Analysis
HTS 0405.20.40 covers butter substitutes, whether in liquid or solid state: other under heading 0405 (butter and other fats and oils derived from milk; dairy spreads).
The general rate is 13.1¢/kg, 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 13.1¢/kg. 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 311225 (Fats and Oils Refining and Blending), an industry of 109 US establishments employing 10,175 people, the industry a domestic producer of these goods reports under.
The general rate of 13.1¢/kg has not changed in any edition of the schedule since Jan 2023.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 0405.20.10 | Described in general note 15 of the tariff schedule and entered pursuant to its provisions | 15.4¢/kg |
| 0405.20.20 | Described in additional U.S. note 14 to this chapter and entered pursuant to its provisions | 15.4¢/kg |
| 0405.20.30 | Containing over 45 percent by weight of butterfat: other | $1.996/kg |
| 0405.20.50 | Described in general note 15 of the tariff schedule and entered pursuant to its provisions | 10% |
| 0405.20.60 | Described in additional U.S. note 10 to this chapter and entered pursuant to its provisions | 10% |
| 0405.20.70 | Dairy products described in additional U.S. note 1 to chapter 4: other | 70.4¢/kg + 8.5% |
| 0405.20.80 | Other: other | 6.4% |