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Global Tariffs, Categorized

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📦 Cigarettes containing tobacco

Cigarettes containing tobacco

HS Code:

📦

Overview

The 'Cigarettes containing tobacco' category, classified under HS Code 2402.20, encompasses finished cigarette products that contain tobacco as a primary ingredient. This category is a significant segment of the global tobacco industry, involving the production, export, and import of cigarettes for consumer use. Trade in this category is heavily influenced by health regulations, taxation policies, and anti-smoking campaigns worldwide, alongside cultural and economic factors.

Total Trade Volume

USD 25.3 billion

Data from 2022

Source

United Nations Comtrade Database

Tariff Analysis

Average Rate

35.6%

Highest Rate

150% (applied by some South Asian countries)

Lowest Rate

0% (under free trade agreements in the EU)

Common Restrictions

  • High excise taxes and duties to discourage consumption
  • Import quotas in certain countries to protect domestic industries
  • Mandatory health warnings and plain packaging requirements
  • Bans on advertising and promotion in many regions

Market Trends

Shift towards stricter regulations

Reduced legal trade volumes in developed markets due to anti-smoking policies, pushing demand towards illicit trade in some regions.

2021-2022

Growth in emerging markets

Increased demand in developing countries, particularly in Asia and Africa, due to rising populations and disposable incomes.

2020-2022

Rise of alternative tobacco products

Decline in traditional cigarette consumption in favor of e-cigarettes and heated tobacco products in markets like Europe and North America.

2019-2022

Recent Developments

New EU Tobacco Tax Directive

The European Union revised its Tobacco Tax Directive, increasing minimum excise duties on cigarettes to standardize pricing and reduce cross-border smuggling.

January 2023

Expected to reduce trade disparities within the EU but may increase prices, potentially boosting illicit trade.

Australia's Plain Packaging Success

Australia reported a significant decline in smoking rates following a decade of plain packaging laws, influencing other countries to adopt similar measures.

March 2023

Likely to reduce brand-driven trade and further restrict marketing strategies globally.

Indonesia's Domestic Production Push

Indonesia introduced policies to boost local cigarette production, reducing reliance on imports while increasing export capacity.

July 2022

May lead to a shift in trade dynamics in the Asia-Pacific region, with Indonesia gaining market share.