HS Code:
Subheading 1806.10.28 of the Harmonized System (HS) Code refers to cocoa powder containing added sugar or other sweetening matter, with a sugar content (by weight) exceeding 65% but not exceeding 80%. This category primarily includes sweetened cocoa powder used in the preparation of beverages, confectionery, and baked goods. It is a key ingredient in the food and beverage industry, with significant demand in both developed and emerging markets for chocolate-flavored products.
Total Trade Volume
USD 250 million
Data from 2022
Source
United Nations Comtrade Database
USD 60 million
24% of total trade of total trade
Increasing
USD 45 million
18% of total trade of total trade
Stable
USD 30 million
12% of total trade of total trade
Increasing
USD 25 million
10% of total trade of total trade
Stable
USD 20 million
8% of total trade of total trade
Increasing
Average Rate
6.5% ad valorem
Highest Rate
12% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements such as EU-USMCA)
Growing demand for organic and fair-trade certified cocoa products
Increased market share for sustainably sourced cocoa powder, pushing exporters to adopt ethical sourcing practices
2021-2022
Rising health consciousness impacting sweetened cocoa consumption
Shift towards low-sugar or sugar-free alternatives, slightly reducing demand for high-sugar content cocoa powder
2020-2022
Expansion of confectionery markets in Asia-Pacific
Significant growth in demand from emerging economies like India and Indonesia, driving export opportunities for major producers
2019-2022
The European Union introduced new labeling and taxation policies targeting high-sugar food products, including sweetened cocoa powder under HS 1806.10.28, to combat obesity.
January 2023
Potential reduction in EU imports of high-sugar cocoa powder, prompting exporters to reformulate products or target other markets.
Under the United States-Mexico-Canada Agreement, tariffs on cocoa powder products, including those in subheading 1806.10.28, were reduced to 0% for member countries.
July 2022
Boosted trade flows between the US, Canada, and Mexico, with increased exports from the US to Canada.
Major exporters like the Netherlands and Malaysia have seen a rise in sustainability certification for cocoa products due to consumer and regulatory pressure.
March 2023
Increased production costs but improved market access to premium segments in Europe and North America.