HS Code:
The 'Unrated' category under the Harmonized System (HS) Code refers to products that do not fall under a specific predefined classification or are yet to be categorized officially by international trade bodies. This category often includes miscellaneous or newly developed products, prototypes, or items with ambiguous classification. Due to its nature, trade data for this category can be inconsistent or incomplete, as it serves as a catch-all for goods not fitting elsewhere in the HS nomenclature.
Total Trade Volume
USD 1.2 billion
Data from 2022
Source
World Trade Organization (WTO) and UN Comtrade Database
Average Rate
5.8%
Highest Rate
15% (applied by certain developing nations for unspecified goods)
Lowest Rate
0% (under free trade agreements or for humanitarian goods)
Increase in unrated products due to rapid innovation
Emerging technologies and unique products often fall into this category, leading to higher trade volumes as innovation accelerates.
2021-2022
Digital and hybrid goods ambiguity
Products combining physical and digital components (e.g., smart devices with proprietary software) often lack clear HS classification, increasing unrated trade.
2020-2022
Stricter customs scrutiny
Countries are tightening regulations on unrated goods to prevent misclassification and tax evasion, slowing down trade processing times.
2022
The World Trade Organization has initiated discussions to create a temporary sub-category under HS codes for unrated goods to streamline classification and reduce trade disputes.
June 2023
If implemented, this could reduce customs delays and improve trade data accuracy for unrated products.
The European Union introduced stricter documentation requirements for unrated goods to combat fraudulent classifications, effective from January 2023.
January 2023
Increased compliance costs for exporters to the EU, potentially reducing trade volume in this category.
As part of recent trade negotiations, both countries agreed to expedite classification of unrated innovative products to avoid tariff disputes.
March 2023
Positive for bilateral trade, especially in tech and innovation sectors, reducing uncertainty for exporters.