Decision 71/50

Based on the report from the facilitator of the Sub-group on the Production Sector the Executive Committee decided:

1. To note the modification of China’s CFC production sector phase-out plan to permit exemptions for the production of CFCs for essential uses approved for other parties for 2014 as contained in document UNEP/OzL.Pro/ExCom/71/SGP/5;
2. To modify the CFC production sector Agreement for China to allow the production for export of pharmaceutical-grade CFCs in 2014, with an annual review, for purposes of meeting the 2014 essential use exemption for metered-dose inhalers (MDIs) authorized by the Parties in decision XXV/2 for the other countries, provided that the exporting country had reporting and verification systems in place and that the reporting and verification systems collected and reported on the following information:
   1. Documents from 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 MDI-producing countries that ordered pharmaceutical-grade CFCs and the essential production authorized;
   4. Raw materials consumed for the 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;
   10. Audit reports verifying all the above;
3. To request the World Bank, as the implementing agency for the CFC production phase‑out plan for China, to provide its services in carrying out the verification/audit and to submit reports to the Executive Committee on behalf of China on the understanding that:
   1. The World Bank verified that the producer had access to destroy the excess CFCs 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; and
4. That:
   1. The 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; and
   3. The Executive Committee would consider application of the penalty clause to any CFC production determined as being excessive by the verification reports.