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📦 Provided for in subheading 0402.29.50

Provided for in subheading 0402.29.50

HS Code:

📦

Overview

Subheading 0402.29.50 under the Harmonized System (HS) Code pertains to milk and cream, concentrated or containing added sugar or other sweetening matter, in powder, granules, or other solid forms, with a fat content exceeding 1.5% by weight, not elsewhere specified or included. This category typically includes products like sweetened condensed milk powder used in various food industries, including confectionery and baking.

Total Trade Volume

USD 1.2 billion

Data from 2022

Source

United Nations Comtrade Database

Tariff Analysis

Average Rate

6.5%

Highest Rate

15% (applied by certain developing countries to protect local dairy industries)

Lowest Rate

0% (under free trade agreements like EU-New Zealand FTA)

Common Restrictions

  • Import quotas to protect domestic dairy markets
  • Strict sanitary and phytosanitary (SPS) requirements
  • Labeling and packaging standards
  • Subsidies for domestic producers affecting competitive pricing

Market Trends

Rising demand in Asia-Pacific for processed dairy products

Increased export opportunities for major producers like New Zealand and Australia, with a focus on sweetened milk powders for confectionery and beverage industries

2021-2022

Shift towards sustainable and organic dairy production

Growing niche market for organic sweetened milk powder, influencing production practices and certification requirements

2020-2022

Fluctuating global milk prices due to supply chain disruptions

Price volatility affecting trade volumes and profitability for exporters, with some countries imposing temporary export restrictions

2022

Recent Developments

EU-New Zealand Free Trade Agreement

The agreement, finalized in mid-2022, reduces tariffs on dairy products including those under HS 0402.29.50, enhancing market access for New Zealand exporters to the EU.

July 2022

Expected to boost trade volume by 10-15% over the next five years for New Zealand exporters.

US Dairy Export Restrictions Eased

The US eased certain export restrictions on dairy products to key markets in Asia, addressing previous trade disputes over sanitary standards.

March 2023

Likely to stabilize US trade volumes after a period of decline, with potential growth in markets like China and Japan.

Global Supply Chain Challenges

Ongoing disruptions due to geopolitical tensions and port delays have impacted the timely delivery of dairy products, including sweetened milk powders.

January 2023

Increased costs and delays in trade, prompting exporters to explore alternative shipping routes and regional markets.