Sentencing in R22 Smuggling Case Highlights Growing Enforcement of Refrigerant Laws

A man who confessed to smuggling five cylinders of illegal R22 refrigerant into the United States has been sentenced to three years’ probation, including 15 days of time served. Juan Ignacio Martinez was caught at the Laredo, Texas, port of entry in May, where U.S. Customs officers discovered five 30lb cylinders of R22 hidden in a toolbox in his truck bed. The refrigerant was valued between $4,896 and $5,916.

This wasn’t Martinez’s first attempt. Records show he tried to cross into the U.S. with refrigerants on at least five other occasions between July 2022 and December 2023. Each time, he was denied entry and informed that importing such substances without EPA authorization is illegal.

The investigation, led by the U.S. Environmental Protection Agency’s Criminal Investigation Division, brought more attention to how seriously federal authorities are treating the illegal refrigerant trade.

Illegal Refrigerant Resale Persists

The U.S. has banned the production or import of virgin R-22 since 2020 under the Clean Air Act. Despite these regulations, a robust black market exists, driven by the demand for servicing legacy systems and the high resale value of these gases.

In a related case, Michael Hart of California was the first person prosecuted under the AIM Act for smuggling HFCs and HCFCs from Mexico and reselling them online. He pleaded guilty in September 2024 and admitted to profiting from illegal refrigerant sales via platforms like OfferUp and Facebook Marketplace.

Compliance Isn’t Optional: Protect Your Business Against EPA Enforcement

For HVACR distributors, this case serves as a clear reminder of the consequences of regulatory noncompliance. With increased enforcement under the AIM Act and the Clean Air Act, distributors must ensure that all refrigerants, especially legacy gases like R22 and high-GWP HFCs, are sourced through authorized channels. Selling or distributing refrigerants that were imported illegally, even unknowingly, can expose businesses to serious legal and financial consequences. Educate your contractors and technicians about the risks of buying refrigerants from unverified sources, particularly online marketplaces where illegal products are often advertised.

As the industry continues its transition to low-GWP alternatives, staying informed about evolving regulations and enforcement trends helps safeguard your business and support the industry's role in environmental stewardship.