Phasing Out Pre-Euro IV Diesel Commercial Vehicles | Environmental Protection Department

Background
Ex-gratia Payment Scheme
Special Arrangement for Ex-gratia Payment for Phasing Out
Euro II Diesel Light Bus
Common Errors in Applications
Statistics of Ex-gratia Payment Applications New
Registered Vehicle Scrapping Companies New
Related Documents
Enquiry

Reminder
The ex-gratia payment application deadline for Euro III Diesel Commercial Vehicles (DCVs) is 31 December 2019, and the Transport Department will stop issuing licences to Euro III DCVs after the above deadline. Owners of Euro III DCVs should make necessary preparation and arrangement as early as possible.

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Background

To improve roadside air quality and better protect public health, the Government adopts an incentive-cum-regulatory approach to phase out some 82,000 pre-Euro IV diesel commercial vehicles (DCVs) including goods vehicles, light buses and non-franchised buses.

Pre-Euro IV DCVs (i.e. pre-Euro, Euro I, Euro II and Euro III vehicles) are phased out by different retirement deadlines according to their first registration dates. Eligible vehicle owners may apply for ex-gratia payment. To help timely replacement of DCVs in the long run for better roadside air quality, the Government also limits the service life of DCVs newly registered on or after 1 February 2014 to 15 years.

The Government will stop issuing licences to the relevant DCVs after specified dates, unless they can comply with the emission standards applicable to them as if they were first registered on the date of the vehicle licence application^Note. The specified dates are:

(a)

for pre-Euro IV DCVs which are distinguished by their first registration dates, the respective ex-gratia payment application deadlines set out in Table 1; and

(b)

for DCVs first registered on or after 1 February 2014, the day before the 15^th anniversary date of first registration of the vehicles.

The relevant legal provisions are in the Air Pollution Control (Air Pollutant Emission) (Controlled Vehicles) Regulation (Cap.311X).

Note: Exemption may only be granted to a vehicle by the Director of Environmental Protection if the Director is satisfied that exceptional circumstances make it impractical or unreasonable for the vehicle, to comply with the Regulation. Since the Regulation came into effect, exemptions were granted for 26 pre-Euro IV DCVs to extend the retirement deadline in accordance with Section 6 of the Regulation.

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Ex-gratia Payment Scheme

Eligible registered owners of pre-Euro IV DCVs can apply for ex-gratia payment from 1 March 2014 onwards. The ex-gratia payment application deadlines are set out below and in Table 1.

Ex-gratia Payment Application Deadlines for pre-Euro IV DCVs

Registered vehicle owners should submit applications for ex-gratia payment on or before the deadlines, by any one of the following means (see Example):

（1） By hand to Counter Number 1 of Hong Kong Licensing Office, Transport Department during office hours; or

（2） By drop-in boxes located at any of the Transport Department’s Licensing Offices; or

（3） By post to Hong Kong Licensing Office, Transport Department (the date of application is determined by the postmark).

The ex-gratia payment level is set out in Table 2. It inversely correlates with the age of the vehicles and remains the same throughout the scheme.

Table 1. First Registration Dates for Distinguishing Pre-Euro IV Diesel Commercial Vehicles with Different Ex-gratia Payment Application Deadlines (Click to enlarge)

Table 2. Amount of Ex-gratia Payment (Click to enlarge)

Eligibility Criteria

The vehicle under application and the applicant must meet the following requirements:

(a)

the vehicle is a DCV (i.e. a goods vehicle, light bus or non-franchised bus running on diesel) with a first registration date that falls within the dates specified in Table 1;

(b)

the vehicle is registered or has applied for re-registration as of 10 January 2014;

(c)

the vehicle is scrapped on or after 1 March 2014 by a vehicle scrapping company registered under the ex-gratia payment scheme;

(d)

the registration of the vehicle is cancelled after it is scrapped;

(e)

on the day when the registration is cancelled, the vehicle has a valid vehicle licence;

(f)

the applicant for the ex-gratia payment is the registered owner of the vehicle when it is scrapped and its registration is cancelled; and

(g)

the vehicle has not been approved to retain eligibility for the grant under the special arrangement for the incentive scheme for replacement of Euro II DCVs.

