Decision 60/47

Following consideration of the recommendations in the report of the Sub-group on the Production Sector, the Executive Committee decided:

1. To note the paper on terms and conditions under which the existing CFC production Agreements with China and India and associated accelerated phase-out Agreements might be modified and the report on possible modifications to the terms of reference for the technical audit adopted at the 32^nd Meeting, as appropriate, to meet the audit needs of the production of HCFCs, both contained in document UNEP/OzL.Pro/ExCom/60/49;
2. To modify the production sector Agreements for China and India to allow the production for export of pharmaceutical-grade CFCs for 2010, with an annual review, for purposes of meeting essential use requirements of other countries provided that exporting countries had reporting and verification systems in place and that the reporting and verification systems collected and reported on the following information:
   1. Documents from metered-dose inhaler (MDI) manufacturers ordering pharmaceutical-grade CFCs;
   2. Approvals from importing country governments for purchasing essential use pharmaceutical-grade CFCs;
   3. Approvals received from governments of producing countries that order and the essential production authorized;
   4. Raw materials consumed for production run;
   5. Amount of pharmaceutical-grade CFC produced;
   6. Amount of non-pharmaceutical-grade CFC produced;
   7. Documentation (transport, storage, disposal) verifying that the amount of non‑pharmaceutical CFCs had been destroyed;
   8. Export documentation from producers;
   9. Invoices from MDI manufacturers; and
   10. Audit reports verifying all the above;
3. To request the World Bank, as the implementing agency for the CFC production phase‑out plans for China and India, to provide its services in carrying out the verification/audit and to submit reports to the Executive Committee on behalf of China and India on the understanding that:
   1. The World Bank verified that the producer had access to destroy the excess CFC produced using a destruction technique approved by the Parties;
   2. The cost of verification would be approved in advance of the audit by the Executive Committee;
4. That:
   1. The Fund Secretariat, on behalf of the Executive Committee, would seek confirmation from the importing country of the actual quantities imported by that country;
   2. The producing country agreed to limit the production of non-pharmaceutical specification grade CFCs to the extent possible and pay for their destruction;
   3. The Executive Committee would consider application of the penalty clause to any CFC production determined as being excessive by the verification reports; and
5. To adopt the terms of reference for the technical audit of HCFC production in Article 5 countries contained in Annex IX to [document UNEP/OzL.Pro/ExCom/60/54].