Basic information
Outline of the system
HFCs are, together with perfluorocarbons (PFCs) and sulphur hexafluoride (SF6), a fluorinated greenhouse gas (F-gas). F-gases are powerful greenhouse gases, with a global warming effect up to 23,000 times greater than carbon dioxide (CO2). HFCs are the most relevant F-gases from a climate perspective. As a signatory of the Kigali Amendment to the Montreal Protocol, the UK is committed to reduce our consumption of HFCs and to licence and report on them annually. Reducing emissions from F-gases is a part of UK's effort to implement the Paris Agreement under the United Nations Framework Convention on Climate Change and achieve net zero greenhouse gas emissions by 2050. Companies must have a prior valid licence registration to import and export F-gases. Further, for import of bulk hydrofluorocarbons (HFCs) it is a requirement that the quantity of HFCs placed on the market (e.g., import released for free circulation) are covered by quota on an annual basis. Importers and exporters of HFCs to and from Great Britain must register with the Environment Agency in the Great Britain quota system. Importers and exporters to and from Northern Ireland must register with the European Commission in the European Union quota system.
In addition, importers placing on the market refrigeration, air conditioning and heat pump equipment charged with HFCs must also be registered and the quantities of HFCs must be accounted for within the quota system at the time of import. This must be documented, and a declaration of conformity must be drawn up in this respect.
Also, the placing on the market of certain products and equipment containing F-gases with a certain global warming potential are prohibited and the placing on the market of non-refillable containers of fluorinated gases is forbidden. Equipment, products, and containers with F-gases must be labelled appropriately. F-gases and HFC guidance is available at https://www.gov.uk/government/collections/fluorinated-gas-f-gas-guidance....
The replies below focus on the procedures in place for import of bulk HFCs and HFCs imported in refrigeration, air conditioning and heat pump equipment pre-charged with HFCs. Under the Northern Ireland Protocol, EU Regulation No 517/2014 on Fluorinated greenhouse gases is directly applicable in Northern Ireland. For further information on the procedures in place in Northern Ireland, please refer to the questionnaire on import licensing procedures for the European Union, Fluorinated gases including hydrofluorocarbons (HFCs).
The F-gas registration, quota and reporting service implements the requirements related to HFCs under the Montreal Protocol on the substances that deplete the ozone layer, and in particular its Kigali Amendment that added HFCs to the list of controlled substances and agreed to a global phasedown of production and consumption of HFCs and required the implementation of a licensing system for import and export of HFCs.
Product coverage
HFC's listed in Annex I, Section 1, of the F-gas Regulation (Bulk Gases);
Pre-charged equipment: Air-conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated (pre-charged with HFCs);
Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air-conditioning machines of heading 8415 (pre-charged with HFCs).
Please also see Products "Fluorinated gases including hydrofluorocarbons (HFCs)"
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Non-Automatic licensing to protect human, animal or plant life and health; protect environment; Collect trade statistics or market surveillance; Protection of patents, trademarks and copyrights, and the prevention of deceptive practices; Pursue obligations under the UN Charter and other international treaties (i.e. CITES, Basel Convention, Rotterdam Convention, UNSC Resolutions etc.) and Quota (including TRQ) administration
Products under restriction as to the quantity or value of imports
Undertakings can be United Kingdom (UK) and non-UK organisations. Non-UK undertakings must nominate an Only Representative established in the United Kingdom for the purpose of compliance with the requirements of the F-gas Regulation in Great Britain. Undertakings not based in Northern Ireland or the European Union must establish an Only representative in Northern Ireland or the European Union for the purpose of compliance with the F-gas Regulation in Northern Ireland.
Questions for products under restriction as to the quantity or value of imports
The following responses relate to the import and export of F-gases (including HFCs) in Great Britain. For further information for Northern Ireland, please refer to the questionnaire on import licensing procedures for the European Union.
Guidance on procedures for quota allocation and licences can be found on: https://www.gov.uk/government/collections/fluorinated-gas-f-gas-guidance...
