HS Code:
The category of products containing chlorofluorocarbons (CFCs), whether or not containing hydrochlorofluorocarbons (HCFCs), perfluorocarbons (PFCs), or hydrofluorocarbons (HFCs), falls under specific HS codes related to ozone-depleting substances and their alternatives, often classified under HS Chapter 29 (Organic Chemicals) or Chapter 84 (Machinery and Mechanical Appliances) for equipment containing such substances. These chemicals are primarily used in refrigeration, air conditioning, aerosol propellants, and foam-blowing agents. Due to their significant environmental impact, particularly on ozone depletion and global warming, their production and trade are heavily regulated under international agreements like the Montreal Protocol and the Kigali Amendment. Global trade in these products has declined for CFCs and HCFCs due to phase-out schedules, while HFCs are seeing varied patterns due to their use as transitional alternatives, though they are also being phased down due to high global warming potential (GWP).
Total Trade Volume
Approximately $2.5 billion USD
Data from 2022
Source
United Nations Comtrade Database and World Trade Organization (WTO) Statistics
$800 million USD
32% of total trade of total trade
Increasing
$600 million USD
24% of total trade of total trade
Stable
$400 million USD
16% of total trade of total trade
Increasing
$300 million USD
12% of total trade of total trade
Decreasing
$200 million USD
8% of total trade of total trade
Stable
Average Rate
5.2% ad valorem
Highest Rate
15% (imposed by certain developing countries to discourage imports of ozone-depleting substances)
Lowest Rate
0% (under free trade agreements or for countries complying with Montreal Protocol exemptions)
Phase-out of CFCs and HCFCs
Significant reduction in trade volume for CFCs (nearly phased out globally) and HCFCs (phased out in developed countries, ongoing in developing countries), driving demand for HFCs and alternative refrigerants like hydrofluoroolefins (HFOs).
2020-2022
Rise in HFC trade with phase-down pressure
HFCs saw increased trade as interim replacements, but the Kigali Amendment (effective 2019) has started reducing their production and trade, pushing markets toward low-GWP alternatives.
2019-2022
Growth in eco-friendly refrigerant technologies
Increased investment and trade in natural refrigerants (e.g., ammonia, CO2) and HFOs as sustainable alternatives, reducing dependency on high-GWP HFCs.
2021-2023
As of 2022, over 140 countries have ratified the Kigali Amendment to the Montreal Protocol, committing to an 80-85% reduction in HFC consumption by late 2040s, with phased reductions starting in 2019 for developed countries and 2024 for developing countries.
October 2022
Accelerates global shift away from HFCs, impacting trade patterns by reducing supply and increasing costs of HFCs while boosting alternative refrigerant markets.
The European Union revised its F-Gas Regulation in 2023, imposing stricter quotas on HFCs and banning certain high-GWP HFCs in new equipment by 2025, alongside promoting recycling and reclamation.
March 2023
Reduces EU imports of HFCs, affecting major exporters like China and the US, while creating opportunities for low-GWP refrigerant suppliers.
The American Innovation and Manufacturing (AIM) Act of 2020 mandates an 85% reduction in HFC production and consumption by 2036, with significant cuts starting in 2022, enforced by the Environmental Protection Agency (EPA).
January 2022
Decreases US domestic production and imports of HFCs, influencing global supply chains and encouraging innovation in alternative technologies.