Proposal for Grandfathering in VNEEP

Proposal for grandfathering in VNEEP

A report for the Vietnamese Government’s Energy Efficiency Program

Produced by

Australian Government Department of Resources, Energy and Tourism

September 2013 Summary

This paper has been produced by the Australian Government Department of Resources, Energy and Tourism as part of its support for the Vietnamese Government’s energy efficiency program (VNEEP). Under current requirements, all relevant products offered for sale in Vietnam must labelled by the date that regulations come into force (the Effective Date) for each product category. This would require that all products which are currently in stores need to be labelled by suppliers (or meet MEPS requirements), which for older products is a major task with minor benefit. The purpose of grandfathering provisions is to allow products that have been manufactured before suppliers could reasonably be expected to understand the requirements to be exempt from labelling and MEPS requirements. This exemption runs for a specified period (Grandfathering Period), defined as the time between the date when the exemption starts (Grandfathering Start Date) and the date when the exemption is removed (Grandfathering End Date), as shown in Figure 1. Products manufactured or imported BEFORE the Grandfathering Start Date are therefore allowed to sell products in Vietnam after the Effective Date, without being required to be labelled or meet MEPS, until the Grandfathering End Date. All products manufactured or imported AFTER the Grandfathering Start Date must be correctly labelled, and meet MEPS, in order to sell products in Vietnam after the Effective Date of labelling.

Figure 1: Grandfathering arrangements for the introduction of MEPS and labelling requirements in 2013 & 2014

It is recommended that grandfathering provisions should be introduced in order to assist implementation of the S&L Program in Vietnam. The details of these provisions should be made publically available to suppliers and retailers to enable them to manage the production, distribution and stocks of appliances in order to comply. During the foreseeable future, there are five different situations where grandfathering may apply. The recommendations for the key dates relating to grandfathering provisions are shown in Table 1.

Table 1: Key dates relating to grandfathering provisions

Grandfathering Start Grandfathering End Voluntary Labelling Date Date Start Date Labelling regulations introduced in 12 months before Same as Grandfathering None 2013 & 2014 Effective Date Start Date Labelling for commercial Publication Date of Publication Date of None refrigeration relevant TCVN relevant TCVN 12 months before Same as Grandfathering Revisions to existing labels None Effective Date Start Date 12 months before Revisions to existing MEPS None Not applicable Effective Date New Regulation 12 months before Newly regulated products (Labels) None Announcement Date Effective Date New Regulation Newly regulated products (MEPS) None Not applicable Announcement Date

2PROPOSAL FOR GRANDFATHERING IN VNEEP The recommended Grandfathering Start Dates for products subject to energy labelling regulations in 2013 and 2014 are shown in Table 2.

Table 2: Proposed grandfathering start dates for energy labelling by product category

Grandfathering Start Date Effective Date of Mandatory Energy Appliance Category & Voluntary Labelling Start Date Labelling

Tubular fluorescent lamp (TFL) 1 July 2012 1 July 2013

Compact lamp (CFL) 1 July 2012 1 July 2013

High efficient & electronic ballasts 1 July 2012 1 July 2013

Air conditioner 1 July 2012 1 July 2013

Top loading washing machine 1 July 2012 1 July 2013

Rice cookers 1 July 2012 1 July 2013

Electric fans 1 July 2012 1 July 2013

Distribution transformers 1 July 2012 1 July 2013

Motors 1 July 2012 1 July 2013

Refrigerators 1 Jan 2013 1 Jan 2014

Front-loading washing machine 1 Jan 2013 1 Jan 2014

Televisions 1 Jan 2013 1 Jan 2014

1 October 2014 Commercial freezers Not later than 1 October 2013 (Moved from 1 Jan 2014)

It should be noted that it is also recommended that the Effective Date for commercial freezers is moved to 12 months after publication of the relevant TCVN in order to allow sufficient time for these products to be tested and registered by the supplier. In order to claim grandfathering provisions for individual models, suppliers must provide evidence of the date of manufacture or date of importation. All suppliers should be able to lodge a claim for grandfathering status through the registration system.

