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

1. Unregulated trade in active ingredients causes Counterfeit pesticides Import documents correct? Factory exist? Customs and Regulators Collaboration

2. Increase of CF global trade Seizure quantities higher No proper storage/destruction Investigations difficult International Trade of Counterfeit (“CF”) Pesticides

3. Counterfeit (“CF”) Pesticides DefinitionWorld Health Organization • Counterfeit products (fake products) • Illegal parallel imports • Unregistered pesticides • Manufacturing factories do NOT exist?

4. Counterfeit PesticidesValue Authentic Pesticide Market: US$ 36 Billion 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

5. International Trade of Counterfeit (“CF”) Pesticides • Export and import documents “faked” • Shipping documents do NOT match • Bulk active suppliers to the “counterfeit chain” • How do customs and regulators fight this?

6. CropLife International  fact finding 9/07 – 11/08 Current Investigations • Spain • Ukraine • China • Brazil • Paraguay • Russia • Poland Link: Unregulated imports in bulk actives

7. Spain - Counterfeit & illegal Pesticides Isofenphos-methyl on peppers cause severe disruption to the food chain and embarrassed regulators in Spain

8. Spain - Counterfeit & illegal Pesticides

9. Spain - Counterfeit & illegal Pesticides

10. Ukraine – “Uzin” Case Biggest ever case of illegal “import” from China • Seizure by Security Services 10/2006 • Volume: 560 tons

11. Ukraine – “Uzin” Case

12. Ukraine – “Uzin” Case

13. Ukraine – “Uzin” Case

14. Ukraine – “Uzin” Case

15. Ukraine – “Uzin” Case

16. China - Current Investigations 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

17. China - Current investigations Shanghai Export Fair March12, 2008 Action: POSITIVEstrategy with exporters COOPERATE with fair organizers and government “The highest way is not fighting every battle and winning but winning every battle without fighting.”* * Sun Tzu

18. China - 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

19. China - Pictures of the Shanghai Export Fair

20. China - Pictures of the Shanghai Export Fair CropLife International booth

21. China - Pictures of the Shanghai Export Fair Enforcement

22. China - Pictures of the Shanghai Export Fair Enforcement

23. China - Pictures of the Shanghai Export Fair Enforcement

24. Brazil - Current investigations Issue: • CFs smuggled via Paraguay from China • Solution in Paraguay • Solution in China Actions in Paraguay: • Import documents faked • Registration documents not correct Manufacturing factories do NOT exist

25. Export Routes

26. Paraguay - Update on investigations • CropLife works with government regulators • CropLife investigates factories in China • CropLife and police action in Paraguay

27. Paraguay - preparation for raid Prior illegal product smuggled into Brazil, China link

28. Paraguay - preparation for raid Prior illegal product smuggled into Brazil, China link

29. Paraguay - preparation for raid Prior illegal product smuggled into Brazil, China link

30. Paraguay - preparation for raid Prior illegal product smuggled into Brazil, China link

31. Paraguay - preparation for raid Prior illegal product smuggled into Brazil, China link

32. Paraguay - preparation for raid

33. Paraguay - preparation for raid

34. Paraguay - Raid, April 9, 2008 Ciudad del Este

35. Paraguay - Raid, April 9, 2008 Ciudad del Este

36. Paraguay - Raid, April 9, 2008 Ciudad del Este

37. Paraguay - Raid, April 9, 2008 Ciudad del Este

38. Paraguay - Raid, April 9, 2008 Ciudad del Este – China Link

39. Paraguay - Raid, April 9, 2008 Ciudad del Este – China Link

40. Paraguay - Raid, April 9, 2008 Ciudad del Este – China Link

41. Paraguay - Raid, April 9, 2008 Ciudad del Este – China Link

42. Paraguay - next steps Linking seized pesticides with “factories” in China: Pedrol Factory, China,  agrost-online@hotmail.com SuzhouWorldbest, Aro-Bichemical Co. Ltd, China PR Shenzen K(?)inaPhosphide (sic) Company Nanjing N 1 Pesticides Company

43. Russia - Counterfeit & illegal Pesticides

44. Poland - Counterfeit & illegal Pesticides

45. Global Goal 2008 A major source of CF pesticides caused by unregulated trade Solutions: International trade – exporters & importers Transparency in shipping documents • Know Your Customer, shipping documents • Know Your Supplier, verify China factory

46. A major source of CF pesticides caused by unregulated trade Solutions: Domestic trade Use only legally registered pesticides Buy at reliable retail outlets [get a receipt] Police / industry cooperation [PSOR example] Global Goal 2008

47. A major source of CF pesticides caused by unregulated trade Solution: 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 Global Goal 2008

48. Thank you