In our chemical unit, we consume a Schedule 2 chemical and the total quantity consumed per year is less than the declaration threshold limit. Do we have to file any declaration?
Yes, you have to file declarations as an “other” Schedule 2 facility. The activities that are declarable in a Schedule 2 unit are production, processing and consumption. As an other Schedule 2 unit, you are required to file an initial declaration (if you have not filed a declaration before) in Forms 5.0, 2.1, 2.1.1 and 5.1. Thereafter every year, you are required to file declarations in three forms viz. Form 2.1, 2.1.1 and 5.1 on or by January 31st of the year. The annual declarations are for the activities of the preceding year.
The Schedule 2 list of the Convention comprises 14 entries. But some entries like S. No. 4, 5, 6, 10, 11 etc. are generic and mean many chemicals. Could you explain this?
It is correct to state that the Schedule 2 of the Annex on chemicals includes generic entries. The total number of Schedule 2 chemicals may be in many hundreds. However, except for a few chemicals, the Schedule 2 chemicals are generally not produced in large commercial quantities. It would be helpful for you to take a look at the list of 33 commonly produced and traded Schedule 2 chemicals which is given on the Website. For lists of more Schedule 2 chemicals, you may browse through the Handbook of chemicals.
My chemical unit has activities relating to two Schedule 2 chemicals. One of them is produced in a quantity less than the declaration threshold and the other is consumed in a quantity more than the declaration threshold. What declarations do I have to file?
Since your one Schedule 2 activity is more than the declaration threshold, yours is a declarable Schedule 2 facility. If you have never file a declaration before then you are required to file an initial declaration in 8 forms which are Form 2.0, 2.1, 2.1.1, 2.2, 2.3, 2.3.1, 2.3.2 and 2.4. Thereafter, you are required to file annual declarations twice a year. Annual declaration for the activities of the preceding year has to be filed in 8 forms as given in the Table on Declarations by January 31 of the year. Annual declarations of anticipated activities for the succeeding year have to be filed in 5 forms by September 15 of the year. The above annual declarations have to be filed every year.
My unit produces a Schedule 2 chemical in quantities exceeding the declaration threshold. I have never filed a declaration what should I do?
As a declarable Schedule 2 facility, you shall first file an initial declaration in 8 forms immediately. Thereafter, every year you are required to file annual declarations twice a year. Annual declarations for activities of the preceding year have to be filed in 8 forms by January 31 each year. Annual declarations of anticipated activities for the succeeding year are to be filed in 5 forms by September 15 of the year.
Our chemical unit consumes a Schedule 3 chemical. It does not produce a Schedule 3 chemical and is also not engaged in its import or export. Do I have to file a declaration?
Your unit is not required to file a declaration. Schedule 3 units are required to file declarations only if they produce, export or import Schedule 3 chemicals.
We have filed annual declarations as a Schedule 2 unit for the last 3 years. However, from the year 2007 onwards, we have discontinued all activities relating to Schedule 2 chemicals. Do we still have to file declarations? Please explain.
Since you have filed annual declarations, you are a recognized Schedule 2 facility. Once you have discontinued all Schedule 2 activities including production, processing, consumption, exports or imports then you have to make an application for derecognition and discharge from the obligations of filing declaration to the Department of Chemicals & Petrochemicals of the Government of India. Such derecognition and discharge shall take place only 3 years after the stoppage of Schedule 2 activities. A letter to this effect shall be issued by the Department of Chemicals & Petrochemicals. Till such time as this is done, you will have to continue to file `Nil’ activity declaration.
What is the difference between initial and annual declarations?
Initial declarations are required to be filed by units that are submitting declarations for the first time. Once the initial declarations have been filed then annual declarations have to be made. Certain forms like Form 2.0, 3.0, 4.0 and 5.0 apply only to initial declarations.
Do all Schedule 2 and Schedule 3 units have to file annual declarations twice a year?
Schedule 2 and Schedule 3 units that have activities which are more than declaration thresholds have to file annual declarations twice a year, both for past as well as anticipated activities. However, Schedule 2 and Schedule 3 activities which have activities below declaration thresholds have to file declarations as other Schedule 2 and Schedule 3 activities only once a year.
Our chemical unit produces a Schedule 3 chemical below threshold limit. When and how do we have to file the declarations?