3PROPOSAL FOR GRANDFATHERING IN VNEEP Contents

Tables and Figures

4PROPOSAL FOR GRANDFATHERING IN VNEEP 1 Introduction This paper has been produced by the Australian Government Department of Resources, Energy and Tourism as part of its support for the Vietnamese Government’s energy efficiency program. It follows an earlier report: “A Guide to Re-grading Energy Performance Labels” produced by VEESL in 2013, and provides detailed proposals for the introduction of ‘grandfathering’ arrangements within VNEEP. It also makes related recommendations regarding the process for introducing revised MEPS or labelling requirements. In this report, the following definitions of terms are used:

Table 3: Definitions used in this report

Term Definition

National Standards of Vietnam issued by VSQI (Abbreviation of Tiêu chuẩn Việt TCVN Nam). In this report relevant TCVN documents contain either energy performance test methods or energy performance requirements for labelling/MEPS, or both. An exemption from new MEPS and labelling requirements within Standards and Grandfathering Labelling (S&L) programs for models that are manufactured in Vietnam or imported before a specified grandfathering start date.

The date before which models manufactured in Vietnam or imported may have a Grandfathering Start Date time-limited exemption from MEPS or labelling regulations.

Grandfathering End Date The date when the grandfathering exemption expires.

Grandfathering Period The period of time between the grandfathering start and end dates.

New Regulation The date when the Vietnamese Government formally announces the new Announcement Date requirements of MEPS or labelling for an individual product category. The date from which specified models must adhere to a given regulation (which is Effective Date (of laid out in regulations), with the exception of those models which can prove they regulation) were manufactured locally or imported before the grandfathering start date. The process of providing information on the attributes of an individual model and Registration stating its claimed performance, required by MOIT for all models under MEPS and energy labelling regulations. The date prior to the Effective Date from when an energy performance label may be Voluntary Labelling Start Date used voluntarily.

Typically these processes will occur for an individual product category in the order shown in Figure 2.

Figure 2: Development cycle for energy efficiency regulations (MEPS or labels)

1 Development processes to establish appropriate test method (TCVN) and performance requirements

2 Publication of TCVN relevant to an individual product category Formal announcement of new regulation (MEPS or labels) details for an individual product category (New 3 Regulation Announcement Date) 4 Promotion and communication of MEPS and labelling requirements for an individual product category

6 Commencement of product registration according to new regulations

7 Commencement of voluntary use of new label (optional and where relevant) (Voluntary Labelling Start Date)

8 Effective Date of regulation (MEPS or labels)

5PROPOSAL FOR GRANDFATHERING IN VNEEP 1.1 Current status of labelling and MEPS in Vietnam The dates that energy efficiency regulations come into force (i.e. the Effective Date) for each product category are shown in Table 4. The current regulations1 require that all products within the scope of mandatory labelling requirements must display the relevant label from the Effective Date of regulationError: Reference source not found. This covers all relevant products in stores, which have been imported or manufactured in Vietnam, irrespective of when they have been supplied.

Table 4: Implementation schedule for S&L regulations, effective dates

Appliance Category Mandatory Energy Labelling MEPS Photocopy machines Printers May 2013 (note: voluntary only) 1 Jan 2015 Computer monitors Tubular fluorescent lamp (TFL) Compact lamp (CFL) High efficient ballast and electronic ballast Air conditioner 1 July 2013 1 Jan 2015 Top loading washing machine Rice cookers Electric fans Distribution transformers 1 July 2013 1 Jan 2015 Motors Refrigerators Front-loading washing machines 1 Jan 2014 1 Jan 2015 Televisions Commercial freezers 1 Jan 2014 1 Jan 2015

In addition, several of the current regulations for labelling and MEPS are scheduled for revision, as indicated in Table 5Error: Reference source not found, which shows the relevant dates for existing, new and revised TCVN standards for MEPS and labelling.

