HS Code:
Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher, and ethyl alcohol and other spirits, denatured, of any strength (HS Code: 2207), are primarily used for industrial purposes, including the production of beverages, pharmaceuticals, cosmetics, and as a fuel additive (ethanol). This category includes both pure ethyl alcohol and denatured spirits, which are rendered unfit for human consumption through the addition of chemicals. It plays a significant role in global trade due to its wide range of applications and is often subject to strict regulations and tariffs due to its potential for misuse.
Total Trade Volume
USD 10.5 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
15.3%
Highest Rate
35% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-US or within regional blocs like ASEAN)
Rising demand for bioethanol as a renewable fuel source
Increased exports from major producers like Brazil and the US, driven by global sustainability goals
2021-2022
Growing use in pharmaceutical and sanitizer production
Significant spike in trade volume during and post-COVID-19, with sustained demand for industrial alcohol
2020-2022
Shift towards stricter regulations on alcohol trade
Increased compliance costs for exporters and importers due to health and safety standards
2019-2022
A bilateral agreement was signed to reduce tariffs on ethanol imports, boosting trade between the two largest producers.
September 2022
Expected to increase trade volume by 15% over the next two years, benefiting both economies.
New EU regulations require detailed certification for denatured alcohol to prevent misuse, impacting exporters to the region.
January 2023
Non-EU exporters face higher compliance costs, potentially reducing trade competitiveness.
India raised tariffs on imported ethyl alcohol to protect domestic producers, affecting major exporters like the US and Brazil.
April 2023
Trade diversion to other markets may occur, with a potential 10% drop in exports to India.