HS Code:
Subheading 1806.32.16 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, not filled, and specifically described as 'other, in blocks, slabs or bars, not filled, over 2 kg.' This category primarily includes bulk chocolate products used for further processing or industrial purposes, such as in confectionery manufacturing. These products are distinct from retail-ready chocolate bars and are traded globally in significant volumes due to the high demand for chocolate-based ingredients in food industries.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
United Nations Comtrade Database
$320 million USD
26.7% of total trade of total trade
Increasing
$250 million USD
20.8% of total trade of total trade
Stable
$180 million USD
15.0% of total trade of total trade
Increasing
$120 million USD
10.0% of total trade of total trade
Stable
$90 million USD
7.5% of total trade of total trade
Decreasing
Average Rate
6.5% ad valorem
Highest Rate
25% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements such as EU internal trade or USMCA)
Rising demand for sustainable and ethically sourced cocoa
Increased costs for producers but higher market access to premium markets like the EU and US due to consumer preference for fair trade products
2021-2022
Growth in plant-based and vegan chocolate products
Expansion of market opportunities for bulk chocolate as an ingredient in alternative confectionery products
2020-2022
Fluctuations in cocoa bean prices due to climate change
Instability in supply chains affecting bulk chocolate trade volumes and pricing
2019-2022
The EU introduced new regulations in 2023 requiring proof that cocoa products are not linked to deforestation, affecting exporters from West Africa and Latin America supplying bulk chocolate under HS 1806.32.16.
June 2023
Potential delays and increased compliance costs for exporters, with long-term benefits for sustainable trade practices
The United States has reduced tariffs on bulk chocolate imports from certain Central American countries under CAFTA-DR, boosting trade volumes in this category.
January 2023
Increased competitiveness for exporters from CAFTA-DR countries in the US market
Ongoing geopolitical tensions and port disruptions in key cocoa-producing regions have led to temporary shortages of bulk chocolate supplies in European markets.
March 2022
Short-term price spikes and delays in delivery affecting industrial buyers