Article 15, a, b & c of the F-gas Regulation establishes the quota requirements regarding bulk HFCs.
The quota requirement does not apply to quantities of less than 100 tonnes of CO2 equivalent of HFC per year and also not to the following categories of HFCs:
a) imported for destruction;
b) used by a producer as feedstock;
c) supplied directly by a producer or an importer to undertakings, for export where those HFCs are not subsequently made available to any other party to export;
d) supplied directly by a producer or an importer for use in military equipment;
e) supplied directly by a producer or an importer to an undertaking using it for the etching of semiconductor material or the cleaning of chemicals vapour deposition chambers within the semiconductor manufacturing sector;
f) supplied directly by a producer or an importer to an undertaking producing metered dose inhalers for the delivery of pharmaceutical ingredients.
However, registration requirements remain for companies importing for the exempted uses listed above (except for the amounts <100t CO2).
Please see Answers 6.1-6.11.
The system applies to products originating from which country?
Only Members of the Montreal Protocol and Kigali Amendment.
Expected duration of licensing procedure
Ongoing
Legal requirements
Is the licensing statutorily required?
Legal basis:
Regulation (EU) 517/2014 as it applies in Great Britain as retained EU law, and as it applies in Northern Ireland directly.
The Ozone-Depleting Substances and Fluorinated Greenhouse Gases (Amendment etc.) (EU Exit) Regulations 2019
https://www.legislation.gov.uk/uksi/2019/583/contents/made
The Ozone-Depleting Substances and Fluorinated Greenhouse Gases (Amendment etc.) (EU Exit) Regulations 2020
https://www.legislation.gov.uk/ukdsi/2020/9780348213263/contents
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
Is it possible for the government to abolish the system without legislative approval?
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
Registration is compulsory for the following:
(a) producers and importers to which a quota for the placing on the market of hydrofluorocarbons has been allocated in accordance with Article 16(5);
(b) undertakings to which a quota is transferred in accordance with Article 18;
(c) producers and importers declaring their intention to submit a declaration pursuant to Article 16(2);
(d) producers and importers supplying, or undertakings in receipt of hydrofluorocarbons for the purposes listed in points (a) to (f) of the second subparagraph of Article 15(2);
(e) importers of equipment placing pre-charged equipment on the market where the hydrofluorocarbons contained in the equipment have not been placed on the market prior to the charging of that equipment in accordance with Article 14;
(f) any undertaking importing fluorinated gases needs to be registered before undertaking such activities in accordance with Article 19.
Companies intending to import in bulk or import refrigeration, air conditioning and heat pump equipment charged with HFCs can request registration (licence) in the registry. The detailed requirements for registrations are laid down in Regulation (EU) 517/2014 and, Implementing Regulation 2019/661 as they are retained in Great Britain and as they apply in Northern Ireland directly.
Articles 17 and 19 of Regulation (EU) 517/2014 imposes an obligation for actors in the HFCs market in Great Britain to register with the Environment Agency on the F-gas registration, quota and reporting service, and in Northern Ireland with the European Commission. In Great Britain, companies register by using webforms on GOV.UK and this information is stored in a spreadsheet operated by the Environment Agency. Only companies with a prior valid registration can import and export HFCs into and from Great Britain. For further information on the procedures in place in Northern Ireland, please refer to the questionnaire on import licensing procedures for the European Union, Fluorinated gases including hydrofluorocarbons (HFCs).
What persons or firms are eligible to apply for a licence?
An undertaking that constitutes a natural or legal person can request registration in the F-gas System. Undertakings registered to import HFCs in bulk can, after validation, apply for HFC quota.
Is there a registration fee?
This service is free of charge.
Is there a published list of authorized importers?
The list of companies with quota reference values is published on GOV.UK by the Environment Agency. For Northern Ireland, the European Union publishes the details of the quota holders.
