The U.S. Environmental Protection Agency (EPA) recently reported a series of enforcement measures meant to crack down on the illegal import of HFCs. These measures included imposing civil penalties on three HFC importers who failed to report their imported quantities in violation of the Clean Air Act's (CAA’s) Greenhouse Gas Reporting Program. The Agency’s landmark settlements with the importers included Artsen Chemical America LLC receiving a $247,601 penalty; Harp USA Inc. receiving a $275,000 penalty; and the IGas Companies receiving a $382,473 penalty. The EPA is actively pursuing similar actions against other importers who failed to report their HFC shipments.

Additionally, the EPA recently issued notices of violation (NOVs) to alleged violators who imported regulated substances without required allowances, marking the first NOVs issued under the AIM Act. As part of the AIM Act, EPA created an HFC allocation methodology that granted allowances to companies that produced and/or imported HFCs in 2020, based on the three highest non-consecutive years of production or import between 2011 and 2019. In order to legally import HFCs, companies must use these allowances, which EPA considers to be critical in ensuring the success of the HFC phasedown in the U.S. The Agency notes that illegal imports not only undermine the phasedown program but also disadvantage companies that comply with regulations.