HS Code:
The category of chocolate containing over 5.5 percent by weight of butterfat (excluding articles for consumption at retail as candy or confection) falls under Harmonized System (HS) subheadings 1806.20.26, 1806.20.28, 1806.32.06, 1806.32.08, 1806.90.18, and 1806.90.20. This category includes various chocolate preparations in bulk form, bars, and other forms not intended for direct retail as candy. These products are widely used in the food industry for further processing or as ingredients in desserts, baked goods, and confectionery products. Global trade in this category is driven by demand for high-quality chocolate with specific butterfat content, often used in premium or specialty applications. Key factors influencing trade include cocoa bean supply, dairy production costs, consumer preferences for premium chocolate, and trade agreements affecting tariffs and quotas.
Total Trade Volume
Approximately $2.5 billion USD
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
$600 million USD
24% of total trade of total trade
Increasing
$450 million USD
18% of total trade of total trade
Stable
$400 million USD
16% of total trade of total trade
Increasing
$300 million USD
12% of total trade of total trade
Stable
$250 million USD
10% of total trade of total trade
Decreasing
Average Rate
6.5% ad valorem
Highest Rate
15% (applied by certain developing countries with protective dairy policies)
Lowest Rate
0% (under free trade agreements like EU-USMCA or within the EU single market)
Rising demand for premium and specialty chocolates
Increased exports from countries like Belgium and Switzerland, known for high-quality chocolate production, as consumers seek indulgent and artisanal products.
2020-2022
Sustainability and ethical sourcing
Growing consumer preference for sustainably sourced cocoa and fair-trade chocolate has pushed exporters to adopt certification programs, influencing supply chains and pricing.
2019-2022
Fluctuations in cocoa and dairy prices
Volatility in raw material costs, especially cocoa beans and butterfat, has led to price instability, affecting trade margins and competitiveness.
2021-2022
The EU-UK Trade and Cooperation Agreement has introduced new customs checks and documentation for chocolate products, impacting trade flows of butterfat-heavy chocolate between the UK and major EU exporters like Belgium and Germany.
January 2021
Slight delays in supply chains and increased costs for UK importers, though tariff-free access has been maintained.
The United States revised tariffs on certain EU dairy-based products, including chocolate with high butterfat content, as part of ongoing trade negotiations following the Airbus-Boeing dispute resolution.
March 2021
Temporary suspension of additional tariffs has boosted exports from EU countries to the US, benefiting major players like Belgium and Germany.
Adverse weather conditions and political instability in key cocoa-producing regions like Côte d'Ivoire and Ghana have led to supply shortages, affecting global chocolate production and trade.
Mid-2022
Increased raw material costs have raised export prices, impacting affordability and demand in price-sensitive markets.