The Growing Challenge caused
by illegal Pesticide Trade
CL LatAm AntiCounterfeiting Workshop in Sao Paulo/Brazil
August 2015 - Gerwin Bouillon
The Growing Challenge caused by
illegal Pesticide Trade
Gerwin Bouillon/Bayer CropScience:
Member of CropLife International Anti-Counterfeiting Steering Committee
The Growing Challenge caused
by illegal Pesticide Trade
Gerwin Bouillon/Bayer CropScience
Member of ECPA/Anti-Counterfeiting Expert Group (ACEG)
What`s an “illegal pesticide”??
 IPR-infringements (Patents & TMs)
 False declarations
 No product registration
 Tax Fraud
 Export/Import Fraud
Product Defense • July 2015 • Slide 4
Value Dimension of illegal Trade
World Pesticide Market US$ 63 bn (2014)
illegal of above:
• OECD report 2007
• EUROPOL/OHIM Nov 2012
• DG SANTE survey March 2015
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5-7%
> 10%
10%
CF´s – a Growing Challenge
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Co-Operation Partners
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Co-Operation Partners
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European Commission-DG SANTE
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What are the Risks/Dangers??
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What are the Risks/Dangers??
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What are the Risks/Dangers??
Propiconazole (Fungicide)
+ DMF (Dimethylformamide)
+Toluene
+Petroleum
+ Un-, Do-,Tridecanbenzene-sulfonate
+ Mixture of Di-/Tristyryl-benzeneethoxylate
+ Small amounts of Famoxadone,
Triadimefon und Tebuconazole as
crosscontami-nation
Product Defense • July 2015 • Slide 12
What are the Risks/Dangers??
DMF (Dimethylformamide)
Content: 4,1%
•
•
•
•
•
•
Hazardous in case of skin contact.
Toxic to kidneys, liver, blood, central nervous system.
May affect genetic material.
May cause adverse reproductive effects(paternal and
maternal) and birth defects.
Embryotoxic and/or foetotoxic in animals.
Passes through the placental barrier in animals.
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… by Highly Organized Crime!!!
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AntiCounterfeiting… HOW??
Finding
Opening & Checking
Analyzing
Seizing & Destroying
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Prevention by Joining Hands
Objective: Prevent exports & imports of illegal pesticides
Networking plus “Best Practice“
development & sharing
Pan-European case handling cooperation
Anti-Counterfeiting “PORT PROJECTS”
 Hamburg
 Rotterdam
 Klaipeda/Riga/Tallinn
 Bremen/BHV/WHV
 Mediterranean/Black Sea
 Shanghai
 Koper/Slovenia
 France
 Spain
 Antwerp
Product Defense • July 2015 • Slide 16
2010
2011
2011
2012
2012/13
2013/14
2014
2015
2015
2015
Stop illegal Pesticides “in transit”?
(mainly argued out of IPR-law)
Product Defense • July 2015 • Slide 17
4-Step-Approach
Stopping Illegal Pesticides at the Border
Based on Regulation (EC) 1107
© ppp-control
The 4 Step Approach – Stopping Illegal PPP at the Border
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Implementation of the 4-Step-Approach
Check
1. Check shipping documents
Check the bill of lading for suspicious indications
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Implementation of the 4-Step-Approach
Check
1. Check shipping documents
Bill of Lading/CMR-waybill
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Implementation of the 4-Step-Approach
Check








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1. Check shipping documents
Lack of precise or reliable information as to the
identity or address of the shipper, notify party,
consignee (e.g. letterbox-company, mobile
number) or country of destination of the goods.
Consignee/end recipient is not the registration
holder in the declared country of destination. )
Description of the goods is unspecific (e.g.
“chemical products”).
Description of the goods seems to be a
camouflage/code name (e.g. “emulsifier”).
Description of the goods doesn’t match with the
packaging (e.g. technical active ingredient packed
in 1 l bottles or liquid goods in paper bags).
No reference to dangerous goods / no dangerous
goods declaration (see No. 1.2).
Shipper, notify party or consignee previously
proven to be involved in illegal trade.
