Information on illegal trade (production and consumption) reported by parties
This page presents the cases of illegal trade in substances controlled under the Montreal Protocol, as reported by parties under decision XXXI/3. Para 5 (d) of the decision encouraged parties to take action to identify and prevent illegal production, import, export and consumption of controlled substances and to report to the Ozone Secretariat on the cause of significant cases and actions taken to address them, to facilitate an exchange of information. These reports by parties, compiled in the table below, focus on illegal production and consumption. The reports submitted by parties with focus on illegal imports and exports can be found here.
In addition, the Ozone Secretariat is tasked to prepare an annual compilation of information provided by parties on illegal trade in controlled substances, approaches taken by national authorities to identify and address such cases and synthesis of best practices, which can be found here:
All pure substances are indicated by their chemical type such as CFC, HCFC or HFC and blends/mixtures by their designation using 'R' prefix.
| Party | Date of incident | Nature of incident i.e. illegal production and consumption (name substances and volume) | Description of the case | Action taken to address the case | Other remarks |
|---|---|---|---|---|---|
| China | November 2020 | Illegal production | An illegal production site of HCFC-141b was found in Yuzhou, Xuchang, Henan Province, following a whistle-blower’s report from the industry. 47.4 tons of illegally produced HCFC-141b were seized. | The production of HCFC-141b was ordered to stop immediately. The illegal production facilities were dismantled and destroyed. A fine of CNY 1 million was imposed. 47.4 tons of HCFC-141b were destroyed. | |
| China | September 2020 | Illegal production | An HFC-152a producer was found to have illegally produced 3.5 tons of HCFC-141b in Hukou County, Jiujiang City, Jiangxi Province, following a whistle-blower’s report from the industry. | The enterprise was ordered to immediately stop HCFC-141b production. The production facilities involved were dismantled and destroyed. A fine of CNY 1 million was imposed. 3.5 tons of the confiscated HCFC-141b were destroyed. | |
| China | August 2020 | Illegal production | An HFC-32 producer was found to have illegally produced 1.8 tons of HCFC-22 in Jiaozuo City, Henan Province, following a whistle-blower’s report from the industry | The enterprise was ordered to immediately stop the illegal production. The production facilities involved were dismantled and destroyed. A fine of CNY1 million was imposed. 1.8 tons of the confiscated HCFC-22 at the site were destroyed. | |
| China | June 2020 | Illegal production | An HFC-32 producer was found to have illegally produced 10.7 tons of HCFC-22 in Heshan District, Hebi City, Henan Province, following a whistle-blower’s report from the industry. | The production of HCFC-22 was ordered to stop immediately. The production facilities involved were dismantled and destroyed. A fine of CNY 1 million was imposed. 10.7 tons of the confiscated HCFC-22 at the site were destroyed. | |
| United Kingdom | 2022 | Failure to obtain sufficient quota authorisations for various substances totaling 8,406tCO2e. | Established through annual reporting, referrals by the National Clearance Hub*, and interrogation of HM Revenue & Customs import/export data. | Issued with a civil penalty under regulation 31A of the Fluorinated Greenhouse Gases Regulations 2015 (SI 2015 No.310) (as amended) for failing to obtain sufficient HFC quota authorisations before placing HFCs on the market within Great Britain (GB), contrary to Article 14(1) of Regulation (EU) No 517/2014 of the European Parliament and of the Council on fluorinated greenhouse gases. | 1 civil penalty issued. |
| United Kingdom | 2021 | Failure to obtain sufficient HFC quota for various substances totaling 5,898tCO2e. | Established through annual reporting, referrals by the National Clearance Hub*, and interrogation of HM Revenue & Customs import/export data. | Issued with a civil penalty under regulation 31A of the Fluorinated Greenhouse Gases Regulations 2015 (SI 2015 No.310) (as amended) for failing to obtain sufficient HFC quota before placing HFCs on the market within Great Britain (GB), contrary to Article 15(1) of Regulation (EU) No 517/2014 of the European Parliament and of the Council on fluorinated greenhouse gases. | 7 civil penalties issued. |
| United Kingdom | 2021 | Failure to obtain sufficient quota authorisations for various substances totaling 88,340tCO2e. | Established through annual reporting, referrals by the National Clearance Hub*, and interrogation of HM Revenue & Customs import/export data. | Issued with a civil penalty under regulation 31A of the Fluorinated Greenhouse Gases Regulations 2015 (SI 2015 No.310) (as amended) for failing to obtain sufficient HFC quota authorisations before placing HFCs on the market within Great Britain (GB), contrary to Article 14(1) of Regulation (EU) No 517/2014 of the European Parliament and of the Council on fluorinated greenhouse gases. | 34 civil penalties issued. |
