HS Code:
Quebracho extract (HS Code: 3201.10) is a natural tannin extract derived from the bark of the Quebracho tree, primarily found in South America. It is widely used in the leather tanning industry due to its high tannin content, which helps in the preservation and treatment of leather. Additionally, it finds applications in the production of adhesives, drilling muds, and as a natural dye. The global trade of Quebracho extract is relatively niche but significant in specific industries, with South American countries dominating the export market due to the regional availability of the raw material.
Total Trade Volume
Approximately $50 million USD
Data from 2022
Source
UN Comtrade Database and International Trade Centre (ITC)
$30 million USD
60% of total trade of total trade
Increasing
$15 million USD
30% of total trade of total trade
Stable
$3 million USD
6% of total trade of total trade
Decreasing
$1.5 million USD
3% of total trade of total trade
Stable
$0.5 million USD
1% of total trade of total trade
Increasing
Average Rate
5.2% ad valorem
Highest Rate
10% (applied by certain Asian markets)
Lowest Rate
0% (under free trade agreements in the EU and Mercosur countries)
Growing demand in eco-friendly leather production
Increased exports to European markets prioritizing sustainable tanning agents
2021-2022
Shift towards synthetic alternatives
Potential reduction in demand in price-sensitive markets
2020-2022
Rising interest in natural dyes and adhesives
Diversification of applications leading to new market opportunities
2022
A major certification body in Argentina introduced a sustainability label for Quebracho extract to ensure environmentally friendly harvesting practices.
March 2023
Likely to boost exports to environmentally conscious markets like the EU, though compliance costs may increase for producers.
Negotiations finalized for reduced tariffs on natural extracts, including Quebracho, between Mercosur countries and the European Union.
December 2022
Expected to increase trade volume by 15-20% over the next five years as European leather industries gain easier access.
Investment in processing facilities in Paraguay has led to a 10% increase in Quebracho extract production capacity.
July 2023
Could lead to greater market share for Paraguay, potentially challenging Argentina's dominance.