Prepared by Ozone Center of Kyrgyzstan Problems of illegal trade in transboundary aspect

Environmental crimes –Threat to human health (direct & indirect) –Threat to biodiversity (wildlife, plants) –Economic damage for legitimate businesses –Loss of revenue for government –National & international laws undermined –Links to corruption –Links to organised crime and terrorism –Threat to poor countries

Examples of European and Asian countries with instances of illegal trade in ODS (non comprehensive)

Conceptual basis to decrease illegal trade Prior informed consent procedures to be applied to import of chemicals, as used in frames of Basel and Rotterdam Conventions; Possibility to request cross-license on a base of documents copies exchange that reflects real volumes of import and export; Coordination in frames of regional networks for information exchange about legal and illegal trade; Creation of information systems for exchanging data between bodies that issue permission and Customs; Cooperation between competent authorities for information exchange between importing and exporting countries; Dissemination of information about new methods of illegal trade, so Parties can realize preventive measures; creation of interactive bank of pictures; Financial aspects related to confiscation of smuggled chemicals.

Regional Networks & dialogues Regular forum for Ozone Officers to exchange experiences, develop skills, share ideas with counterparts from both developing & developed countries Customs & Ozone Officers have met in joint workshops at regional levels Subregional / bilateral dialogues between neighboring countries sharing common trade issues

What did we learn for last years? Smugglers are innovative in the field of environment too: training methods should be equally creative and tailored Importance of building capacity at various levels: national, regional. Importance of developing specific training tools and methods Need for partnerships: WCO, RILOs, Interpol, Convention Secretariats, Implementing AgenciesCreate synergies between international, regional & national stakeholders on the implementation of trade-related provisions of MEAs Encourage bilateral, sub-regional & regional dialogues on combating illegal trade in environmentally-sensitive commodities

Montreal Protocol approach Demand side management –awareness, good practices, recovery & recycling, retrofitting, drop- in, replacement –avoid premature decommissioning of equipment and chemicals Phase-out of production –closure of facilities Phase-out of consumption –consumption = import + production – export Trade controls –national legislation, import & export licensing systems, quota systems, import bans Enforcement networks –information exchange between ozone & customs officers Partnership with WCO –harmonised systems codes for ODS, mixtures and equipment –risk profiling for ODS, endangered species and waste Regional networks –Contact group and bilateral meetings and programmatic assistance

Production of ODS Article 5 countries Non-article 5 countries 100% 50% 0%

Future challenges Expected illegal trade in HCFC –MOP advanced HCFC phase-out –some countries have HCFC import / use restrictions (European Union) Enforcement of legislation / licensing systems –training of intelligence officers / environmental inspectors –training of judges on environmental crime Use of intelligence and investigations –passive border control not effective –analysis of intelligence and trade data International cooperation on environmental crime –despite many other priorities of customs

Prague Declaration on Enhancing Cooperation among Chemical Related MEAs by 26 November 2004 Aware of the efforts of the world community to develop a strategic approach to international chemicals management, 1. Reaffirm their commitment to continue their efforts to protect the global environment and the ozone layer,bearing in mind in particular the Rio Principles, including the principle of common but differentiated responsibilities; 2. Stress the need in particular, to implement the relevant elements of the WSSD Plan of Implementation concerning the sound management of chemicals, including the prevention of international illegal trade in ozone-depleting substances,hazardous chemicals and hazardous wastes; 3. Emphasise the need for developing countries to implement multilateral environmental agreements and mainstream environmental considerations in their sustainable development and poverty reductions strategies to maximise the efficiency of the technical and financial support provided ;

4. Reiterate the need to help provide support for the implementation of chemicals-related multilateral environmental agreements to developing countries and countries with economies in transition, for the Montreal Protocol including through an adequate replenishment of the Multilateral Fund for the Implementation of the Montreal Protocol and the Global Environment Facility and enhanced cooperation between these funds; 5. Enhance the collaborative efforts towards technological development, in particular those related to the protection of the ozone layer and the mitigation of climate change, and transfer technology to the countries that need it; 6. Seek alliance with other multilateral instruments like the Basel, Rotterdam and Stockholm conventions to contribute to an effective strategic approach to international chemicals management; and 7. Declare the willingness of the Parties assembled in this City of Bridges to contribute to building bridges between the relevant multilateral environmental agreements and to help them draw inspiration from the success of the Montreal Protocol while, in turn, drawing inspiration from them in meeting future challenges

