HS Code for Lysine

Introduction to HS Codes and Lysine

In the world of international trade, proper classification of goods is crucial for smooth customs clearance and accurate tariff application. This is where Harmonized System (HS) codes come into play. For those involved in the trade of amino acid supplements or animal feed additives, understanding the HS code for lysine is essential. Lysine, an important amino acid used in both human supplements and animal feed, has its own specific classification within the HS nomenclature.

Recent data from the Global Trade Atlas shows that the global trade value of amino acids, including lysine, reached $8.2 billion in 2022, with a projected annual growth rate of 6.5% through 2027. This growth is driven by increasing demand in the animal feed industry and the rising popularity of amino acid supplements for human consumption.

What is Lysine?

Lysine is an essential amino acid that plays a crucial role in protein synthesis, calcium absorption, and the production of hormones and enzymes. It is widely used in two main applications:

• As an amino acid supplement for human consumption
• As an animal feed additive to improve livestock growth and health

Due to its importance in both human and animal nutrition, lysine is a significant commodity in international trade, necessitating a clear understanding of its HS code classification.

HS Code Classification for Lysine

The HS code for lysine falls under Chapter 29 of the Harmonized System, which covers "Organic Chemicals." Specifically, lysine is classified under the following code:

HS Code: 2922.41

This code is further broken down as follows:

• 29 - Organic chemicals
• 2922 - Oxygen-function amino-compounds
• 2922.41 - Lysine and its esters; salts thereof

It's important to note that this classification applies to lysine in its pure form, as well as its esters and salts. However, if lysine is part of a more complex formulation or preparation, it may fall under a different HS code.

Importance of Correct HS Code Classification

Proper classification of lysine under the correct HS code is crucial for several reasons:

1. Customs Compliance: Accurate HS code usage ensures compliance with customs regulations and helps avoid penalties or shipment delays.
2. Tariff Determination: The HS code directly affects the tariff rates applied to the imported or exported goods.
3. Trade Statistics: Correct classification contributes to accurate international trade statistics, which are vital for market analysis and policy decisions.
4. Documentation: Proper HS codes are essential for preparing accurate shipping documents and customs declarations.

For businesses involved in the trade of lysine or other amino acid supplements and animal feed additives, partnering with a knowledgeable logistics provider can be invaluable in navigating the complexities of HS code classification.

FreightAmigo's Role in Simplifying Lysine Trade

As a digital logistics platform, FreightAmigo offers solutions that can greatly benefit businesses involved in the international trade of lysine and other amino acid products:

1. Customs Expertise: We provide access to customs experts who can assist with proper HS code classification, ensuring compliance and avoiding potential issues at customs.
2. Automated Documentation: Our platform automates the creation of shipping documents, reducing errors and saving time in the preparation of customs declarations.
3. Comprehensive Shipping Solutions: Whether you're shipping lysine as a supplement or as part of animal feed, we offer door-to-door freight quotes for various transportation modes, including international courier, airfreight, sea freight, rail freight, and trucking.
4. Real-time Tracking: Our platform allows you to track your lysine shipments anytime, anywhere, connecting with over 1000 reputable airlines and shipping lines.
5. Additional Services: We can arrange customs clearance, cargo insurance, and trade finance, providing a one-stop solution for all your lysine trading needs.

By leveraging FreightAmigo's digital platform, businesses can streamline their lysine trade operations, ensure compliance with HS code regulations, and optimize their supply chain efficiency.

Market Trends and Regulations Affecting Lysine Trade

The global market for lysine is influenced by various factors that impact its trade and HS code classification:

Growing Demand in Animal Feed Industry

The animal feed industry is the largest consumer of lysine, accounting for over 80% of global lysine production. The Food and Agriculture Organization (FAO) reports that global meat production is expected to increase by 13% by 2028, driving demand for lysine as a feed additive. This growth may lead to increased scrutiny of lysine imports and exports, making accurate HS code classification even more critical.

Expansion of Plant-Based Protein Market

The rise of plant-based diets has led to increased demand for lysine supplements, as plant proteins are often deficient in this essential amino acid. Market research firm Grand View Research projects the global plant-based protein market to grow at a CAGR of 8.1% from 2021 to 2028. This trend may result in more diverse formulations of lysine products, potentially affecting their HS code classification.

Regulatory Changes and Trade Agreements

Changes in international trade agreements and regulations can impact the tariffs and restrictions on lysine trade. For example, the recent Regional Comprehensive Economic Partnership (RCEP) agreement, which came into effect in January 2022, may affect tariff rates for lysine trade among member countries. Staying informed about such changes is crucial for businesses involved in lysine trade.

Sustainability and Traceability Requirements

Increasing focus on sustainability and traceability in the food and feed industries may lead to additional documentation requirements for lysine imports and exports. While these may not directly affect the HS code, they can complicate the overall trade process, making it even more important to work with a knowledgeable logistics partner.

Best Practices for Lysine HS Code Classification

To ensure accurate HS code classification for lysine and related products, consider the following best practices:

1. Understand Product Specifications: Clearly identify the exact composition and intended use of your lysine product, as this can affect its classification.
2. Stay Updated on Regulations: Keep abreast of changes in HS codes and trade regulations that may affect lysine classification.
3. Seek Expert Advice: Consult with customs brokers or use digital platforms like FreightAmigo that provide access to classification experts.
4. Document Everything: Maintain detailed records of product specifications, classifications, and any rulings or advice received from customs authorities.
5. Use Technology: Leverage digital tools and platforms that can help automate and streamline the classification process.
6. Regular Reviews: Periodically review your HS code classifications to ensure they remain accurate, especially if product formulations change.

By following these practices and leveraging the expertise and technology offered by FreightAmigo, businesses can navigate the complexities of lysine trade with confidence and efficiency.

Conclusion

Understanding and correctly applying the HS code for lysine (2922.41) is crucial for businesses involved in the trade of this important amino acid supplement and animal feed additive. As the global market for lysine continues to grow, driven by increasing demand in both human nutrition and animal feed sectors, accurate classification becomes even more critical.

FreightAmigo's digital logistics platform offers a comprehensive solution to the challenges of international lysine trade. By providing expert guidance on HS code classification, automating documentation processes, and offering a range of shipping and logistics services, we enable businesses to optimize their supply chain operations and ensure compliance with international trade regulations.

As the lysine market evolves, staying informed about regulatory changes, market trends, and best practices in HS code classification will be key to success. By partnering with FreightAmigo, businesses can stay ahead of these challenges and focus on growing their lysine trade with confidence.

Whether you're new to lysine trade or looking to streamline your existing operations, FreightAmigo is here to support your journey. Contact us today to learn more about how our digital logistics solutions can transform your lysine trading experience.

Reference/Source

FreightAmigo, "Jewelry HS Code", https://www.freightamigo.com/shipping-tips/jewelry-hs-code/