Declared goods are protected by a patent or
trademark in the state of entry and/or in the
declared country of destination. )
Checking shipping
documents by customs
Import Manifest / Bill of Lading / CMR-waybill
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) Support required by Regulatory
Implementation of the 4-Step-Approach
Stop
2. Stop, inspect and analyze
suspicious shipments
Analyze the content
Declaration
Chemical Analysis
Prometryn 500
Thiamethoxam 350
Lambda-Cyhalotrine 50
Imidacloprid 150
Imidacloprid 700
Thiamethoxam 250
Rimsulfuron 500 + Tifensulfuron 250
Tribenuron-methyl 750
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Implementation of the 4-Step-Approach
Stop
2. Stop, inspect and analyze
suspicious shipments
“Travel Ban” of the shipment
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Implementation of the 4-Step-Approach
Ask
3. Ask the involved parties for information
and investigate the matter in detail
Ask the shipper primarily via the shipping line or
forwarder for these documents:
• Certificate of origin,
• Certificate of analysis,
• Commercial invoice,
• Certificate of export.
Ask the shipper to explain all the inconsistencies and
gaps with regard to the documents provided.
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Implementation of the 4-Step-Approach
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The 4 Step Approach – Stopping Illegal PPPs at the Border
Decide
4. Decide on measures to be taken
Controlled return / forwarding (only as last resort)

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The 4 Step Approach – Stopping Illegal PPPs at the Border
Decide
4. Decide on measures to be taken
Destruction of the goods

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Port Projects - „Magic Triangle“ HH
Objective: Prevent imports of illegal pesticides
Industry
Environmental
Police
Regulatory Authority Hamburg
Plant Health Inspection Service
Product Defense • July 2015 • Slide 29
source: © ppp-control
Customs
Investigation
Hamburg Port Stoppages (1st Q 2014)
 Hamburg authorities stop 9 shipments with 14 containers
 197 tons transported by 6 different shipping lines
 Shipment Origin: China  Destination “declared”: Ukraine (UA)
 Chemical analysis (“1st shot”) of 46 samples at Bayer Laboratory
 analytical result: false declarations, IP-infringements,
lack of product-registration, EU-banned co-formulants
 Authorities starting to ask questions … via the shipping line… to
the CN-shipper, the UA-consignee, forwarding agents etc.
 IPR-infringements are destroyed – rest remains stopped in HH
Product Defense • July 2015 • Slide 30
What if …. False Declaration!?
Product Defense • July 2015 • Slide 31
Hamburg Port Stoppages (1st Q 2014)
Ask
3. Ask the involved parties for information
and investigate the matter in detail
Dealing with the Certificate of Export
From: China-Sales-Manager
Sent: Friday, 27. June 2014 14:32
To: Plant Protection Authority
Subject: plant protection products shipped by XXX Chemical Co.,Ltd
Dear Plant Protection Authority, good day.
About the Certificates of Export, we just need to apply for export certificate
which has supply them to our government already. About the mistake in docs,
we really can’t control them to do very correct docs, we hope you can kindly
understand us. Waiting for your reply and many thanks in advance.
Best regards
China-Sales Manager
Product Defense • July 2015 • Slide 32
Hamburg Port Stoppages (1st Q 2014)
Ask
3. Ask the involved parties for information
and investigate the matter in detail
Dealing with the Certificate of Export
From: Plant Protection Authority
Sent: Monday, 7. Juli 2014 15:48
To: China-Sales-Manager
Subject: plant protection products shipped by XXX Chemical Co.,Ltd
Dear Mr. China-Sales-Manager,
with the message from 27. Juni 2014 14:32 you informed me that you cannot
provide export licenses for the products in containers BMAB1224444,
HDCD3492534, HDEF5626651, HDGH7821630 to me. For clarification we
will send an official request to the German government to ask the Chinese
authority for these documents.