Table 5: Labelling requirements and availability of TCVNs by product category, current and new timetable

Column A Column B Column C Column D Appliance Category Publication Date of Mandatory Energy Planned Publication existing TCVN Standards Labelling, Date for new and effective date updated TCVN Standards Tubular fluorescent lamp (TFL) 2009 1 July 2013 September 2013 Compact lamp (CFL) 2008 1 July 2013 November 2013 High efficient ballast and electronic 2008/9 1 July 2013 November 2013 ballast Air conditioner 2007 + 2009 correction 1 July 2013 none Top loading washing machine 2010 1 July 2013 July 2013 Rice cookers 2009 1 July 2013 2014 Electric fans 2007 1 July 2013 2014 Distribution transformers 2010 1 July 2013 none Motors 2005 1 July 2013 November 2013 Refrigerators 2007 1 Jan 2014 June 2013 Front-loading washing machine 2010 1 Jan 2014 July 2013 Televisions December 2012 1 Jan 2014 none Commercial freezers N/A 1 Jan 2014 September 2013

1 Primarily contained in Decree 73 (2011), Decision 51 (2011), and Amendment to Decision 51 03/2013/QD-TTg

6PROPOSAL FOR GRANDFATHERING IN VNEEP 1.2 Key principles of grandfathering The term ‘grandfathering’ is used to describe an exemption from MEPS and labelling requirements within Standards and Labelling programs for models that are manufactured in Vietnam or imported before a specified date. The principle behind grandfathering is that some models in stores and other retail outlets may have been supplied to the stores before it could reasonably be known that labelling or MEPS regulations would apply, or before the details of these labelling requirements are released. As the rules currently apply in Vietnam, even stock which was supplied before labelling or MEPS requirements were known must comply by the Effective Date. However, because of the rate of stock turnover, the quantity of residual stock tends to be small and diminishing, there is little benefit of requiring suppliers to locate and retrospectively apply labels (or replace existing stock in the case of MEPS) for all the ‘old’ products; while such obligations may impose considerable additional costs on suppliers. To avoid this additional burden, it is therefore sensible for regulators to assist industry and make some allowance within MEPS and energy labelling programs for models manufactured or shipped some specified time before the Effective Date of the regulations, as suppliers can reasonably argue that they were not aware of the impending requirements. Such grandfathering provisions are common in regions that have standards and labelling programs. 1.2.1 Key dates The Grandfathering Start Date defines date before which products can claim an exemption from requirements to meet MEPS or labelling requirements. The longer the time between the Grandfathering Start Date and the Effective Date the less risk there will be that suppliers attempt to avoid regulations through stockpiling2. In practice, the Grandfathering Start Date is usually set to allow sufficient time for suppliers to test, register and, where appropriate, label products, in advance of the Effective Date. In some cases it may be useful to define a Grandfathering End Date, i.e. a date when the exemption for grandfathered products is removed and grandfathered models can no longer be sold unless they register and comply with the new regulations. This is often used for the transition between old and new labelling requirements when there is the potential to confuse consumers by having two versions of a label present in the market at the same time. Setting a Grandfathering End Date will encourage the removal of grandfathered products from the market displaying the ‘old’ label. Since the throughput of stock in retail outlets means that the number of residual grandfathered stock is likely to diminish rapidly, its sale will have negligible impact on energy savings. As a result, it is often not necessary to specify a Grandfathering End Date for MEPS programs. Usually the publication of the relevant technical standards (TCVN) is the first date where the requirements of the labelling and MEPS program are made publicly available. In fact, many suppliers may have had more notice than this, through participation in MOIT seminars or involvement with VSQI technical committees. However it cannot be assumed that all suppliers have had this prior knowledge, especially those based overseas, or smaller manufacturers who cannot follow or contribute to regulatory developments. In some cases, there may be an additional formal announcement of regulatory details for individual product categories (New Regulation Announcement Date), following the publication of TCVNs. However, for the purposes of this report the TCVN publication date is assumed to be the date from which it is reasonable to expect suppliers to be aware of the requirements. 1.2.2 Registration of grandfathered products Suppliers that seek an exemption from MEPS and labelling requirements should still be required to register models subject to grandfathering provisions, as this enable claims to be validated and is necessary in order to monitoring compliance. The registration process should allow for suppliers to claim that an individual model should be grandfathered, and provide appropriate fields for the lodgement of

2 In practice, it should be noted that stockpiling is rarely a significant issue, since the costs of storage usually outweigh any commercial benefit.

