Freon, the chemical coolant used in air conditioners, has become far more profitable to black-marketeers and smugglers than illegal drugs, according to law enforcement personnel. In dollar terms, the chlorofluorocarbons have become second only to narcotics as the biggest smuggling problem at some U.S. entry points since last year's United Nations ban on their manufacture in industrialized countries.

• While a cocaine smuggler generally sees a return of $4 for every dollar spent bringing drugs into Miami, the CFC smuggler can grab a return three times as high.

• The U.S. market for the contraband CFCs is made up of millions of consumers and businesses which still need the chemicals to keep their existing air conditioners and refrigerators running.

• Replacing cooling equipment or retrofitting it to work on newer refrigerants is an expensive proposition -- costing up to $1,000 to retrofit one car air conditioner.

• While under the UN agreement Western consumers can still draw on remaining CFC stockpiles within their borders, scarcity and a hefty U.S. excise tax have pushed CFC prices up from about $1 per pound to $18.

Although the size of the illegal market is difficult to gauge, experts estimate that in 1995 as much as 10,000 tons of CFCs were smuggled into the U.S., in large part because the ban on CFCs was enacted before an easy substitute was developed.

Matters may only get worse for consumers in coming years, since the UN has also banned a widely used alternative type of refrigerant -- called HCFCs -- effective in 2030.

Source: Source: Laura M. Litvan, "A Green Law and Black Markets," Investor's Business Daily, July 7, 1997.