HS Code:
The Warships category, classified under HS Code 8906.10, encompasses vessels specifically designed for military purposes, including combat ships, submarines, and other naval vessels used by national defense forces. This category excludes civilian ships and boats, focusing solely on military-grade equipment. Warships are critical for national security, power projection, and maritime defense, making their trade a highly sensitive and regulated sector globally. Trade in this category is often influenced by geopolitical tensions, defense budgets, and international alliances, with transactions typically involving government-to-government agreements rather than commercial entities.
Total Trade Volume
USD 15.2 billion
Data from 2022
Source
United Nations Comtrade Database & Stockholm International Peace Research Institute (SIPRI)
USD 5.8 billion
38.2% of total trade of total trade
Increasing
USD 2.3 billion
15.1% of total trade of total trade
Stable
USD 1.9 billion
12.5% of total trade of total trade
Decreasing
USD 1.5 billion
9.9% of total trade of total trade
Increasing
USD 1.2 billion
7.9% of total trade of total trade
Stable
Average Rate
5.2% ad valorem
Highest Rate
15% (imposed by certain countries under national security clauses)
Lowest Rate
0% (under defense cooperation agreements or free trade pacts among allies)
Increased demand for advanced naval vessels
Rising geopolitical tensions in regions like the South China Sea and the Middle East are driving demand for modern warships equipped with stealth and missile defense systems, boosting trade among allied nations.
2021-2023
Shift towards domestic production
Countries like India and China are investing heavily in indigenous shipbuilding capabilities, reducing reliance on imports and potentially decreasing global trade volumes in the long term.
2020-2022
Focus on submarine technology
Growing interest in nuclear and conventional submarines for strategic deterrence is leading to high-value contracts, particularly benefiting exporters like France and the United States.
2022
The trilateral security pact between Australia, the UK, and the US (AUKUS) includes provisions for Australia to acquire nuclear-powered submarines, marking a significant shift in naval trade dynamics in the Indo-Pacific region.
September 2021
Increased trade volume for US and UK exporters, potential strain on relations with other naval powers like France, which lost a major submarine contract with Australia.
Following geopolitical conflicts, Western sanctions on Russia have restricted its ability to export warships and related technology, leading to a decline in its market share.
March 2022
Reduced trade volume for Russia, with countries like India and Vietnam seeking alternative suppliers such as France and South Korea.
France signed a deal to supply frigates and corvettes to Greece as part of a strategic defense partnership, reinforcing its position in the European naval market.
October 2021
Strengthened France’s trade volume in the warships category, with potential for further contracts in the Mediterranean region.