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Risk Assessment of Illegal Trade in HCFCs Risk Assessment of Illegal Trade in HCFCs.

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Presentation on theme: "Risk Assessment of Illegal Trade in HCFCs Risk Assessment of Illegal Trade in HCFCs."— Presentation transcript:

1 Risk Assessment of Illegal Trade in HCFCs Risk Assessment of Illegal Trade in HCFCs

2 Introduction to EIA

3 Profile: Established in 1984 Offices in London and Washington DC Specialise in exposing environmental crime - illegal logging and trade - illegal trade in endangered species - smuggling of controlled chemicals

4 EIA/UNEP Risk Assessment Aim: collation of cases and smuggling methods used, regulatory issues, future risk, recommendations to minimise risk Timeline: June to August Output: 4 page briefing for NoUs and customs

5 Comparison with CFC smuggling

6 Similar Conditions Different phase-out schedules Production/consumption controls in key non-Article 5 markets (EU/US), coupled with on-going demand (servicing etc.) Rapid production growth in Article 5 countries Low price – R22 = $2.5kg

7 Better prepared this time? Licensing systems iPIC UNEP Compliance Assistance Programmes Customs training Industry awareness

8 Risk Indicators Rapidly rising production in Art. 5. Overtook non-Article 5 in China: 1997 produced 1,500 ODP tonnes = 27,500. Data discrepancies: 2008 Singapore to India (40 tonnes vs. 420 tonnes) Demand: EU 2007 R22 sales around 20,000 tonnes industry estimate deficit of 15,000 tonnes, recycled only 15%. UK: % of firms surveyed has one or more systems reliant on R22. Compared with previous year sales did not fall and reclamation did not increase as expected. One major supermarket 25% of refrigeration systems = HCFC

9 Illegal Trade in HCFCs

10 Illegal trade in HCFCs already happening 2009: Miami Florida. Kroy Corporation illegally imported 11 shipments of HCFCs (30,000 cylinders). Misdeclaration (HFCs) and double-layering. Parallels with CFCs Europe – notorious CFC smuggler offering recycled HCFCs for sale from China Seizures in India, and blends containing HCFCs in Thailand and Philippines

11 Current Trade One website had 246 sell offers for R22 refrigerant gas. 230 from Chinese firms Several of the sellers not listed as licensed to export EIA enquiries to Chinese sellers: aggressive sales, low prices ($2-3 per kg), willing to supply to EU market despite import ban

12 Preventing Illegal Trade HCFC phase-out plans (quotas, limits on products containing HCFCs) Expansion of iPIC Limit export to producers, not agents Customs training (smuggling methods, HFCs)

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