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Measures to prevent illegal trade in HCFCs:
The new EU Regulation and the experience with iPIC
Cornelius RheinEuropean 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
HCFCs
• 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
Yes
No
No
No
Trade confirmed?
Yes
New legal basis for iPIC
iPIC statistic EU
2007 2008 2009
Accepted 10 (40%) 13 (50%) 12 (55%)
No response 9 (36%) 8 (31%) 1 (5%)
Rejected 6 (24%) 5 (19%) 9 (41%)
Total 25 26 22
Trades licensed per shipment
352 318 347
% of total trades rejected
1,7 % 1,6% 2,9%
Metric tons rejected
104 200 22
Recent iPIC results
• 23 March 2010 – Serbia / Malta
Import licence request from a Serbian company Export country: Malta Substance: approx 15000 metric tons HCFC Initial producer: China
E-Mail 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
E-Mail 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/16
• 2006 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