Contact point for information on eligibility
Ministry/Authority
Environment Agency
Address
National Customer Contact Centre, PO Box 544, Rotherham, S60 1BY, UK
Telephone
+44 (0) 3708506506
Fax
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Environment Agency
Climate Change Trading and Regulatory Services, Rich Fairclough House, Knutsford Road, Warrington, Cheshire WA4 1HT
Documentation requirements
What information is required in applications?
The general information requirements for a registration licence is laid down in Regulation (EU) 517/2014 as it is retained in Great Britain and as it applies in Northern Ireland directly.
For undertakings established in the United Kingdom (UK)
a) name and legal form of the undertaking;
b) full address;
c) telephone number;
d) VAT number;
e) Economic Operators Registration and Identification (EORI) number;
f) the full name of one contact person;
g) a description of the undertaking's business activities;
h) written confirmation of the undertaking's intention to register in the registry signed by a beneficial owner or employee of the undertaking;
i) bank account details – and validated.
For undertakings established outside the UK and that have mandated a single representative as referred to in Article 16(5) of Regulation (EU) 517/2014 (the F-gas Regulation).
(a) the information listed in points (a), (b) and (c) above;
(b) the information listed in points (d), (e) and (i) above, but with respect to the Only Representative rather than the undertaking;
(c) the full name of one contact who satisfies the conditions in points f) (i) and (ii) above, and an individual electronic address used for professional purposes by that person;
(d) an electronic address for the Only Representative;
(e) a description of the undertaking's business activities;
(f) the written confirmation listed in point (h) above but signed additionally by a beneficial owner or employee of the only representative.
What documents is the importer required to supply with the application?
Window of submission of an application
How far in advance of importation must application for a licence be made?
Not applicable.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Not applicable.
Issuing the license
Can a licence be granted immediately on request?
Not applicable.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Not applicable.
Which administrative body is responsible for approving application of licences?
Not applicable.
Must the applications be passed on to other organs for visa, note or approval?
Not applicable.
Are there any other conditions attached to the issue of a licence?
Not applicable.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
Any undertaking which is defined as natural or legal person can register on the F-gas registration, quota and reporting service after verification.
What is the amount of the fee or charge?
This service is free of charge.
Is there any deposit or advance payment required associated with the issue of licences?
No deposit or advanced payment is required.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
Companies that meet the ordinary criteria set out in Regulation (EU) 517/2014 and are registered. The Environment Agency may refuse, suspend or cancel a registration if the criteria are not fulfilled.
Are the reasons for any refusal given to applicants?
Incomplete applications or incorrect information supplied to the Environment Agency would result in an inability to register an organisation and applicant would be advised as necessary.
Have applicants a right of appeal in the event of refusal to issue a licence?
There is no right of appeal set out in legislation.
If so, to what bodies and under what procedures?
Applicants can complain against the decision to the EA.
Importation
Are there any limitations as to the period of year during which importation may be made?
Not applicable.
What documents are required upon actual importation?
Upon importation of bulk HFCs no additional documents are required. Upon importation of refrigeration, air conditioning and heat pump equipment charged with HFCs, a declaration of conformity is required from equipment importers.
Article 14 of the F-gas Regulation establishes the requirements related to the placing on the market of refrigeration, air conditioning and heat pump equipment charged with HFCs inter alia the link to the quota system and the declaration of conformity to this end. These conditions apply to all placing on the market, including for imported equipment released for free circulation. The purpose of this provision is to safeguard the environmental integrity of the phase-down of bulk HFCs.
Normal customs procedures apply.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Not applicable.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
Registration licence is valid until cancelled by the Environment Agency (or European Commission in respect of Northern Ireland) or the company. Bulk quotas are valid only for the year for which they are allocated.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for unused licences or quota. Undertakings that have exceeded their quota are allocated a reduced quota allocation for the allocation period after the excess has been detected. The amount of reduction is calculated as 200 % of the amount by which the quota was exceeded.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
According to Article 18 of Regulation (EU) 517/2014 bulk quota allocated can be transferred to other bulk importers or producers. Only the part of quota based on reference values can be transferred. The part based on declarations cannot be transferred. This is to prevent declarations for quota with the sole purpose of selling the quota.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Not applicable.
