Analysis
HTS 1806.32.16 covers containing less than 21 percent by weight of milk solids under heading 1806 (chocolate and other food preparations containing cocoa).
This line's footnotes point to 2 additional provisions in Chapter 99: 9904.18.19 (Chapter 99 provision); 9904.18.30 (Chapter 99 provision). Chapter 99 duties are added on top of the general rate for goods of the countries they name, and they change more often than the rest of the schedule, so check the current CBP guidance before you rely on a total.
The general rate is 37.2¢/kg + 4.3%, 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 Bahrain FTA, the Chile FTA, the Colombia TPA, the Jordan FTA, KORUS, and 6 others can enter duty-free instead of paying 37.2¢/kg + 4.3%. GSP does not cover it, so the saving depends on a free-trade agreement and its rules of origin, not on the exporter's development status. Reduced but not zero rates apply under some agreements: See 9822.04.25 for AU; See 9823.08.01-9823.08.38 for S+.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 1806.32.01 | Described in general note 15 of the tariff schedule and entered pursuant to its provisions | 5% |
| 1806.32.04 | Described in additional U.S. note 2 to this chapter and entered pursuant to its provisions | 5% |
| 1806.32.06 | Containing less than 21 percent by weight of milk solids | 37.2¢/kg + 4.3% |
| 1806.32.08 | Other: other | 52.8¢/kg + 4.3% |
| 1806.32.14 | Described in additional U.S. note 3 to this chapter and entered pursuant to its provisions | 5% |
| 1806.32.18 | Other: other | 52.8¢/kg + 4.3% |
| 1806.32.30 | Preparations consisting wholly of ground cocoa beans, with or without added cocoa fat, flavoring or emulsifying agents, and containing not more than 32 percent by weight of butterfat or other milk solids and not more than 60 percent by weight of sugar: other | 4.3% |
| 1806.32.55 | Described in general note 15 of the tariff schedule and entered pursuant to its provisions | 7% |
| 1806.32.60 | Described in additional U.S. note 10 to chapter 4 and entered pursuant to its provisions | 7% |
| 1806.32.70 | Containing less than 21 percent by weight of milk solids | 37.2¢/kg + 6% |
| 1806.32.80 | Other: other | 52.8¢/kg + 6% |
| 1806.32.90 | Other: other | 6% |
Chapter 99 provisions in the footnotes
- 9904.18.19 Chapter 99 provision
Valued less than 20¢/kg
- 9904.18.30 Chapter 99 provision
Provided for in subheading 1806.90.30