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Indicative List of Categories of Incremental Costs


The following list is indicated:

(a)  Supply of substitutes:

      (i)   cost of conversion of existing production facilities:

            -     cost of patents and designs and incremental cost of royalties;

            -     capital cost of conversion; and

            -     cost of retraining of personnel and cost of research to adapt technology to local circumstances;

      (ii)  costs arising from premature retirement or enforced idleness, taking into account any guidance of the Executive Committee on appropriate cut-off dates:

            -     of productive capacity previously used to produce substances controlled by existing and/or amended or adjusted Protocol provisions; and

            -     where such capacity is not replaced by converted or new capacity to produce alternatives;

      (iii) cost of establishing new production facilities for substitutes of capacity equivalent to capacity lost when plants are converted or scrapped, including:

            -     cost of patents and designs and incremental cost of royalties;

            -     capital cost; and

            -     cost of training and cost of research to adapt technology to local circumstances;

      (iv) net operational cost, including the cost of raw materials; and

      (v)  cost of import of substitutes;

(b)  Use in manufacturing as an intermediate good:

      (i)   cost of conversion of existing equipment and product manufacturing facilities;

      (ii)  cost of patents and designs and incremental cost of royalties;

      (iii) capital cost;

      (iv) cost of retraining;

      (v)  cost of research and development; and

      (vi) operational cost, including the cost of raw materials except where otherwise provided for;

(c)  End use:

      (i)   cost of premature modification or replacement of user equipment;

      (ii)  cost of collection, management, recycling, and, if cost-effective, destruction of ozone depleting substances; and

      (iii) cost of providing technical assistance to reduce consumption and unintended emission of ozone depleting substances.

(UNEP/OzL.Pro/2/3 Appendix I of Decision II/8, para. 2).

(UNEP/OzL.Pro/4/15 Decision IV/18 Annex VIII).

(Supporting document: UNEP/OzL.Pro/2/3 Annex IV, Appendix I).

(UNEP/OzL.Pro/4/15 Annex VIII).


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