There are two types of exemptions. The criteria for exemption are as follows –

Type 1 Exemption:

1. the total floor area of the retail outlet in which only non-specified goods are displayed or offered for sale is more than 50% of the retail floor area of the retail outlet; and
    
2. each part of the area to be exempted is a cashier's counter that accepts payment for non-specified goods only.

Type 2 Exemption:

1. the part of the area of the retail outlet to be exempted is used for the purposes of a business of a third party (not being the registered retailer) registered under the Business Registration Ordinance (Cap. 310);
   


2. that area is demarcated clearly by a counter and is used exclusively for the purposes of the third party's business;
   
 
3. the name, trade name, trade mark or brand name of the third party is displayed conspicuously in that area;
   
   
4. that area is staffed by an employee of the third party; and
   
   
5. all plastic shopping bags provided from that area bear the name, trade name, trade mark or brand name of the third party.

The standing conditions for exemption are as follows -

Type 1 Exemption:

1. the registered retail outlet continues to meet all the criteria for exemption specified in the answer to Question 22;
    
2. plastic shopping bags may be provided from an exempted area without payment of the required charge only if they are provided to customers who make payment for non-specified goods in that area and the number of bags so provided is not more than necessary for carrying those goods; and
    
3. such other conditions as the Director of Environmental Protection may reasonably impose from time to time.

Type 2 Exemption:  

1. the registered retail outlet continues to meet all the criteria for exemption as specified in the answer to Question 22;
   


2. plastic shopping bags may be provided from an exempted area without payment of the required charge only if they are provided to customers who purchase the goods offered for sale by the third party concerned in that area; and the number of bags so provided is not more than necessary for carrying those goods; and
   
 
3. such other conditions as the Director of Environmental Protection may reasonably impose from time to time.

A registered retailer may apply for the exemption of part of the area of a retail outlet by making an application to the EPD using the specified form “Application for Registration as Registered Retailer/ Registered Retail Outlet” (Form PSB-1 Part 4). 

Any change in the exemption arrangement after its approval is considered as a variation of exemption. For example: 

Type 1 Exemption:

1. revoke all the exempted cashier's counters in the registered retail outlet  
2. relocate exempted cashier's counter(s) to a new location within the registered retail outlet  
3. revoke exempted cashier's counter(s) in the registered retail outlet

Type 2 Exemption:  

1. relocate third party operator(s) to a new location within the registered retail outlet
2. revoke third party operator(s) of a registered retail outlet  

A registered retailer may apply for variation of exemption arrangement by making an application to the EPD using the specified form “Application for Variation of Exemption” (Form PSB-3).  The application form should be completed for submission to the EPD at least 10 working days before the expected date of variation.

Any change in the exemption arrangement that last for 3 months or less is considered as a short-term variation of exemption. For example:

1. temporary modification of a cashier's counter from levy counter to exempted counter (Type 1 exemption) or vice-versa in the promotion area
    
2. short-term change in retail floor area for Type 1 exemption resulting from a change in product items (from prescribed products to non-specified products or vice versa) offered for sales or for display
    
3. short-term consignment of third party operators (Type 2 exemption) at the event hall during festive seasons

A registered retailer may apply for short-term variation of exemption arrangement by making an application to the EPD using the specified form “Application for Variation of Exemption” (Form PSB-3).  The application form should be completed for submission to the EPD at least 10 working days before the expected date of the short-term variation. 

For details, please refer to the “Guideline for Application for Short-term Variation of Exemption”.