HS Code:
The category under HS Code subheadings 2207.10.60 and 2207.20.00 pertains to ethyl alcohol and other spirits, denatured or undenatured, of any strength, primarily used for industrial purposes or as fuel. Subheading 2207.10.60 includes undenatured ethyl alcohol of an alcoholic strength by volume of 80% or higher, often used in beverages or industrial applications when not denatured. Subheading 2207.20.00 covers ethyl alcohol and other spirits, denatured, of any strength, typically used for non-beverage purposes such as fuel (ethanol blends), solvents, or manufacturing processes. This category is critical in industries ranging from energy to chemicals and pharmaceuticals.
Total Trade Volume
USD 12.5 billion
Data from 2022
Source
United Nations Comtrade Database & World Trade Organization (WTO)
USD 3.2 billion
25.6% of total trade of total trade
Increasing
USD 2.8 billion
22.4% of total trade of total trade
Increasing
USD 1.5 billion
12.0% of total trade of total trade
Stable
USD 1.0 billion
8.0% of total trade of total trade
Stable
USD 0.8 billion
6.4% of total trade of total trade
Increasing
Average Rate
5.2% ad valorem
Highest Rate
Up to 20% (in certain developing markets with protective policies for local industries)
Lowest Rate
0% (under free trade agreements such as EU-US or within regional blocs like Mercosur)
Rising demand for bioethanol as renewable fuel
Increased exports from major producers like Brazil and the US to meet global renewable energy targets, particularly in Europe and Asia
2021-2022
Growth in industrial alcohol use for sanitizers and disinfectants
Surging demand during and post-COVID-19 pandemic has led to expanded production and trade, especially in undenatured ethyl alcohol
2020-2022
Policy shifts towards green energy
Government incentives for ethanol blending in fuels (e.g., E10, E15 standards) have boosted trade volumes, particularly in markets like India and the EU
2022
The US government introduced new subsidies in 2022 to support ethanol exports as part of its renewable energy strategy, targeting markets in Asia and Latin America.
June 2022
Expected to increase US market share in global trade, potentially affecting competitors like Brazil.
The European Union implemented stricter regulations on the purity and sourcing of imported ethyl alcohol to ensure compliance with environmental and safety standards.
January 2023
May create barriers for smaller exporters but could benefit established players with robust compliance systems.
Brazil and India signed a bilateral agreement to enhance ethanol trade, focusing on technology transfer and supply for India's ethanol blending program.
October 2022
Likely to boost Brazil’s export volumes to Asia, diversifying its market beyond traditional partners.