CBP temporarily lifts duty fees on infant formula base powder imports until Dec. 31

By | 2022-10-15T15:13:48+00:00 October 15th, 2022|Imports|

U.S. Customs and Border Protection will provide duty-free treatment to importers of infant formula base powder until Dec. 31, 2022.

The temporary lifting of infant formula base powder duty fees is in response to the Bulk Infant Formula to Retail Shelves Act which was passed on Oct. 10, 2022 to address unprecedented infant formula shortages in the U.S.

CBP states that duty-free treatment will only be provided to importers of base powder to be manufactured 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).

Importers are instructed to use entry type code 02, 06, 07, 32, or 38, and to report in kilograms (kg). There is a restraint level in place of 2,600,000 kg aggregate.

Qualifying shipments will be classifiable under HTS subheading 1901.90.62 and must be exported to the United States on or before November 14, 2022. Importers will make a quota type entry using subheading 9903.19.23. If the import quota threshold is met before Dec. 31, 2022, duty-free treatment will no longer be granted.

Imports that do not qualify for the duty-free treatment (including imports made after Dec. 31, 2022) will be classified using subheading 1901.90.62, which has a duty rate of $1.035/kg +13.6%.

For more information, you can view the original bulletin here, or visit the FDA’s Enforcement Discretion to Manufacturers to Increase Infant Formula Supplies webpage.

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