April 2024
Teresa Huang and Vincent Kuo
The Regulations on the Levy of Marine Dumping Fee were enacted and came into effect in 2003. In 2023, in response to the significant impact of major marine pollution incidents on the local environment, ecology, and industries, Article 11 of the Marine Pollution Control Act (hereinafter “the MPCA”) were amended, stipulating that the Ocean Affairs Council shall levy Marine Pollution Control Fee (hereinafter “the Fee”) from: (1) operators permitted by the Ocean Affairs Council for marine dumping; (2) importers receiving or transporting crude oil or other substances designated by the Ocean Affairs Council within the intertidal zones, internal waters or territorial water of Taiwan; (3) operators of maritime projects or users of marine facilities up to the scale announced by the Ocean Affairs Council, which makes the entities responsible for possibilities of marine pollution bear the obligations for restoration and remediation. The Regulations on the Levy of Marine Dumping Fee were subsequently amended in accordance with Article 11, Paragraph 2 of the MPCA and renamed as the Regulations on the Levy of Marine Pollution Control Fee (hereinafter “the Regulations”). Detailed provisions are made regarding the legal basis of levying, the entities to be levied on, the items to be levied, the rate of the levy, the calculation formulas of the levy and other matters to be observed. The Regulations came into effect on February 17, 2024. The following is the key points of the Regulations after this amendment:
1. For those falling into the aforementioned category (1):
The Ocean Affairs Council levies the Fee on operators permitted by it to dump Type B(乙類) and Type C(丙類) dredged sediments in the ocean. The categories and quantities of the dumped substances are determined by the contents of declaration to the Ocean Affairs Council by the obligor (i.e. the entity be obliged to pay the Fee) during the payment period. However, if the obligor fails to submit the entry and exit data of the marine dumping vessel to the Ocean Affairs Council, the quantities of the dumped substances shall be calculated based on the sludge tank capacity and the corresponding voyages listed on the licenses. The rates of the Fee are NTD70 per cubic meter for Type B dredged sediments and NTD40 per cubic meter for Type C dredged sediments.
2. For those falling into the aforementioned category (2):
The Ocean Affairs Council levies the Fee on importers receiving or transporting crude oil within the intertidal zones, internal waters or territorial water of Taiwan. The rate of the Fee is NTD5 per kiloliter. The obligor is required to submit all the information listed on the import declaration forms during the payment period for the calculation of crude oil quantity.
3. Administrative Execution is Applicable in the Event of Overdue Payment of the Fee:
Before the amendment, the Regulations stipulated that the Ocean Affairs Council could only revoke the permission for marine dumping for obligors who had not made the payment within the payment period of ninety days. After the amendment, the Ocean Affairs Council may initiate administrative execution proceeding against the obligor for overdue payment of the Fee.
4. When the Coverage of Liability Insurance Purchased by the Obligor Exceeds the Maximum Compensation Liability Determined by the Ocean Affairs Council, it may be Used to Reduce the Payable Fees:
According to Article 15 of the MPCA, the obligors in categories (1) and (2) above must submit a financial guarantee or liability insurance policy, and the amount of the letter of financial guarantee or the maximum compensation liability of the liability insurance policy are determined and announced by the Ocean Affairs Council in consultation with the Financial Supervisory Commission. After the amendment, if the coverage of liability insurance purchased by the obligor exceeds the maximum compensation liability announced by the Ocean Affairs Council, the difference could be applied to request a reduction of the payable amount of the Fee. However, the amount of reduction shall not exceed five percent of the payable amount of the Fee.
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