TAIWAN'S EPA NARROWS SCOPE OF DRAFT PACKAGING

UNCLAS SECTION 01 OF 02 TAIPEI 003242 SIPDIS STATE FOR EAP/RSP/TC AND OES/IHA STATE PLEASE PASS TO AIT/W, USEPA AND USTR USTR FOR KI, USEPA FOR OIA/THOMPSON USDOC FOR 4431/ITA/MAC/AP/OPB/TAIWAN/MBMORGAN USDOC FOR 3132/USFCS/OIO/EAP/ABACHER/ADESARRAN USDA/FAS/ITP/MEYER, FARINA USDA FAS FOR ITP/AAD USDA FAS FOR CMP/GFD, COTS E.O. 12958: N/A TAGS: ECON SENV TW ESTH SUBJECT: TAIWAN'S EPA NARROWS SCOPE OF DRAFT PACKAGING RULE; AIT PROMOTES BIOPLASTICS AND BIOFUELS A) TAIPEI 03145 B) TAIPEI 02673 C) TAIPEI 03180 ¶1. Summary. In July 2004, Taiwan's Environmental Protection Administration (TEPA) introduced a draft rule to limit excessive packaging. In response to industry opposition to the rule, TEPA issued a second revised draft of the rule on October 12. The second draft is much narrower in scope than the original. Instead of covering a wide variety of products, the revised rule primarily focuses on limiting the packaging of computer software and gifts. While TEPA initially planned on closing the comment period in October, AIT persuaded TEPA to extend the comment period through the end of November. When meeting with TEPA, AIT AGOFF also urged EPA to support the increased use of environmentally friendly technologies such as bioplastics, biofuels and soy ink. End Summary. Background -------------- ¶2. As reported in Refs A and B, TEPA is eager to pass regulations to reduce excessive packaging of goods in order to reduce waste and move Taiwan towards its ultimate goal of complete recycling and zero waste by 2020. Initially TEPA was hoping to pass the rule by September 2004. However, in part due to the strong negative reaction of foreign industry reported in reftel B, TEPA has redrafted the rule and postponed its time-line for implementation. Second Draft Narrows Scope -------------- ¶3. The new draft of the rule has significantly narrowed the scope of the rule. Now, instead of ultimately applying to all confectionary items, cosmetics, optical disks, alcohol products and processed foods, the rule only applies to computer software and gift-packaged confectionary items, cosmetics, optical disks and processed foods. Under the second draft, non-gift packaged confectionary items, cosmetics, optical disks and processed foods would no longer be subject to regulation. TEPA Extends Comment Period -------------- ¶4. Econ, Ag and Commercial Officers met with Yang Ching- shi, Deputy Director General of the Department of Waste Management on October 15. While Yang initially planned on closing the comment period within a week or two, the AIT delegation persuaded Yang to allow foreign business interests to submit comments through the end of November, and then to send the draft rule to the WTO for comment. AIT also persuaded TEPA to include an English translation of the rule on its web site by Friday October 22. Yang estimated that the rule would only be promulgated by early 2005 at the soonest. AIT has notified the American Chamber of Commerce of the new draft and of the November deadline for comment. AIT Promotes Bioplastics and Biofuels -------------- ¶5. AIT AGOFF took the opportunity to also promote the use of bioplastics and biofuels, both of which have strong environmental benefits and could significantly increase the demand for U.S. soybeans and corn (Ref C). AGOFF noted USDA and USEPA joint interest in sending an AIT delegation to Taipei to provide technical assistance with respect to bioplastics and biofuels. AGOFF also urged TEPA to support the removal of a 2.5 percent import duty on corn-based polylactic acid (PLA),which has negatively impacted the competitiveness of bioplastics. Yang appeared interested in hosting an AIT delegation on bioplastics and biofuels. Yang also stated he supported the principle of eliminating the import duty on PLA, but noted TEPA has no authority with regard to issues of taxation. AIT/AGR is currently drafting a letter to TECRO requesting the removal of the PLA duty. Paal