7PROPOSAL FOR GRANDFATHERING IN VNEEP evidence (see Section 7). Grandfathered products should not be required to provide energy performance data during registration. 1.2.3 Administrative considerations Grandfathering provisions can be included within the MEPS and labelling regulations themselves, or may be a separate administrative ruling, which provides a practical solution and an interpretation of the regulation. This latter option may be most practical. It should be noted that it is easier for governments to monitor compliance when all products in stores must comply by the Effective Date (i.e. MOIT’s current policy). The adoption of grandfathering rules represents a compromise by governments to assist industry, and as a result may not require legislative change. 1.2.4 Application of grandfathering provisions There are five distinct areas where grandfathering provisions may be necessary within the current VNEEP MEPS and Labelling program, and since these provisions may be different in each case, they are discussed separately in the following sections. These include: 1. Rules for mandatory labelling with Effective Dates in 2013 and 2014, i.e. the first set of products to be regulated in Vietnam. 2. Rules for labelling commercial refrigeration products. 3. Rules for the introduction of revisions (upgrades) to existing labelling regulations. 4. Rules for the introduction of revisions (upgrades) to existing MEPS regulation. 5. Rules for the future introduction of new MEPS and labels where there has been no previous requirement.

2 Case 1: Introduction of mandatory labels in 2013 & 2014 This case deals with the first wave of regulated products, due to be labelled from 1 July 2013 and 1 January 2014. The current requirements are for all products offered for sale in Vietnam to be correctly labelled by the relevant Effective Date for each product category. As mentioned previously, this would require that all products which are currently in stores need to be labelled by suppliers, which for older products is a major task with minor benefit. The purpose of grandfathering is therefore to allow products that have been manufactured before suppliers could reasonably be expected to understand the requirements to be exempt from labelling. This exemption runs for a specified period (Grandfathering Period), defined as the time between the date when the exemption starts (Grandfathering Start Date) and the date when the exemption is removed (Grandfathering End Date), as shown in Figure 3. Products manufactured or imported BEFORE the Grandfathering Start Date are therefore allowed to sell products in Vietnam after the Effective Date of labelling, without being required to be labelled, until the Grandfathering End Date. All products manufactured or imported AFTER the Grandfathering Start Date must be correctly labelled in order to sell products in Vietnam after the Effective Date of labelling.

Figure 3: Grandfathering arrangements for the introduction of MEPS and labelling requirements in 2013 & 2014

8PROPOSAL FOR GRANDFATHERING IN VNEEP As shown in Table 4, the date from which test methods and performance requirements have been available varies considerably, and many have been published for a considerable period of time. However, since it is usual for suppliers to be slow in recognising the implications of national S&L programs when they are first introduced, and to avoid confusion, it is recommended that the same grandfathering rules should be adopted for all products first labelled in 2013/14. The case of commercial freezers, however, will be considered separately as a unique case (see Section 3). 2010 is the most recent publication date for requirements for products to be labelled by July 2013, and applies to distribution transformers and top loading washing machines. For products required to be labelled by 1 Jan 2014, with the exception of commercial freezers, the latest technical standard was issued in 2012 (for televisions). This suggests that suppliers have already had a reasonable opportunity to be aware of the labelling requirements at least 18 months before products were required to carry labels in stores. It is recommended that MOIT sets the Grandfathering Start Date 12 months before the date that energy labelling regulations become mandatory, unless specified otherwise. For these products subject labelling requirements in 2013 and 2014 there will be little benefit from defining a Grandfathering End Date. It is therefore recommended that grandfathered MEPS and labelling products should be allowed to be sold at any time after the Effective Date of relevant regulations, i.e. there is no Grandfathering End Date. This means that suppliers that can provide evidence that their products were either locally manufactured, or imported into Vietnam, more than 12 months before the labelling requirements come into force (the Effective Date), are exempt from the need to display a label. However, they are still required to ensure that all models are registered with MOIT, but should not be required to provide performance data. Table 6 shows how this would work for one example; in this case a product that is required to be labelled by 1 July 2013.

