Measures to prevent illegal trade in HCFCs: The new EU Regulation and the experience with iPIC Cornelius Rhein European Commission DG Climate Action Unit C 2 – Transport and Ozone

Regulation (EC) 1005/2009 on the ozone depleting substances Directly applicable in all EU Member States Implementation of the Montreal Protocol, but more ambitious than the Montreal Protocol Covers all controlled substances and mandates reporting on some new ODS Controls all uses, even those not controlled under exempted by the MP (e.g. QPS and process agent uses) Applies since 1 January 2010

HCFC s Production until 2020 (Decision XIX/6), for export only Placing on the market until 2015 For maintenance/servicing of existing RAC, but reclaimed HCFCs only, recycled HCFCs may be used in own installations or by the servicing company Labelling of containers and equipment Case-by-case exemption Substances and products/equipment not beyond 2019

Trade Broader definition of import and export also covering transit Trade in ODS and products and equipment only as far as the use is authorised in the EU (no transit of R22 containing equipment) Conditions for import and export are congruent (except exports of virgin HCFCs until 2020, imports banned) Licensing for each single shipment

Trade – Import General import ban for ODS and Products and equipment containing or relying on ODS, exemptions for ODS for essential laboratory and analytical uses ODS for feedstock or processing agents ODS for destruction MB for emergency uses and halons for critical uses P&E for essential analytical and laboratory uses P&E containing or relying on halons for critical uses P&E containing or relying on HCFC (if authorised on case-by-case basis)

Trade - Export General export ban for ODS and P&E containing or relying on ODS, exemptions for ODS for essential laboratory and analytical uses Halons for critical uses listed in Annex VI ODS for feedstock or process agent uses P&E for essential analytical and laboratory uses P&E containing or relying on halons for critical uses P&E containing or relying on HCFC (if authorised on case-by-case basis)

Trade - Licensing Applicable to all entries/exits procedures, including transit and temporary storage. Only good which could enter the EU and remain less than 45 day on EU territory do not need a licence to enter and leave. Applicable to products and equipment Legal basis to refuse licences under the iPIC system

Benefits of iPIC Prevention of illegal trade Prevention of harmful trade Focuses customs controls Enhancing enforcement iPIC should not prevent trade !

iPIC process in EU Incoming request iPIC country? Checking licensing sheet Listed trader? Issue licence Contact licensing officer Response? Do not issue licence Yes No Trade confirmed? Yes

New legal basis for iPIC

iPIC statistic EU

Recent iPIC results 23 March 2010 – Serbia / Malta Import licence request from a Serbian company Export country: Malta Substance: approx metric tons HCFC Initial producer: China sent by Serbia to EU EU informed that exporter is not registered and holds no export licence Maltese authorities were informed and carried out investigations Recent info indicate that export took place directly from China to Serbia, a company in Malta was only by mistake indicated exporter (to be confirmed)

Recent iPIC results 31 March 2010 – Spain / China Export licence request from a Spanish company Export destination: China Substance: approx. 10 metric tons HCFC-22 Designated use: Refrigeration use on board of Hai Feng 823 sent to China China informed that importer is not registered and holds no licence EU did not issue the export licence China informed that importer is now registered and no licence is required

Improvement of info sheets Should cover information on all substances Methyl bromide –including for QPS HCFC Should explain possible exemptions Trades that are not subject to licensing –Feedstock ? –Ships ? –ODS containing products ? Should be regularly updated/re-confirmed

Data comparison under Decision XVII/ Total number of pairs / Number of mismatches:90/65 Potentially illegal trade:11907 metric tonnes 2007 Pairs/mismatches: 95/85 Potentially illegal trade:13651 metric tonnes 2008 Pairs/mismatches: 87/23 Potentially illegal trade:5486 metric tonnes