Illegal Trade in Ozone Depleting Substances UNEP DTIE June 2011
The ozone layer protects us From the OzonAction Education Pack
The Process of Ozone Depletion
Ozone Hole <ul><li>Major impacts of ozone layer depletion on life and nature </li></ul><ul><li>Cataracts </li></ul><ul><li...
International Response <ul><li>Vienna Convention for the Protection of the Ozone Layer 1985 </li></ul><ul><li>The Montreal...
Substance Developed Countries Developing Countries Freeze Phase-Out Freeze Phase-Out CFCs  1 Jul. 1989 1 Jan. 1996 1 July ...
Illegal Trade in Ozone Depleting Substances <ul><li>20,000 tonnes per year, worth US$ 150-300 million – Equivalent to over...
Reasons for smuggling <ul><li>ODS substitutes are often more expensive </li></ul><ul><li>High cost of changing to substitu...
Reasons for smuggling (continued) <ul><li>Intense business competition in context of limited license and quota; </li></ul>...
Legislation and regulations on ODS <ul><li>Enact or revise national laws or regulations concerning ODS, for example,  </li...
China-Indonesia <ul><li>4000 tons of ODS being traded in Indonesia annually before 2004; </li></ul><ul><li>400-500 tons we...
Seizures by Indonesian Customs
<ul><li>6 May 2010,  Bangkok Customs Office (Bang Sao Thong Customs Service Sub-Division) </li></ul><ul><li>The Goods are ...
Fiji case <ul><li>In 2005, Fiji brought two ODS cases to court; </li></ul><ul><li>In Case I, the accused was charged for u...
The HCFC challenge… <ul><li>Implementing the accelerated phase-out of HCFCs is a tremendous challenge </li></ul><ul><li>It...
Challenges for control of HCFCs <ul><li>Different phase-out schedules </li></ul><ul><li>Production/consumption controls in...
Illegal trade in HCFCs already happening   <ul><li>Cases of illegal trade in HCFCs have already been detected in both deve...
HCFCs seized in India
Prosecution Options:  1. Administrative Action <ul><li>Customs or Environmental Agency takes the action  </li></ul><ul><ul...
Prosecution Options:  2. Civil Judicial <ul><li>Court Proceedings </li></ul><ul><ul><li>Allows for Monetary Damages-usuall...
Recommended Options:  3. Criminal Judicial <ul><li>Highest Penalties-Prison sentences and fines. </li></ul><ul><li>Designe...
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Illegal trade in ozone depleting substances

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  • The goods were delivered to Bang Sao Thong port via Leam Chabang Seaport. The goods were declared to Customs during importation procedure as “Metal can” with the total amount of 50 pieces. The investigation and suppression bureau officials had checked the goods and found R-134a for 43 pieces and R-12 for 5 pieces. The goods were China Origin. The seizure was made over the charge of false declaration and importation for the restricted goods into The Kingdom of Thailand without permission from Department of Industrial Works, which also considered as an offence against the Thai Customs Law.
  • Transcript of "Illegal trade in ozone depleting substances"