Table 6: Example of grandfathering requirements for energy labelling

Product Requirements

All products Must be registered by 1 July 2013 May register and display the correct label voluntarily before 1 July 2013. All products The Voluntary Label Start Date can be set at any time prior to 1 July 2013 Products without evidence of import into Vietnam Must be correctly labelled in stores from 1 July 2013 or manufacture in Vietnam before 1 July 2012 Products with evidence of import into Vietnam or Are not required to carry the label on products in stores manufacture in Vietnam before 1 July 2012 but may choose to if registered appropriately

3 Case 2: Treatment of commercial freezers The estimated publication date of the TCVN for commercial freezers is September 2013, with the date when labelling is supposed to become effective set at 1 January 2014. The concern is that there is only three months between the announcement of requirements for these products (the Publication Date) and the requirement for all products to be labelled, which is likely to be insufficient time for products to be tested and labelled according to the new test method. It is therefore proposed that the Effective Date for commercial refrigeration is delayed in order to provide at least 12 months for products to be tested and registered according to the new requirements. Products manufactured or imported before the publication of relevant TCVN should be considered grandfathered, and these may be sold after the Effective Date for an indefinite period, i.e. there is no Grandfathering End Date.

9PROPOSAL FOR GRANDFATHERING IN VNEEP Following publication of the relevant TCVN, suppliers should be encouraged to register and display the label on products. These arrangements are summarised in Figure 4.

Figure 4: Grandfathering and transitional arrangements for the introduction of revised labelling requirements

It is therefore recommended that MOIT adopt the following arrangements: Mandatory labelling of commercial freezers is re-scheduled to commence from 1 October 2014 (or 12 months following the publication of the relevant TCVN). The Grandfathering Start Date is set as the TCVN publication date (assumed to be 1 October 2013). Commercial freezers manufactured in Vietnam or imported before the publication of the TCVN should be considered as grandfathered products, and are not required to display the energy label. They should however, be registered, though without the performance data. Registrations should be accepted for commercial freezers based on the TCVN(s) from the date that the TCVN is published. From the date of publication of the TCVN, products may use the energy label voluntarily, as described in the appropriate TCVN(s) and related documents.

4 Case 3: Treatment of Revised TCVN (Labelling) As noted in Table 5 Column ‘D’, many of the TCVNs are to be reviewed in the near future. In this instance, there is a need to manage the transition between the existing and incoming labelling requirements so as to minimise confusion amongst consumers, and enable on-going monitor of compliance3. It is therefore extremely important that the incoming label is distinguishable from the previous version. This can be achieved through the use of different colours or the inclusion of a date on the label, while taking care that the overall brand recognition of the label is not lost. Incoming labels could also state: “equivalent to X stars on the old scale”. The dates that revised labelling requirements are introduced will vary for different products, and therefore the relevant grandfathering dates will vary for each product category according to the timing of TCVN revisions. It is reasonable to allow suppliers at least 12 months to test, register and label products meeting new standards. This suggests that the Effective Date of the incoming label requirements should be at least 12 months after the Publication Date and the Grandfathering Start Date. For the sake of consistency it is recommended that the Grandfathering Start Date should be set 12 months before the Effective Date. In

3 This circumstance is similar to a re-grading of the label, as discussed in detail in the paper: “A Guide to Re-grading Energy Performance Labels” produced by VEESL in 2013, which highlights the need for transition arrangements.

