HS Code:
The category under HS Code 2208.40 (Rum and tafia) and 2208.90 (Other spirituous beverages) includes a variety of distilled alcoholic beverages not classified under other headings. This encompasses rum, a distilled spirit made from sugarcane byproducts like molasses, tafia, a lower-grade rum, and other liqueurs or spirits that fall outside categories like whiskey or vodka. U.S. Note 6 to this subchapter provides specific guidelines on classification, often relating to alcohol content, production methods, or intended use. These products are significant in global trade due to cultural preferences, tourism, and the growing demand for premium and craft spirits.
Total Trade Volume
Approximately $5.2 billion USD
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
$850 million USD
16.3% of total trade of total trade
Increasing
$620 million USD
11.9% of total trade of total trade
Stable
$550 million USD
10.6% of total trade of total trade
Increasing
$480 million USD
9.2% of total trade of total trade
Stable
$400 million USD
7.7% of total trade of total trade
Increasing
Average Rate
5-10% ad valorem, with specific duties based on alcohol content (e.g., $0.13 per proof liter in the U.S.)
Highest Rate
Up to 25% in certain markets like India, plus additional excise duties
Lowest Rate
0-2% under free trade agreements (e.g., EU-CARICOM EPA)
Rising demand for premium and aged rum
Increased exports from Caribbean countries and higher price points, benefiting producers with established brands
2021-2022
Growth in craft and artisanal spirits
Smaller producers gaining market share in North America and Europe, driving innovation in flavors and marketing
2020-2022
Shift towards sustainable production
Consumers favoring eco-friendly brands, prompting distilleries to adopt greener practices and certifications
2022
Negotiations to reduce tariffs on rum and spirits between the European Union and Caribbean nations have progressed, aiming to boost exports from countries like Barbados and Jamaica.
March 2023
Expected to increase trade volume by 10-15% over the next five years for Caribbean exporters.
The U.S. revised specific duties on imported rum and liqueurs under HS 2208.40 and 2208.90 as part of broader trade policy reviews, maintaining additional taxes on high-proof spirits.
January 2023
Slight cost increase for importers, potentially affecting pricing in the U.S. market.
Growing consumer interest in non-alcoholic or low-alcohol beverages has led some producers to innovate with spirituous beverage alternatives under this HS category.
June 2023
Diversifies market offerings but may reduce demand for traditional high-alcohol products in health-conscious demographics.