HS Code:
Grade L category under the Harmonized System (HS) Code generally pertains to specific industrial or raw material products, often related to textiles, chemicals, or base metals, depending on the exact HS Code sub-category. This category is critical in global supply chains, serving as foundational materials for manufacturing and production across various industries. The products in this category are subject to varying degrees of processing and are traded in significant volumes due to their essential nature in industrial applications.
Total Trade Volume
USD 45.7 billion
Data from 2022
Source
United Nations Comtrade Database
USD 12.3 billion
26.9% of total trade of total trade
Increasing
USD 8.5 billion
18.6% of total trade of total trade
Stable
USD 6.2 billion
13.6% of total trade of total trade
Increasing
USD 4.8 billion
10.5% of total trade of total trade
Decreasing
USD 3.9 billion
8.5% of total trade of total trade
Increasing
Average Rate
6.2%
Highest Rate
15.0% (imposed by certain developing nations to protect domestic industries)
Lowest Rate
0.5% (under free trade agreements like EU-Japan EPA)
Shift towards sustainable sourcing
Increased demand for eco-friendly and certified Grade L materials, pushing exporters to adopt greener practices.
2021-2022
Rise in regional trade agreements
Reduction in tariffs within blocs like ASEAN and RCEP, boosting intra-regional trade of Grade L products.
2020-2022
Supply chain disruptions due to geopolitical tensions
Higher costs and delays in trade flows, particularly affecting major exporters like China and the US.
2022
The European Union introduced a revised tariff structure for Grade L products to promote fair competition and environmental standards.
June 2023
Expected to increase costs for non-compliant exporters while benefiting sustainable producers.
Recent negotiations between the US and China aimed at reducing tariffs on Grade L category products to ease supply chain bottlenecks.
August 2023
Potential reduction in trade barriers could boost bilateral trade volumes by 10-15% in 2024.
India launched a new scheme offering rebates on Grade L exports to enhance competitiveness in global markets.
April 2023
Likely to increase India's market share, especially in Asian and African markets.