HS Code:
The 'Valued not over $1 each' category typically includes low-cost items such as small toys, novelty items, basic stationery, and other miscellaneous goods often produced in high volumes. These products are generally classified under various Harmonized System (HS) codes depending on their specific nature (e.g., HS 9503 for toys, HS 3926 for plastic articles). This category is characterized by high-volume trade, low profit margins, and significant sensitivity to labor costs and trade policies. It is a critical segment in global trade due to its accessibility to consumers in developing and developed markets alike, often serving as promotional or impulse purchase items.
Total Trade Volume
Approximately $12.5 billion USD
Data from 2022
Source
United Nations Comtrade Database, World Trade Organization (WTO) Reports
$7.8 billion USD
62.4% of total trade of total trade
Increasing
$1.2 billion USD
9.6% of total trade of total trade
Increasing
$0.8 billion USD
6.4% of total trade of total trade
Stable
$0.5 billion USD
4.0% of total trade of total trade
Decreasing
$0.4 billion USD
3.2% of total trade of total trade
Increasing
Average Rate
5.2% ad valorem
Highest Rate
12% (imposed by certain EU countries on specific subcategories)
Lowest Rate
0% (under free trade agreements such as USMCA or ASEAN Free Trade Area)
Shift to sustainable materials
Increasing demand for eco-friendly low-cost items is pushing manufacturers to adopt biodegradable plastics and recycled materials, though this raises production costs slightly.
2021-2022
Rising labor costs in China
Manufacturers are relocating production to Southeast Asian countries like Vietnam and Bangladesh, diversifying the supply chain but increasing logistics costs.
2020-2022
E-commerce boom
Direct-to-consumer sales through platforms like Amazon and Alibaba have boosted trade volumes for low-cost items, though shipping costs and customs delays pose challenges.
2019-2022
The United States imposed additional tariffs on certain low-cost goods from China under Section 301, citing unfair trade practices. This affects a significant portion of items in the 'Valued not over $1 each' category.
May 2022
Increased costs for US importers and potential shift of sourcing to other countries like Vietnam and India.
The European Union updated its Toy Safety Directive, introducing stricter chemical safety requirements for low-cost toys, impacting exporters who must now comply with enhanced testing protocols.
January 2023
Higher compliance costs for exporters, potentially reducing profit margins or increasing prices for EU consumers.
The EU-Vietnam Free Trade Agreement (EVFTA) reduced tariffs on various low-cost goods, boosting Vietnam's export competitiveness in the European market.
August 2020 (full implementation ongoing through 2023)
Significant growth in Vietnam's market share for low-cost items in the EU, challenging China's dominance.