COCOA AND COCOA PREPARATIONS

Chapter 18 of the EU Customs Tariff covers cocoa and all cocoa preparations. Classified here are raw and roasted cocoa beans (whole or broken), cocoa shells and husks, cocoa paste (both defatted and non-defatted), cocoa butter (cocoa fat), cocoa powder without added sugar and with added sugar, as well as chocolate and other food preparations containing cocoa. Chocolate classified in this chapter includes chocolate in bars, blocks, and slabs, weighing more than 2 kg (for processing) and less than 2 kg (retail), filled chocolate, pralines, chocolate products, and other food preparations containing cocoa. It is important to note that white chocolate, which does not contain cocoa paste, is classified in Chapter 17, not in Chapter 18. The EU is the world's largest processor and consumer of cocoa, importing raw cocoa beans primarily from Cote d'Ivoire, Ghana, Cameroon, and Nigeria. The EU chocolate industry is one of the largest in the world. Imports of cocoa beans are subject to controls for the presence of cadmium, ochratoxin A, PAHs, and pesticides. EU regulations on chocolate (Directive 2000/36/EC) govern the composition and labelling of chocolate products, including minimum cocoa paste and cocoa butter content.

Duty rates on cocoa and cocoa preparations have a protective structure encouraging processing within the EU. Raw cocoa beans are exempt from duty (0%), facilitating the import of raw materials. Cocoa paste - 9.6%, cocoa butter - 7.7%, cocoa powder without sugar - 8%. Chocolate and cocoa preparations are subject to rates from 0% + EA to 18.7% + agricultural component (EA), depending on the content of sugar, flour, and milk fat. Pralines and filled chocolate products carry higher rates than chocolate in bars. ACP countries benefit from preferential zero rates on cocoa beans and cocoa paste. GSP+ countries may export chocolate preparations at reduced rates.

Classification in Chapter 18 requires establishing whether the product contains cocoa - this is an essential condition for belonging to this chapter. White chocolate (without cocoa paste) is classified in Chapter 17. Chocolate in bars weighing more than and less than 2 kg has different CN codes. Products containing cocoa but of a bakery nature (cakes, biscuits) may be classified in Chapter 19. The content of cocoa paste, cocoa butter, sugar, and milk fat is crucial, as it affects both the classification and the amount of the agricultural component of the duty. Cocoa beverages (e.g. hot chocolate powder) belong to heading 1806, but ready-to-drink chocolate beverages - to Chapter 22.