HS Code:
Saturated fluorinated derivatives of acyclic hydrocarbons (HS Code: 2903.39) are a category of organic chemical compounds where hydrogen atoms in acyclic hydrocarbons are replaced by fluorine atoms. These compounds are widely used in refrigerants, solvents, and as intermediates in the production of other chemicals. They are critical in industries such as air conditioning, refrigeration, and pharmaceuticals due to their stability and low toxicity compared to other halogenated compounds. However, some of these substances, like certain hydrofluorocarbons (HFCs), are potent greenhouse gases, leading to global regulatory measures for their phase-down under agreements like the Kigali Amendment to the Montreal Protocol.
Total Trade Volume
USD 5.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
12% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Shift to low-GWP alternatives
Increased demand for hydrofluoroolefins (HFOs) and other eco-friendly substitutes as HFCs are phased down under global agreements, driving innovation and investment in green technologies.
2020-2023
Rising production costs
Stricter environmental regulations and raw material scarcity have led to higher production costs, impacting pricing and profit margins for manufacturers.
2021-2023
Growing demand in developing countries
Rapid urbanization and industrialization in regions like Southeast Asia and Africa are boosting demand for refrigeration and air conditioning, sustaining trade growth despite regulatory constraints.
2019-2023
Several countries have accelerated the phase-down of high-GWP HFCs under the Kigali Amendment, introducing stricter import and production limits for saturated fluorinated derivatives.
January 2023
Reduced global supply of traditional HFCs, increased prices, and a push towards alternative refrigerants.
The European Union revised its F-Gas Regulation, setting more ambitious targets for reducing fluorinated greenhouse gases, with new quotas and bans on specific HFCs in equipment.
April 2023
Significant reduction in EU imports of certain saturated fluorinated derivatives, redirecting trade flows to other regions.
The American Innovation and Manufacturing (AIM) Act began enforcing a phasedown of HFCs, with a 10% reduction in production and consumption allowances compared to baseline levels.
October 2022
Increased domestic production of alternatives and reduced reliance on imported HFCs, affecting global trade patterns.