| United Kingdom | 2021 | Failure to obtain sufficient quota authorisations for various substances totaling 3,801tCO2e. | Established through annual reporting, referrals by the National Clearance Hub*, and interrogation of HM Revenue & Customs import/export data. | Issued with a civil penalty under regulation 31A of the Fluorinated Greenhouse Gases Regulations 2015 (SI 2015 No.310) (as amended) for failing to obtain sufficient HFC quota authorisations before placing HFCs on the market within Great Britain (GB), contrary to Article 14(1) of Regulation (EU) No 517/2014 of the European Parliament and of the Council on fluorinated greenhouse gases. | 1 penalty issued. |
| United Kingdom | 2019 | Failure to obtain sufficient HFC quota for various substances totaling 409,127tCO2e. | Reported to the UK by the EU (failure to submit an annual report). | Issued with a civil penalty under regulation 31A of the Fluorinated Greenhouse Gases Regulations 2015 (SI 2015 No.310) (as amended) for failing to obtain sufficient HFC quota before placing HFCs on the market within Great Britain (GB), contrary to Article 15(1) of Regulation (EU) No 517/2014 of the European Parliament and of the Council on fluorinated greenhouse gases. | 7 penalties issued. |
| United Kingdom | 2019 | Failure to obtain sufficient HFC quota for various substances totaling 409,127tCO2e. | Reported to the UK by the EU (failure to submit an annual report). | Issued with a civil penalty under regulation 31A of the Fluorinated Greenhouse Gases Regulations 2015 (SI 2015 No.310) (as amended) for failing to obtain sufficient HFC quota before placing HFCs on the market within Great Britain (GB), contrary to Article 15(1) of Regulation (EU) No 517/2014 of the European Parliament and of the Council on fluorinated greenhouse gases. | 13 civil penalties issued. |
| United Kingdom | Ongoing | Online listings for the sale of prohibited products. | Monitoring of online listings on eBay, Gumtree, Facebook Marketplace, and Amazon. | Working with eBay, Gumtree, Facebook Marketplace, and Amazon to take down listings of prohibited products for sale. | Facebook Marketplace has recently removed the functionality to report and take down illegal sales. |
| United States | 15 Jan 2025 | After January 1, 2022, Wilhelmsen Ships Service imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5(b) |
For calendar year 2026, the U.S. government will retire 1,486.7 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2026, the U.S. government will revoke and redistribute to other allowance holders 743.4 MTEVe (i.e., MTCO2e) of consumption allowances for a total downward adjustment of 2,230.1 MTEVe (i.e., MTCO2e) for Wilhelmsen Ships Service. |
This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35. |
| United States | 30 Sep 2024 | After January 1, 2022, AutoZone Parts imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5(b) |
For calendar year 2025, the U.S. government retired 21,763.1 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2025, the U.S. government revoked and redistributed to other allowance holders 10,881.6 MTEVe (i.e., MTCO2e) of consumption allowances for a total downward adjustment of 32,644.7 MTEVe (i.e., MTCO2e) for Autozone Parts. |
This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35. |
| United States | 30 Sep 2024 | After January 1, 2022, AFK & Co. imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5(b) |
For calendar year 2025, the U.S. government retired 941.4 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2025, the U.S. government revoked and redistributed to other allowance holders 706.1 MTEVe (i.e., MTCO2e) of consumption allowances for a total downward adjustment of 1,647.5 MTEVe (i.e., MTCO2e) for AFK & Co. |
This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35. |
| United States | 6 June 2024 | After January 1, 2022, ChemPenn imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5(b) |
For calendar year 2024, the U.S. government retired 32.5 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2024, the U.S. government revoked and redistributed to other allowance holders 16.3 MTEVe (i.e., MTCO2e) of consumption allowances for a total downward adjustment of 48.8 MTEVe (i.e., MTCO2e) for ChemPenn. |
This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35. |
| United States | 31 March 2024 | After January 1, 2022, USSC Acquisition Corp imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5(b) |
For calendar year 2024, the U.S. government retired 2.3 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2024, the U.S. government revoked and redistributed to other allowance holders 1.2 MTEVe (i.e., MTCO2e) of consumption allowances for a total downward adjustment of 3.5 MTEVe (i.e., MTCO2e) for USSC Acquisition Corp. |
This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35. |
| United States | 31 March 2024 | After January 1, 2022, Tulstar Products imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5(b) |
For calendar year 2024, the U.S. government retired 31,006.5 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2024, the U.S. government revoked and redistributed to other allowance holders 15,503.3 MTEVe (i.e., MTCO2e) of consumption allowances for a total downward adjustment of 46,509.8 MTEVe (i.e., MTCO2e) for Tulstar Products. |
This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35. |
| United States | 29 Sep 2023 | After January 1, 2022, AFK & Co. imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5(b) |
For calendar year 2024, the U.S. government retired 5,701.9 MTEVE of consumption allowances and revoked and redistributed to other allowance holders 2,851.0 MTEVe (i.e., MTCO2e) of consumption allowances for a total downward allowance adjustment of 8,552.9 MTEVe (i.e., MTCO2e) for AFK & Co. | This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35 |
