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📦 Provided for in subheading 1704.90.78 or 3006.93.20

Provided for in subheading 1704.90.78 or 3006.93.20

HS Code:

📦

Overview

The category under HS Code subheadings 1704.90.78 and 3006.93.20 pertains to specific sugar confectionery products (not containing cocoa) and certain pharmaceutical products, respectively. Subheading 1704.90.78 includes sugar confectionery such as candies, gummies, and other sweets that do not contain cocoa, often subject to specific tariff quotas or restrictions. Subheading 3006.93.20 relates to placebos and blinded (or double-blinded) clinical trial kits used in pharmaceutical research, reflecting a niche but critical segment of the medical supply chain. These categories represent a blend of consumer goods and specialized medical products, with trade influenced by health regulations, consumer demand, and international trade agreements.

Total Trade Volume

Approximately $2.5 billion USD

Data from 2022

Source

World Trade Organization (WTO) and International Trade Centre (ITC) Trade Map

Tariff Analysis

Average Rate

5.6% ad valorem

Highest Rate

12.2% (applied by certain developing countries under protective measures for local confectionery industries)

Lowest Rate

0% (under free trade agreements like USMCA for qualifying goods)

Common Restrictions

  • Tariff rate quotas (TRQs) for sugar confectionery to protect domestic markets
  • Strict regulatory compliance for pharmaceutical kits under health and safety standards
  • Import licensing requirements in specific markets
  • Anti-dumping duties in select regions to counter below-cost imports

Market Trends

Rising demand for sugar-free and organic confectionery

Increased exports from countries with advanced food technology and organic certification, such as Germany and the US

2021-2022

Growth in clinical trial activities globally

Higher trade volume for blinded clinical trial kits, particularly to research hubs in the US and EU

2020-2022

Shift towards regional supply chains

Reduced dependency on long-distance imports, with countries like Mexico and Canada gaining market share in North America

2021-2022

Recent Developments

USMCA Tariff Adjustments for Confectionery

Revised tariff quotas under the USMCA agreement have facilitated increased trade of sugar confectionery between the US, Mexico, and Canada, with reduced rates for qualifying goods.

January 2022

Boosted trade volumes by approximately 8% among member countries, strengthening regional supply chains.

EU Regulatory Update on Clinical Trial Kits

The European Union introduced stricter compliance requirements for importing blinded clinical trial kits to ensure patient safety and data integrity.

March 2023

Slightly increased costs for exporters to the EU due to additional certification needs, but improved market trust in product quality.

China’s Push for Domestic Confectionery Production

China implemented subsidies and protective tariffs to support local confectionery manufacturers, impacting import volumes from other countries.

July 2022

Reduced imports by 5% in 2022, while domestic production and exports saw a marginal rise.