07 May 2020 Récit Climate Action

Strengthening enforcement efforts of the Montreal Protocol in the Asian region

The informal Prior Informed Consent (iPIC) system is a voluntary and informal mechanism of information exchange on intended trade between countries in ozone-depleting substances (ODS), hydrofluorocarbons (HFCs) and mixtures containing these substances, as well as on intended trade in products and equipment containing these substances. Controlled substances include hydrochlorofluorocarbons (HCFCs), CFCs halons, and hydrobromofluorocarbons (HBFCs) as well as trade in HFCs, products and equipment containing these controlled substances.

HCFCs are primarily used as refrigerants for air conditioners and fridges and are controlled under the Montreal Protocol on Substances that Deplete the Ozone Layer; they are being phased out by all countries according to a specific timeline.

The iPIC platform was created in 2006 and is hosted by UN Environment Programme’s (UNEP) – OzonAction. It enables countries to share details of eligible importers and exporters with other member countries, facilitates and monitors trade in controlled substances, and avoid illegal or unwanted shipments. iPIC focal points can carry out consultations with their trading partner countries to verify the eligibility of intended shipments. iPIC has become a global voluntary initiative used by more than 100 parties to the Montreal Protocol.

Some of the benefits of the system include:

  • Quick exchange of information between trading countries to clarify if an intended shipment of controlled substances is part of the exporting country’s licensing and quota system and thus expedite legal trade and prevent illegal or unwanted trade in ODS and HFCs;
  • Enabling parties to better monitor the controlled substances entering and/or leaving their territories, ensuring the country’s compliance with the Montreal Protocol;
  • Reduction of differences between import and export data through identification of illegal trade and cases of non-compliance with domestic legislation;
  • Forging of valuable links that foster good working relations between trading countries;
  • Facilitation of the legal trade and prevention of illegal or unwanted trade ODS including hydrochlorofluorocarbons (HCFCs), CFCs halons, and hydrobromofluorocarbons (HBFCs) as well as trade in HFCs, products and equipment containing these controlled substances.

It is against this backdrop that Thailand and China partnered and used OzonAction’s iPIC system to track and prevent an illegal shipment of HCFCs to Thailand.

In March 2020, China's Ozone-Depleting Substance Import/Export Management Office received an application to export 72 tonnes of HCFC-22 from a chemical company. A third-party intermediary had been employed to broker the trade. Given the size of the requested export, the involvement of a third party, and a history of recent requests from Thailand, the Office used the iPIC mechanism to investigate the legitimacy of the trade with the National Ozone Unit of Thailand.

On receiving the iPIC query from China, Thailand was able to confirm that the importing company was officially registered; however, the approved import license was for a different manufacturer in China. Further investigations revealed that the importer in Thailand had not requested any imports from China in 2020, as had been reported. With facilitation from UNEP OzonAction's Compliance Assistance Programme (CAP) team in Bangkok, it was concluded that the suspected counterfeit license was created by the third-party broker. In addition, the contact details provided on the shipping documents were not genuine or current. Following the incident, China is planning to strengthen its review and management of third-party brokers and intermediaries.

China is a long-time and proactive user of the iPIC mechanism system since 2013. The incident shows how vigilant National Ozone Officers and custom officials need to be in order to curb illegal trade in HCFCs and other controlled substances. It has also proven that regular screening of intended imports and exports through iPIC can be a means to prevent illegal and unwanted trade. 

UNEP OzonAction has recently updated the iPIC website and encourages all countries that have not yet adopted iPIC to register and use the tool for effective monitoring of controlled ODS and HFCs. Countries that are registered, but do not regularly use the system are encouraged to access the new updated platform to see how easy it now is to fully engage in the iPIC process.

Read original story here: http://www.unep.org/ozonaction/news/news/ozonactions-ipic-system-helps-prevent-illegal-shipment-72-tonnes-hcfc-22.

For more information, please contact jim.curlin[at]un.org or hus[at]un.org