Application Procedures

The applicant needs to scrap his / her pre-Euro IV DCV within the period between 1 March 2014 and the respective ex-gratia payment application deadline (both dates inclusive) by a vehicle scrapping company registered under the scheme, and then notify the Commissioner for Transport of such scrapping with a Vehicle Scrapping Certificate issued by the vehicle scrapping company for cancelling the vehicle's registration. Within three months after the vehicle is scrapped and NOT later than the respective application deadline, the applicant should submit an application for ex-gratia payment to TD together with a photo (see sample photos) showing the vehicle's unique chassis number taken by the vehicle scrapping company before the vehicle is scrapped. The ex-gratia payment application form and the relevant information for application can be found at TD's website.

Example

DCV to be phased out:
Class: Light goods vehicle (van type)
Permitted gross vehicle weight: 2.8 tonnes
First registration date: 30 October 2000
Planned date to notify TD of the vehicle scrapping for cancelling the registration of the vehicle: 5 June 2014

Light goods vehicle (van type)

Is my vehicle above covered by the scheme? If so, what are the date from which licence will not be issued and the ex-gratia payment application deadline?

The ex-gratia payment application deadline for the vehicle is 31 December 2017, and the licence will not be issued from 1 January 2018. The registered owner should submit an application for the ex-gratia payment to a TD's licensing office by hand on or before 29 December 2017 (a working day), or by post (as determined by the postmark) or via drop-in boxes on or before 31 December 2017. The diagram below illustrates how this information can be checked from Table 1.

Table 1 : A diagram illustrating how to check the required information

What is the ex-gratia payment amount?

The scrapped vehicle is 13 years and 7 months old if the vehicle registration is cancelled on 5 June 2014 (thus counted as 13 years). The ex-gratia payment amount for this vehicle is $79,200. The diagram below illustrates how this information can be checked from Table 2.

Table 2 : A diagram illustrating how to check the required information

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Special Arrangement for Ex-gratia Payment for Phasing Out Euro II Diesel Light Bus

Euro II diesel public light bus (PLB) and private light bus owners, who have placed order for new replacement light buses on or before the specified dates as listed in Table 3, can apply for retention of eligibility for the ex-gratia payment for six months beyond the ex-gratia payment application deadline of 31 December 2017 to 30 June 2018. Vehicle owners who intend to apply for retention of eligibility for the ex-gratia payment should submit the application form for “Retention of Eligibility for Ex-gratia Payment” together with the specified documents to the Environmental Protection Department on or before the deadlines as listed in Table 3.

Table 3 The Specified Dates for Placing Order for New Vehicle and the Application Deadlines for Retention of Eligibility for Ex-gratia Payment

	Specified Dates for placing order for New Vehicle	Application Deadlines for Retention of Eligibility for Ex-gratia Payment
Euro II Diesel Public Light Bus	31 October 2017	14 November 2017
Euro II Diesel Private Light Bus	15 December 2017	29 December 2017

Related Documents for the Special Arrangements

Special Arrangement for Ex-gratia Payment for Phasing Out Euro II Diesel Public Light Bus

Details of Special Arrangement for Ex-gratia Payment for Phasing Out Euro II Diesel Public Light Bus

Special Arrangement for Ex-gratia Payment for Phasing Out Euro II Diesel Private Light Bus

Details of Special Arrangement for Ex-gratia Payment for Phasing Out Euro II Diesel Private Light Bus

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Common Errors in Applications

Vehicle owners who are interested to apply for the ex-gratia payment should, before scrapping the vehicles, make reference to the “Checklist for submission of application” for checking whether their applications fulfill all application requirements. Some common errors made by vehicle owners in the ex-gratia payment applications are listed out below for reference. In particular, vehicle owners should pay special attention to the key points and time sequence for the various steps in the application to avoid making similar errors in their applications.

