In the 1980's, and culminating in the Montreal Protocol (1987), the world's governments moved to phase out, and then ban, most uses of chlorflourocarbons and related chemicals, which caused ozone reduction. These chemicals were used mainly for refrigeration, as well soil fumigants (methyl bromide), fire extinguishers (halons), etc.
Even as the phase out took effect in the first world countries (which developed other less harmful chemicals), the ozone hole continued to grow. In September 1995, the ozone hole was twice the size it was the previous September, being 3.9 million square miles, - as big as Europe and still growing.
A new black market developed for CFCs. Companies would buy CFCs for refrigeration, and to recharge car air-conditioners, to avoid the expense of converting to less destructive chemicals. In America, the product was called "Miami Ice".
Here are some of the cases:
A Fort Lauderdale woman was indicted for smuggling 3,000 tons of the
CFC with a street value of $52 million.
[see: The Guardian May 1, 1995 ].
[(U.S. v. Henneberg, DC SFla, 95-2381-CR-
Johnson, 3/23/95; 59 DEN B-2, 3/28/95)]
"Adi "Alex" Dubash and Homi Patel, owners of a Miami-based
company called Cohiet, were two of the people caught by "Cool
Breeze" agents when they tried to divert 8,400 tons of CFCs that
were shipped from India to Mexico via Britain."
[Inter Press Service September 14, 1995 By Pratap Chatterjee]
Homi N. Patel pleaded guilty May 3 to four counts of smuggling
dichlorodifluoromethane ( CFC -12) into the United States (U.S. v. Dubash, No.
95-CR-26-Ferguson, 5/3/95).
[see BNA INTERNATIONAL ENVIRONMENT DAILY May 12,
1995 ]
"United States Attorney in Miami, Kendall Coffey, said two dealers
in the chemicals, Robert Pennell, 50, of Ronkonkoma, L.I., and
Sam Alfano, 63, of Plantation, Fla., had pleaded guilty to
importing the material without the required permits. They face a maximum
penalty of 10 years in jail and fines of $8.8 million. In another case this
year, Jose Prieto of Hialeah, Fla., was convicted of importing
CFC's without permits and Paul J. Zborovsky of Cape Coral, Fla.,
pleaded guilty."
[as reported in The New York Times September 17, 1995 ]
In most of these cases, according to Jim Vallette of Ozone Action, the CFCs were imported from a country like India or Russia, shipped through the United States, and then diverted into the U.S. market, instead of their claimed third world destination (such as Mexico). All of these crime required international shipping contacts, as well as a wide distribution network for the illegal chemicals within the United States.
''We believe there is a [CFC] black market happening across Europe.''
- "Nick Campbell, regulatory affairs manager with ICI, as quoted
in The Independent (UK) September 19, 1995, pg 3
Some of those exports were taken over by the Russian Mafia, who could reap profits of up to $200,000 on a single illegal shipping container of CFCs, due to the high customs duties on those chemicals in first world countries.
According to an article in the UK Evening Standard, October 18, 1995
[pg 35] the Russian mafia were selling illegal CFCs into both the United States
and Europe, for millions in profits. The European Chemical news estimated that
about 1,000 tonnes a month of Russian CFCs were flowing into the European Union
countries, illegally marked as recycled materials.
[see Eur. Chem. News,
Vol. 62, No. 1640, November 1994 ]
In Hong Kong, 15 companies were charged with illegally importing CFCs
without a license in the first 10 months of 1995, with the chemicals likely
coming from mainland China, which is still allowed to make them.
"ICI China general manager C. L. Lu said he knew of extensive smuggling of
CFCs, particularly from China to Hong Kong."
[quoted from: South China Morning Post October 2, 1995, pg 6 ]
There have been similar charges in most industrialized countries. While some formerly legal regfrigeration suppliers may have crossed the line into illegal sales, for high profits, many of these charges reflect an international shipping network that hooks up with pre-existing distribution channels within a country. The sources of the chemicals appear to be third world countries, turning their CFC production allowance under the Montreal Protocol into an export market... as well as organized crime, particularly ganags operating out of Russia.