| United States | 29 Sep 2023 | After January 1, 2022, American Air Components imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5(b) |
For calendar year 2024 and future years as needed, the U.S. government will retire 208,516.5 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2025 and future years as needed, the U.S. government will revoke and redistribute to other allowance holders 104,258.3 MTEVe (i.e., MTCO2e) of consumption allowances for a total downward adjustment of 312,774.8 MTEVe (i.e., MTCO2e) for American Air Components |
This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35 |
| United States | 29 Sep 2023 | After January 1, 2022, Artsen imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5(b) |
For calendar year 2024, the U.S. government retired 346.7 MTEVe (i.e., MTCO2e) of consumption allowances and revoked and redistributed to other allowance holders 173.4 MTEVe (i.e., MTCO2e) of consumption allowances for a total downward adjustment of 520.1 MTEVe (i.e., MTCO2e) for Artsen. | This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35. |
| United States | 29 Sep 2023 | After January 1, 2022, Bluon imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5(b) |
For calendar year 2024 and future years as needed, the U.S. government will retire 575,800.7 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2025 and future years as needed, the U.S. government will revoke and redistribute to other allowance holders 288,855.8 MTEVe (i.e., MTCO2e) of consumption allowances for a total downward adjustment of 864,656.5 MTEVe (i.e., MTCO2e) for Bluon. |
This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35. |
| United States | 29 Sep 2023 | After January 1, 2022, Electronic Fluorocarbons imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5(b) |
For calendar year 2023, the U.S. government retired 64,931.9 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2024, the U.S. government revoked and redistributed to other allowance holders 32,466.0 MTEVe (i.e., MTCO2e) of consumption allowances for a total downward adjustment of 97,397.9 MTEVe (i.e., MTCO2e) for Electronic Fluorocarbons |
This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35. |
| United States | 29 Sep 2023 | After January 1, 2022, Fluorofusion imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5(b) |
For calendar year 2024, the U.S. government revoked and redistributed to other allowance holders 5,502.2 MTEVe (i.e., MTCO2e) of consumption allowances for Fluorofusion. | This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35. |
| United States | 29 Sep 2023 | After January 1, 2022, Resonac America imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5(b) |
For calendar year 2024 and future years as needed, the U.S. government will retire 200,070.5 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2025 and future years as needed, the U.S. government will revoke and redistribute to other allowance holders 100,035.3 MTEVe (i.e., MTCO2e) of consumption allowances for a total downward adjustment of 300,105.8 MTEVe (i.e., MTCO2e) for Resonac America. |
This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35. |
| United States | 29 Sep 2023 | After January 1, 2022, Honeywell International produced and imported regulated HFCs without expending the requisite number of allowances | 1. Review of data reported to the U.S. government 3. American Innovation and Manufacturing (AIM) Act, 42 U.S.C. § 7675, and the regulations promulgated thereunder at 40 C.F.R. Part 84, especially 40 C.F.R. § 84.5 (a) and (b). |
For calendar year 2024, the U.S. government revoked and redistributed to other allowance holders 231,334.0 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2025, the U.S. government will revoke and redistribute to other allowance holders 462,668.1 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2026, the U.S. government will revoke and redistribute to other allowance holders 925,336.2 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2027, the U.S. government will revoke and redistribute to other allowance holders 1,388,004.3 MTEVe (i.e., MTCO2e) of consumption allowances. For calendar year 2028, the U.S. government will revoke and redistribute to other allowance holders 1,619,338.4 MTEVe (i.e., MTCO2e) of consumption allowances. The total downward adjustment will be 4,624,681 MTEVe (i.e., MTCO2e) for Honeywell International. |
This action is an example of an “administrative consequence” established in the U.S. licensing and quota system regulations promulgated under 40 C.F.R. Part 84, especially 40 C.F.R. § 84.35. |
| Netherlands (Kingdom of the) | 23 July, 2024 | 108kg of HFC-134a | 1. Discovered during a regular inspection at a company in the automotive industry. 2. The company is not certified to legally purchase F-gases for refilling car air conditioning systems. 3. Legal basis for proceeding is the absence of certificate for refilling car air conditioners, and the cylinders with F-gases were not labelled. |
Criminal seizure and ordered for destruction | |
| Netherlands (Kingdom of the) | 30 May, 2024 | 1,156kg of HFC-134a | During a large-scale operation with various enforcement authorities at companies active in the automotive sector, a batch of 85 illegal non-refillable pressure containers containing R134a was found. The sale and use of non-refillable cylinders have been banned since July 4, 2007. |
Criminal seizure and ordered for destruction |