Act on Encouragement of Purchase of Environment-Friendly Products

ACT ON ENCOURAGEMENT OF PURCHASE OF ENVIRONMENT FRIENDLY PRODUCTS Act No. 7296, Dec. 31, 2004 Amended by Act No. 7796, Dec. 29, 2005 Act No. 8013, Sep. 27, 2006 Act No. No 8370, Apr. 11, 2007 Act No. No 8371, Apr. 11, 2007 Act No. 8852, Feb. 29, 2008 Act No. 8947, Mar. 21, 2008 Act No. 8957, Mar. 21, 2008 Act No. 9335, Jan. 7, 2009 Act No. 9584, Apr. 1, 2009 Act No. 9931, Jan. 13, 2010 Article 1 (Purpose) The purpose of this Act is to prevent waste of resources and environmental pollution, and contribute to sustainable development of the national economy by encouraging purchase of environment-friendly products. Article 2 (Definitions) The definitions of terms used in this Act shall be as follows: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 8947, Mar. 21, 2008; Act No. 9584, Apr. 1, 2009; Act No. 9931, Jan. 13, 2010> 1. The term "environment-friendly product" means products falling under any of the following items, which are designated as a green product under subparagraph 5 of Article 2 of the Framework Act on Low Carbon, Green Growth; (a) Products subject to certification of environmental marks under Article 17 (1) of the Development of and Support for Environmental Technology Act, which have obtained such certification, or products which meet certification standards by item, determined and publicly notified by the Minister of Environment under paragraph (3) of the same Article; (b) Products subject to quality certification of recycled products determined and publicly notified by the Minister of Knowledge Economy under Article 33 of the Act on the Promotion of Saving and Recycling of Resources and Article 15 of the Industrial Technology Innovation Promotion Act, which have obtained such certification or meet certification standards; (c) Other green products which meet determination standards by item, publicly notified by the Minister of Environment following the consultation with the Minister of Knowledge Economy. 2. The term "public institutions" means State agencies, local governments, public institutions designated under Articles 4 through 6 of the Act on the Management of Public Institutions and other institutions prescribed by Presidential Decree. Article 3 (Responsibilities to Encourage Purchase of Environment-Friendly Products) (1) The heads of public institutions shall actively promote formulation and implementation of plans, data surveys, education, publicity, training of human resources, etc. necessary to encourage purchase of environment-friendly products. (2) Business operators shall endeavor to produce environment-friendly products, improve the quality thereof and use environment-friendly materials or parts for environment-friendly products. (3) Nationals of the Republic of Korea shall endeavor to use environment-friendly products for environment-friendly consumption. Article 4 (Basic Plans for Encouraging Purchase of Environment-Friendly Products) (1) The Minister of Environment shall formulate basic plans (hereinafter referred to as "basic plan") for encouraging purchase of environment-friendly products, following consultation with the heads of the relevant central administrative agencies every five years, after undergoing deliberation by the Committee on Encouragement of Purchase of Environment-Friendly Products under Article 5. (2) Basic plans shall include the following matters: 1. Policy directions and promotion plans to encourage the purchase of environment-friendly products; 2. Items subject to environment-friendly products, determination standards and important matters on determination standards under each item of subparagraph 1 of Article 2; 3. Analysis of records of environment-friendly products purchased by public institutions and measures to increase such purchases; 4. Matters on international cooperation with regard to environment-friendly products; 5. Other matters recognized by the Minister of Environment as necessary to encourage the purchase of environment-friendly products. (3) The Minister of Environment may, if deemed necessary for formulation of basic plans, request the heads of the relevant public institutions to submit data. The heads of public institutions who are requested to provide data shall cooperate with such requests, unless any special ground exist to the contrary to the contrary. (4) The provisions of paragraphs (1) and (3) shall apply mutatis mutandis to changes in basic plans already formulated. Article 5 (Committee on Encouragement of Purchase of Environment-Friendly Products) (1) The Committee on Encouragement of Purchase of Environment-Friendly Products (hereinafter referred to as the "Committee") shall be established under the control of the Minister of Environment, in order to deliberate on important matters on encouragement of purchase of environment-friendly products. (2) The Committee shall deliberate on the following matters: 1. Matters on the formulation and change of basic plans; 2. Matters on the establishment of guidelines for the purchase of environment-friendly