HTS tariff line · chapter 04
0401.40.02
Described in general note 15 of the tariff schedule and entered pursuant to its provisions
Analysis
HTS 0401.40.02 covers described in general note 15 of the tariff schedule and entered pursuant to its provisions under heading 0401 (milk and cream, not concentrated nor containing added sugar or other sweetening matter).
The general rate is 3.2¢/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 GSP, the Australia FTA, the Bahrain FTA, the Chile FTA, the Colombia TPA, and 12 others can enter duty-free instead of paying 3.2¢/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.
The other lines in the same group are 0401.40.05 (described in additional U.S. note 5 to this chapter and…, 3.2¢/liter) and 0401.40.25 (of a fat content, by weight, exceeding 6 percent but not…, 77.2¢/liter).
Census statistics map these goods to NAICS 311511 (Fluid Milk Manufacturing), an industry of 440 US establishments employing 57,985 people, the industry a domestic producer of these goods reports under.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 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 |