HS Code:
Subheading 0406.20.87 of the Harmonized System (HS) Code refers to 'Grated or powdered cheese, of all kinds, other than Cheddar, processed, not subject to additional U.S. note 18 to Chapter 4.' This category includes a variety of processed grated or powdered cheeses, excluding Cheddar, and is typically used in food processing, retail, and culinary applications globally. Products under this subheading are subject to specific import quotas and regulations in many countries due to dairy market sensitivities.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
United Nations Comtrade Database and World Trade Organization (WTO) reports
$350 million USD
29.2% of total trade of total trade
Increasing
$280 million USD
23.3% 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
8.5% ad valorem
Highest Rate
20% (applied by certain countries with dairy protection policies)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Rising demand for processed cheese in fast food and ready-to-eat meals
Increased exports from major dairy producers like the US and EU to emerging markets in Asia and Latin America
2021-2022
Shift towards plant-based cheese alternatives
Moderate decline in traditional cheese powder demand in developed markets, prompting innovation in hybrid products
2020-2022
Sustainability concerns in dairy production
Pressure on exporters to adopt eco-friendly practices, influencing trade policies and consumer preferences
2019-2022
A new agreement eased tariff-rate quotas for processed cheese products, including those under HS 0406.20.87, between the US and EU, fostering increased trade.
March 2023
Expected to boost US exports to the EU by 10% over the next two years
New Zealand implemented stricter export controls on dairy products to prioritize domestic supply amid global supply chain disruptions.
July 2022
Reduction in export volumes, creating opportunities for competitors like the Netherlands and Italy
Rapid growth in demand for processed cheese in countries like China and India due to urbanization and westernized diets.
January 2023
Significant market opportunity for exporters, with trade volume expected to grow by 15% annually in the region