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📦 Goods provided for in subheading 1806.90.10

Goods provided for in subheading 1806.90.10

HS Code:

📦

Overview

Subheading 1806.90.10 under the Harmonized System (HS) Code pertains to 'Chocolate and other food preparations containing cocoa, in blocks, slabs or bars, filled, weighing 2 kg or less.' This category includes a variety of chocolate products such as filled chocolate bars, pralines, and other similar confectionery items that are ready for consumption. These products are widely traded globally due to their popularity as snacks and gifts, with significant production in regions known for cocoa processing and chocolate manufacturing.

Total Trade Volume

USD 5.2 billion

Data from 2022

Source

United Nations Comtrade Database

Tariff Analysis

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 Single Market or USMCA)

Common Restrictions

  • Import quotas in some countries to protect domestic confectionery industries
  • Strict labeling requirements for cocoa content and allergens
  • Health and safety standards regarding sugar and fat content
  • Sustainability and ethical sourcing certifications (e.g., Fair Trade, Rainforest Alliance)

Market Trends

Rising demand for premium and artisanal chocolate

Increased trade value as consumers prioritize quality and unique flavors, boosting exports from countries like Belgium and Switzerland.

2021-2022

Growth in demand for sustainable and ethically sourced chocolate

Producers adopting certifications for fair trade and organic products, influencing trade patterns with a focus on transparency in supply chains.

2020-2022

Increase in health-conscious consumer preferences

Shift towards low-sugar and dark chocolate varieties, affecting product formulations and marketing strategies in key exporting countries.

2019-2022

Recent Developments

EU Deforestation Regulation Impact on Cocoa Supply Chains

The European Union introduced regulations in 2023 requiring proof that cocoa products are not linked to deforestation, affecting exporters from West Africa and Latin America supplying raw materials for chocolate production.

June 2023

Potential increase in production costs and delays in trade as companies adapt to compliance requirements.

US Tariff Reductions under Trade Agreements

The United States reduced tariffs on chocolate imports from certain countries under updated trade agreements, boosting imports from Canada and Mexico.

January 2023

Increased market access for North American producers, potentially shifting trade dynamics in the region.

Global Cocoa Price Volatility

Fluctuations in cocoa bean prices due to climate change impacts in major producing regions like Côte d'Ivoire and Ghana have led to uncertainty in chocolate product pricing.

March 2023

Possible short-term price increases for chocolate products, affecting trade volumes and consumer demand.