HS Code:
The 'Valued less than 88ยข/kg' category typically includes low-value bulk commodities or raw materials under various Harmonized System (HS) codes, often encompassing agricultural products, basic minerals, or industrial raw inputs. These goods are characterized by their low per-unit value, making transportation costs a significant factor in trade decisions. This category is critical in global supply chains for industries requiring inexpensive inputs, often traded in large volumes to achieve economies of scale. Trade in this category is heavily influenced by geographic proximity, trade agreements, and tariff structures.
Total Trade Volume
Approximately $50 billion USD
Data from 2022
Source
United Nations Comtrade Database and World Trade Organization (WTO) Statistics
$8.5 billion USD
17% of total trade of total trade
Increasing
$7.2 billion USD
14.4% of total trade of total trade
Stable
$6.8 billion USD
13.6% of total trade of total trade
Increasing
$5.3 billion USD
10.6% of total trade of total trade
Increasing
$4.9 billion USD
9.8% of total trade of total trade
Stable
Average Rate
5.2% ad valorem
Highest Rate
15% (applied by certain developing economies to protect local industries)
Lowest Rate
0% (under free trade agreements such as USMCA or ASEAN)
Rising demand for low-cost raw materials in emerging markets
Increased export volumes from resource-rich countries like Brazil and Australia to manufacturing hubs in Asia
2021-2022
Shift toward sustainability and ethical sourcing
Growing pressure on exporters to comply with environmental standards, potentially increasing costs
2020-2022
Fluctuations in global shipping costs
Higher transportation costs disproportionately affect low-value goods, reducing profit margins for exporters
2021-2023
The Regional Comprehensive Economic Partnership (RCEP) has reduced tariffs on low-value commodities among member countries, boosting trade volumes.
January 1, 2022
Expected to increase trade in this category by 10-15% among RCEP nations over the next five years.
Certain countries imposed temporary export bans on low-value agricultural products to secure domestic supply amid global food security concerns.
March 2022
Caused short-term price spikes and supply chain disruptions in importing countries.
The European Union introduced stricter sustainability certification requirements for imported raw materials valued under 88ยข/kg.
July 2023
Likely to increase compliance costs for exporters but may open premium markets for certified producers.