MEMORANDUM

 

ON

 

ASBESTOS

 

(Legalsteps is grateful to Barrister Moyeen Alam Firozee for his input in this project)

 

 

REGULATIONS IN EFFECT IN BANGLADESH ON ASBESTOS AND PRODUCTS THAT CONTAIN ASBESTOS

 

 

 

 

 

PRIVATE AND CONFIDENTIAL

 

COVERPAGE

 

Prepared by

 

LEGAL STEPS

3A, Sonartori Tower

12, Sonargaon Road, Banglamotor

 Dhaka 1000, Bangladesh.
Tel: +880-2-8651570, Fax: +880-2-8650261

Mobile: +88 0171-300 8968

 

INDEX

Part “A”

Introduction and Background

1.         Scope of the review and focus of the Memorandum 

2.         Overall qualifications and Disclaimers

Part “B”

Executive Summary                                                                                         

Part “C”

The Memorandum

1.         ENVIRONMENTAL POLICY, LAWS AND ANCILLARY ISSUES

1.1       Background

1.2       National Environmental Policy, 1992

1.3       The Bangladesh Environment Conservation Act, 1995 (“BECA 1995”)

1.4       The Environment Conservation Rules, 1997 [ECR 1997]

1.5       The Environment Court Act, 2000 [ECA 2000]

2.         LAWS RELATING TO OCCUPATIONAL HEALTH

2.1       The Factories Act, 1965 [FA 1965] and the Factories Rules, 1979 [FR 1979]

2.2       Workmen's Compensation Act, 1923 [WCA 1923]

2.3       Penal Code 1860

3.         THE NATIONAL BUILDING CODE, 1993           

4.         LAWS AND POLICIES RELATING TO IMPORT OF ASBESTOS AND RELATED PRODUCTS

4.1       Import Policy Order, 2003-2006

4.2       Customs Act, 1969

5.         ASBESTOS RELATED LITIGATION AND SOCIAL TRENDS

5.1       Litigation

5.2       Ship Breaking

5.3       Social campaign

 

Schedule I

Schedule II

Schedule III


 

 

PART - A

 

INTRODUCTION AND BACKGROUND

 

 

1.          Scope of the review and focus of the Memorandum

 

1.1       This Memorandum is prepared by Legal Steps, Barristers and Advocates, Dhaka, Bangladesh pursuant to the Work Scope and other instructions received from (deleted to protect the identity of our client).

 

1.2       This Memorandum is based on research conducted on laws and regulations in Bangladesh - regarding use, import and disposal of asbestos and asbestos-containing products; asbestos related litigation and social trends etc. for consideration of (deleted to protect the identity of our client), a leading international general insurance company who is currently conducting research on regulations in effect in, inter alia, Bangladesh on asbestos and products that contain asbestos..  

 

2.         Overall qualifications and Disclaimers

 

                        This Report is subject to the following qualifications and disclaimers:

 

(a)        it has been prepared only for consideration of (deleted to protect the identity of our client);

 

 

(b)        our investigations only concerned, and our Memorandum only related to, matters reviewed by us which are the subject of this Memorandum;

 

(c)        we have not gone beyond the scope of our instructions and have only prepared the Memorandum in the manner agreed.

 

(d)        Though this Memorandum focuses on major legal, regulatory, and policy issues that have arisen out of the research conducted by Legal Steps, the Memorandum should not be relied upon as a summary of all principal legal, regulatory and policy issues;

 

(e)        This Memorandum does not purport to make any comments or statements relating to matters of financial, technical, cost, insurance, tax, operational and other commercial aspects. This Memorandum does not address, nor does it purport to address, such items and matters.

 

 


 

PART - B

 

 

EXECUTIVE SUMMARY

 

There is no legal provision that has been enacted till date directly addressing the issue of asbestos and asbestos related materials affecting occupational health and environment. Asbestos, asbestos related materials and their use or business are neither banned nor controlled by legislation and they are freely importable subject to maintaining the standard set by Bangladesh Standard and Testing Institution.

However, a number of legislations and policies are identified containing legal provisions on asbestos and asbestos related materials. It is particularly noted that purpose of such legislations and policies are not to control or regulate asbestos and asbestos related materials and their use or business, rather they are only ancillary to other diverse legal issues of the relevant laws and policies.

Use of asbestos and asbestos related materials is common in Bangladesh. Increase of non-regulated ship-breaking business makes the costal area of Bangladesh particularly susceptible to health and environmental hazard due to the exposure to asbestos and asbestos related materials.

