0402.99.68

Analysis

HTS 0402.99.68 covers described in general note 15 of the tariff schedule and entered pursuant to its provisions under heading 0402 (milk and cream, concentrated or containing added sugar or other sweetening matter).

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 17.5%. 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 general duty rate is 17.5% of the customs value, which is above most the rates in chapter 04 (82nd percentile of 126 lines with an ad valorem rate). On a shipment valued at $10,000 that is $1,750 in duty before any Chapter 99 additions or preference claims.

The column 2 rate, for countries without normal trade relations, is 35%, 2.0 times the general rate.

Census statistics map these goods to NAICS 311514 (Dry, Condensed, and Evaporated Dairy Product Manufacturing), an industry of 174 US establishments employing 17,210 people. That is the industry code a US manufacturer of the same product would normally use.