HS Code:
The IX. NITROGEN-FUNCTION COMPOUNDS category, classified under HS Code 29 (specifically subcategories like 2921 to 2929), includes a wide range of organic compounds containing nitrogen, such as amines, amides, nitro compounds, and other derivatives. These compounds are critical in industries like pharmaceuticals, agriculture (fertilizers and pesticides), and chemical manufacturing. They serve as intermediates in the synthesis of drugs, dyes, and polymers, making them vital to global industrial processes.
Total Trade Volume
USD 45.6 billion
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
USD 12.3 billion
27.0% of total trade
Increasing
USD 6.8 billion
14.9% of total trade
Stable
USD 5.5 billion
12.1% of total trade
Increasing
USD 4.2 billion
9.2% of total trade
Increasing
USD 3.1 billion
6.8% of total trade
Stable
Average Rate
5.2%
Highest Rate
12.5% (imposed by certain developing countries on specific subcategories like nitro compounds)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA or USMCA)
Rising demand for nitrogen compounds in pharmaceuticals
Increased production and export from countries with strong pharmaceutical industries like India and Germany, driving trade volume growth by 8% annually.
2021-2022
Shift towards sustainable agricultural inputs
Growing trade in nitrogen-based fertilizers and eco-friendly pesticides, with a focus on reducing environmental impact, especially in EU markets.
2020-2022
Supply chain disruptions due to geopolitical tensions
Shortages of raw materials for nitrogen compounds in 2022 led to price volatility, particularly affecting imports in Europe from Russia and Ukraine.
2022
The European Union updated REACH regulations to include stricter controls on certain nitrogen-function compounds due to their environmental and health risks.
June 2023
Increased compliance costs for exporters to the EU, potentially reducing trade volumes by 5-10% for non-compliant suppliers.
A bilateral agreement reduced tariffs on specific nitrogen compounds, facilitating smoother trade between the two largest economies.
March 2023
Boosted export volumes from China to the US by approximately 7%, stabilizing prices in the American market.
India launched incentives under the 'Atmanirbhar Bharat' initiative to boost domestic production of nitrogen-based pharmaceutical intermediates.
January 2023
Reduced reliance on imports by 15%, strengthening Indiaโs position as a net exporter in this category.