Effective legislative and normative documents of Kyrgyz Republic Law “on licensing” from Chapter 2 “Licensing of export and import of products” (work, services) Resolution of Jogorku Kenesh of Kyrgyz Republic “On approval of the list of products, realization of export and import of products carried out by licensing” from г. № 1101 Resolution of the Government of Kyrgyz Republic “On approval of organizations of licensors and experts on licensing export and import of specific products in Kyrgyz Republic” from г. № 709 Law “On environmental protection” from г. № 53, Article 25 “Protection of climate and ozone layer of atmosphere” Law “On atmospheric air protection”, from г. № 51, Article 34 “Measures on preventing harmful effects of on ozone layer” Resolution of Government “On measures to realize Vienna convention and Montreal protocol” from г. № 552 Resolution of Government “On State program to phase out ODS in KR” from г. № 263 Resolution of Government “On making amendments and additions to the resolution of Government of KR № 860 from г. Law of KR “On ozone layer protection” from г. № 206 Resolution of Government of Kyrgyz Republic № 374 from г. “On phasing out ODS”

Border problems Mountain relief Poorly equipped borders Big amount of Customs points Insufficient technical equipment of Customs points

TRENDS IN SMUGGLING SCHEMES Fraudulent Transshipments “Recycled” versus “Virgin” Mislabeling CFCs Using a wrong Customs Code Traditional smuggling Smuggling CFCs in compressors or equipment Adding nitrogen to change tank pressure Splitting valves / tanks

Illegal trade in ODS Kyrgyzstan (11.07) – halon car fire extinguishers found in automobile spare parts market in Bishkek –import of halon and halon-based equipment is banned –2400 extinguishers containing 1.44 ODP tons halon were imported from South Korea in 2007 by a company registered in a Free Economic Zone –company used falsified import documents –company owner received penalty under administrative law –ecological inspectors and customs officers received disciplinary penalty. Kyrgyzstan (12.07) – 58 refrigerators imported from South Korea were retained in Customs terminal in Osh –joint commission of ecological inspectors and Customs officers inspected the refrigerators: –27 refrigerators based on R-12 –25 refrigerators based on R-134а –6 showcase refrigerators based on R-22. –Owner has to retrofit the R-12 refrigerators to R-134a or pay for the re-export to South Korea.

Fire extinguishing

Basic elements/requirements of a licensing system  All importers and exporters of CFCs need to be registered  A license is issued per single shipment of CFCs  An exporter should add the contract to the request for import license  Exporters should give the details of the destinations

Environment body Importer / Exporter Customs LICENSE No Yes The introduction of Import/export license system Licensing body Yes No

Informal Prior Informed Consent- Key Elements of the Mechanism  Exporting countries check the copy of import licenses voluntarily before issuing export licenses  Importing countries inform exporting countries of their registered importers and the quantities allocated to them

Environment body Importer/Exporter LICENSECustoms Country of export/import/transit Request No Yes License for transportation

Necessary steps on decreasing illegal trade of ODS -Practical realization of procedures of preliminary relevant agreements in relation to ODS import, similar to that one used within the framework of Basel and Rotterdam convention. - Opportunity to require to grant cross licenses in relation to ODS on basis of exchange of materials copies reflecting real volume of import and export. - Opportunity to require to grant cross licenses in relation to ODS on basis of exchange of materials copies reflecting real volume of import and export. - Provision with coordination within the framework of regional networks for information exchange on legal and illegal trade. - Provision with coordination within the framework of regional networks for information exchange on legal and illegal trade. - development of informational systems that provide with data transfer among agencies that issue permit and customs. - development of informational systems that provide with data transfer among agencies that issue permit and customs. - possibility of collaboration among national agencies on ozone so that importing countries can receive information from exporting countries. - possibility of collaboration among national agencies on ozone so that importing countries can receive information from exporting countries. - invitation of RILO CIS и RILO AP to organize and disseminate information about new approaches used by smugglers. - invitation of RILO CIS и RILO AP to organize and disseminate information about new approaches used by smugglers. - dissemination of information about new methods of realizing illegal trade to take relevant preventive measures by Parties, to create interactive bank of photos, connected to illegal trade. - dissemination of information about new methods of realizing illegal trade to take relevant preventive measures by Parties, to create interactive bank of photos, connected to illegal trade. - to harmonize the system of licensing of import/ export of ODS in countries of RILO CIS и RILO AP to control ODS movement. - to harmonize the system of licensing of import/ export of ODS in countries of RILO CIS и RILO AP to control ODS movement. - to include the methods of ODS and ODS containing equipment identification to educational program of custom officers training - to include the methods of ODS and ODS containing equipment identification to educational program of custom officers training

Thank you very much for your attention!