HS Code:
The Spirits category, classified under HS Code 2208, encompasses a wide range of alcoholic beverages including whisky, vodka, rum, gin, tequila, and other distilled spirits. This category excludes beer and wine, focusing solely on beverages produced through distillation. Spirits are a significant segment of the global beverage trade, driven by cultural preferences, premiumization trends, and growing demand in emerging markets. The trade of spirits is influenced by factors such as taxation, tariffs, and regulatory frameworks related to alcohol consumption and distribution.
Total Trade Volume
USD 37.5 billion
Data from 2022
Source
United Nations Comtrade Database & International Trade Centre (ITC)
USD 8.2 billion
21.9% of total trade of total trade
Increasing
USD 6.1 billion
16.3% of total trade of total trade
Stable
USD 4.9 billion
13.1% of total trade of total trade
Increasing
USD 3.7 billion
9.9% of total trade of total trade
Increasing
USD 2.5 billion
6.7% of total trade of total trade
Stable
Average Rate
15.4% ad valorem
Highest Rate
Up to 50% in certain markets like India and China
Lowest Rate
0% under free trade agreements (e.g., EU internal trade, USMCA)
Premiumization of Spirits
Growing consumer preference for high-quality, craft, and aged spirits has boosted trade value, particularly for whisky and tequila, driving higher export revenues for producing countries.
2020-2022
Rise in Emerging Markets
Increasing disposable incomes in Asia-Pacific and Latin America have led to higher demand for imported spirits, reshaping global trade flows toward these regions.
2018-2022
Sustainability and Local Sourcing
Consumers and regulators are pushing for sustainable production and reduced carbon footprints, influencing packaging and sourcing practices in the spirits industry.
2021-2023
The United States and the European Union agreed to suspend tariffs on spirits as part of a broader trade truce, resolving disputes over subsidies that previously impacted whisky and cognac trade.
June 2021 (extended in 2023)
Increased trade volumes between the US and EU, with significant benefits for Scotch whisky and American bourbon exporters.
India is in negotiations with the EU and UK for potential tariff reductions on imported spirits as part of free trade agreement discussions, aiming to lower the current high import duties.
Ongoing as of 2023
If successful, this could open one of the largest spirits markets to international exporters, significantly boosting trade volumes.
China initiated an anti-dumping investigation into brandy imports from the EU, particularly targeting French producers, in response to trade tensions.
January 2023
Potential tariffs or restrictions could reduce EU brandy exports to China, affecting brands like Cognac and redirecting trade to other markets.