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📦 Goods provided for in subheading 0401.50.25

Goods provided for in subheading 0401.50.25

HS Code:

📦

Overview

Subheading 0401.50.25 under the Harmonized System (HS) Code pertains to 'Milk and cream, not concentrated nor containing added sugar or other sweetening matter, of a fat content, by weight, exceeding 10% but not exceeding 45%.' This category primarily includes fresh cream and other dairy products with specific fat content used in various food preparations and industries. It is a significant category in the global dairy trade, reflecting demand for high-fat dairy products in culinary and industrial applications.

Total Trade Volume

USD 2.5 billion

Data from 2022

Source

United Nations Comtrade Database and International Trade Centre (ITC)

Tariff Analysis

Average Rate

15%

Highest Rate

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

Lowest Rate

0% (under free trade agreements such as EU internal trade or USMCA)

Common Restrictions

  • Quotas on import volumes to protect domestic producers
  • Sanitary and phytosanitary (SPS) measures requiring strict compliance with health and safety standards
  • Labeling requirements for fat content and origin
  • Seasonal tariffs in some regions to manage supply fluctuations

Market Trends

Rising demand for high-fat dairy in processed foods

Increased exports from major dairy-producing countries to meet demand in Asia and the Middle East

2021-2022

Shift towards organic and sustainably sourced cream products

Higher premiums for certified organic products, influencing trade patterns towards countries with strong organic certification systems

2020-2022

Impact of climate change on dairy production

Reduced yields in traditional dairy regions due to extreme weather, shifting trade to alternative suppliers

2019-2022

Recent Developments

EU Dairy Export Quota Adjustments

The European Union adjusted export quotas for dairy products, including those under HS 0401.50.25, to balance domestic supply amidst rising global demand.

March 2023

Potential increase in prices for non-EU importers due to restricted supply

USMCA Dairy Tariff Reductions

Under the United States-Mexico-Canada Agreement, tariffs on certain dairy products, including high-fat cream, were reduced, facilitating greater trade within North America.

January 2023

Boosted exports from the US to Canada and Mexico, strengthening regional trade ties

New Zealand Drought Impact

Severe drought conditions in New Zealand led to a decline in dairy production, affecting the export volumes of high-fat cream products.

February 2023

Reduced global supply from a key exporter, potentially increasing prices and shifting demand to other suppliers