Judicial intervention on the matter is not yet made. A few environmental and occupational health related organizations have recently initiated campaign on banning asbestos though public awareness in relation to the impact on health and environment due to asbestos and asbestos related material hazard is virtually non-existent due to lack information and knowledge.  


PART - C

 

THE MEMORANDUM

 

 

1.          ENVIRONMENTAL POLICY, LAWS AND ANCILLARY ISSUES

 

 

1.1        Background

 

1.1.1    Before nineties, environment was not an important agenda in Bangladesh. Due to the changes in the global context for the first time, in 1989, the Ministry of Environment and Forest was established. The government started to take measures, drafted the National Conservation Strategy, adopted the National Environmental Policy, 1992 and revised the old laws and restructured the entire regulatory framework. Moreover, National Environmental Action Plan has also been prepared.

 

1.1.2    A total 24 laws have been identified that contain provisions regarding conservation of environment and control of environmental pollution from various sources. Of these, the Bangladesh Environment Conservation Act, 1995, an Act to provide for conservation of the environment, improvement of environmental standards and control and mitigation of environmental pollution which has come into force all over Bangladesh through a Notification of the Ministry of Environment and Forest dated 31 May, 1995. However, there are laws enacted earlier to deal with pollution and conservation. For example, the Penal Code of 1860 has provisions to check pollution to the atmosphere; the protection and Conservation of Fish Act, 1950 provides for measures to ensure undisturbed spawning grounds; the Bangladesh Wild Life (Preservation) Order, 1973 prohibits certain dealings with specified species of Wildlife, etc. Besides, various other legislations contain provisions to address pollution of air, soil, water and other component of the environment. These legislative requirements covering areas, inter alia, specific with industrial, vehicular and marine pollution prohibit certain activities, which might destroy and damage the surrounding ecosystem of all living creatures.

 

 

1.2        National Environmental Policy, 1992

 

1.2.1    Under the National Environmental Policy 1992, government attached special importance to the protection and improvement of the environment. The objective of the policy, inter alia, to maintain ecological balance and overall development through protection and improvement of the environment; to identify and regulate activities which pollute and degrade the environment; to ensure sustainable, long term and environmentally sound use of all national resources. In order to achieve the objectives and implement the policy recommendation of the National Environment Policy, an Environment Action Plan has been recommended.

 

1.2.2    The major policies and action plan in relation to various issues affecting environment are as follows:

 

1.2.2.1 Industries

Policy

To undertake Environmental Impact Assessment (EIA) for all new industries both in public and private sectors and adopt corrective measures in the existing industries cause pollution; impose ban on establishment of industries producing goods which cause environment pollution; close down such already existing industries in phases and discourage use of such polluting products through development introducing their environmentally sound substitutes. Prevent wastage of raw materials in industries and ensure their sustainable use.

           

 

Action Plan

Ministry of Environment and Forest, Ministry of Industries and other related bodies shall be responsible for taking pollution control measures in the Industries identified by the Department of Environment as soon as possible. New industries proposing to use hazardous and /or poisonous wastes prohibited. “Waste permit/consent order" system will be established in the industrial sector, so that waste disposal and waste refinement will be facilitated. Appropriate steps will be taken to ensure protection of health of industrial workers.

 

1.2.2.2 Health & Sanitation

Policy

Prevent activities which are harmful to public health in all spheres, including development activities in the country. Develop healthy environment in the rural and urban areas. Ensure healthy workplace for workers.

Action Plan

Ministry of Health and Family Planning, Industry and other relate Ministries and department shall be responsible for taking necessary steps to protect the environment and public health from the adverse impact of all radioactive substances and waste, atomic substances, radioactive equipments including X-rays, atomic research installations and atomic furnaces etc

 

1.2.2.3 Coastal and Marine Environment

Policy

Ensure environmentally sound conservation and development of coastal and marine eco-systems and resources. Prevent all internal and external activities polluting the coastal and marine areas.

Action Plan

The Ministry of Shipping will form a special cell to assess the characteristic and composition of waste before approving its disposal in the sea. Ministry of Defence, Ministry of Environment and Forest, Ministry of Shipping and other relate Ministries and department shall be responsible for taking appropriate programmes to ensure protection of territorial waters from pollution, conservation of the coastal and marine environment and proper utilization of coastal resources.

 

1.2.2.4 Housing and Urbanisation

Policy

Integrate environmental considerations into all housing and urban planning activities and research. Control housing and urban development schemes having adverse impact on the local and overall environment.

