HS Code:
The category under HS Code subheadings 0402.10.50 and 0402.21.25 pertains to milk and cream, concentrated or containing added sugar or other sweetening matter, in powder, granules, or other solid forms. Specifically, 0402.10.50 covers milk and cream with a fat content not exceeding 1.5%, and 0402.21.25 covers milk and cream with a fat content exceeding 1.5% but not exceeding 45%, subject to quantitative limits as specified in U.S. note 4 to this subchapter. These products are primarily used in food processing, dairy production, and as ingredients in various consumer goods. Global trade in these categories is influenced by dairy production capacities, dietary trends, and trade agreements.
Total Trade Volume
Approximately $4.5 billion USD
Data from 2022
Source
United Nations Comtrade Database and U.S. International Trade Commission (USITC)
$1.2 billion USD
26.7% of total trade of total trade
Increasing
$1.1 billion USD
24.4% of total trade of total trade
Stable
$800 million USD
17.8% of total trade of total trade
Increasing
$600 million USD
13.3% of total trade of total trade
Stable
$400 million USD
8.9% of total trade of total trade
Decreasing
Average Rate
3.9 cents per kilogram + additional quotas and fees under U.S. note 4
Highest Rate
Up to 17.5% ad valorem + additional fees in certain markets outside quota limits
Lowest Rate
0% under specific trade agreements like USMCA (United States-Mexico-Canada Agreement)
Rising demand for low-fat dairy products
Increased exports of products under 0402.10.50 due to health-conscious consumer preferences, particularly in Asia-Pacific markets
2021-2022
Fluctuating dairy prices due to supply chain disruptions
Price volatility impacting trade volumes, with some exporters reducing shipments to stabilize domestic markets
2020-2022
Growth in plant-based dairy alternatives
Slight reduction in demand for traditional concentrated milk products in developed markets as consumers shift to vegan options
2019-2022
The United States adjusted tariff rate quotas for dairy imports from Canada and Mexico, allowing increased access for concentrated milk products under specific conditions.
January 2023
Potentially increases competition for U.S. domestic producers but benefits consumers with lower prices and more variety.
A new trade agreement between New Zealand and the EU reduces tariffs on dairy products, including those under HS 0402, boosting New Zealand's export potential to Europe.
July 2023
Likely to reinforce New Zealand's position as a leading exporter, potentially shifting market shares in the EU.
Ongoing disruptions due to geopolitical tensions and post-COVID recovery have led to delays and increased costs in dairy trade logistics.
Mid-2022 to present
Temporary reductions in trade volumes for some exporters, with higher costs passed on to importers and consumers.