Unregulated trade in active ingredients causes Counterfeit pesticides Import documents correct?...

Unregulated trade in active ingredients causes

Counterfeit pesticides

Import documents correct?Factory exist?

Customs and Regulators Collaboration

Increase of CF global trade

Seizure quantities higher

No proper storage/destruction

Investigations difficult

International Trade of Counterfeit (“CF”) Pesticides

• Counterfeit products (fake products)

• Illegal parallel imports

• Unregistered pesticides

• Manufacturing factories do NOT exist?

Counterfeit (“CF”) PesticidesCounterfeit (“CF”) Pesticides Definition DefinitionWorld Health OrganizationWorld Health Organization

Counterfeit Pesticides ValueValue

ECPA survey Europe 2006: 5-7%

OECD report 6/2007: 5-7%

CLI survey in 2009: expected 9 %

Illegal market 2007: est. US$ 3 Billon

Authentic Pesticide Market: US$ 36 Billion

Export and import documents “faked”

Shipping documents do NOT match

Bulk active suppliers to the “counterfeit chain”

How do customs and regulators fight this?

International Trade of Counterfeit (“CF”) Pesticides

Current Investigations

Spain

Ukraine

China

Brazil

Paraguay

Russia

Poland

Link: Unregulated imports in bulk actives

CropLife International fact finding 9/07 – 11/08fact finding 9/07 – 11/08

SpainSpain - Counterfeit & illegal Pesticides

Isofenphos-methyl on peppers

cause severe disruption to the

food chain and embarrassed

regulators in Spain

Spain Spain - Counterfeit & illegal Pesticides

SpainSpain - Counterfeit & illegal Pesticides

Biggest ever case of illegal “import” from China

– Seizure by Security Services 10/2006

– Volume: 560 tons

UkraineUkraine – “Uzin” Case

UkraineUkraine – “Uzin” Case

Ukraine Ukraine – “Uzin” Case

Action: Follow the Uzin link to China:Action: Follow the Uzin link to China:

China investigation on exports:

Fake destination companies in Ukraine Unregulated export of actives from China Product NOT registered in destination country Factories do NOT exist

Next steps: Cooperate with China export authorities [ICAMA] Cooperate with China pesticide export industry

ChinaChina - Current Investigations

Shanghai Export Fair March12, 2008

Action:Action: POSITIVEPOSITIVE strategy with exportersstrategy with exporters

COOPERATECOOPERATE with fair organizers and government

“The highest way is not fighting every battle and winning

but winning every battle without fighting.”* * Sun Tzu

ChinaChina - Current investigations

ChinaChina - Shanghai Export Fair: Results

520 booths, 10,000 attendees

IPR Shanghai police cooperation with CropLife

59 IPR enforcement actions by CropLife companies

Background on potential CFers

ChinaChina - Pictures of the Shanghai Export Fair

ChinaChina - Pictures of the Shanghai Export Fair

CropLife International booth

China China - Pictures of the Shanghai Export Fair

Enforcement

Issue:Issue:CFs smuggled via Paraguay from ChinaSolution in ParaguaySolution in ParaguaySolution in ChinaSolution in China

Actions in Paraguay:Actions in Paraguay:Import documents fakedRegistration documents not correct

Manufacturing factories do NOT exist

Brazil Brazil - Current investigations

Export Routes

ParaguayParaguay - Update on investigations

CropLife works with government regulators

CropLife investigates factories in China

CropLife and police action in Paraguay

ParaguayParaguay - preparation for raid

Prior illegal product smuggled into Brazil, China link

ParaguayParaguay - preparation for raid

ParaguayParaguay - Raid, April 9, 2008

Ciudad del Este

ParaguayParaguay - Raid, April 9, 2008

Ciudad del Este – China Link

ParaguayParaguay - next steps

Linking seized pesticides with “factories” in China:Linking seized pesticides with “factories” in China:

Pedrol Factory, China, [email protected]

SuzhouWorldbest, Aro-Bichemical Co. Ltd, China PR

Shenzen K(?)ina Phosphide (sic) Company

Nanjing N 1 Pesticides Company

Russia Russia - Counterfeit & illegal Pesticides

PolandPoland - Counterfeit & illegal Pesticides

A major source of CF pesticides caused by unregulated trade

Solutions: International trade – exporters & importersSolutions: International trade – exporters & importers

Transparency in shipping documentsTransparency in shipping documents

Know Your Customer, shipping documents

Know Your Supplier, verify China factory

Global Goal 2008Global Goal 2008


Solutions: Domestic tradeSolutions: Domestic trade

Use only legally registered pesticides

Buy at reliable retail outlets [get a receipt]

Police / industry cooperation [PSOR example]



Solution: Customs and regulator cooperationSolution: Customs and regulator cooperation

Export and import documents must match

Name of manufacturing factory on import documents

Customs database to legal factories

GOAL: Transparency in shipping documents


Thank you

Unregulated trade in active ingredients causes Counterfeit pesticides Import documents correct?...

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