HTS tariff line · chapter 04
0401.20.40
Of a fat content, by weight, exceeding 1 percent but not exceeding 6 percent: other
Analysis
HTS 0401.20.40 covers of a fat content, by weight, exceeding 1 percent but not exceeding 6 percent: other under heading 0401 (milk and cream, not concentrated nor containing added sugar or other sweetening matter).
The general rate is 1.5¢/liter, a specific or compound duty rather than a simple percentage, so the effective burden depends on the unit value of the goods: cheap goods pay proportionally more than expensive ones. Importers usually convert it to an ad valorem equivalent to compare it with other lines.
Goods that qualify under the Australia FTA, the Bahrain FTA, the Chile FTA, the Colombia TPA, the Israel FTA, and 9 others can enter duty-free instead of paying 1.5¢/liter. It is also eligible under GSP, the developing-country programme, which Congress has to renew; check whether GSP is in force on the entry date.
Census statistics map these goods to NAICS 311511 (Fluid Milk Manufacturing), an industry of 440 US establishments employing 57,985 people. That concordance is how imports of this line are compared with US output.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 0401.10.00 | Of a fat content, by weight, not exceeding 1 percent | 0.34¢/liter |
| 0401.20.20 | For not over 11,356,236 liters entered in any calendar year | 0.43¢/liter |
| 0401.40.02 | Described in general note 15 of the tariff schedule and entered pursuant to its provisions | 3.2¢/liter |
| 0401.40.05 | Described in additional U.S. note 5 to this chapter and entered pursuant to its provisions | 3.2¢/liter |
| 0401.40.25 | Of a fat content, by weight, exceeding 6 percent but not exceeding 10 percent: other | 77.2¢/liter |
| 0401.50.02 | Described in general note 15 of the tariff schedule and entered pursuant to its provisions | 3.2¢/liter |
| 0401.50.05 | Described in additional U.S. note 5 to this chapter and entered pursuant to its provisions | 3.2¢/liter |
| 0401.50.25 | Of a fat content, by weight, not exceeding 45 percent: other | 77.2¢/liter |
| 0401.50.42 | Described in general note 15 of the tariff schedule and entered pursuant to its provisions | 12.3¢/kg |
| 0401.50.50 | Described in additional U.S. note 6 to this chapter and entered pursuant to its provisions | 12.3¢/kg |
| 0401.50.75 | Other: other | $1.646/kg |