Chinese Environmental Law For Foreign Invested Enterprises

Chinese Environmental Law For Foreign Invested Enterprises

Chinese foreign investment law requires the​ issuance of​ an​ Environmental Impact Assessment (EIA) in​ before many types of​ projects are commenced,particularly construction and renovation projects (this requirement applies to​ both new and existing enterprises). the​ EIA is​ used to​ evaluate whether proper and effective protective measures have been taken with respect to​ the​ project’s potential environmental impact. the​ trend in​ China is​ towards stricter environmental standards and more consistent enforcement.

Since certain Foreign Invested Enterprises may be exempted from the​ EIA,​ it​ would be wise to​ submit a​ brief but thorough environment impact self-assessment in​ the​ feasibility study report,​ addressing the​ following issues:

* Raw materials and chemicals stored or​ in​ use
* Technical aspects of​ the​ production process
* Types and discharged volume of​ pollutants,​ including sewage,​ solid wastes and atmospheric emissions
* Discharge of​ liquid waste (sewage),​ and volume and concentration of​ key parameters
* Measures for prevention and control of​ environmental impact.

In the​ event that an​ Environmental Impact Assessment is​ nevertheless deemed necessary,​ its scope will be decided by the​ Environmental Protection Bureau at​ the​ level of​ government (township,​ local,​ provincial,​ national) that supervises your project,​ but will likely be more extensive. in​ general,​ an​ Environmental Impact Assessment must cover water pollution (sewage),​ atmospheric pollution,​ solid wastes discharge and noise pollution. If,​ for example,​ only one type of​ atmospheric pollutant is​ assessed likely to​ pose environmental problems,​ the​ scope of​ the​ Environmental Impact Assessment may focus only on​ this type of​ pollutant. if​ pollutants must be discharged,​ a​ permit will often be required. Failure to​ obtain an​ approved EIA and the​ necessary permits can result in​ various penalties including the​ shut-down of​ your project.

Although the​ time taken to​ complete an​ Environmental Impact Assessment depends on​ its scope,​ it​ usually takes 2-3 months. There is​ no fixed tariff system for Environmental Impact Assessment reports,​ but the​ regulations provide for 5 fee-based components: research,​ supervised sampling,​ laboratory experiments,​ testing,​ evaluation and reporting.

Cleaning Up - if​ you are purchasing a​ site with existing environmental contamination,​ be aware that the​ Chinese law usually attributes liability for clean-up to​ the​ party that caused the​ contamination. However,​ the​ environmental regulatory regime is​ rapidly developing,​ and future regulations may require current Land Use Rights holders or​ occupants to​ clean up environmental contamination. Accordingly,​ due diligence should include a​ thorough environmental survey before land use rights are acquired.

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