HS Code:
Subheading 0401.50.75 of the Harmonized System (HS) Code pertains to cream, whether or not concentrated, containing over 45% by weight of butterfat, not in airtight containers. This category includes high-fat dairy products primarily used in industrial food processing, baking, and confectionery. These goods are subject to specific tariff rate quotas (TRQs) and are often regulated due to their significance in the dairy industry and potential impact on domestic markets.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
United Nations Comtrade Database and World Trade Organization (WTO) Statistics
$350 million USD
29.2% of total trade of total trade
Increasing
$300 million USD
25.0% of total trade of total trade
Stable
$200 million USD
16.7% of total trade of total trade
Increasing
$150 million USD
12.5% of total trade of total trade
Stable
$100 million USD
8.3% of total trade of total trade
Decreasing
Average Rate
12.5% ad valorem
Highest Rate
Up to 65% (applied by certain countries under TRQs or protective measures)
Lowest Rate
0% (under free trade agreements like USMCA or EU-NZ FTA)
Growing demand for high-fat dairy in confectionery and bakery sectors
Increased export opportunities for major producers like New Zealand and the EU, especially in Asia-Pacific markets
2021-2022
Shift towards plant-based alternatives
Moderate negative pressure on traditional cream products as consumers opt for vegan substitutes in developed markets
2020-2022
Fluctuations in feed costs and dairy production
Rising input costs have led to price volatility, affecting trade competitiveness for smaller exporters
2022
The EU-NZ FTA, ratified in mid-2023, includes provisions for increased dairy market access, reducing tariffs on high-fat cream products under HS 0401.50.75.
July 2023
Expected to boost New Zealand’s exports to the EU by 10-15% over the next five years.
The United States adjusted TRQs for dairy imports in 2023, allocating additional quotas to certain trading partners for high-fat cream products.
January 2023
Provides limited relief to exporters like Canada but maintains high out-of-quota tariffs, limiting broader market access.
Canada’s ongoing review of its dairy supply management system has led to debates over import quotas for high-fat dairy products, with potential policy changes on the horizon.
March 2023
May result in either tighter restrictions or slight liberalization, affecting trade flows from the US and EU.