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๐Ÿ“ฆ Other yarn, mixed mainly or solely with cotton (607)

Other yarn, mixed mainly or solely with cotton (607)

HS Code:

๐Ÿ“ฆ

Overview

The 'Other yarn, mixed mainly or solely with cotton' category (HS Code: 5206) includes yarns that are not single, multiple, or cabled, and are composed of a mixture where cotton is the predominant fiber. This category covers a variety of yarns used in textile production, including blends that may incorporate synthetic or other natural fibers alongside cotton. These yarns are essential for manufacturing fabrics used in apparel, home textiles, and industrial applications. The trade of this product is influenced by global cotton production, textile manufacturing hubs, and regional trade agreements.

Total Trade Volume

Approximately $1.2 billion USD

Data from 2022

Source

United Nations Comtrade Database

Tariff Analysis

Average Rate

6.5% ad valorem

Highest Rate

15% (imposed by certain developing countries to protect domestic industries)

Lowest Rate

0% (under free trade agreements such as EU-India FTA or ASEAN agreements)

Common Restrictions

  • Import quotas in some countries to protect local textile industries
  • Anti-dumping duties applied by major importers like the EU and USA on specific exporters
  • Non-tariff barriers such as stringent quality and environmental standards
  • Labeling and certification requirements for cotton content and origin

Market Trends

Shift towards sustainable and organic cotton blends

Increased demand for eco-friendly yarns has led to higher production costs but also opened niche markets in developed countries, particularly in Europe and North America.

2021-2022

Rising labor and raw material costs in traditional manufacturing hubs

Countries like China are seeing reduced competitiveness, pushing buyers to source from emerging markets like Vietnam and Bangladesh.

2020-2022

Automation and technology adoption in yarn production

Improved efficiency and quality in production are enabling countries like India and Turkey to increase export volumes while maintaining competitive pricing.

2019-2022

Recent Developments

US-China Trade Agreement Phase One Impact

The agreement has led to a reduction in tariffs on certain textile products, including mixed cotton yarns, exported from China to the US, boosting trade volumes temporarily.

January 2020

Increased Chinese exports to the US by approximately 10% in this category during 2020-2021, though tensions remain over other trade issues.

Indiaโ€™s Production-Linked Incentive (PLI) Scheme for Textiles

India introduced a PLI scheme to boost domestic manufacturing and exports of textile products, including mixed cotton yarns, with incentives for producers meeting export targets.

September 2021

Expected to increase Indiaโ€™s share in global trade by 5-7% over the next 3 years, strengthening its position as the leading exporter.

EUโ€™s Carbon Border Adjustment Mechanism (CBAM) Proposal

The EU proposed CBAM, which may impose additional costs on carbon-intensive textile imports, including yarns, to meet sustainability goals.

July 2021

Potential cost increases for exporters from countries with high carbon footprints, pushing manufacturers to adopt greener practices.