Action Plan

Ministry of Public Works, Local Government Division and other relate Ministries and department shall be responsible for conducting Environmental Impact Assessment (EIA) before preparing national and regional programmes and master plans regarding housing and urban development. Programmes related to housing and urban development will be regularly monitored and surveyed.      

 

 

1.3        The Bangladesh Environment Conservation Act, 1995 (“BECA, 1995”)

 

1.3.1    The Bangladesh Environment Conservation Act, 1995 (“BECA, 1995”), which has come into force on 31 May, 1995 has been enacted to provide for the conservation, improvement of environmental standard and control and mitigation of the pollution of the environment. Under the BECA, 1995 Department of Environment has been established and its powers and functions, inter alia, are as follows:

 

*          to co-ordinate with and assist any authority or agency having relevance with the objectives of BECA, 1995;

*          to advise or direct the concerned person regarding the environment friendly handling, storage, transportation, import and export of hazardous substance or its components;

*          to issue direction to close or prohibit or regulate any industry, initiative or process, who are responsible for environmental pollution by giving reasonable opportunity to make its functioning sound. 

 

1.3.2    Under s. 6A of BECA, 1995 Government may issue directions imposing absolute ban on the manufacture, import, marketing, sale, demonstration for sale, stock, distribution, commercial carriage or commercial use of all kinds of article made of polyethylene or polypropylene, or any other article which is injurious to the environment, or allow the operation or management of such activities under conditions specified in the notification.

 

1.3.3    Under s. 8 of BECA, 1995 if any person who suffers harm or is at potential risk to harm to health or their property because of pollution or environmental degradation, has the right to apply for remedy of the damage to the Director General of the Department of Environment in the prescribed form. The Director General may hold a public hearing to review any application for redress and must dispose of the same within three months of its receipt. Where the Department fails to dispose of the application in time, affected person may submit the matter before the Environment Court, who may in turn make an order of compensation.

 

1.3.4    Under s.9 of BECA, 1995 where discharge of any environmental pollutant occurs or is likely to occur in excess of the limit prescribed by the Rules, the person responsible and the person in charge of the place of occurrence shall take measures to control or mitigate the environmental pollution and inform the Director General of Department of Environment who shall take necessary remedial measures to control or mitigate the environmental pollution. The expenses incurred with respect to remedial measures to control and mitigate the environmental pollution may be realized from the persons responsible and the person in charge of the place of occurrence.

 

1.3.5    Under s.12 of BECA, 1995 no industrial unit or project shall be established or undertaken without obtaining, in the manner prescribed by Rules, an Environmental Clearance Certificate from the Director General of Department of Environment.

 

1.3.6    Under s.15 of BECA, 1995 imprisonment not exceeding 10 years or fine not exceeding 10 lac taka or both for violation of a direction issued under sub-section (2) or (3) of section 4, imprisonment not exceeding 10 years or fine not exceeding 10 lac taka or both for manufacturing, importing, marketing prohibited article under section 6A; imprisonment not exceeding 6 months or fine not exceeding 10 thousand taka or both for selling, exhibiting for sale, stocking, distributing, commercially transporting or commercially using prohibited article under section  6A may be imposed.

 

1.3.7    BECA, 1995 has been amended in 2000, by which certain penal provisions are amended. Under the said amendment, the Director General may file suit for damages in representative capacity on behalf of a person or class of persons who are affected by pollution. Under this Act Government of Bangladesh is empowered to make Rules by notification in the Official Gazette without prejudice to the generality of the power on the standards for air, water, noise and soil for different areas and different purposes.

 

 

1.4        The Environment Conservation Rules, 1997 [ECR, 1997]

 

1.4.1    Under Rule 7 of ECR, 1997 for the purpose of issuance of Environmental Clearance Certificate, the industrial units and projects shall, in consideration of their site and impact on the environment, be classified into the following four categories:-

(a) Green;

(b) Orange – A;

(c) Orange – B; and

(d) Red.

 

1.4.2    Under Schedule 1 of ECR, 1997 ship-breaking industries are classified under ORANGE-B Category and asbestos industries are classified under RED Category.

 

1.4.3   Under Rule 7(3) and (4) of ECR, 1997 Environmental Clearance Certificate shall be issued for three years to all existing and proposed industrial units and projects falling in the Green Category. For all existing and proposed industrial units and projects falling in the Orange – A, Orange – B and Red categories, firstly a Location Clearance Certificate (except where Director General exempts) and thereafter an Environmental Clearance Certificate shall be issued for one year.

