HS Code:
The 'Undercarriages and parts thereof' category, typically classified under HS Code 8431.49 (parts suitable for use solely or principally with machinery of headings 8425 to 8430), includes components such as tracks, wheels, axles, and other structural elements used in heavy machinery like bulldozers, excavators, and cranes. These parts are critical for the mobility and functionality of construction and mining equipment. Global trade in this category is driven by demand in infrastructure development, mining activities, and industrial expansion, with significant production and consumption in regions with robust construction sectors.
Total Trade Volume
USD 5.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
12% (imposed by certain developing economies to protect local industries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA or USMCA)
Rising demand for eco-friendly machinery
Increased production of lightweight and durable undercarriage parts to improve fuel efficiency and reduce emissions in heavy machinery
2021-2023
Growth in mining and infrastructure projects
Sustained demand for undercarriages and parts in emerging economies, particularly in Africa and Southeast Asia, due to large-scale development projects
2020-2022
Adoption of automation in construction equipment
Growing need for advanced undercarriage systems compatible with autonomous and remotely operated machinery
2022-2023
Escalating trade tensions have led to additional tariffs on Chinese-made undercarriage parts entering the US, prompting manufacturers to explore alternative supply chains.
Mid-2022
Increased costs for US importers and potential shift of supply chains to Southeast Asian countries like Vietnam and Thailand
New EU regulations under the Green Deal mandate stricter emission standards for construction machinery, influencing undercarriage design and materials.
January 2023
Manufacturers are investing in R&D for sustainable materials, potentially increasing production costs but opening new market opportunities
A bilateral trade agreement has reduced tariffs on machinery parts, including undercarriages, between Japan and South Korea, boosting trade volumes.
April 2023
Enhanced competitiveness of Japanese and South Korean manufacturers in the Asian market, likely increasing their global market share