10PROPOSAL FOR GRANDFATHERING IN VNEEP some cases, there will be a gap between the Publication Date and the Grandfathering Start Date, as shown in Figure 5. Products manufactured in Vietnam or imported before the Grandfathering Start Date are not required to label products according to the requirements for the new label, however this exemption could be time- limited in order to encourage the removal of old stock to minimise the period when both versions of the label exist in stores at the same time. However, since the benefit of this is likely to be outweighed by the advantage of keeping the requirements simple and consistent, it is recommended that there is no Grandfathering End Date. A further consideration is the voluntary use of the incoming label prior to the Effective Date. In order to ensure that products manufactured or imported into Vietnam after the Grandfathering Start Date are labelled and in stores by the Effective Date, it is usual to allow for products to register according to the incoming label requirements, and for these products to display this label in advance of the Effective Date. While it may be preferable to minimise the period when the voluntary use of the label is allowed, in practice it may be simplest to allow voluntary use from the same date as the Grandfathering Start Date, i.e. 12 months before the Effective Date. The recommended approach for the introduction of revisions to labelling requirements is summarised in Figure 5

Figure 5: Grandfathering and transitional arrangements for the introduction of revised labelling requirements

The recommended process for label transitions is as follows: Products that have been manufactured or imported prior to 12 months before the Effective Date of the labelling regulations are not required to meet the new requirements. These grandfathered products may continue to be sold indefinately. Manufacturers and importers may continue to register products to the previous TCVN requirements until the Effective Date of the revised regulations. From 12 months before the Effective Date, suppliers may voluntarily register products according to the new TCVN requirements and display the new label.

5 Case 4: Treatment of Revised TCVN (MEPS) Since there is no need to distinguish between different versions of labels, the situation for the introduction of revised MEPS requirements is less complicated than for labelling revisions. As a result, there is only the need to define the Grandfathering Period and registration requirements. As for labelling, it is reasonable to set the Grandfathering Start Date 12 months in advance of the Effective Date, and to allow registrations to new MEPS requirements from this date (Grandfathering Start Date). While the Grandfathering End Date could be defined in order to ensure that old stock was either sold or removed, there may be limited benefit from this since continued sales are likely to mean that few ‘old’ models remain in stores more than two years after the Effective Date. As a result it is recommended that there is no Grandfathering End Date. These proposals are summarised in Figure 6.

Figure 6: Grandfathering and transitional arrangements for the introduction of revised MEPS requirements

11PROPOSAL FOR GRANDFATHERING IN VNEEP The recommended process for MEPS transitions is as follows: Products that have been manufactured or imported prior to 12 months before the Effective Date are not required to meet the revised MEPS requirements. These grandfathered products may continue to be sold for an unlimited period after the Effective Date. Following publication of the revised TCVN, manufacturers and importers may continue to register products to the previous TCVN requirements until the Effective Date of the revised regulations, however products that have been manufactured or imported after the Grandfathering Start Date must meet the new MEPS requirements by the Effective Date, and register products accordingly. From 12 months before the Effective Date suppliers may voluntarily meet the new TCVN requirements and make registrations accordingly.

6 Case 5: Rules for newly regulated products This section applies to products that may be regulated in the future, and which have not been required to meet MEPS or labelling requirements previously. These are called newly regulated products. It is recommended that the future requirements for newly regulated products should be similar to as those for revised TCVNs, i.e. as shown in Section 4 for labels, and Section 5 for MEPS. The main difference is that the there should be more time to plan the implementation for these products and it should therefore be feasible to have more than 12 months between the Grandfathering Start Date and the Effective Date. As a result it is recommended that the Grandfathering Start Date should be the New Regulation Announcement Date, which should be more than 12 months prior to the Effective Date.

7 Evidence to support claimed date of manufacture/import Any grandfathering provision must have associated requirements that enable the verification of the date of manufacture or importation of individual models, so that MOIT can check compliance with regulations. In Australia, suppliers are required to disclose through the registration system that they will either: Date stamp the product, or Provide information on the how model serial numbers can be used to demonstrate the date of manufacture. Typical wording used with respect to the requirements to verify the date of manufacture is as follows: “The date of manufacture of each appliance shall be able to be determined from information legibly and durably marked on the appliance. The date of manufacture may be non-encrypted, encrypted or able to be determined from a serial number or other markings on the appliance and shall be visible when the appliance is in its position of normal use. Information on how to determine the date of manufacture shall be provided on the registration form. NOTES: 1 Regulators will use the date of manufacture as an indicator of when a product may have been available for sale. It is therefore preferable to be able to determine at least the month and year of manufacture from information on the appliance. This does not however preclude the use of other markings, for example serial numbers, which indicate those appliances manufactured within a period of time, where such details are provided with the registration.

