HS Code:
Subheading 1806.20.94 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, not elsewhere specified or included, and subject to specific tariff quotas or restrictions. This category typically includes bulk chocolate preparations used for industrial purposes or further processing in confectionery manufacturing.
Total Trade Volume
USD 2.8 billion
Data from 2022
Source
United Nations Comtrade Database
USD 650 million
23.2% of total trade of total trade
Increasing
USD 520 million
18.6% of total trade of total trade
Stable
USD 380 million
13.6% of total trade of total trade
Increasing
USD 300 million
10.7% of total trade of total trade
Stable
USD 250 million
8.9% of total trade of total trade
Decreasing
Average Rate
6.5% ad valorem
Highest Rate
30% (applied by certain developing countries with protective measures for local industries)
Lowest Rate
0% (under free trade agreements such as EU internal trade or USMCA)
Growing demand for sustainable and ethically sourced cocoa products
Increased market share for certified fair-trade and organic chocolate preparations, pushing exporters to adopt sustainability practices
2021-2022
Rise in industrial demand for bulk chocolate in emerging markets
Higher export volumes to countries like India and Brazil as local confectionery industries expand
2020-2022
Supply chain disruptions due to geopolitical tensions and climate change
Price volatility and supply shortages for cocoa-based products, affecting trade stability
2022
The European Union introduced stricter regulations under the EU Deforestation Regulation (EUDR), requiring proof that cocoa products are not linked to deforestation. This affects exporters from West Africa and Latin America supplying bulk chocolate under HS 1806.20.94.
June 2023
Potential delays in trade and increased compliance costs for exporters; may shift market dynamics toward certified sustainable suppliers.
The United States adjusted its tariff rate quotas for certain chocolate preparations under HS 1806.20.94, allowing higher import volumes at reduced rates from select trade partners.
January 2023
Increased market access for exporters from countries like Belgium and Canada, potentially boosting trade volumes.
Adverse weather conditions and political instability in major cocoa-producing countries like Côte d'Ivoire and Ghana led to a significant increase in raw cocoa prices, impacting the cost of bulk chocolate preparations.
March 2023
Higher production costs for manufacturers and potential reduction in trade volumes as buyers seek alternatives or reduce orders.