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📦 Provided for in subheading 1806.20.73

Provided for in subheading 1806.20.73

HS Code:

📦

Overview

Subheading 1806.20.73 of the Harmonized System (HS) Code pertains to chocolate and other food preparations containing cocoa, in blocks, slabs, or bars, weighing more than 2 kg, or in liquid, paste, powder, granular, or other bulk form, specifically those containing less than 18% by weight of cocoa butter. This category is significant for bulk chocolate products used in further processing or industrial applications, such as in the confectionery and baking industries. It excludes retail-packaged products and focuses on intermediate goods for manufacturing.

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)

Lowest Rate

0% (under free trade agreements like EU-USMCA)

Common Restrictions

  • Import quotas in specific markets to protect domestic industries
  • Sanitary and phytosanitary (SPS) requirements for food safety
  • Labeling and certification requirements for cocoa content
  • Anti-dumping duties in some regions to prevent market flooding

Market Trends

Rising demand for sustainable and ethically sourced cocoa

Increased costs for producers but higher consumer trust and market access in premium segments, especially in Europe and North America

2021-2022

Shift towards plant-based and low-sugar chocolate products

Manufacturers adapting formulations, impacting bulk chocolate composition and trade volumes in health-conscious markets

2020-2022

Supply chain disruptions due to geopolitical tensions and climate change

Price volatility and reduced export volumes from key cocoa-producing regions like West Africa, affecting global supply

2022

Recent Developments

EU Deforestation Regulation Impact on Cocoa Trade

The EU introduced regulations requiring proof that cocoa imports are not linked to deforestation, affecting exporters from West Africa and Latin America.

June 2023

Increased compliance costs for exporters but potential long-term benefits for sustainable producers with market differentiation.

US Tariff Adjustments on EU Chocolate Imports

The US reduced retaliatory tariffs on certain EU chocolate products as part of broader trade negotiations, benefiting exporters from Belgium and Germany.

March 2023

Boosted trade volumes from the EU to the US, with a projected 5% increase in exports for this category.

Cocoa Price Surge Due to West African Supply Constraints

Poor harvests in Côte d'Ivoire and Ghana, major cocoa producers, led to a significant price increase for bulk chocolate products.

September 2023

Higher input costs for manufacturers and potential shifts to alternative suppliers or synthetic cocoa substitutes.