Brazil Issue Import Controls on HFCs in Accordance with Montreal Protocol Amendments 

The President of Ibama (Brazilian Institute of environment) has issued a groundbreaking resolution regarding the control of Hydrofluorocarbons (HFCs) imports. 

The resolution outlines stringent measures to regulate the importation of HFCs and HFC-containing mixtures. This action is taken in compliance with the Kigali Amendment of the Montreal Protocol on Substances that Deplete the Ozone Layer. 

The key provisions of the resolution include: 

• Definition of Terms: The resolution provides comprehensive definitions, including those for substances that deplete the ozone layer (SDO), the Montreal Protocol, Global Warming Potential (GWP), ton of CO2 equivalent, and various categories related to HFCs. 

• Import Quotas: The resolution establishes a quota system for the import of HFCs, delineating annual maximum limits in CO2 equivalent tons. These quotas are assigned based on various criteria, including the importer's historical activities and the type of HFCs involved. 

• Control Mechanisms: Companies involved in importing HFCs are required to submit electronic forms detailing their activities by April 30 of the subsequent year. Failure to provide accurate information will result in penalties. 

• Reduction Targets: The resolution outlines a phased reduction in the national quota for HFC imports, with a freeze for the year 2024 and subsequent annual reductions from 2029 onwards. 

• Performance and Technical Reserves: The national quota will be divided into performance and technical reserves, ensuring responsible import practices. The technical reserve is set aside for new market entrants and those who have exhausted their specific quota. 

• Utilization of Quotas: Importers must adhere to strict procedures for utilizing their quotas, including registration with Ibama and the Unique Foreign Trade Portal. The resolution emphasizes the importance of accurate information and compliance with the stipulated regulations. 

• Transfer of Quotas: The resolution permits the transfer of quotas between companies under specific conditions, subject to Ibama approval. This measure aims to foster collaboration and responsibility within the industry. 

• Cessation of Import: Companies choosing not to utilize their import quotas for two consecutive years will have their quotas permanently transferred to the technical reserve. 

This landmark resolution reflects Brazil's commitment to international environmental agreements and signals a proactive approach to mitigating the impact of HFCs on the ozone layer and global warming.