 

1.4.4    Under Rule 7(6) of ECR 1997 the following documents shall be attached with an application made for Environmental Clearance Certificate:-

 

For Orange – B Category:

(i)   report on the feasibility of the industrial unit or project (applicable only for proposed industrial unit or project);

(ii) report on the Initial Environmental Examination of the industrial unit or project, and also the process flow diagram, Layout Plan (showing location of Effluent Treatment Plant), design of the Effluent Treatment Plant (ETP) of the unit or project (these are applicable only for a proposed industrial unit or project);

(iii) report on the Environmental Management Plan (EMP) for the industrial unit or project, and also the Process Flow Diagram, Layout Plan (showing location of Effluent Treatment Plant), design of the Effluent Treatment Plant and information about the effectiveness of the ETP of the unit or project, (these are applicable only for an existing industrial unit or project);

(iv) no objection certificate from the local authority;

(v) emergency plan relating adverse environmental impact and plan for mitigation of the effect of pollution;

(vi) outline of the relocation, rehabilitation plan (where applicable);

(vii) other necessary information (where applicable).

 

For Red Category:

(i)  report on the feasibility of the industrial unit or project (applicable only for proposed industrial unit or project);

(ii) report on the Initial Environmental Examination (IEE) relating to the industrial unit or project, and also the terms of reference for the Environmental Impact Assessment of the unit or the project and its Process Flow Diagram; or Environmental Impact Assessment report prepared on the basis of terms of reference previously approved by the Department of Environment, along with the Layout Plan (showing location of Effluent Treatment Plant), Process Flow Diagram, design and time schedule of the Effluent Treatment Plant of the unit or project, (these are applicable only for a proposed industrial unit or project);

(iii) report on the Environmental Management Plan (EMP) for the industrial unit or project, and also the Process Flow Diagram, Layout Plan (showing location of Effluent Treatment Plant), design and information about the effectiveness of the Effluent Treatment Plan of the unit or project (these are applicable only for an existing industrial unit or project);

(iv) no objection certificate of the local authority:

(v) emergency plan relating adverse environmental impact and plan for mitigation of the effect of pollution;

(vi) outline of relocation, rehabilitation plan (where applicable);

(vii) other necessary information (where applicable).

 

 

1.5        The Environment Court Act, 2000 [ECA 2000]

 

1.5.1    The Environmental Court Act, 2000 has been enacted for trial of the offences committed under the Environmental laws. Two Environmental Courts have already been established in Dhaka and Chittagong under SRO No. 45-AIN/2002 dated 06.03.2002. Environment Court shall be competent to impose penalty for offences under section 5A of ECA, 2000 and under any other environmental law. Environment Court shall take cognizance of an offence or receive any suit for compensation only on the written report of an Inspector or an authorized person except when the Court is satisfied that no action was taken within 60 (sixty) days after filing a written application to the authority and the complain or claim has merit the court may directly receive the complaint or claim for compensation or it may direct the Inspector or the authorized person to investigate the offence or claim.

 

 

 

 

2.         LAWS RELATING TO OCCUPATIONAL HEALTH

 

 

2.1        The Factories Act, 1965 [FA, 1965] and the Factories Rules, 1979 [FR, 1979]

 

2.1.1    The Factories Act, 1965 is the re-enactment, with necessary amendments, of the Factories Act 1934. FA, 1965 regulates working conditions particularly relating to health, safety and welfare of workmen employed in factories and for matters connected therewith. Under section 87 of FA, 1965 the Government may, if it is satisfied that any operation carried on in a factory exposes any person employed in it to a serious risk of bodily injury, poisoning, or disease, make rules applicable to such factory or class of factories in which such operation is carried on, inter alia, specifying the operation and declaring it to be hazardous and providing for the protection of all persons employed in the operation or in the vicinity of the places where it is carried on; and use of any specified material or processes in connection with the operation. Under rule 83 of FR 1979 a list of operations are considered to be dangerous operation for the purpose of s.87 of FA 1965 but, operation involving asbestos or asbestos related material is not listed as dangerous operation.

 

2.1.2    Under section 90 of FA, 1965 and rule 89 of FR 1979 the manager of a Factory is required to report to the Chief Inspector of Factories as to any worker being contracted any diseases specified in Schedule to the FA, 1965. Under section 90 of FA, 1965 Government may appoint competent person to inquire into such matters for taking appropriate remedial measures. None of the listed diseases in the Schedule to the FA, 1965 is related to the exposure of asbestos.

 

2.1.3    Under rule 83 of FR, 1979 no building, wall, chimney, bridge, tunnel, road, gallery, stairway, ramp, floor, platform, staging, or other structure, whether of a permanent or temporary character, shall be constructed, situated or maintained in any factory in such a manners to cause risk of bodily injury.

