HS Code:
Vat Brown 3, Vat Orange 2, 7, and Vat Violet 9, 13 fall under the category of vat dyes, which are a class of dyes that are applied to textiles through a vatting process. These dyes are primarily used for coloring cellulosic fibers like cotton and are known for their excellent fastness properties, including resistance to washing and light. They are categorized under HS Code 320415, which covers synthetic organic coloring matter, including vat dyes. This category is critical in the textile industry, particularly in regions with significant textile manufacturing.
Total Trade Volume
USD 120 million
Data from 2022
Source
UN Comtrade Database
Average Rate
6.5%
Highest Rate
12% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like EU-India FTA for specific partners)
Shift towards sustainable dyeing processes
Increased demand for eco-friendly vat dyes with lower environmental impact, pushing manufacturers to innovate
2021-2022
Growth in textile production in Asia-Pacific
Higher demand for vat dyes in countries like India, Bangladesh, and Vietnam, driving export growth from major producers
2020-2022
Rising raw material costs
Increased production costs for vat dyes, leading to higher prices and potential market consolidation
2022
The European Union introduced stricter environmental compliance requirements under REACH for vat dye imports, focusing on reducing water pollution from textile dyeing processes.
June 2023
Exporters to the EU, especially from Asia, may face higher compliance costs, potentially reducing trade volumes or increasing prices.
Major Indian dye manufacturers announced investments in expanding production facilities to meet growing domestic and international demand for vat dyes.
March 2023
This is expected to solidify India's position as the leading exporter, potentially increasing its market share.
Ongoing trade disputes have led to tariffs on Chinese vat dye exports to the US, prompting US buyers to source from alternative markets like India.
January 2023
Diversification of supply chains may benefit other exporters but could increase costs for US textile manufacturers in the short term.