HS Code:
The 'Combed' category, typically falling under HS Code 5205 (Cotton yarn, combed) or related codes, refers to cotton yarn that has undergone a combing process to remove short fibers and impurities, resulting in a smoother, stronger, and more uniform yarn. This category is essential in the textile industry, used primarily for producing high-quality fabrics such as fine shirts, bed linens, and premium apparel. Combed cotton yarn is valued for its softness and durability, making it a preferred choice in both domestic and international markets.
Total Trade Volume
Approximately $4.5 billion USD
Data from 2022
Source
United Nations Comtrade Database & International Trade Centre (ITC)
$1.2 billion USD
26.7% of total trade of total trade
Increasing
$800 million USD
17.8% of total trade of total trade
Increasing
$650 million USD
14.4% of total trade of total trade
Stable
$500 million USD
11.1% of total trade of total trade
Decreasing
$400 million USD
8.9% of total trade of total trade
Stable
Average Rate
6.5% ad valorem
Highest Rate
12% (applied by certain African and Middle Eastern countries)
Lowest Rate
0% (under free trade agreements such as EU-India FTA or ASEAN agreements)
Rising demand for sustainable and organic combed cotton
Increased production costs but higher premiums in markets like Europe and North America, driving exports from certified producers in India and Turkey
2021-2022
Shift towards automation in yarn production
Reduced labor costs and improved quality consistency, benefiting large-scale exporters like Vietnam and China
2020-2022
Growing apparel manufacturing in Southeast Asia
Boosted demand for combed cotton yarn in countries like Vietnam and Bangladesh, leading to higher imports from India and Pakistan
2019-2022
The Indian government extended the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for textile exports, including combed cotton yarn, to boost competitiveness.
March 2023
Expected to increase India's market share by 5-7% in the global combed cotton yarn trade by offering rebates of up to 6% on exports.
The EU introduced CBAM, which may impose additional costs on carbon-intensive textile inputs like combed cotton yarn from high-emission countries.
October 2023
Likely to affect exporters from China and Pakistan, while benefiting producers with sustainable practices in India and Turkey.
Negotiations for deeper trade ties between Vietnam and the US have led to reduced tariffs on textile inputs, including combed cotton yarn.
July 2023
Increased export potential for Vietnam, positioning it as a key supplier to the US apparel market.