HS Code:
The category 'Hats and other headgear, plaited or made by assembling strips of any material, whether or not lined or trimmed' (HS Code: 6504) includes a variety of headwear made from woven or assembled strips of materials such as straw, bamboo, or synthetic fibers. These products are often used for protection from weather conditions, fashion, or cultural purposes. This category excludes knitted or crocheted headgear and headwear made from felt or other textile materials not assembled from strips.
Total Trade Volume
USD 1.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
7.5%
Highest Rate
15% (imposed by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Rising demand for sustainable materials
Increased use of eco-friendly materials like organic straw and recycled fibers, driving innovation in production but raising costs for non-compliant manufacturers.
2021-2022
Growth in fashion-driven headwear
Seasonal and designer hats are boosting trade volumes, particularly in high-income markets like the EU and North America.
2020-2022
Shift to Asian manufacturing hubs
Lower labor costs in countries like Vietnam and Bangladesh have shifted production away from traditional markets, affecting trade balances.
2019-2022
The European Union introduced stricter sustainability regulations under the Green Deal, requiring imported headgear to meet specific environmental standards for materials and production processes.
March 2023
Manufacturers in exporting countries like China and Vietnam are adapting to comply, potentially increasing costs but also opening markets for eco-friendly producers.
The United States revised tariffs on certain Chinese headgear products under Section 301, citing unfair trade practices, leading to a slight increase in duties.
September 2022
This has encouraged diversification of supply chains, with buyers looking towards Vietnam and Mexico for alternatives, slightly reducing China's market share.
The EU-Vietnam Free Trade Agreement (EVFTA) reduced tariffs on headgear exports from Vietnam to the EU, boosting trade volumes significantly.
August 2020 (ongoing impact in 2022-2023)
Vietnam's share in the EU market has grown, positioning it as a key competitor to China in this category.