Your category is that of an other Schedule 3 unit. If you are filing declarations for the first time then initial declaration has to be filed in 4 forms immediately. Thereafter, annual declarations of the activities of the preceding year have to be filed in 3 forms every year by 31st January of the year.
I am a non manufacturing importer of a Schedule 3 chemical. What are the regulations regarding such imports and what are my declaration obligations?
Under the Declaration Scheme, you are first required to file an initial declaration in 2 forms viz. 5.0 and 5.1. Thereafter, you are required to file annual declarations in Form 5.1 for imports of the preceding year by 31st January of the year.
I am a non manufacturing exporter of a Schedule 2 chemical. What are the regulations and what are my declaration obligations?
Export of Schedule 2 chemicals to non State Parties are prohibited. For export of Schedule 2 chemical to State Parties, a general permission for 2 years at a time has to be obtained from the DGFT. For each export of the Schedule 2 chemical, the disclosure requirements of the concerned DGFT notification have to be met. As an exporter of Schedule 2 chemical, you are required to file initial declaration in Forms 5.0 and 5.1. Thereafter, you are required to file annual declaration of exports of Schedule 2 chemicals in Form 5.1 by 31st January every year for the exports undertaken in the preceding calendar year.
I have a unit that produces some organic chemicals. But they are not Schedule 2 or Schedule 3 chemicals. What is the status of my unit under the CWC Act and do I have to file any declaration?
If your unit produces organic chemicals which are not Schedule 2 or Schedule 3 chemicals, you have to first determine whether your unit is an OCPF facility which means a DOC or PSF facility. If the organic chemicals are oxides of carbon, carbon sulphide, metal carbonates, hydrocarbon, oligomers or polymers then your unit is not an OCPF facility. In all other cases, it shall be an OCPF facility. If any organic chemical has one of the elements, sulphur phosphorous or fluorine then it will be a PSF facility. Otherwise, it will be a DOC facility. Declarations will require to be filed if the annual production of all organic chemicals is more than 200 metric tones in case of DOC facility and 30 metric tones in case of PSF facility. Initial declaration is required to be filed in Form 4.0 and 4.1. Thereafter, annual declarations have to be filed in Form 4.1 every year by January 31 for the activities of the preceding year.
We have submitted Form 4.0 and 4.1 as an OCPF unit in the year 2006. What further do we have to do?
You are required to submit annual declarations as an OCPF facility every year in Form 4.1 by 31st January of the year for the activities of the preceding year.
We have submitted Form 4.1 for the last 3 years as an OCPF unit. But now we have stopped producing organic chemicals. What is our status now and do we have to continue to file declarations?
You are a recognized OCPF facility. Once you have stopped producing the organic chemicals permanently then you have to apply to the Department of Chemicals & Petrochemicals for derecognition and discharge from the obligation of filing declarations. The Department of Chemicals & Petrochemicals shall issue an Order in this regard after scrutiny. Till such time this Order is issued, you have to continue to file annual declarations in Form 4.1 even if the activities are recorded as `Nil’ activity.
Where are the declarations to be submitted?
All declarations including initial and annual declarations by declarable Schedule 2 and Schedule 3 facilities, other Schedule 2 and Schedule 3 facilities and exporters and importers of scheduled chemicals are required to submit their declarations to the Department of Chemicals & Petrochemicals of the Ministry of Chemicals and Fertilizers of the Government of India. Their complete address is as follows:-
The Industrial Adviser
CWC Cell
Department of Chemicals & Petrochemicals
Government of India
Ministry of Chemicals and Fertilizers
Shastri Bhawan
New Delhi 110 001
Phone: 2338 4206
Fax: 2338 6047
How many times does the inspection team from the OPCW inspect the chemical industrial units under the Convention?
A Schedule 2 or Schedule 3 unit or an OCPF unit is liable to be inspected only if its activities are more than the threshold activities for inspection. A declared Schedule 2 unit is submitted to an initial inspection within approximately one year of the filing of the initial declaration with the OPCW. Repeat inspections take place taking into account the risk assessment of the unit and ordinarily repeat inspections are not likely to be more than thrice in a 10 year time frame. In case of Schedule 3 units and OCPF units, the inspections are decided on the basis of random selection using an algorithm, which takes into account the various technical and other parameters as laid down in the Convention. Inspection of a Schedule 3 unit is unlikely to be more than once in a 5-year time frame and in case of an OCPF facility, it is unlikely to be more than once in a 10 year time frame.