HS Code:
Photosensitive semiconductor devices, including photovoltaic cells (whether or not assembled in modules or made up into panels) and light-emitting diodes (LEDs), fall under HS Code 8541.40. These devices are critical components in modern electronics and renewable energy systems. Photovoltaic cells convert sunlight into electricity and are widely used in solar panels for renewable energy generation. LEDs are semiconductor devices that emit light when an electric current passes through them, used in lighting, displays, and various electronic applications. This category represents a rapidly growing sector due to the global shift towards sustainable energy and energy-efficient technologies.
Total Trade Volume
USD 60.5 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
4.2%
Highest Rate
15% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Growing demand for solar energy solutions
Increased production and trade of photovoltaic cells and modules, especially in regions with renewable energy targets.
2021-2023
Shift towards energy-efficient lighting
Rising global adoption of LED technology due to energy savings and environmental regulations phasing out traditional lighting.
2020-2023
Supply chain diversification
Countries are seeking to reduce reliance on Chinese manufacturing by investing in domestic production or alternative suppliers like Vietnam and India.
2022-2023
The US government introduced tax credits and incentives for domestic production of solar panels and components under the Inflation Reduction Act.
August 2022
Expected to increase US trade volume and reduce dependence on imports, particularly from China.
The European Union extended anti-dumping and countervailing duties on certain Chinese photovoltaic products to protect domestic manufacturers.
March 2023
May lead to higher costs for solar installations in the EU and encourage sourcing from other regions.
New advancements in LED technology have resulted in higher luminous efficacy, driving adoption in automotive and industrial applications.
June 2023
Likely to boost demand for LEDs globally, especially in emerging markets.