSCL, the law is Japan’s analogue to the U.S. Toxic Substances Control Act (TSCA).  Several agencies, including METI, administer the law.  The CSCL generally requires Japanese manufacturers and importers to notify the agencies and receive their approval before commencing manufacture or importation of “new” chemical substances that are not otherwise excluded or exempt.  The law also bans certain substances and imposes restrictions and reporting requirements on others.  The annual notification requirement adopted in 2009 is distinct from the new chemical notification requirement.  The annual requirement applies to substances already on the market, and it was designed to provide additional exposure-related information to the agencies so that they can identify those whose risks warrant further management through restrictions or other measures.

The annual notification requirement applies to two classes of chemical substances, “General Chemical Substances (GCS)” and “Priority Assessment Chemical Substances (PACS)” that are manufactured or imported at or above 1 metric ton during the previous fiscal year.  (There is a similar notification process for so-called Monitoring Chemical Substances (MCS) that are manufactured or imported at or above 1 kg per year.)  When a GCS is present in a mixture below 10%, or a PACS is present as an impurity at less than 1%, it is not counted toward the 1-ton threshold.  Japanese companies that manufacture or import a reportable substance above the threshold must submit a notification form to METI between April 1 and June 30 each year.  2011 is the inaugural notification year.  The prescribed form requires information about the quantity of the substance imported or manufactured, as well as information about its chemical identity and uses.  

Prior to the revision METI announced, foreign suppliers, especially of mixtures, faced a tough choice.  Basically, they would either need to disclose to their Japanese customers the identities and percentages of the substances in their mixtures, potentially losing CBI since many of the mixtures are proprietary, or lose the customers by not providing information necessary to fulfilling a compliance obligation.  Preferring neither option, suppliers in the United States and elsewhere began lobbying METI for an alternative.  METI announced the alternative earlier this month, issuing guidance that revises the annual notification process.  However, the revision is not as comprehensive as what was requested since it does not protect from disclosure information concerning PACs.

METI’s revision affects annual notification of General Chemical Substances, but not PACs.  METI issued a three-page guidance document explaining the revised notification process.  A copy of the guidance is available here.  In it, METI explains that a Japanese company could submit a joint notification with its foreign supplier when the foreign supplier claims as CBI the chemical identity or its concentration rate in a mixture.  The Japanese company would initially complete as much of the notification form as possible and submit it to METI along with a cover letter explaining the situation and identifying the foreign supplier.  The incomplete form would function as a placeholder while the supplier completed the final version.  The supplier would then submit the final form to METI and the notification process would be considered complete. 

METI’s revision is an improvement on the annual notification process.  How well it works remains to be seen.  Presumably, the agency will make an evaluation at the end of this first notification cycle.  Readers interested in Japanese chemical regulatory control matters should check back periodically for further updates on this development and others in Japan.