HS Code:
The 'Mainly Containing Organic Constituents' category under the Harmonized System (HS) Code typically refers to products such as organic chemicals, fertilizers, and certain pharmaceutical intermediates (commonly under HS Chapters 29 and 31). These products are critical in industries like agriculture, pharmaceuticals, and manufacturing, as they form the basis for a wide range of end-use products. This category includes organic compounds like alcohols, acids, and amines, often used as raw materials or intermediates in chemical synthesis. Global trade in this category is influenced by factors such as agricultural demand, industrial production levels, and regulatory frameworks surrounding chemical safety and environmental impact.
Total Trade Volume
USD 250 billion
Data from 2022
Source
United Nations Comtrade Database
USD 45 billion
18% of total trade of total trade
Increasing
USD 38 billion
15.2% of total trade of total trade
Increasing
USD 30 billion
12% of total trade of total trade
Stable
USD 22 billion
8.8% of total trade of total trade
Increasing
USD 18 billion
7.2% of total trade of total trade
Stable
Average Rate
5.2% ad valorem
Highest Rate
15% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-US agreements or WTO commitments)
Shift towards sustainable and bio-based organic compounds
Increased demand for eco-friendly chemicals is driving innovation and trade in bio-based products, reducing reliance on fossil fuel-derived constituents.
2021-2023
Rising demand in agriculture for organic fertilizers
Growing global population and food security concerns are boosting trade in organic fertilizers, especially in Asia and Africa.
2020-2022
Supply chain disruptions due to geopolitical tensions
Trade restrictions and sanctions have caused volatility in supply chains for organic chemicals, particularly affecting exports from major producers like China.
2022-2023
The European Union's Green Deal has introduced stricter regulations on the import of organic chemicals with high environmental footprints, requiring compliance with carbon border adjustment mechanisms (CBAM).
October 2023
Non-compliant exporters may face higher costs or market access barriers, pushing for greener production methods.
A new bilateral agreement between the US and China has reduced tariffs on specific organic constituents, aiming to stabilize supply chains for pharmaceutical intermediates.
March 2023
This is expected to increase trade volume between the two countries by 10% in the next year for this category.
India has launched incentives under the 'Make in India' initiative to boost domestic production of organic chemicals, reducing reliance on imports.
July 2023
This may lead to a temporary decline in imports while fostering long-term self-sufficiency and potential export growth.