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๐Ÿ“ฆ Cocoa powder, not containing added sugar or other sweetening matter (provided for in subheading 1805.00.00)

Cocoa powder, not containing added sugar or other sweetening matter (provided for in subheading 1805.00.00)

HS Code:

๐Ÿ“ฆ

Overview

Cocoa powder, not containing added sugar or other sweetening matter, classified under HS Code 1805.00.00, is a key ingredient in the food and beverage industry, primarily used in the production of chocolate, confectionery, and baked goods. This product is derived from cocoa beans through processes like roasting, grinding, and pressing to remove cocoa butter, resulting in a fine, unsweetened powder. It is distinct from sweetened cocoa mixes and is traded globally as a raw or semi-processed commodity. The trade of unsweetened cocoa powder is influenced by factors such as cocoa bean production, demand for chocolate products, and price volatility in commodity markets.

Total Trade Volume

Approximately 1.2 million metric tons

Data from 2022

Source

International Trade Centre (ITC) Trade Map and UN Comtrade Database

Tariff Analysis

Average Rate

4.5% ad valorem

Highest Rate

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

Lowest Rate

0% (under free trade agreements like EU-ACP or USMCA)

Common Restrictions

  • Import quotas in some countries to control domestic supply
  • Quality and safety standards (e.g., maximum residue limits for pesticides)
  • Certification requirements for sustainability (e.g., Rainforest Alliance or UTZ)
  • Anti-dumping duties in specific markets

Market Trends

Rising demand for unsweetened cocoa powder in health-conscious markets

Increased exports to regions like North America and Europe due to the popularity of low-sugar and organic chocolate products

2021-2022

Price volatility due to climate change impacts on cocoa production

Fluctuations in supply from major producers like Cรดte d'Ivoire and Ghana have led to unstable pricing, affecting trade volumes

2020-2022

Growth in sustainable and fair-trade certified cocoa products

Higher demand for ethically sourced cocoa powder, prompting exporters to adopt certification, which can increase costs but also market access

2019-2022

Recent Developments

EU Deforestation Regulation Impacting Cocoa Trade

The European Union introduced regulations requiring proof that cocoa products are not linked to deforestation, affecting exporters from West Africa who must comply with traceability requirements.

June 2023

Potential short-term trade disruptions for non-compliant exporters, but long-term benefits for sustainable producers.

Cรดte d'Ivoire and Ghana Cocoa Price Agreement

Cรดte d'Ivoire and Ghana implemented a Living Income Differential (LID) policy to ensure fair prices for cocoa farmers, which includes premiums on cocoa products like unsweetened powder.

July 2020 (ongoing impact in 2023)

Increased export prices for cocoa powder from these countries, potentially reducing competitiveness but improving farmer livelihoods.

US Tariffs on Certain Cocoa Imports

The United States imposed additional scrutiny on cocoa imports from specific regions due to concerns over forced labor in supply chains, requiring enhanced documentation.

January 2023

Temporary delays in imports from affected regions, pushing buyers to diversify sourcing to other countries.