HS Code:
Unsaturated fluorinated derivatives of acyclic hydrocarbons (HS Code: 2903.39) include chemical compounds used primarily as refrigerants, solvents, and in the production of polymers and other industrial applications. These compounds are critical in industries such as HVAC, automotive, and electronics due to their thermal stability and low toxicity. However, their environmental impact, particularly in terms of ozone depletion and global warming potential, has led to stringent regulations under international agreements like the Montreal Protocol and its Kigali Amendment.
Total Trade Volume
USD 3.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
12% (applied by certain developing economies to protect domestic industries)
Lowest Rate
0% (under free trade agreements such as EU-USMCA)
Shift to low-GWP alternatives
Increased demand for hydrofluoroolefins (HFOs) as substitutes for high-GWP hydrofluorocarbons (HFCs), driven by environmental regulations.
2020-2022
Rising production in Asia-Pacific
China and South Korea have ramped up production capacities, leading to a shift in global supply chains and competitive pricing.
2019-2022
Decline in traditional HFC usage
Reduced trade volumes for older HFCs in developed markets due to regulatory phase-outs, impacting exporters like Japan.
2018-2022
More countries have ratified the Kigali Amendment to the Montreal Protocol, enforcing stricter controls on HFC production and trade.
January 2023
Accelerated transition to alternative refrigerants, affecting trade volumes of traditional fluorinated derivatives.
The European Union updated its F-Gas Regulation, imposing tighter quotas and higher penalties for non-compliance.
April 2023
Increased costs for exporters to the EU and a push for greener alternatives in the market.
China adjusted export tax rebates for certain fluorinated derivatives to discourage overproduction of high-GWP compounds.
July 2022
Potential reduction in export competitiveness for Chinese manufacturers of older HFCs.