HS Code:
Tobacco stems, classified under HS Code 2401.30, refer to the fibrous parts of tobacco leaves that are separated during the processing of tobacco. These stems are often used in the production of reconstituted tobacco, cigarette fillers, and other tobacco products. They play a significant role in the tobacco industry as a cost-effective raw material. Global trade in tobacco stems is influenced by agricultural production capacities, regulatory frameworks, and demand for tobacco products worldwide.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
United Nations Comtrade Database
$320 million USD
26.7% of total trade of total trade
Increasing
$210 million USD
17.5% of total trade of total trade
Stable
$150 million USD
12.5% of total trade of total trade
Increasing
$130 million USD
10.8% of total trade of total trade
Stable
$90 million USD
7.5% of total trade of total trade
Decreasing
Average Rate
12.5% ad valorem
Highest Rate
35% (applied by certain countries with strict tobacco control policies)
Lowest Rate
0% (under free trade agreements or for developing countries under GSP schemes)
Rising demand for reconstituted tobacco products
Increased trade in tobacco stems as a raw material for cost-effective cigarette production, especially in developing markets
2021-2022
Shift towards sustainable tobacco farming
Some exporters are adopting eco-friendly processing methods for tobacco stems, influencing buyer preferences in Europe and North America
2020-2022
Regulatory tightening in key markets
Stricter tobacco control policies in the EU and other regions have led to reduced import volumes and higher compliance costs
2019-2022
The European Union updated its Tobacco Products Directive, imposing stricter import regulations on tobacco by-products, including stems, to curb smoking rates.
May 2023
Likely to reduce trade volumes to EU countries and increase compliance costs for exporters
Brazil announced incentives for tobacco farmers to increase production of tobacco stems for export, targeting Asian and African markets.
March 2023
Expected to solidify Brazilโs position as the leading exporter, potentially increasing global supply and affecting prices
India introduced a revised export policy providing subsidies for tobacco stem exports to compete with other major exporters.
January 2023
May lead to increased market share for India, especially in price-sensitive markets