WRITTEN QUESTION P-2993/97 by Graham Watson (ELDR) to the Commission (15 September 1997)

Subject: Illegal trade in CFC chemicals

Is the Commission aware of reports indicating that a large scale trade in CFC chemicals persists in Europe, even though the use and manufacture of CFCs has been illegal for some three years?

Does the Commission accept that the task of those responsible for this illegal trade has been facilitated by loopholes in current Community Law, which still permit the use of recycled or reclaimed CFCs and the importance of virgin CFCs for re-export to the developing world?

Answer given by Mrs Bjerregaard on behalf of the Commission (13 October 1997)

The Commission can confirm that it has been alerted to possible illegal imports of ozone-depleting substances, notably chlorofluorocarbons (CFCs), for some time.

It should however be clarified that, under the Montreal Protocol on substances that deplete the ozone layer and the Community's implementing Council Regulation, it is not correct to assert that the use of CFCs has been illegal for some three years. Both the Protocol and Regulation No 3093/94 on substances that deplete the ozone layer ((OJ L 333, 22.12.1994. )) control CFCs by stopping the production of virgin substances in developed countries from 1 January 1996 (1995 in the Community). However, CFCs can continue to be used even after this 'phase out' as long as supplies remain available either from stockpiles or from recycled or reclaimed substances. Production can continue for developing countries, which have a ten year grace period under the Protocol. Russia, although obliged to phase out in 1996, has declared itself unable to comply with this obligation.

The Commission operates a tight quota and licensing system to control imports of ozone-depleting substances into the Community. For the last two years, the Commission has issued no quotas for the import of CFCs into Europe, be they virgin, recovered or recycled substances, other than for agreed essential uses (asthma inhalers and a small quantity for laboratory and analytical uses). These can only be imported under the Community's licensing system. CFCs can enter the Community territory under the customs regime of inward processing, to be treated or repackaged and then re-exported to developing countries, but these are also licensed on import, and customs authorities check to ensure that re-export takes place. Hence, any illegal import is likely to be smuggling and fraudulent declaration (such as in the recent case of illegal imports into several Member States of about 1 000 tonnes of CFCs and halons of Chinese origin). However, it is not totally impossible that there might be failure to re-export goods imported under the inward processing regime, and further checks on this are continuing.

A number of initiatives are under way to address the problem. In particular the Montreal Protocol 'tenth anniversary' meeting of the Parties adopted on 17 September 1997 an amendment to the Protocol requiring parties to establish a system for licensing all imports and exports of ozone-depleting substances. Although the Community has already an import licensing system, the export licensing requirement will allow notification and cross-checking. The Montreal meeting also adopted a decision requiring industrialized countries to consider the introduction of a sales ban for CFCs. Furthermore, the parties decided to review and strengthen the non-compliance procedure under the Montreal Protocol to take more efficient measures, in particular in case of non-compliance of a party.

Further enquiries into possible illegal imports are underway, coordinated by the Commission together with Member States' customs authorities. There are also new initiatives to reinforce cooperation between customs and environment authorities.

The Commission is planning to introduce a CFC sales ban in its proposed revision of Council Regulation (EEC) No 3093/94 and this should go a long way towards reducing the market for illegally imported CFCs.