HS Code:
The 'Designed for Surface Mounting (SMD) by Contact' category, often classified under HS Code 8536.90 (electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits), pertains to electronic components specifically designed for surface-mount technology (SMT). These components are mounted directly onto the surface of printed circuit boards (PCBs) and are widely used in the manufacturing of consumer electronics, automotive systems, telecommunications equipment, and industrial machinery. SMD components are favored for their compact size, high efficiency, and compatibility with automated assembly processes, making them integral to modern electronics production.
Total Trade Volume
USD 45.2 billion
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
USD 18.5 billion
40.9% of total trade of total trade
Increasing
USD 6.3 billion
13.9% of total trade of total trade
Stable
USD 5.1 billion
11.3% of total trade of total trade
Increasing
USD 4.8 billion
10.6% of total trade of total trade
Stable
USD 3.2 billion
7.1% of total trade of total trade
Decreasing
Average Rate
4.5% ad valorem
Highest Rate
12% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like USMCA or EU-Japan EPA)
Rising Demand for Miniaturization
Increased adoption of SMD components in compact devices like wearables and IoT products, driving trade volume growth by 8% annually.
2021-2023
Shift to Automation in Manufacturing
Growing reliance on automated PCB assembly lines boosts demand for SMD components, particularly in Asia-Pacific, influencing supply chain localization.
2020-2022
Sustainability Push
Pressure to adopt lead-free and RoHS-compliant SMD components is reshaping production standards and increasing costs for non-compliant exporters.
2019-2023
Ongoing trade disputes have led to additional tariffs on Chinese-made SMD components entering the US, prompting manufacturers to explore alternative sourcing from Vietnam and Taiwan.
Mid-2022
Potential increase in production costs and supply chain diversification, with a 5-7% rise in component prices in the US market.
New EU regulations under the Green Deal mandate stricter environmental compliance for electronic components, including SMD products, focusing on recyclability and hazardous substance limits.
January 2023
Non-compliant exporters face market access barriers, pushing companies to invest in sustainable production, potentially increasing costs by 3-5%.
South Korea announced a USD 10 billion investment in domestic semiconductor and SMD component manufacturing to reduce reliance on imports and strengthen export capacity.
March 2023
Expected to increase South Korea’s share in global SMD trade by 2-3% over the next five years, intensifying competition with China and Japan.