HS Code:
The 'Containing over 35 percent wrapper tobacco' category, typically classified under HS Code 2401.20.85, pertains to tobacco products that have a significant proportion of wrapper tobacco, often used in the production of cigars and other premium tobacco products. Wrapper tobacco is the outer leaf used to encase the filler tobacco, prized for its texture, color, and burning qualities. This category is a niche but significant segment of the global tobacco market, often associated with high-value, artisanal products. Trade in this category is influenced by agricultural conditions, labor costs, and stringent regulatory frameworks surrounding tobacco products.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
UN Comtrade Database and International Trade Centre (ITC)
$350 million USD
29.2% of total trade of total trade
Increasing
$280 million USD
23.3% of total trade of total trade
Increasing
$150 million USD
12.5% of total trade of total trade
Stable
$120 million USD
10.0% of total trade of total trade
Increasing
$100 million USD
8.3% of total trade of total trade
Stable
Average Rate
25% ad valorem
Highest Rate
350% (in some markets with strict tobacco control policies, e.g., certain EU countries)
Lowest Rate
0% (under free trade agreements or in tobacco-producing regions)
Growing demand for premium cigars
Increased exports from Central American countries due to rising consumer preference for high-quality, hand-rolled cigars in North America and Europe.
2021-2022
Stricter regulations on tobacco
Reduced market access in regions with stringent anti-tobacco policies, pushing exporters to focus on emerging markets in Asia and Africa.
2020-2022
Shift towards sustainable farming
Producers adopting organic and sustainable tobacco farming practices to meet consumer and regulatory demands, impacting production costs and pricing.
2019-2022
The European Union introduced new regulations increasing tariffs and requiring stricter compliance with health labeling for tobacco products, including wrapper tobacco.
January 2023
Likely to reduce export volumes to the EU, prompting exporters to diversify markets.
Updates to the USMCA trade agreement have facilitated tariff-free trade of wrapper tobacco among the US, Mexico, and Canada, boosting trade volumes in North America.
July 2022
Positive for exporters like the Dominican Republic and Nicaragua, with increased access to the US market.
Severe weather events in Central America, including hurricanes, have disrupted wrapper tobacco production, leading to supply shortages.
November 2022
Short-term price increases and potential shifts in sourcing to other regions like Indonesia.