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Global Tariffs, Categorized

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📦 Chocolate and low fat chocolate crumb containing 5.5 percent or less by weight of butterfat (excluding articles for consumption at retail as candy or confection), provided for in subheadings 1806.20.36, 1806.20.38, 1806.20.87, 1806.20.89, 1806.32.16, 1806.32.18, 1806.90.28 or 1806.90.30

Chocolate and low fat chocolate crumb containing 5.5 percent or less by weight of butterfat (excluding articles for consumption at retail as candy or confection), provided for in subheadings 1806.20.36, 1806.20.38, 1806.20.87, 1806.20.89, 1806.32.16, 1806.32.18, 1806.90.28 or 1806.90.30

HS Code:

📦

Overview

This category includes chocolate and low-fat chocolate crumb preparations containing 5.5 percent or less by weight of butterfat, excluding articles packaged for retail sale as candy or confectionery. These products fall under various Harmonized System (HS) subheadings such as 1806.20.36, 1806.20.38, 1806.20.87, 1806.20.89, 1806.32.16, 1806.32.18, 1806.90.28, and 1806.90.30. These subheadings cover chocolate in bulk forms, preparations for beverages, and other chocolate products not intended for direct retail consumption as sweets. This category is significant in the global food and beverage industry, often used as raw materials or intermediate products in the production of confectionery, bakery items, and dairy products.

Total Trade Volume

Approximately $2.5 billion USD

Data from 2022

Source

United Nations Comtrade Database & World Trade Organization (WTO) Statistics

Tariff Analysis

Average Rate

6.5% ad valorem

Highest Rate

15% (applied by certain developing countries to protect local industries)

Lowest Rate

0% (under free trade agreements like EU Single Market or USMCA)

Common Restrictions

  • Import quotas in some countries to protect domestic producers
  • Strict labeling and ingredient standards (e.g., EU regulations on cocoa content)
  • Health and safety certifications for food products
  • Anti-dumping duties in specific markets

Market Trends

Rising demand for low-fat chocolate products

Increased imports in health-conscious markets like North America and Europe, driving trade growth by 8% annually since 2019

2022

Sustainability and ethical sourcing

Growing preference for sustainably sourced cocoa has led to higher production costs but also opened premium market segments, especially in the EU

2021-2022

Shift towards plant-based chocolate alternatives

Moderate impact on traditional chocolate crumb trade as manufacturers experiment with dairy-free options, affecting low-fat segment growth

2020-2022

Recent Developments

EU Deforestation Regulation Impact

The EU introduced regulations in 2023 requiring proof that cocoa products are not linked to deforestation, affecting exporters from West Africa and Latin America supplying chocolate crumb materials.

June 2023

Potential delays and increased compliance costs for exporters, possibly shifting trade flows towards certified sustainable suppliers.

US Tariff Adjustments on EU Chocolate Products

The United States revised tariffs on certain EU chocolate imports as part of trade negotiations, reducing rates temporarily on bulk chocolate preparations.

March 2023

Boosted imports from Belgium and Germany by approximately 5% in mid-2023, benefiting US manufacturers reliant on high-quality chocolate inputs.

Cocoa Price Volatility

Global cocoa prices spiked due to poor harvests in West Africa, impacting the cost of chocolate crumb production and trade margins.

September 2022

Led to a temporary slowdown in trade volume as manufacturers sought alternative suppliers or reduced orders.