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📦 Goods provided for in subheading 1806.10.15

Goods provided for in subheading 1806.10.15

HS Code:

📦

Overview

Subheading 1806.10.15 of the Harmonized System (HS) Code pertains to cocoa powder, containing added sugar or other sweetening matter, with a fat content not exceeding 1.5% by weight. This category includes sweetened cocoa powder primarily used in the preparation of beverages and confectionery products. It is a niche but significant segment of the global cocoa products market, often influenced by consumer demand for low-fat and sweetened cocoa products in both retail and industrial applications.

Total Trade Volume

Approximately $250 million USD

Data from 2022

Source

United Nations Comtrade Database and International Trade Centre (ITC) Trade Map

Tariff Analysis

Average Rate

6.5% ad valorem

Highest Rate

15% (applied by certain developing countries to protect local industries)

Lowest Rate

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

Common Restrictions

  • Import quotas in some countries to protect domestic cocoa processing industries
  • Strict labeling and food safety standards (e.g., EU regulations on sugar content and additives)
  • Anti-dumping duties in select markets to prevent price undercutting

Market Trends

Growing demand for low-fat cocoa products

Increased exports to health-conscious markets in North America and Europe, driving innovation in product formulations

2021-2022

Rising production costs due to cocoa bean price volatility

Higher prices for sweetened cocoa powder, potentially reducing demand in price-sensitive markets

2022

Sustainability and fair trade certification

Exporters with certified sustainable practices gain competitive advantage in premium markets like the EU

2020-2022

Recent Developments

EU Deforestation Regulation Impact

The EU's new deforestation regulation, effective from 2023, requires cocoa product exporters to prove that their supply chains do not contribute to deforestation, impacting major exporters like the Netherlands and Malaysia.

June 2023

Increased compliance costs for exporters but potential for premium pricing in the EU market for certified sustainable products.

US Tariff Waiver for Certain Cocoa Products

The United States granted temporary tariff waivers for cocoa powder imports from select countries under specific trade agreements to address domestic shortages.

March 2023

Boosted imports from countries like Malaysia, providing short-term market access benefits.

Cocoa Price Surge

Global cocoa bean prices surged due to adverse weather conditions in West Africa, affecting the cost structure of sweetened cocoa powder production.

September 2023

Higher retail prices may dampen demand in emerging markets, while premium markets remain resilient.