HS Code:
Homogenized or reconstituted tobacco (HS Code: 2403.91) refers to tobacco that has been processed by grinding tobacco leaves and other tobacco by-products into a uniform mixture, often combined with binding agents, to create a consistent product. This type of tobacco is primarily used in the production of cigarettes, cigars, and other tobacco products as a cost-effective alternative to natural leaf tobacco. It allows manufacturers to utilize tobacco scraps and dust that would otherwise be wasted, ensuring uniformity in texture and flavor.
Total Trade Volume
USD 1.2 billion
Data from 2022
Source
United Nations Comtrade Database
USD 250 million
20.8% of total trade of total trade
Increasing
USD 180 million
15.0% of total trade of total trade
Stable
USD 150 million
12.5% of total trade of total trade
Increasing
USD 120 million
10.0% of total trade of total trade
Decreasing
USD 100 million
8.3% of total trade of total trade
Stable
Average Rate
15.5%
Highest Rate
35% (applied by certain developing countries to protect local tobacco industries)
Lowest Rate
0% (under free trade agreements like the EU Single Market or USMCA)
Shift toward cost-effective tobacco products
Increased demand for homogenized tobacco as manufacturers seek to reduce production costs amid rising raw tobacco prices.
2021-2022
Growing regulatory scrutiny
Stricter regulations on tobacco products globally are impacting trade volumes, with some countries imposing outright bans or high tariffs.
2020-2022
Rise in alternative nicotine products
Competition from e-cigarettes and vaping products is reducing demand for traditional tobacco products, including homogenized tobacco.
2019-2022
The European Union updated its Tobacco Products Directive to include stricter rules on the composition and labeling of homogenized tobacco products.
May 2022
This has led to a temporary decline in exports to EU countries as manufacturers adapt to new compliance requirements.
The United States revised tariffs on certain tobacco imports, including homogenized tobacco, as part of broader trade negotiations with key exporters.
January 2023
This has stabilized trade volumes with key partners like Brazil but increased costs for smaller exporters.
Brazil, a key exporter, reported a decline in homogenized tobacco production due to adverse weather conditions affecting tobacco crops.
September 2022
Global supply shortages have driven up prices, benefiting other exporters like Germany and the Netherlands.