12PROPOSAL FOR GRANDFATHERING IN VNEEP 2 Irrespective of the information marked on the appliance, local manufacturers or importers may be required to provide documentary evidence of the actual manufactured or imported date if requested by a regulator.” This process is now widely accepted by suppliers in Australia and has not presented significant difficulties for manufacturers or suppliers. This process is considered a feasible option for MOIT and is strongly recommended.

8 Recommendations It is recommended that grandfathering provisions should be introduced in order to assist implementation of the S&L Program in Vietnam. The details of these provisions should be made publically available to suppliers and retailers to enable them to manage the production, distribution and stocks of appliances in order to comply. Grandfathering provisions should provide an exemption from the need to display a label on products or meet MEPS requirements for those models that can provide evidence that they were either manufactured in Vietnam, or imported into Vietnam, before the Grandfathering Start Date. These products may continue to be sold in Vietnam until a specified Grandfathering End Date. For products subject to labelling requirements, these may register according to the relevant TCVN and display labels from the Voluntary Labelling Start Date. During the foreseeable future, there are five different situations where grandfathering may apply. The recommendations for the key dates relating to grandfathering provisions are shown in Table 7.

Table 7: Key dates relating to grandfathering provisions

Grandfathering Start Grandfathering End Voluntary Labelling Date Date Start Date Labelling regulations introduced in 12 months before Same as Grandfathering None 2013 & 2014 Effective Date Start Date Labelling for commercial Publication Date of Publication Date of None refrigeration relevant TCVN relevant TCVN 12 months before Same as Grandfathering Revisions to existing labels None Effective Date Start Date 12 months before Revisions to existing MEPS None Not applicable Effective Date New Regulation 12 months before Newly regulated products (Labels) None Announcement Date Effective Date New Regulation Newly regulated products (MEPS) None Not applicable Announcement Date

The recommended Grandfathering Start Dates for products subject to energy labelling regulations in 2013 and 2014 are shown in Table 8.

Table 8: Proposed grandfathering start dates for energy labelling by product category

Tubular fluorescent lamp (TFL) 1 July 2012 1 July 2013

Compact lamp (CFL) 1 July 2012 1 July 2013

High efficient & electronic ballasts 1 July 2012 1 July 2013

13PROPOSAL FOR GRANDFATHERING IN VNEEP Air conditioner 1 July 2012 1 July 2013

Top loading washing machine 1 July 2012 1 July 2013

Rice cookers 1 July 2012 1 July 2013

Electric fans 1 July 2012 1 July 2013

Distribution transformers 1 July 2012 1 July 2013

Motors 1 July 2012 1 July 2013

Refrigerators 1 Jan 2013 1 Jan 2014

Front-loading washing machine 1 Jan 2013 1 Jan 2014

Televisions 1 Jan 2013 1 Jan 2014

1 October 2014 Commercial freezers Not later than 1 October 2013 (Moved from 1 Jan 2014)

It should be noted that it is also recommended that the Effective Date for commercial freezers is moved to 12 months after publication of the relevant TCVN in order to allow sufficient time for these products to be tested and registered by the supplier. In order to claim grandfathering provisions for individual models, suppliers must provide evidence of the date of manufacture or date of importation. All suppliers should be able to lodge a claim for grandfathering status through the registration system and disclose that they will either: Date stamp the product, or Provide information on how the model serial numbers can be used to demonstrate the date of manufacture. It is recommended that all models covered by regulations, including grandfathered models, should be required to be registered with MOIT by the Effective Date of the regulations. Grandfathered products should not be required to include performance data. The registration system should be altered to accommodate these requirements.

14PROPOSAL FOR GRANDFATHERING IN VNEEP