HS Code:
The category 'Containing 5 percent or more but not more than 25 percent by weight of one or more aromatic or modified aromatic substances' typically falls under HS Code 3302.90 or related subheadings in the Harmonized System. This category includes mixtures of odoriferous substances used as raw materials in industries such as perfumery, cosmetics, and other chemical manufacturing. These substances are critical for creating fragrances and flavors, often used in personal care products, household items, and food additives. The aromatic content in this range indicates a moderate concentration, balancing potency and cost for industrial applications.
Total Trade Volume
USD 3.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
12% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-US trade pacts)
Rising demand for natural and organic fragrance compounds
Increased sourcing of raw materials from sustainable producers, pushing up costs but aligning with consumer preferences for eco-friendly products
2021-2022
Growth in personal care and cosmetics industries in Asia-Pacific
Significant boost in exports to countries like China and South Korea, with a projected annual growth rate of 6% in the region
2020-2023
Technological advancements in synthetic aroma compounds
Reduced dependency on natural extracts, lowering production costs and stabilizing supply chains amidst climate-related disruptions
2019-2022
The European Union updated its REACH framework to impose stricter limits on certain aromatic compounds due to potential health risks, requiring manufacturers to reformulate products or seek alternative substances.
March 2023
Increased compliance costs for exporters to the EU, potentially shifting market share to non-EU producers with less stringent regulations.
A bilateral agreement reduced tariffs on certain chemical categories, including odoriferous mixtures, to promote trade and reduce supply chain bottlenecks.
January 2023
Boosted exports from the US to China, with an estimated 10% increase in trade volume for this category in 2023.
Under the 'Make in India' initiative, subsidies and tax breaks were introduced for local manufacturers of fragrance and flavor compounds to reduce import dependency.
September 2022
Strengthened India's position as an emerging exporter, with a noticeable uptick in trade volume and competitive pricing.