ISLAMABAD: The government has ordered confiscation of illegally imported hazardous substances and has put seven authorised importers under strict monitoring, a government official said.

A senior official of the Climate Change Division told Dawn that the Federal Board of Revenue (FBR) had been asked to take action against illegal importers of hydrochlorflourocarbons and take further necessary steps to confiscate illegal imports.

The official also confirmed that “seven authorised importers had been placed under a moratorium and not given any quota for 2014” because of their inability to provide documentary proof of their imports of 2013.

The HCFCs are organic and synthetic substances used mostly by manufacturers of refrigerators, freezers, air-conditioners and fire extinguishing equipments etc and have been declared as ozone-depleting substances (ODS) under the Montreal Protocol of the United Nations Environment Programme (UNEP).

The Montreal protocol requires the parties, including Pakistan, to phase out production and consumption of such substances and restrict trade in these substances by 2020.

The Climate Change Division in a written position paper also stated that it had already reduced Pakistan’s import quota for HCFCs for the current year by 10 per cent as required under the Montreal Protocol.

It said Pakistan was required under the Montreal Protocol to freeze its imports of HCFCs based on average imports during 2009 and 2010.

As the country imported on average 246.7 ODP tonnes (ozone depletion potential tons) of HCFCs, the baseline for the freeze to become applicable from Jan 1, 2013 was set at 246.7 ODP tonnes.

As required under the international obligation, the Climate Change Division had given quota to 23 parties for import of HCFCs for 2013 after receipt of their applications through an open advertisement, the Climate Change Division said.

The Ministry of Commerce and the FBR were not only responsible for implementation of the quota imports but were also provided with details of the 23 selected importers. On completion of calendar year 2013, the Ozone Cell of the Climate Change Division collected import data from Pakistan Automated Revenue Limited (PRAL) of the FBR.

At this state on examination of record, it came to light that 10 unauthorised companies had imported HCFC illegally.

“Climate Change Division had never issued any kind of quota to them. The total volume of illegal imports by unauthorised parties was 8.29 ODP tones,” the Climate Change Division wrote.

It said the illegal traders included Al-Imran Corporation, Ishtiaq Traders, Linde Pakistan Limited, MHS, S T Brothers, MC Master Supply Group, Pindi Karwan Goods, Tahat Impex, Redco International and Salman Traders.

The Climate Change Division officially said that the responsibility of imports by illegal parties ‘totally lied with the FBR as operational part of the quota is controlled by them.”

It said the PRAL data also suggested that 10 out of 23 authorised importers had exceeded quota limits but this had to be further verified after examining the bills of lading of these companies.

On examination of this data, the names of three companies – Nile Trading, Katys and Dawlance – were cleared because they had imported HCFCs on the basis of bill of lading of 2012 and were cleared in 2013 due to shipping time.

As a result, the government has recalculated all the quota for the year 2014 and only 15 companies whose names had been cleared have now been issued quota for 2014.

“Seven importers who have not provided documentary proof of imports of 2013 have not been issued quota for 2014 and have been placed under a moratorium.”

These companies include ICI Pakistan, Delite Appliances, Master Refrigerant, S A Khan Traders, United Refrigeration, Cool Industries and Atee and CO, the Climate Change Division stated.

The official said the quota for HCFCs imports for 2014 so far issued by the government stood at 131.7 ODP tonnes which was below Pakistan’s authorised quota.

With effect from Jan 1, 2015, the baseline authorised to Pakistan will be reduced by 10pc.

“From this onward until 2020, Pakistan will be authorised to import 222.3 ODP tonnes,” the ministry said.