HS Code for Bread

Introduction to HS Codes and Bread Classification

In the complex world of international trade, accurate product classification is crucial for smooth customs procedures and proper tariff application. The Harmonized System (HS) code plays a vital role in this process, providing a standardized numerical method for classifying traded products worldwide. When it comes to bread, a staple food in many cultures, understanding its HS code classification is essential for both importers and exporters in the baking industry.

Recent data from the International Trade Centre shows that the global trade value of bread and bakery products reached $30.7 billion in 2022, highlighting the significant role of bread in international commerce. With increasing cross-border trade of various bread types, including white bread and wholegrain bread, it's more important than ever for businesses to accurately classify their products using the correct HS codes.

Understanding HS Codes

The Harmonized System, developed and maintained by the World Customs Organization (WCO), is a six-digit standardized numerical method used by over 200 countries for classifying traded products. This system serves as the foundation for customs tariffs and international trade statistics globally.

HS codes are structured hierarchically:

• The first two digits represent the chapter
• The first four digits represent the heading
• The full six digits represent the subheading

For bread and bakery products, we typically look at Chapter 19 of the HS nomenclature, which covers "Preparations of cereals, flour, starch or milk; pastrycooks' products."

HS Codes for Bread

The main HS code category for bread falls under heading 1905, which covers "Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products."

Specifically for bread, including white bread and wholegrain bread, the relevant HS codes are:

• 1905.90: This subheading covers "Other" products within the bread and bakery category, which includes most types of bread.

However, it's important to note that some countries may have more specific national subdivisions beyond the six-digit level. For example:

• 1905.90.10: In some countries, this might specifically refer to "Bread and similar products"
• 1905.90.30: This could be used for "Whole wheat bread" in certain national tariff schedules

Classification Challenges for White Bread and Wholegrain Bread

While the general classification for bread is relatively straightforward, there can be some nuances when it comes to specific types like white bread and wholegrain bread:

White Bread

White bread is typically made from wheat flour that has been refined to remove the bran and germ layers. In most cases, it would be classified under:

• HS Code: 1905.90 (or more specific national subdivisions like 1905.90.10)

Wholegrain Bread

Wholegrain bread, made with flour that includes the entire grain kernel, might sometimes receive a distinct classification in some countries to differentiate it from white bread:

• HS Code: 1905.90 (or potentially 1905.90.30 in countries that have this specific subdivision for whole wheat bread)

The challenge arises when countries have different levels of specificity in their national tariff schedules. Some may group all bread types under a single code, while others may have separate codes for different bread varieties.

Importance of Accurate HS Code Classification

Correctly classifying bread products with the appropriate HS code is crucial for several reasons:

1. Tariff Determination: The HS code directly affects the import duties and taxes applied to the product.
2. Compliance: Proper classification ensures compliance with trade regulations and avoids potential legal issues.
3. Trade Statistics: Accurate classification contributes to reliable international trade data.
4. Market Access: Some trade agreements may offer preferential treatment based on HS codes.

Factors Influencing Bread Classification

When determining the correct HS code for bread products, several factors should be considered:

• Ingredients: The type of flour used (e.g., wheat, rye, mixed grains) can influence classification.
• Production Method: Whether the bread is fresh, frozen, or par-baked may affect its HS code.
• Additives: The presence of additional ingredients like fruits, nuts, or seeds might impact classification.
• Packaging: How the bread is packaged for retail sale could be a factor in some jurisdictions.

Recent Developments in Bread Trade and HS Codes

The global bread market has seen significant changes in recent years, which can impact HS code applications:

• The rise of artisanal and specialty breads has led to more diverse product ranges, potentially requiring more specific classifications.
• Increased focus on health has boosted demand for wholegrain and other nutritionally enhanced breads, which may be classified differently in some markets.
• The growth of gluten-free and other alternative flour breads has raised questions about appropriate classification in some jurisdictions.

A recent report by Mordor Intelligence projects the global bread market to grow at a CAGR of 3.7% from 2023 to 2028, indicating continued expansion in international bread trade and the importance of accurate HS code usage.

Navigating HS Codes with Digital Solutions

As the bread industry continues to evolve and international trade becomes more complex, digital solutions are becoming increasingly important for managing HS code classifications effectively. This is where FreightAmigo's digital logistics platform can provide significant value to businesses in the baking industry.

How FreightAmigo Supports Bread Exporters and Importers

FreightAmigo's comprehensive digital supply chain finance platform offers several features that can assist businesses dealing with bread products in international trade:

1. Automated Classification: Our platform can help suggest appropriate HS codes for various bread products, reducing the risk of misclassification.
2. Real-time Updates: We provide up-to-date information on HS code changes and regulations, ensuring compliance with the latest international standards.
3. Customs Documentation: Our system can automate the generation of necessary customs documents, incorporating the correct HS codes for bread products.
4. Tariff Calculation: By inputting the correct HS code, our platform can provide accurate estimates of import duties and taxes for different destination countries.
5. Shipment Tracking: Our advanced tracking capabilities allow businesses to monitor their bread shipments in real-time, ensuring freshness and timely delivery.

Case Study: Streamlining Bread Exports with FreightAmigo

Consider a medium-sized bakery in Hong Kong looking to export its popular wholegrain bread to markets in Southeast Asia. By utilizing FreightAmigo's digital platform, the bakery was able to:

• Accurately classify its wholegrain bread under the correct HS code (1905.90)
• Generate all necessary customs documentation automatically
• Compare freight quotes from multiple carriers for optimal pricing
• Track shipments in real-time to ensure timely delivery of fresh products
• Streamline the entire export process, reducing administrative burden and potential errors

As a result, the bakery successfully expanded its market reach while ensuring compliance with international trade regulations.

Conclusion

Understanding and correctly applying HS codes for bread products, including white bread and wholegrain bread, is crucial for smooth international trade operations. As the global bread market continues to grow and diversify, accurate classification becomes even more important.

By leveraging digital solutions like FreightAmigo's comprehensive platform, businesses in the baking industry can navigate the complexities of HS codes and international shipping with greater ease and efficiency. From automated classification to real-time tracking, our digital logistics solutions are designed to support the unique needs of bread exporters and importers.

As we continue to innovate and expand our services, FreightAmigo remains committed to fostering a seamless TradeTech ecosystem that accelerates logistics, information, and cash flow for businesses of all sizes. Whether you're shipping artisanal loaves or mass-produced white bread, our platform is here to ensure a hassle-free and enjoyable logistics experience.

For more information on how FreightAmigo can support your bread export or import operations, or to get a quote for your next shipment, don't hesitate to contact our team of logistics experts. Let us help you rise to the challenges of international bread trade with our cutting-edge digital solutions.