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📦 Goods provided for in subheading 1806.90.18

Goods provided for in subheading 1806.90.18

HS Code:

📦

Overview

Subheading 1806.90.18 of the Harmonized System (HS) Code pertains to 'Chocolate and other food preparations containing cocoa, in blocks, slabs or bars, filled, not weighing more than 2 kg.' This category includes a variety of chocolate confectionery products that are filled (e.g., with nuts, creams, or other ingredients) and are typically packaged for retail sale. These products are widely consumed globally as snacks, desserts, or gifts, and form a significant segment of the global confectionery market.

Total Trade Volume

Approximately $8.5 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

25% (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 regulations (e.g., EU and FDA standards)
  • Additional excise duties or sugar taxes in certain markets
  • Certification requirements for fair trade or organic labeling

Market Trends

Growing demand for premium and artisanal chocolate

Increased exports from countries like Belgium and Switzerland, known for high-quality chocolate, with a shift towards niche markets and higher price points.

2021-2022

Rising health consciousness among consumers

Boost in demand for low-sugar, organic, and vegan chocolate products, influencing product innovation and marketing strategies.

2020-2022

Sustainability and ethical sourcing

Pressure on manufacturers to adopt sustainable cocoa sourcing practices, impacting supply chains and increasing costs for certification.

2019-2022

Recent Developments

EU Deforestation Regulation Impacting Cocoa Trade

The EU introduced regulations 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 trade barriers for non-compliant suppliers, while benefiting certified sustainable producers.

US Tariff Reductions on EU Chocolate Imports

As part of trade negotiations, the US reduced tariffs on certain EU chocolate products, boosting imports from countries like Germany and Belgium.

March 2022

Enhanced market access for EU exporters, potentially increasing competition in the US market.

Cocoa Price Volatility

Fluctuations in global cocoa prices due to climate change and political instability in major cocoa-producing regions like Côte d'Ivoire and Ghana have impacted chocolate production costs.

Throughout 2023

Higher retail prices for chocolate products and potential supply chain disruptions for manufacturers.