Temporary Duty-Free Treatment for Infant Formula Base Powder

Trade Update • Oct. 17, 2022

he U.S. Customs and Border Protection (CBP) announced that it would provide duty-free treatment of eligible infant formula base powder that is entered or withdrawn from a warehouse for consumption from October 13, 2022, to December 31, 2022.

To guide industry members, the Federal Drug Administration (FDA) has issued a Guidance document for the exercise or discretion of enforcement to clarify the temporary suspension of tariffs on baby formula. The guidance document states that duty-free treatment:

• Will only be available to those who import base powder for manufacture into infant formula authorized to be marketed in the United States or subject to an enforcement discretion letter from the Food and Drug Administration (FDA).

• Will be limited to certain infant formula base powder classifiable under Harmonized Tariff Schedule (HTS) (subheading 1901.90.62) exported to the United States on or before November 14, 2022.

Requirement

Authorized importers seeking duty-free treatment for qualifying shipments are now required to make a quota entry under HTSUS 9903.19.23. Shipments that qualify for duty-free treatment under this subheading will not be subject to any additional safeguard duties that may be imposed under subchapter IV of HTSUS Chapter 99.

According to the CBP, if the import quota threshold is met before Dec. 31, 2022, duty-free treatment will no longer be valid and imported shipments will be subject to a duty rate of $1.035/kg +13.6% under the classification HTSUS 1901.90.62.

For questions about this temporary duty-free treatment on these imports, please contact us, we’re here to help.