HS Code:
The category under HS Code 8504.40 and 8504.50 for telecommunication apparatus includes electrical transformers, static converters (e.g., rectifiers), and inductors specifically designed for use in telecommunication equipment. These components are critical for power management and signal processing in devices such as routers, modems, and other communication infrastructure. This category plays a vital role in the global telecommunications industry, supporting the increasing demand for reliable and efficient connectivity solutions.
Total Trade Volume
USD 12.5 billion
Data from 2022
Source
United Nations Comtrade Database
USD 4.8 billion
38.4% of total trade of total trade
Increasing
USD 2.1 billion
16.8% of total trade of total trade
Stable
USD 1.3 billion
10.4% of total trade of total trade
Increasing
USD 1.0 billion
8.0% of total trade of total trade
Stable
USD 0.8 billion
6.4% of total trade of total trade
Increasing
Average Rate
4.5% ad valorem
Highest Rate
10% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Rising demand for 5G infrastructure
Increased need for high-efficiency transformers and converters for 5G base stations and equipment, driving trade growth by 15% annually.
2021-2023
Shift towards renewable energy integration
Growing adoption of energy-efficient components in telecommunication systems to reduce carbon footprint, influencing product design and trade patterns.
2022
Supply chain diversification
Countries are seeking alternative suppliers beyond China to mitigate risks from geopolitical tensions, affecting trade distribution.
2020-2023
A new phase of negotiations has led to a temporary reduction in tariffs on telecommunication components under HS 8504.40 and 8504.50, boosting trade between the two nations.
March 2023
Expected to increase trade volume by USD 500 million in 2023.
The European Union has introduced stricter environmental standards for electronic components, requiring manufacturers to meet energy efficiency and recyclability criteria.
January 2023
May increase production costs but also open opportunities for sustainable technology providers.
Ongoing shortages in semiconductor supply chains have indirectly affected the production of telecommunication apparatus components, leading to delays in trade.
Throughout 2022
Reduced trade volume by approximately 5% in key markets during Q3-Q4 2022.