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📦 Containing more than 65 percent by weight of sugar

Containing more than 65 percent by weight of sugar

HS Code:

📦

Overview

The category 'Containing more than 65 percent by weight of sugar' (often classified under HS Code 1704.90 or related subcategories) includes sugar confectionery products such as candies, toffees, caramels, and other sweets where sugar constitutes over 65% of the product weight. This category excludes chocolate and other cocoa-based products. These products are widely traded globally due to high consumer demand across various demographics, seasonal consumption patterns (e.g., holidays), and their role in the snack food industry. Trade in this category is influenced by factors such as raw sugar prices, health regulations, and regional taste preferences.

Total Trade Volume

USD 12.5 billion

Data from 2022

Source

United Nations Comtrade Database & World Trade Organization (WTO) Statistics

Tariff Analysis

Average Rate

8.5% ad valorem

Highest Rate

35% (applied by certain developing countries to protect local industries)

Lowest Rate

0% (under free trade agreements like EU Single Market or USMCA)

Common Restrictions

  • Health-based import restrictions due to high sugar content
  • Quotas on sugar-based products in some markets
  • Labeling requirements for nutritional content
  • Anti-dumping duties in specific regions to prevent market flooding

Market Trends

Rising demand for low-sugar alternatives

Manufacturers are innovating with sugar substitutes, potentially reducing trade volume in traditional high-sugar categories.

2021-2023

Growth in emerging markets

Increased consumption in Asia and Africa due to urbanization and rising disposable incomes is boosting exports to these regions.

2020-2022

Seasonal trade spikes

Significant increases in trade volume during festive seasons like Halloween, Christmas, and regional holidays drive annual patterns.

Annual recurring trend

Recent Developments

EU Sugar Tax Implementation

Several EU countries introduced or increased sugar taxes on high-sugar confectionery, impacting import tariffs and domestic pricing.

January 2023

Potential reduction in demand for high-sugar products in the EU market, prompting exporters to reformulate products.

USMCA Trade Agreement Updates

Revised rules under the USMCA have facilitated duty-free access for sugar confectionery between the US, Canada, and Mexico, boosting regional trade.

July 2022

Increased trade volume among member countries, especially benefiting Mexican exporters.

Global Sugar Price Volatility

Fluctuations in raw sugar prices due to supply chain disruptions and climate impacts in key producing regions like Brazil have affected production costs.

Mid-2022 to 2023

Higher production costs are passed on to consumers, potentially slowing trade growth in price-sensitive markets.