HS Code:
Subheading 1806.20.38 under 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 valued over 88 cents per kg. This category includes bulk chocolate products often used in industrial applications or further processing for confectionery production.
Total Trade Volume
USD 1.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2% ad valorem
Highest Rate
10% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Rising demand for sustainable and ethically sourced cocoa
Increased costs for producers but higher consumer trust and market access in premium segments
2021-2022
Growth in industrial chocolate applications
Driven by expanding confectionery and bakery sectors, particularly in emerging markets
2020-2022
Fluctuations in cocoa bean prices
Affects production costs and trade margins, leading to volatility in export volumes
2022
The EU introduced regulations requiring proof that cocoa products are not linked to deforestation, affecting exporters to the EU market.
June 2023
Increased compliance costs for exporters but potential for long-term sustainability gains.
The US granted temporary tariff waivers for bulk chocolate imports from select countries to stabilize supply chains amid global shortages.
March 2023
Boosted trade volumes for countries like Belgium and the Netherlands.
Adverse weather and political instability in West Africa led to a sharp rise in cocoa prices, impacting bulk chocolate trade.
October 2022
Reduced affordability for importers and potential shift to alternative suppliers.