 

 

2.2       Workmen's Compensation Act, 1923 [WCA 1923]

 

2.2.1    WCA, 1923 was enacted to provide for the payment of compensation by certain classes of employers to their workmen for injury by accident. Under s.3(1) of WCA, 1923 if personal injury is caused to a workman by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation.

 

2.2.2    Under s.3(2) of WCA, 1923 if a workman, whilst in the service of an employer in whose service he has been employed for a continuous period of not less than six months in any employment specified in Part B of Schedule III, contracts any disease specified therein as an occupational disease peculiar to that employment, the contracting of the disease shall be deemed to be an injury by accident within the meaning of this section and, unless the employer proves the contrary, the accident shall be deemed to have arisen out of and in the course of the employment. Under Part B of Schedule III of WCA, 1923 ‘Asbestosis’ is classified as an occupational disease peculiar to the employment in –    

(a)     the production of-

(i)         fibre cement materials; or

(ii)        asbestos mill board

(b)   the processing of ores containing asbestos.

 

 

2.3       Penal Code 1860

 

2.3.1    Under section 278 of the Penal Code, 1860 it is an offence punishable with fine if anyone voluntarily vitiates the atmosphere in any place so as to make it noxious to the health of persons in general dwelling or carrying on business in the neighbourhood or passing along a public way. 

 

 

 

3.             THE NATIONAL BUILDING CODE, 1993   

 

3.1       Legislative measure, rules and practices for controlling building construction are not comprehensive and need updating, rationalisation and unification. In order to have a uniform standard covering all aspects of planning, design and construction of buildings, including electrical, mechanical, sanitary and other services which will be followed in the country the National Building Code is prepared.

 

3.2       It may be mentioned here that the Building Code is not an independent legislation or Act, rather it is a national level approved document that shall form the basis for standard of design, construction and maintenance of buildings. It has been prepared in the light of internationally recognized standards of safety and serviceability achievable by application of state-of-the-art technology within the socio-economic context of Bangladesh. Through adherence to the various requirements of the code, private and public builders and individual owners will be able to ensure a minimum and uniform standard of buildings in the country. The government authorities responsible for enforcing the Building Construction Act, and regulations framed under this Act, for development of buildings in various urban, municipal and rural areas may adopt the code or its portions for application to their respective jurisdictions. The administrative requirements of the code will guide these authorities in enforcing the provisions of the code. The government may subsequently establish a department responsible for application of the provisions of the code.

 

3.3       This document, the Bangladesh National Building Code, has been prepared in ten distinct parts comprising different aspects of building construction and services with cross references as necessary. Part 5 sets the standards of materials to be used in building construction. Materials covered include all types of common construction materials as well as some indigenous building materials of the country. The requirements for materials provided in the building code are based on specifications of established standards issued by standards agencies. The agency responsible for issuing standards and ensuring compliance with these standards in Bangladesh is the Bangladesh Standards and Testing Institution. In general, the building code specifies compliance with relevant Bangladesh standards. Where Bangladesh standards are not available or are inadequate, the most applicable and widely used standards of other countries for the relevant materials have been specified. These will be replaced as more and more Bangladesh standards are available. Products and building materials containing Asbestos and the standards to be followed are listed in ‘Schedule I’ below. Part 7 contains details provision regarding Storage, Stacking and Handling Practices Removal and Disposal Asbestos-based Materials. Extract of such provision is given herein below in ‘Schedule II’.

 

 

4.         LAWS AND POLICIES RELATING TO IMPORT OF ASBESTOS AND RELATED PRODUCTS

 

 

4.1        Import Policy Order, 2003-2006

 

4.1.1    In exercise of the powers conferred by sub-section (1) of section 3 of the Imports & Export (Control) Act, 1950 (XXXIX of 1950), Import Policy Order for year of 2003-2006 was formulated. Major policy objectives are to make the Import Policy Order further liberalized to keep pace with the gradual development of globalization and free market economy under the W.T.O. and to make easier the availability of industrial raw materials for increasing competition.

 

4.1.2    In the Import Policy Order, certain specified items are banned for import. In addition, certain specified items listed in Annexure I of the Import Policy Order are classified as controlled items and importable on fulfilment of certain conditions. Those items which are not appear either in the restricted list or controlled items’ list shall be freely importable. Neither asbestos nor asbestos related products are banned or controlled under the Import Policy Order. Tariffs for articles of asbestos or similar materials are listed in ‘Schedule III’ below