HS Code:
Subheading 0403.90.55 of the Harmonized System (HS) Code pertains to 'Buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavored or containing added fruit, nuts or cocoa.' This category includes specific dairy products that are processed or fermented beyond standard milk or cream, often used in food production and direct consumption across various cultures. These products are distinct due to their fermentation process or added ingredients, which affect their tariff classification and trade regulations.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
United Nations Comtrade Database
$320 million USD
26.7% of total trade of total trade
Increasing
$250 million USD
20.8% of total trade of total trade
Stable
$180 million USD
15.0% of total trade of total trade
Increasing
$100 million USD
8.3% of total trade of total trade
Stable
$90 million USD
7.5% of total trade of total trade
Decreasing
Average Rate
6.5% ad valorem
Highest Rate
20% (applied by certain developing countries for protective measures)
Lowest Rate
0% (under free trade agreements such as EU internal trade or USMCA)
Growing demand for probiotic and health-oriented dairy products
Increased export opportunities for fermented dairy products like kephir and yogurt, particularly in health-conscious markets such as North America and Europe
2021-2022
Shift towards plant-based alternatives
Moderate competition for traditional fermented dairy products as consumers adopt vegan and lactose-free diets, affecting trade volumes in key markets
2020-2022
Sustainability in dairy production
Pressure on exporters to adopt eco-friendly practices, influencing trade policies and consumer preferences in regions like the EU
2022
Post-Brexit trade agreements have facilitated an increase in EU dairy exports, including fermented products under HS 0403.90.55, to non-EU countries with reduced tariffs under new bilateral deals.
January 2023
Strengthened market position for EU exporters like Germany and France, potentially increasing their share in global trade.
The United States revised tariffs on specific dairy categories, including fermented milk products, as part of trade negotiations with Canada and Mexico under the USMCA agreement.
March 2023
Reduced tariffs for North American trade partners, boosting imports from Canada while maintaining competitive pressure on domestic producers.
Several Asia-Pacific countries, including Japan and South Korea, updated sanitary regulations for imported dairy products, requiring stricter compliance with fermentation and storage standards.
June 2023
Potential delays and increased compliance costs for exporters targeting these high-growth markets, affecting trade volumes temporarily.