Sugar Confectionery Trade Faces New Challenges in 2024: HTS 1704 Update

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1. Current Trade News and Developments

Between March and June 2024, sugar confectionery classified under HTS 1704—covering products like candies, licorice, and white chocolate without cocoa—has seen significant trade activity. The WTO's recent report (May 2024) highlighted a 7% increase in global sugar confection exports, driven by higher demand in Southeast Asia and Latin America. Meanwhile, the U.S. issued new temporary import restrictions from certain non-FTA countries following adulteration concerns in April. Additionally, the European Union adjusted quotas for sugar confections from Ukraine, temporarily lifting volume caps until September 2024 to aid post-conflict economic recovery.

2. Key Regulatory and Market Updates

Several developments are reshaping the regulatory landscape for HTS 1704 goods:

• China announced a review of existing retaliatory tariffs on U.S.-origin sugar confections in late May 2024. Early indicators suggest modest easing may occur by Q3 2024, potentially unlocking new market access.

• In the U.S., the Food and Drug Administration (FDA) introduced updated labeling requirements for imported sugar confections as of June 1, 2024. Importers must now declare all allergen disclosures, impacting compliance documentation at entry.

• Global shipping disruptions lingering from Red Sea port slowdowns in April led to temporary surcharges on sugar confection imports, with most logistics providers now normalizing fees.

3. Highlights from the Official HTS Code

HTS code 1704.0 specifically classifies “Sugar confectionery (including white chocolate), not containing cocoa.” Main items under this code include:

1. Chewing gum

2. Sugar candies (lozenges, marshmallows, nougats)

3. Licorice, pastilles, and similar sugar confections

4. White chocolate (no cocoa present)

A clear understanding of this code ensures proper compliance with varying tariffs, inspection regimes, and health documentation needed for global distribution.

4. What to Watch Ahead

Importers, exporters, and analysts should keep an eye on:

• Pending tariff reviews and potential relaxation of trade frictions between the U.S. and China

• Extended EU preferential quotas for Ukrainian imports

• Ongoing regulatory shifts surrounding food safety and labeling for confectionery goods

As the sugar confectionery market continues to evolve, professionals should stay engaged with official notices and market intelligence to adapt to rapid changes under HTS 1704.

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