HS Code:
The category under statistical reporting numbers 5205.42.0021, 5205.43.0021, 5205.44.0021, 5205.46.0021, and 5205.47.0021 pertains to cotton yarns, specifically containing compact yarns (other than sewing thread), not put up for retail sale. These yarns are multiple (folded) or cabled, made of combed fibers, and vary in decitex measurements, typically used in high-quality textile production for weaving or knitting. This category falls under Harmonized System (HS) Code 5205, which broadly covers cotton yarn. Compact yarns are known for their reduced hairiness and enhanced strength, making them ideal for premium fabrics.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
$400 million USD
33.3% of total trade of total trade
Increasing
$250 million USD
20.8% of total trade of total trade
Increasing
$180 million USD
15.0% of total trade of total trade
Stable
$120 million USD
10.0% of total trade of total trade
Stable
$100 million USD
8.3% of total trade of total trade
Decreasing
Average Rate
8.5% ad valorem
Highest Rate
12% (applied by certain EU countries)
Lowest Rate
0% (under free trade agreements like USMCA or EU-India FTA for qualifying countries)
Rising demand for sustainable cotton yarns
Increased preference for compact yarns made from organic or recycled cotton, driving market growth in eco-conscious regions like Europe.
2021-2023
Shift in production to Southeast Asia
Countries like Vietnam and Bangladesh are becoming key exporters due to lower labor costs and favorable trade agreements, impacting traditional exporters like China.
2020-2022
Technological advancements in yarn production
Adoption of compact spinning technology has improved yarn quality, increasing demand for high-value applications in premium textiles.
2019-2023
The European Union introduced provisional anti-dumping duties ranging from 4-10% on certain cotton yarn imports from India to protect domestic producers.
March 2023
This may reduce India's export competitiveness in the EU market, potentially shifting trade to other regions or countries like Vietnam.
Under the US-Mexico-Canada Agreement, qualifying cotton yarn exports from Mexico to the US face zero tariffs, boosting regional trade.
January 2023
Encourages North American supply chain integration, potentially reducing reliance on Asian exporters.
Major textile companies in Vietnam have invested in new compact spinning facilities to meet growing global demand for high-quality cotton yarns.
July 2022
Positions Vietnam as a leading exporter, challenging traditional players like India and Turkey.