    1. 1. Illegal Trade in Ozone Depleting Substances UNEP DTIE June 2011
    2. 2. The ozone layer protects us From the OzonAction Education Pack
    3. 3. The Process of Ozone Depletion
    4. 4. Ozone Hole <ul><li>Major impacts of ozone layer depletion on life and nature </li></ul><ul><li>Cataracts </li></ul><ul><li>Skin Cancer </li></ul><ul><li>Weakened Immune System </li></ul><ul><li>Damage to terrestrial plant life </li></ul><ul><li>Damage to aquatic eco-systems </li></ul>
    5. 5. International Response <ul><li>Vienna Convention for the Protection of the Ozone Layer 1985 </li></ul><ul><li>The Montreal Protocol on Substances that Deplete the Ozone Layer 1987 </li></ul>
    6. 6. Substance Developed Countries Developing Countries Freeze Phase-Out Freeze Phase-Out CFCs 1 Jul. 1989 1 Jan. 1996 1 July 1999 1 Jan. 2010 Halons --- 1 Jan. 1994 1 Jan. 2002 1 Jan. 2010 Other CFCs --- 1 Jan. 1996 --- 1 Jan. 2010 CCl 4 --- 1 Jan. 1996 --- 1 Jan. 2010 Methyl Chloroform 1 Jan. 1993 1 Jan. 1996 1 Jan. 2003 1 Jan. 2015 HCFCs 1 Jan. 1996 1 Jan. 2020 1 Jan. 2016 1 Jan. 2030 Methyl Bromide 1 Jan. 1995 1 Jan. 2005 1 Jan. 2002 1 Jan. 2015
    7. 7. Illegal Trade in Ozone Depleting Substances <ul><li>20,000 tonnes per year, worth US$ 150-300 million – Equivalent to over 12% of global ODS production ( 1990s) </li></ul><ul><li>10-20% of the legitimate trade in ODS. Equivalent to 7,000 - 14,000 tonnes per year, with a value of US$ 25-60 million (2000s) </li></ul>
    8. 8. Reasons for smuggling <ul><li>ODS substitutes are often more expensive </li></ul><ul><li>High cost of changing to substitutes </li></ul><ul><ul><li>- retrofitting of equipment often needed </li></ul></ul><ul><li>Long lifetime of equipment containing ODS </li></ul><ul><li>- R&AC, foaming lines, dry-cleaning machines </li></ul><ul><li>Transfer Of Used Refrigerators and Cars </li></ul><ul><li>Different price between domestic and international (India) </li></ul>
    9. 9. Reasons for smuggling (continued) <ul><li>Intense business competition in context of limited license and quota; </li></ul><ul><li>The demand for ODS remains high and may be higher than legally allowed import quota ; </li></ul><ul><li>Evasion of tax levied on ODS; </li></ul><ul><li>Easy availability of legal ODS </li></ul><ul><li>Lack of enforcement of trade restrictions </li></ul>
    10. 10. Legislation and regulations on ODS <ul><li>Enact or revise national laws or regulations concerning ODS, for example, </li></ul><ul><ul><li>The Gazette of India Notification (ODS Rules, 2000) & its amendments </li></ul></ul><ul><ul><li>The People's Republic of China Air Pollution Prevention Law </li></ul></ul><ul><ul><li>China’s State Council Order No. 573 (Ozone Depleting Substances Regulations) </li></ul></ul>
    11. 11. China-Indonesia <ul><li>4000 tons of ODS being traded in Indonesia annually before 2004; </li></ul><ul><li>400-500 tons were imported legally; </li></ul><ul><li>China’s exports accounts for 38.8% of Indonesia’s total imports in 2004 </li></ul>
    12. 12. Seizures by Indonesian Customs
    13. 13. <ul><li>6 May 2010, Bangkok Customs Office (Bang Sao Thong Customs Service Sub-Division) </li></ul><ul><li>The Goods are 48 pc. (R-134a 43 pc. and R-12 5 pc.) </li></ul><ul><li>Origin China </li></ul><ul><li>False description of goods </li></ul>Seizure in Thailand
    14. 14. Fiji case <ul><li>In 2005, Fiji brought two ODS cases to court; </li></ul><ul><li>In Case I, the accused was charged for unlawful storage of a controlled substance namely CFC-12 on its premices without a licence, contrary to the ODS Act of 1998. </li></ul><ul><li>In the second case, the accused was charged for handling of CFC-12, without a licence contrary to the ODS Regulation 2000. </li></ul><ul><li>14000 USD spent on testing; </li></ul><ul><li>The judge fined the two accused US$1,000. </li></ul>
    15. 15. The HCFC challenge… <ul><li>Implementing the accelerated phase-out of HCFCs is a tremendous challenge </li></ul><ul><li>It is imperative that lessons learnt from past ODS phase-outs are applied to HCFCs as the Montreal Protocol cannot afford to be undermined by illegal trade. </li></ul><ul><li>There is a genuine concern that as the phase-out of HCFCs begins to take hold in developing countries there will be a sharp spike in black market trade which may threaten compliance with the Montreal Protocol. </li></ul><ul><li>In order to help Parties meet this challenge the entire enforcement chain needs to be engaged to avoid a repetition of the smuggling that occurred with CFCs </li></ul>
    16. 16. Challenges for control of HCFCs <ul><li>Different phase-out schedules </li></ul><ul><li>Production/consumption controls in key non-Article 5 markets (EU/US), coupled with on-going demand (servicing etc.) </li></ul><ul><li>Rapid production growth in Article 5 countries </li></ul><ul><li>Low price – R22 ~ $2.5kg </li></ul>
    17. 17. Illegal trade in HCFCs already happening <ul><li>Cases of illegal trade in HCFCs have already been detected in both developed and developing countries </li></ul><ul><li>2009: Miami Florida. Kroy Corporation illegally imported 11 shipments of HCFCs (30,000 cylinders). Misdeclaration (HFCs) and double-layering. Parallels with CFCs </li></ul><ul><li>Europe – notorious CFC smuggler offering “recycled” HCFCs for sale from China </li></ul><ul><li>Seizures in India, and blends containing HCFCs in Thailand and Philippines </li></ul>
    18. 18. HCFCs seized in India
    19. 19. Prosecution Options: 1. Administrative Action <ul><li>Customs or Environmental Agency takes the action </li></ul><ul><ul><li>Penalties less sever, usually only monetary penalties, but resolved much quicker. (Jail time?) </li></ul></ul><ul><ul><li>Proof requirements may be less than in formal court proceedings </li></ul></ul><ul><ul><li>Allow for seizure and forfeiture. </li></ul></ul>
    20. 20. Prosecution Options: 2. Civil Judicial <ul><li>Court Proceedings </li></ul><ul><ul><li>Allows for Monetary Damages-usually higher than those for administrative actions. </li></ul></ul><ul><ul><li>Injunctive relief-to stop offending conduct. </li></ul></ul><ul><ul><li>Official forfeiture of goods </li></ul></ul><ul><ul><li>Usually requires involvement of prosecuting authority </li></ul></ul><ul><ul><li>Reviewing Court for Administrative Actions </li></ul></ul>
    21. 21. Recommended Options: 3. Criminal Judicial <ul><li>Highest Penalties-Prison sentences and fines. </li></ul><ul><li>Designed to be punitive </li></ul><ul><li>Highest Burden of Proof </li></ul><ul><li>Will require turning over control of case to prosecutor, but agency still plays vital and important role in collecting evidence and preparing case for court. </li></ul>

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