Checklist for submission of application

Common Errors	Relevant Eligibility Criteria / Application Procedures to be met	Points to note
Vehicle owner cancelled the vehicle registration after the expiry of the vehicle licence (see Figure 1).	Fail to meet criterion No. 5 "on the day when the registration is cancelled, the vehicle has a valid vehicle licence".	Vehicle owner should check the expiry date of his/her vehicle licence before scrapping the vehicle. He/She should make necessary preparation and arrangement as early as possible (e.g. arranging vehicle examination for licence renewal or making appointment for scrapping the vehicle at appropriate time) to ensure meeting eligibility criteria No. 5.
New vehicle owner scrapped his/her vehicle without completing transfer of vehicle ownership with TD (see Figure 2).	Fail to meet criterion No. 6 "the applicant for the ex-gratia payment is the registered owner of the vehicle when it is scrapped and its registration is cancelled".	After purchasing the vehicle, new vehicle owner should first submit to TD application for transfer of vehicle ownership and upon obtaining TD’s written approval, he/she can then proceed to arrange for scrapping the vehicle by a registered vehicle scrapping company.
Vehicle under application was not scrapped by a registered vehicle scrapping company.	Fail to meet the criterion No. 3 "the vehicle is scrapped on or after 1 March 2014 by a vehicle scrapping company registered under the ex-gratia payment scheme".	Before scrapping his/her vehicle, vehicle owner should check the latest list of registered vehicle scrapping companies to identify a registered vehicle scrapping company for scrapping the vehicle.
Vehicle under application is not a pre-Euro IV DCV such as special purpose vehicle or its first registration date does not fall within the specified dates.	Fail to meet the criterion No. 1 "the vehicle is a DCV (i.e. a goods vehicle, light bus or non-franchised bus running on diesel) with a first registration date that falls within the dates specified in Table 1.	Vehicle owner should check whether his/her vehicle is classified as a pre-Euro IV DCV under the ex-gratia payment scheme from the information in the Vehicle Registration Document and if in doubt, contact EPD or TD.
Photo affixed to the ex-gratia payment application form does not show clearly the vehicle’s unique chassis number.	Fail to meet the application procedures of submitting a photo clearly showing the vehicle’s unique chassis number taken by the registered vehicle scrapping company before the vehicle is scrapped.	Before scrapping his/her vehicle, vehicle owner is advised to check whether the photo of the vehicle taken by the registered vehicle scrapping company clearly shows each numeral and letter of the chassis number (Click for sample photos).

Figure 1 : Time Sequence for vehicle owner cancelled the vehicle registration

Figure 2 : Time sequence for new vehicle owner scrapped his/her vehicle

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Statistics of Ex-gratia Payment Applications New

	Euro III
	No. of applications for ex-gratia payment received (as of 31 December 2018)
Light goods vehicles	9,634
Medium goods vehicles	5,853
Heavy goods vehicles	294
Public light buses	126
Private light buses	82
Non-franchised buses	2,190
Total	18,179

Click here for further breakdown of the applications.

	Euro III
	No. of Eligible DCVs*
Light goods vehicles	17,525
Medium goods vehicles	9,659
Heavy goods vehicles	513
Public light buses	405
Private light buses	195
Non-franchised buses	2,611
Total	30,908

* Revised on 11 September 2014.

Click here for further breakdown of the eligible DCVs.

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Registered Vehicle Scrapping Companies

The Environmental Protection Department has set up a list of vehicle scrapping companies registered under the ex-gratia payment scheme. Eligible vehicle owners who wish to apply for the ex-gratia payment should check the latest list below to identify a registered vehicle scrapping company for scrapping their vehicles.

List of Registered Vehicle Scrapping Companies New

Note: This list of registered vehicle scrapping companies (RVSCs) will be updated from time to time. Please check the latest list of RVSCs and their registration validity period before scrapping vehicles.

Application for and Responsibilities of Registered Vehicle Scrapping Companies

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Related Documents

Reminders from Transport Department for Registered Owners of Non-franchised Buses and Public Light Buses

Discussion paper for the meeting of the Panel on Environmental Affairs of the Legislative Council on 2 October 2013

Legislative Council Brief on the Regulation

Discussion paper for the meeting of the Finance Committee of the Legislative Council on 10 January 2014

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Enquiry

Please contact the following departments for enquiries:

	Retirement of pre-Euro IV DCVs and the ex-gratia payment scheme	Application for ex-gratia payment and cancellation of vehicle registration
Department	Environmental Protection Department	Transport Department
Phone	2651 1100	2804 2600
Email	preEU4dcv@epd.gov.hk	licensing@td.gov.hk

User review date:

Monday, 4 December, 2017