HS Code:
The 'Not exceeding 37.3 kW' category typically refers to machinery or engines, such as internal combustion engines or electric motors, with a power output not exceeding 37.3 kilowatts. This category falls under specific HS Codes (e.g., 8407 or 8501, depending on the exact product type like gasoline engines or electric motors). These products are widely used in small machinery, vehicles, agricultural equipment, and industrial applications. The category is significant in global trade due to its application in diverse sectors and the demand for energy-efficient and compact power solutions.
Total Trade Volume
Approximately $5.2 billion USD
Data from 2022
Source
United Nations Comtrade Database & World Trade Organization (WTO) Statistics
$1.3 billion USD
25% of total trade of total trade
Increasing
$900 million USD
17% of total trade of total trade
Stable
$750 million USD
14% of total trade of total trade
Increasing
$600 million USD
12% of total trade of total trade
Stable
$400 million USD
8% of total trade of total trade
Decreasing
Average Rate
5.2% ad valorem
Highest Rate
12% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA or USMCA)
Shift towards electric motors
Increasing demand for electric motors not exceeding 37.3 kW due to global push for sustainability and reduced carbon emissions, impacting traditional combustion engine exports.
2021-2023
Growth in agricultural machinery demand
Rising need for small-scale machinery in developing economies has boosted the trade of low-power engines and motors for agricultural applications.
2020-2022
Supply chain disruptions
Post-COVID supply chain issues and geopolitical tensions have led to delays and increased costs, affecting trade volumes temporarily.
2021-2022
The European Union has introduced stricter emission standards for internal combustion engines under the Green Deal, affecting imports of engines not exceeding 37.3 kW.
January 2023
Manufacturers must adapt to comply with new regulations, potentially increasing costs but also opening markets for compliant, eco-friendly products.
A new phase of the US-China trade agreement has reduced tariffs on certain machinery components, including low-power motors, boosting bilateral trade.
March 2022
Increased exports from China to the US, benefiting Chinese manufacturers and US importers with lower costs.
Japan announced significant investments in R&D for compact electric motors, aiming to capture a larger share of the global market for motors under 37.3 kW.
September 2022
Likely to strengthen Japanโs position as a leading exporter, potentially impacting competitors like Germany and China.