products under Article 7; 3. Other matters recognized by the Minister of Environment as necessary to encourage the purchase of environment-friendly products. (3) The President of the Committee shall be the Vice-Minister of Environment and members falling under any of the following subparagraphs shall be appointed or commissioned by the Minister of Environment. <Amended by Act No. 7796, Dec. 29, 2005> 1. Three or less experts in environment-friendly products; 2. Five or less producers and consumers of environment-friendly products or representatives of civil groups; 3. Deleted. <by Act No. 9335, Jan. 7, 2009> 4. Five or less public officials of Grade III in the Ministries related to environment-friendly products or public officials in general service belonging to the Senior Civil Service; 5. One public official of Grade III in the Ministry of Environment or a public official in general service belonging to the Senior Civil Service. (4) Necessary matters concerning the composition, operation, etc. of the Committee shall be prescribed by Presidential Decree. Article 6 (Public Institutions’ Obligation to Purchase Environment-Friendly Products) The heads of public institutions shall purchase environment-friendly products, when they intend to purchase any product: Provided, That this shall not apply in cases falling under any of the following subparagraphs: 1. When no environment-friendly products are available for the item intended to be purchased; 2. When the stable supply of environment-friendly products is impossible; 3. When it is difficult to achieve the purposes of purchasing products, due to grounds, such as substantially deteriorated quality of environment-friendly products; 4. When the heads of public institutions intend to purchase products, other than environment friendly products, so as to comply with provisions of the preferential purchase under other Acts, such as the Welfare of Disabled Persons Act, etc.; 5. When the heads of public institutions conclude that it is difficult to purchase environment-friendly products, due to unavoidable reasons, such as urgent demand, etc. Article 7 (Guidelines for Purchase of Environment-Friendly Products) The Minister of Environment shall establish guidelines for the purchase of environment-friendly products for the coming year, as prescribed by Presidential Decree, annually, and notify the heads of public institutions of such guidelines. Article 8 (Implementation Plans for Purchasing Environment-Friendly Products) (1) The heads of public institutions shall formulate and proclaim implementation plans for purchasing environment-friendly products (hereinafter referred to as "implementation plan") for the relevant fiscal year in accordance with guidelines for purchase under Article 7 before each fiscal year begins. (2) The heads of public institutions shall, when they formulate and proclaim implementation plans, submit such plans to the Minister of Environment without delay: Provided, That the head of a Si/Gun/Gu (referring to the head of an autonomous Gu hereinafter the same shall apply) shall submit implementation plans to the Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor (hereinafter referred to as the "Mayor/Do Governor"), and the Mayor/Do Governor shall integrate implementation plans of each Si/Gun/Gu (referring to an autonomous Gu hereinafter the same shall apply) and submit such plans. Article 9 (Purchase Records of Environment-Friendly Products) (1) The heads of public institutions shall aggregate purchase records of environment-friendly products under implementation plans and announce purchase records within two months after each fiscal year ends. <Amended by Act No. 8947, Mar. 21, 2008> (2) The heads of public institutions shall, when they aggregate and announce purchase records under paragraph (1), submit such records to the Minister of Environment, without delay: Provided, That the head of each Si/Gun/Gu shall submit purchase records to the Mayor/Do Governor, and the Mayor/Do Governor shall integrate purchase records of each Si/Gun/Gu and submit such records. Article 10 (Request for Cooperation to Encourage Purchase of Environment-Friendly Products) If deemed necessary to encourage the purchase of environment-friendly products, the Minister of Environment may request heads of the relevant public institutions to take necessary measures concerning matters falling under each subparagraph. In such cases, the heads of public institutions shall cooperate with such requests, unless any special ground exists to the contrary: 1. Reflection of applicable provisions for the use of environment-friendly products in construction specifications, etc.; 2. Reflection of purchase records of environment-friendly products in items for performance assessment of central administrative agencies or local governments; 3. Other matters necessary for encouraging the purchase of environment-friendly products. Article 11(Encouragement of Purchase of Environment-Friendly Products by Local Governments) (1) The Special Metropolitan City, Metropolitan Cities and Dos (hereinafter referred to as "City/Do) or each Si/Gun/Gu may, if deemed necessary for encouraging the purchase of environment-friendly products, prescribe the following matters as Municipal Ordinances and implement such Municipal Ordinances: 1. Matters necessary for fulfilling obligations to purchase environment-friendly products under Article 6; 2. Establishment and application of standards for determining whether items other than those subject to environment-friendly products are environment-friendly products; 3. Other matters necessary for encouraging the purchase of environment-friendly products. (2) Each City/Do or Si/Gun/Gu shall, when it establishes or amends Municipal Ordinances under paragraph (1), submit such Municipal Ordinances to the Minister of Environment, without delay. Article 12 (Roles of Administrator of Public Procurement Service) (1) When products requested to purchase by the heads of public institutions can be replaced with environment-friendly products, the Administrator of the Public Procurement Service shall adjust purchase plans to ensure that the public institutions purchase environment-friendly products, following the consultation with the heads of public institutions. (2) The Minister of Environment and heads of the relevant central administrative agencies may request the Administrator of the Public Procurement Service to take necessary measures to encourage the purchase of environment-friendly products, such as expanding the foundation for the electronic procurement of environment-friendly products, designating environment-friendly products as exemplary procurement goods, etc. Article 13 Deleted. <by Act No. 9335, Jan. 7, 2009> Article 14 (Request for Information on Environment-Friendly Products) (1) The Minister of Environment may request heads of public institutions to submit data on selection of items subject to environment-friendly products or establishment of determination standards for environment-friendly products. (2) The heads of public institutions who are requested to provide data under paragraph (1), shall cooperate with such request, unless any special ground exists to the contrary. Article 14-2 (Establishment and Operation of Data Management System of Environment-Friendly Products) (1) The Government shall be equipped with a comprehensive data distribution system (hereinafter referred to as "data management system") for production, distribution, quality, safety and environment friendliness of environment-friendly products and take measures necessary for encouraging the purchase of environment-friendly products. (2) The submission of implementation plans and purchase records under Article 9 may be substituted with the transmission of such plans and purchase records via the data management system. [This Article Newly Inserted by Act No. 8947, Mar. 21, 2008] Article 15 (Support for Encouragement of Purchase of Environment-Friendly Products) (1) The Government may lend each of the following support to business operators and the relevant organizations which contribute to encouraging the purchase of environment-friendly products: 1. Provision of data to encourage the purchase of environment-friendly products; 2. Support for fostering specialists to encourage the purchase of environment-friendly products; 3. Support for sales of environment-friendly products in Korea and foreign countries; 4. Support for obtaining certification concerning environment-friendly products in Korea and foreign countries; 5. Other support necessary to encourage the purchase of environment-friendly products. (2) The Government may grant rewards to public institutions, business operators, relevant organizations, etc. which have excellent purchase records of environment-friendly products or have contributed to encouraging the purchase of environment-friendly products, as prescribed by Presidential Decree. <Newly Inserted by Act No. 8013, Sep. 27, 2006> Article 16 (Preferential Support, etc. of Subsidies) The Minister of Environment may grant or support environment-related subsidies under Article 75 of the Water Supply and Waterworks Installation Act, Article 56 of the Wastes Control Act, Article 35 of the Sewerage Act, etc, to local governments which have excellent purchase records of environment-friendly products, in preference to other local governments. <Amended by Act No. 8371, Apr. 11, 2007> Article 17 (Education of Persons in Charge of Purchase) The Minister of Environment may provide education to persons in charge of purchase in public institutions, as prescribed by Presidential Decree, so as to encourage public institutions to purchase environment-friendly products. Article 18 (Establishment and Operation of Stores Selling Environment-Friendly Products) (1) Business operators who manage discount stores, departments stores or shopping centers, which fall under superstores under subparagraph 3 of Article 2 of Distribution Industry Development Act, and who manage an integrated distribution center of agricultural and fishery products, the size of which is not less than that prescribed by