HS Code:
The 'Valued not over 40ยข each' category typically includes low-cost, mass-produced items under various Harmonized System (HS) codes, often encompassing small consumer goods, accessories, or components. These products are generally imported and exported in high volumes due to their affordability and widespread demand in retail markets. This category is significant in global trade for its role in supply chains of larger goods and its accessibility to consumers in both developed and developing markets.
Total Trade Volume
USD 12.5 billion
Data from 2022
Source
United Nations Comtrade Database
USD 5.2 billion
41.6% of total trade
Increasing
USD 1.8 billion
14.4% of total trade
Increasing
USD 1.3 billion
10.4% of total trade
Stable
USD 0.9 billion
7.2% of total trade
Increasing
USD 0.7 billion
5.6% of total trade
Decreasing
Average Rate
6.5%
Highest Rate
15% (applied by certain EU countries on specific subcategories)
Lowest Rate
0% (under free trade agreements like USMCA)
Shift to sustainable materials
Increased demand for eco-friendly low-cost products, pushing manufacturers to adopt biodegradable or recyclable materials despite cost pressures.
2021-2022
E-commerce boom
Significant rise in direct-to-consumer sales of low-value items via online platforms, boosting trade volumes especially from Asian exporters.
2020-2022
Supply chain diversification
Countries like Vietnam and Bangladesh are gaining market share as companies move away from over-reliance on China due to geopolitical tensions and cost increases.
2019-2022
The European Union introduced stricter safety and environmental standards for low-cost imports under this category, requiring additional certifications.
June 2023
Potential increase in compliance costs for exporters, particularly from developing countries, which may reduce trade volumes temporarily.
Negotiations in 2023 led to a temporary reduction in tariffs on certain low-value goods, easing trade tensions.
March 2023
Expected to stabilize or slightly increase trade volumes from China to the US in the short term.
Vietnam announced incentives for manufacturers of low-cost goods to boost exports, supported by new free trade agreements with the EU and UK.
January 2023
Likely to further increase Vietnam's share in global trade for this category, challenging China's dominance.