BRIEF NOTE ON T1 TRANSIT PROCESS IN ILLEGAL HFC TRADE (March 2021)

BRIEF NOTE ON T1 TRANSIT PROCESS IN ILLEGAL HFC TRADE (March 2021)

17 March 2021

The T1 Transit process is designed to facilitate the transportation of non-EU goods to its final destination, either in the EU or a non-EU member state.
Using the Customs Transit procedure allows for the temporary suspension of duties, taxes and commercial policy measures that are applicable at import. As such, it allows customs clearance formalities to take place at the point destination rather than at the point of entry into the customs territory.

HFCs are primarily refrigerant gases that are controlled under the EU F-gas Regulation (517/2014) and subject to a phase-down mechanism that requires importers to have quotas for placing the products on the EU market. The reductions in the HFC quotas available has led to the illegal imports of HFCs causing major damage to legitimate importers who have built infra-structures to handle and supply the gases and cylinders, as well as environmental damage.

EFCTC believes that the T1 Transit procedure is being misused and exploited to enable illegal trade in HFCs in the EU. For this reason, the Technical Committee has developed a number of short- and longer-term recommendations to improve the T1 Transit system for HFCs.

Please read the full Position Paper for further information.

Disclaimer: The present position paper represents the views and opinion of the EFCTC Sector Group, not necessarily of Cefic as a whole.