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Global Tariffs, Categorized

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📦 Goods provided for in subheading 1806.20.28, 1806.20.38, 1806.32.08 or 1806.32.18

Goods provided for in subheading 1806.20.28, 1806.20.38, 1806.32.08 or 1806.32.18

HS Code:

📦

Overview

The category under Harmonized System (HS) subheadings 1806.20.28, 1806.20.38, 1806.32.08, and 1806.32.18 pertains to chocolate and other food preparations containing cocoa. Specifically, these subheadings cover chocolate in blocks, slabs, or bars (filled or not filled) and other preparations in containers or immediate packings of a content not exceeding 2 kg. These products are widely consumed globally as confectionery items, used in both retail and industrial applications (e.g., baking and food processing). The trade of these products is influenced by consumer demand, seasonal trends (e.g., holidays like Christmas and Easter), and raw material availability, particularly cocoa beans.

Total Trade Volume

Approximately $25 billion USD

Data from 2022

Source

United Nations Comtrade Database and International Trade Centre (ITC)

Tariff Analysis

Average Rate

6.5% ad valorem

Highest Rate

30% (applied by certain developing countries to protect local industries)

Lowest Rate

0% (under free trade agreements such as EU-Switzerland or USMCA)

Common Restrictions

  • Import quotas in some countries to protect domestic producers
  • Strict labeling and food safety regulations (e.g., EU regulations on cocoa content and additives)
  • Anti-dumping duties in specific markets to prevent unfair pricing
  • Sustainability certification requirements (e.g., Rainforest Alliance or Fair Trade)

Market Trends

Rising demand for premium and organic chocolate

Increased exports from countries like Switzerland and Belgium, which specialize in high-quality chocolate; higher price points benefiting exporters

2021-2022

Growth in plant-based and vegan chocolate products

Expanding market opportunities in North America and Europe, with new product lines driving trade volume

2022

Fluctuations in cocoa bean prices due to climate change

Higher production costs in West African cocoa-producing countries affecting global supply chains and pricing

2020-2022

Recent Developments

EU Deforestation Regulation Impacting Cocoa Trade

The European Union introduced regulations requiring proof that cocoa products are not linked to deforestation, affecting exporters from West Africa and Latin America.

June 2023

Increased compliance costs for exporters; potential delays in shipments to EU markets

US Tariff Adjustments on EU Chocolate Imports

The United States adjusted tariffs on certain EU chocolate imports as part of ongoing trade negotiations, reducing rates temporarily to boost trade relations.

March 2023

Positive for EU exporters like Belgium and Germany, with a projected 5% increase in export volume to the US

Sustainability Initiatives by Major Chocolate Producers

Leading companies in Switzerland and Belgium have committed to 100% sustainable cocoa sourcing by 2025, influencing trade patterns and supplier relationships.

January 2023

Higher demand for certified cocoa from producing countries, potentially increasing costs but improving market access