Presidential Decree, under subparagraph 12 of Article 2 of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products shall establish and operate stores selling environment-friendly products (including recycled products under subparagraph 5 of Article 2 of the Act on the Promotion of Saving and Recycling of Resources), so as to encourage the purchase of environment-friendly products. (2) Sizes of stores or formulation and assessment of operation plans under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. [This Article Newly Inserted by Act No. 8013, Sep. 27, 2006] Article 18-2 (Reporting, Inspections, etc.) (1) The Minister of Environment, the Mayor/Do Governor or the head of each Si/Gun/Gu may order business operators falling under Article 18 (1) to make reports or submit data, in order to verify whether stores selling environment-friendly products are established and operated, and have the relevant public officials access places of business to inspect the relevant documents or facilities. (2) Public officials who access places of business for inspection under paragraph (1) shall carry certificates indicating their legitimate authority and produce them to the relevant persons. [This Article Newly Inserted by Act No. 8947, Mar. 21, 2008] Article 19 (Delegation or Entrustment of Authority or Tasks) (1) The Minister of Environment may delegate part of his/her authority under this Act to the Mayor/Do Governor or the heads of local environmental government agencies, as prescribed by Presidential Decree. (2) The Minister of Environment may entrust part of his/her tasks under this Act to the relevant specialized institutions, such as the Korea Environmental Industry&Technology Institute under Article 5-2 of the Development of and Support for Environmental Technology Act, as prescribed by Presidential Decree. <Newly Inserted by Act No. 8947, Mar. 21, 2008; Act No. 9335, Jan. 7, 2009> Article 20 (Fines for Negligence) Any person who fails to establish and operate stores selling environment-friendly products, in violation of Article 18 (1) shall be punished by fines for negligence not exceeding three million won. [This Article Newly Inserted by Act No. 8013, Sep. 27, 2006] Article 21 (Imposition and Collection of Fines for Negligence) (1) Fines for negligence under Article 20 shall be imposed and collected by the Minister of Environment or the head of each Si/Gun/Gu (referring to the head of an autonomous Gu hereinafter referred to as "imposing authority"), as prescribed by Presidential Decree. (2) Any person dissatisfied with a disposition of a fine for negligence under paragraph (1) may raise an objection to the imposing authority within 30 days after he/she is notified of the aforementioned disposition. (3) If any person subject to a disposition of a fine for negligence under paragraph (1) raises an objection under paragraph (2), the imposing authority shall, without delay, notify the competent courts of the fact, which, in turn, shall proceed to a trial on the fine for negligence pursuant to the Non-Contentious Case Litigation Procedure Act. (4) If neither an objection is raised nor is a fine for negligence paid within the period under paragraph (2), the aforementioned fine for negligence shall be collected by referring to the practices of the disposition on default of national or local taxes. [This Article Newly Inserted by Act No. 8013, Sep. 27, 2006] ADDENDA Article 1 (Enforcement Date) This Act shall enter into force six months after the date of its promulgation. Article 2 Omitted ADDENDA <Act No. 7796, Dec. 29, 2005> Article 1 (Enforcement Date) This Act shall enter into force on July 1, 2006. Articles 2 through 6 Omitted. ADDENDUM <Act No. 8013, Sep. 27, 2006> This Act shall enter into force six months after the date of its promulgation. ADDENDA <Act No. 8370, Apr. 11, 2007> Article 1 (Enforcement Date) This Act shall enter into force on the date of its promulgation. (Proviso Omitted). Articles 2 through 20 Omitted. ADDENDA <Act No. 8371, Apr. 11, 2007> Article 1 (Enforcement Date) This Act shall enter into force on the date of its promulgation. (Proviso Omitted.) Articles 2 through 10 Omitted. ADDENDA <Act No. 8852, Feb. 29, 2008> Article 1 (Enforcement Date) This Act shall enter into force on the date of its promulgation. (Proviso Omitted.) Articles 2 through 7 Omitted. ADDENDUM <Act No. 8947, Mar. 21, 2008> This Act shall enter into force six months after the date of its promulgation. ADDENDA <Act No. 8957, Mar. 21, 2008> Article 1 (Enforcement Date) This Act shall enter into force on the date of its promulgation. Articles 2 and 3 Omitted. ADDENDA <Act No. 9335, Jan. 7, 2009> Article 1 (Enforcement Date) This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.) Articles 2 through 6 Omitted. ADDENDA <Act No. 9584, Apr. 1, 2009> Article 1 (Enforcement Date) This Act shall enter into force on May 8, 2009. Articles 2 through 6 Omitted. ADDENDA <Act No. 9931, Jan. 13, 2010> Article 1 (Enforcement Date) This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.) Articles 2 through 4 Omitted.