HS Code:
The 'Valued less than 39.75ยข/kg' category typically includes low-value bulk commodities or raw materials under specific Harmonized System (HS) codes. These products are often agricultural goods, basic minerals, or other primary products traded in large volumes with minimal processing. Due to their low unit value, trade in this category is highly sensitive to transportation costs, exchange rate fluctuations, and trade policies such as tariffs and subsidies. This category is critical for developing economies that rely on exporting raw materials, but it also faces challenges such as price volatility and market access barriers in developed markets.
Total Trade Volume
Approximately $15.3 billion USD
Data from 2022
Source
United Nations Comtrade Database & World Trade Organization (WTO) Statistics
$3.2 billion USD
20.9% of total trade of total trade
Increasing
$2.8 billion USD
18.3% of total trade of total trade
Stable
$1.9 billion USD
12.4% of total trade of total trade
Increasing
$1.5 billion USD
9.8% of total trade of total trade
Increasing
$1.1 billion USD
7.2% of total trade of total trade
Stable
Average Rate
8.5% ad valorem
Highest Rate
25% (applied by certain developed economies on specific sub-categories)
Lowest Rate
0% (under free trade agreements or preferential trade schemes like GSP)
Rising demand in Asia-Pacific for raw materials
Increased export opportunities for producing countries, but also higher competition among exporters
2021-2022
Fluctuating commodity prices due to geopolitical tensions
Price volatility affecting profitability for exporters and importers alike
2022
Shift towards sustainable sourcing practices
Pressure on exporters to comply with environmental standards, increasing production costs
2020-2022
The European Union introduced stricter sustainability and traceability requirements for low-value agricultural imports under this category, aiming to combat deforestation and unethical labor practices.
June 2023
Potential reduction in market access for non-compliant exporters, especially from developing nations, while encouraging sustainable production practices.
Phase 1 of the US-China trade deal included provisions to reduce tariffs on certain low-value commodities, boosting trade flows in this category between the two nations.
January 2023
Increased trade volume for specific exporters, though long-term stability remains uncertain due to geopolitical tensions.
Ongoing disruptions due to port congestion and shipping cost spikes have disproportionately affected low-value, high-volume goods, leading to delays and increased costs.
Throughout 2022-2023
Reduced profitability for exporters and higher prices for importers, potentially shifting trade patterns to regional suppliers.