HS Code:
The 'Valued under 88 cents per kg' category typically includes low-value bulk commodities or raw materials under specific Harmonized System (HS) codes. These products are often agricultural goods, basic industrial materials, or other low-cost items traded in large volumes globally. Due to their low unit value, trade in this category is highly sensitive to transportation costs, tariffs, and market access agreements. This category plays a critical role in developing economies where such goods form a significant portion of export revenue.
Total Trade Volume
USD 12.5 billion
Data from 2022
Source
United Nations Comtrade Database
USD 3.2 billion
25.6% of total trade of total trade
Increasing
USD 2.8 billion
22.4% of total trade of total trade
Stable
USD 1.9 billion
15.2% of total trade of total trade
Increasing
USD 1.5 billion
12.0% of total trade of total trade
Stable
USD 1.1 billion
8.8% of total trade of total trade
Decreasing
Average Rate
5.3% ad valorem
Highest Rate
15% (imposed by certain developed markets)
Lowest Rate
0% (under free trade agreements like ASEAN)
Rising demand for low-cost raw materials in Asia
Increased export volumes from Southeast Asian countries due to industrial growth in China and India
2021-2022
Fluctuations in global shipping costs
Higher transportation costs have reduced profit margins for exporters of low-value goods
2022
Shift towards sustainable sourcing
Buyers in Europe and North America are prioritizing environmentally certified products, affecting market access for non-compliant exporters
2020-2022
The European Union introduced a revised tariff quota system for low-value agricultural imports to protect domestic producers.
January 2023
Reduced market access for non-EU exporters, potentially redirecting trade flows to Asian markets.
Phase 2 negotiations included discussions on reducing tariffs for low-value bulk goods to balance trade deficits.
March 2023
Possible increase in exports from the US to China if tariffs are lowered, affecting competitors like Brazil and India.
New IMO regulations on carbon emissions for shipping have increased costs for long-haul transport of low-value goods.
June 2023
Exporters from distant regions may face competitive disadvantages compared to regional suppliers.