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📦 Goods provided for in subheading 1806.20.36

Goods provided for in subheading 1806.20.36

HS Code:

📦

Overview

Subheading 1806.20.36 of the Harmonized System (HS) Code pertains to chocolate and other food preparations containing cocoa, in blocks, slabs, or bars weighing more than 2 kg or in liquid, paste, powder, granular, or other bulk form in containers or immediate packings, of a content exceeding 2 kg, specifically other preparations in which the cocoa content is less than 65% by weight of the total weight. This category includes bulk chocolate preparations often used for industrial purposes or further processing in the confectionery industry.

Total Trade Volume

USD 1.2 billion

Data from 2022

Source

United Nations Comtrade Database

Tariff Analysis

Average Rate

6.5%

Highest Rate

15% (applied by certain developing countries)

Lowest Rate

0% (under free trade agreements like EU-USMCA)

Common Restrictions

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

Market Trends

Rising demand for sustainable and ethically sourced cocoa

Increased costs for producers but higher consumer trust and market access in premium segments, especially in Europe and North America

2021-2022

Shift towards plant-based and low-sugar chocolate products

Growing innovation in product formulations to cater to health-conscious consumers, influencing bulk chocolate composition

2020-2022

Supply chain disruptions due to geopolitical tensions and climate change

Price volatility and supply shortages for cocoa-based products, affecting trade volumes and costs

2022

Recent Developments

EU Deforestation Regulation Impact on Cocoa Trade

The EU introduced regulations requiring proof that cocoa products are not linked to deforestation, affecting exporters from West Africa and Latin America supplying bulk chocolate preparations.

June 2023

Potential trade barriers for non-compliant exporters but opportunities for sustainable producers to gain market share.

US Tariff Adjustments on EU Chocolate Imports

The United States reduced retaliatory tariffs on certain EU chocolate products as part of broader trade negotiations, benefiting exporters from Germany and Belgium.

October 2022

Increased competitiveness of EU bulk chocolate in the US market, potentially boosting trade volume.

Cocoa Price Surge Due to West African Supply Issues

Adverse weather conditions and political instability in major cocoa-producing countries like Côte d'Ivoire led to a significant increase in raw material costs.

March 2023

Higher production costs for bulk chocolate preparations, squeezing margins for manufacturers and exporters.