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📦 Goods provided for in subheading 0402.21.90

Goods provided for in subheading 0402.21.90

HS Code:

📦

Overview

Subheading 0402.21.90 of the Harmonized System (HS) Code pertains to milk and cream, concentrated or containing added sugar or other sweetening matter, in powder, granules, or other solid forms, of a fat content, by weight, exceeding 1.5%, not containing added sugar or other sweetening matter, and not elsewhere specified or included. This category primarily includes unsweetened powdered milk products used in various food processing industries, infant formula production, and direct consumption. It is a critical commodity in global dairy trade due to its long shelf life and versatility.

Total Trade Volume

USD 3.5 billion

Data from 2022

Source

United Nations Comtrade Database

Tariff Analysis

Average Rate

15.2%

Highest Rate

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

Lowest Rate

0% (under free trade agreements such as USMCA and EU-NZ FTA)

Common Restrictions

  • Import quotas to protect domestic dairy markets
  • Sanitary and phytosanitary (SPS) measures for quality control
  • Labeling and certification requirements
  • Anti-dumping duties in specific markets

Market Trends

Rising demand in Asia-Pacific

Increased exports to countries like China and Indonesia due to growing populations and rising demand for dairy in food processing and infant nutrition.

2021-2022

Sustainability concerns

Growing preference for sustainably produced dairy products, pushing exporters to adopt eco-friendly practices and certifications.

2020-2022

Price volatility

Fluctuations in global dairy prices due to weather conditions, feed costs, and geopolitical tensions affecting supply chains.

2019-2022

Recent Developments

EU-New Zealand Free Trade Agreement

The agreement, finalized in mid-2022, reduces tariffs on dairy products, including those under HS 0402.21.90, facilitating greater market access for New Zealand exporters to the EU.

July 2022

Expected to increase New Zealand’s export volume by 10-15% to the EU over the next five years.

China’s Increased Import Quotas

China announced higher import quotas for dairy products to meet domestic demand, benefiting major exporters like New Zealand and the United States.

January 2023

Likely to boost trade volumes by 8-12% for key exporters in the short term.

US Dairy Export Council Initiatives

The US Dairy Export Council launched a campaign to promote American dairy products in Southeast Asia, targeting products under this HS code.

March 2023

Potential market share growth for US exporters in high-demand regions.