Best regards Plant Protection Authority
Product Defense • July 2015 • Slide 33
Hamburg Port Stoppages (1st Q 2014)
Ask
3. Ask the involved parties for information
and investigate the matter in detail
Dealing with the Certificate of Export
From: China-Sales Manager
Sent: Tuesday, 8. Juli 2014 04:45
To: Plant Protection Authority
Subject: plant protection products shipped by XXX Chemical Co.,Ltd
Dear Plant Protection Authority, good day. Attached pls find our statement that we give
up all our cargo in BMAB1224444, HDCD3492534, HDEF5626651, HDGH7821630 and
waive all our rights on above mentioned containers.
We appreciate your patience from beginning, and we are very sorry for this trouble. To
be optimistic, this is a good lesson for our growing sense that we should check every
detail before cooperating with our clients.
Thanks and Best regards, China-Sales Manager
Product Defense • July 2015 • Slide 34
HH Government Press Release
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German Media Coverage 12/2014
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Bayer Communication July 2015
Product Defense • July 2015 • Slide 37
… more Port Projects needed!!
Product Defense • July 2015 • Slide 38
Thanks! Lets Fight Organized Crime!
The 4 Step Approach – Stopping Illegal PPPs at the Border
Regulatory Authority
Stop the movement of the nonIPR infringing goods, analyze the
content, check on PP-law (and
patent) infringements by analysis
Ask the involved parties, investigate
the matter in detail reg. all PP-law
infringements,
Decide on measures to be taken
(controlled forwarding/destruction)
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Customs (first access)
2
3
4
1
Check shipping documents in order
to identify suspect shipments (IPRand PP-law infringement)
2
Suspend the release of the goods
(= stop suspicious shipment)
3
Ask the involved parties, investigate
the matter in detail reg. all IPRinfringements
4
Decide on measures to be taken,
incl. official detention until
judgement (e.g. destruction under
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customs control)
The 4 Step Approach – Stopping Illegal PPPs at the Border
Do you want to fight illegal pesticides?
Yes, we want to fight illegal pesticides!
Ministry
Authority
management
This also includes
to stop the free movement of
illegal pesticides in Europe!
Border control unit
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Stopping Illegal Pesticides at the Border
Regulatory Authority
Customs
Organize workflow
Agree cooperation
Assume responsibilities
Accept legal base
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© ppp-control DR. WUJCIAK
Implementation of the 4-Step-Approach
Finding with keywords
TOP 50
Abamectin
Acetamiprid
Agrochemical
Alpha-Cypermethrin
Atrazin
Azoxystrobin
Benomyl
Biocide
Boscalid
Chlorothalonil
Clomazon
Clothianidin
Chemical product
Crop protection
Deltamethrin
Diquat
Endosulfan
1
1
3
1
2
1
2
3
1
1
1
1
3
3
1
1
2
Epoxiconazole
Ethofumesate
Fenpropimorph
Fertiliser
Fungicide
Glyphosate
Herbicide
Hexazinone
Imidacloprid
Insecticide
Isopropylamine salt
Isoproturon
Lambda-Cyhalothrin
Mesotrione
Metamitron
Metazachlor
Methabenzthiazuron
1
1
1
3
3
4
3
2
1
3
4
1
1
1
1
1
2
Methamidophos
Metsulfuron
Mevinphos
Oxydemeton-M ethyl
Paraquat
Parathion
Pendimethalin
Pesticide
Plant growth regulator
Propiconazole
Propyzamide
Rimsulfuron
S-Metolachlor
Tebuconazole
Terbuthylazin
Thiamethoxam
Tribenuron
2
1
2
2
2
2
1
3
3
1
1
1
1
1
1
1
1
1: active substance of high importance for EU
pesticide market or high attraction for
counterfeiters because of high value
2: expired active substance: there are no
registrations for pesticide products containing
this active in the EU member states
3: vague or misdeclaring description for
pesticide products
4: Glyphosate (chemical name: Isopropylamine
salt) is the most common active of herbicide
products
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Stopping Illegal Pesticides at the Border
Import
IPR
Customs-driven
PP-Law
Regulatory-driven
Transit
IPRinfringement
by import
goods
IPRinfringement
by transit
goods
PP-law
infringement
by import
goods
PP-law
infringement
by alleged/
diverted
transit goods
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Co-Operation Partners
Product Defense • July 2015 • Slide 45