HS Code:
The category 'For all refrigerants except ammonia' (HS Code: 3824.78) includes mixtures containing hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), or other greenhouse gases used as refrigerants in cooling systems, excluding ammonia-based refrigerants. These products are critical in various industries, including air conditioning, refrigeration, and automotive cooling systems. Trade in this category is heavily influenced by environmental regulations due to the high global warming potential (GWP) of many refrigerants, leading to a shift toward low-GWP alternatives under international agreements like the Kigali Amendment to the Montreal Protocol.
Total Trade Volume
USD 3.5 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
15% (applied by certain developing countries under environmental protection policies)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Shift to low-GWP refrigerants
Increased demand for HFO (hydrofluoroolefin) blends and natural refrigerants as alternatives to high-GWP HFCs, driven by global environmental regulations.
2020-2022
Rising production costs
Higher costs due to R&D investments in eco-friendly refrigerants and compliance with stringent regulations, affecting pricing structures globally.
2021-2023
Growth in emerging markets
Increased demand for refrigeration and air conditioning in developing regions like Southeast Asia and Africa, boosting trade volumes despite regulatory challenges.
2019-2022
Over 140 countries have ratified the Kigali Amendment, committing to a phasedown of HFCs by up to 85% by 2045, directly impacting the trade of high-GWP refrigerants.
Ongoing since 2019
Accelerated transition to alternative refrigerants, with trade shifting toward low-GWP products and increased tariffs on non-compliant goods.
The European Union updated its F-Gas Regulation in 2023, imposing stricter quotas and bans on certain HFCs, affecting exporters to the EU market.
April 2023
Reduced export opportunities for high-GWP refrigerants to Europe, pushing manufacturers to innovate and adapt product lines.
The American Innovation and Manufacturing (AIM) Act, enacted in 2020, mandates an 85% reduction in HFC production and consumption by 2036, with phasedown steps starting in 2022.
January 2022
Significant reduction in domestic production and imports of high-GWP refrigerants in the US, reshaping trade patterns with key exporters like China.