Web alert: New coal quality standards now in force for China (1)

The People’s Republic of China (PRC) has enacted a new legislation designed to reduce the level of pollution connected with the importation of coal. The ‘Provisional Measures on Quality Management of Commercial Coal’ (also known as Provisional Measures) which came into force from 01 Jan 2015 will likely be exerting a direct effect on any Standard Club member who is employed in the coal trade to the PRC.

The requirement for coal to meet higher standards has caused a significant reduction in the coal import figures for the PRC and has caused, in some cases, the rejection of some coal cargoes by local officials due to the coal not meeting the requirements of the ‘Provisional Measures’ rules. The Provisional Measures rules govern the levels of lignite, sulphur content, mercury content and other harmful substances found in coal. Any coal not meeting the required level will not be cleared for import, sale or transport for a long domestic distance.

For full details of the requirements for coal imports to China, please see the helpful circular number PNI1504 (attached on the right) produced by the Huatai Insurance Agency & Consultant Service Ltd, which gives specific details regarding the chemical composition of acceptable coals and the points to consider when introducing clauses into the charter party.