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Global Tariffs, Categorized

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📦 Goods provided for in subheading 1806.20.83 or 1806.20.89

Goods provided for in subheading 1806.20.83 or 1806.20.89

HS Code:

📦

Overview

The category under HS Code subheadings 1806.20.83 and 1806.20.89 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 than those described in subheading 1806.20.81 or 1806.20.87. This includes bulk chocolate preparations often used for industrial purposes or further processing in confectionery manufacturing. These products are significant in the global confectionery and food processing industries, often serving as raw materials for smaller retail chocolate products or bakery goods.

Total Trade Volume

Approximately $2.5 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

15% (applied by certain developing countries to protect local industries)

Lowest Rate

0% (under free trade agreements like EU internal trade or USMCA)

Common Restrictions

  • Import quotas in some countries to protect domestic producers
  • Strict food safety and labeling requirements (e.g., EU regulations on cocoa content and additives)
  • Additional duties on sugar content in some jurisdictions
  • Certification requirements for sustainable and fair-trade sourcing

Market Trends

Rising demand for sustainable and ethically sourced cocoa

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

2021-2023

Growth in industrial chocolate use in emerging markets

Expansion of confectionery industries in Asia-Pacific and Latin America drives bulk chocolate imports

2020-2022

Fluctuating cocoa prices due to climate change

Instability in supply chains affects trade volumes and pricing for bulk chocolate products

2019-2023

Recent Developments

EU Deforestation Regulation Impact

New EU regulations requiring proof of deforestation-free supply chains for cocoa products are set to impact exporters to the European market, mandating stricter traceability and certification.

December 2022

Potential increase in compliance costs for exporters, especially from West Africa and Latin America, but may favor sustainably certified producers.

US Tariff Adjustments on Cocoa Products

The United States reviewed tariffs on certain cocoa preparations under trade agreements, maintaining duty-free access for some countries while imposing higher rates on non-partner nations.

March 2023

Favors imports from trade agreement partners like Canada and Mexico, potentially shifting trade flows.

Cocoa Price Surge Due to Supply Shortages

Adverse weather conditions in major cocoa-producing regions like Côte d'Ivoire and Ghana led to reduced harvests, causing a spike in global cocoa prices.

September 2023

Increased costs for bulk chocolate importers, potentially reducing trade volumes in price-sensitive markets.