HS Code:
The Harmonized System (HS) subheadings 1806.10.28, 1806.10.38, 1806.10.55, and 1806.10.75 refer to specific categories of cocoa powder containing added sugar or other sweetening matter. These subheadings typically cover cocoa powder preparations used in the food and beverage industry, including for chocolate drink mixes and confectionery products. The distinctions between these subheadings often relate to the sugar content, packaging (bulk or retail), and specific tariff quota allocations.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
United Nations Comtrade Database & World Trade Organization (WTO)
$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
$130 million USD
10.8% of total trade of total trade
Stable
$90 million USD
7.5% of total trade of total trade
Increasing
Average Rate
6.5% ad valorem
Highest Rate
15% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Growing demand for low-sugar cocoa products
Shift towards healthier alternatives is pushing manufacturers to innovate with reduced-sugar or sugar-free cocoa powder mixes, impacting trade volumes in higher-sugar categories.
2021-2023
Sustainability and fair trade certification
Increasing consumer preference for ethically sourced cocoa is driving demand for certified products, influencing export strategies of major producers like the Netherlands and Germany.
2020-2023
Rising production costs due to climate change
Fluctuations in cocoa bean supply due to adverse weather in West Africa are increasing raw material costs, affecting global pricing and trade margins.
2022-2023
The EU introduced stricter regulations requiring proof that cocoa products are not linked to deforestation, impacting exporters from tropical regions.
June 2023
Potential delays in trade flows and increased compliance costs for exporters to the EU market.
The United States adjusted tariff-rate quotas for cocoa powder imports under specific HS codes, allowing for higher duty-free imports from certain countries.
January 2023
Increased market access for exporters from quota-beneficiary countries, potentially shifting trade patterns.
The Netherlands and Germany launched joint initiatives to promote sustainable cocoa supply chains, including subsidies for fair trade certification.
March 2023
Likely to enhance competitiveness of European exporters in markets valuing ethical sourcing.