Is a licence required as a condition to obtaining foreign exchange?
Not applicable.
Is foreign exchange always available to cover licences issued?
Not applicable.
What formalities must be fulfilled for obtaining the foreign exchange?
Not applicable.
The following questions are only for products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally)
Where is information on allocation and formalities for licences published? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Reference values for the quota allocation are calculated every 3 years and the quota updated annually based on any requests for additional quota. The names of the undertakings with a quota reference value are publicly available, by request to the Environment Agency, whereas the values are commercially confidential.
Each year (usually in June) the Environment Agency publishes guidance on GOV.UK about the annual quota procedure for the following year. The notice informs about the relevant details of the quota application process including the deadlines. The Environment Agency updates guidance on quota applications and allocations annually, with the quota window usually opening around 30 June and closes on 31 August every year. The Environment Agency will calculate the quotas of applicants by the end of October.
Companies report on quantities imported and exported by 31 March in the year following the activity. Companies report to the Environment Agency using reporting forms on GOV.UK. The reporting format is specified in Regulation (EU) 517/2014 as it is retained in Great Britain and as it applies in Northern Ireland directly.
Is the size of the quota determined: on yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for a fresh licence on a six-monthly or quarterly basis?
Quota is issued on a yearly basis. It is based on the account amounts of HFC each company has historically placed on the market (tri-annual reference values) since 2015 and annual declarations made regarding the intention to place additional HFCs on the market. The quotas are calculated in accordance with the phase-down schedule in Annex V Regulation (EU) 517/2014 Regulation and by applying an allocation mechanism laid down in Annex VI to Regulation (EU) 517/2014 (the F-gas Regulation).
Undertakings that have not historically placed HFCs on the market ("new entrants") may apply for quota from the new entrant reserve (11% of the total quota allocation) by registering with the Environment Agency on the F-gas registration, quota and reporting service and declaring their intention to place HFCs on the market the following year. New entrant quota is allocated pro rata between all eligible applicants. After 3 years, new entrants are allocated a reference value and become incumbent quota holders.
Pursuant to Article 16 of the F-gas Regulation, the quotas of HFCs are allocated to the undertakings annually by the Environment Agency based on a system that takes into account amounts historically placed on the market by certain companies and declarations made by any undertaking intending to place HFCs on the market. The phase-down steps are defined in accordance with Annex V of the F-gas Regulation and the mechanism to calculate the size of the quotas is laid down in Annex VI.
Are licences allocated for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate)
Unused quota is valid only for the year, it is allocated and can only be used for either import or production. Quota can be transferred to another bulk quota holder, authorised to an equipment importer, and subsequently delegated to further equipment importers. The names of the undertakings with a quota are publicly available, by request to the Environment Agency, whereas the values are commercially confidential.
From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
The validity of the registration on the F-gas registration, quota and reporting service is in principle time unlimited. The timeframe for the registration can vary depending on information provided by the company but is usually completed within 20 working days if the provided information is accurate and complete. Companies must be registered before they can get a quota.
What are the minimum and maximum lengths of time for processing applications?
Min and max length of registry requests – one day to a few months – depending on completeness and accurateness of information provided. Registration in the F-gas registration, quota and reporting service can happen all year long. Applications for quota can only be made during a declaration period to be determined annually by the Environment Agency and published in a notice on GOV.UK each year.
How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Import may only occur when a company has enough quota after having been registered to import. Hence, it is the annual quota allocation cycle that is decisive. Usually, the declaration deadline is in June/July in the year preceding the year where the quota is becoming valid.
Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
The Environment Agency is the single administrative organisation involved in the process.
If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Quota is allocated based on historic amounts placed on the market (tri-annual reference value) since 2015 and annual declarations on the intention to place on the market. For undertakings that have not historically placed HFCs on the market ("new entrants"), quota is allocated on a pro rata basis. See Article 16 and Annex VI of the F-gas Regulation.
In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Not applicable
In cases where imports are allocated on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Not applicable
Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Not applicable