2101.12.44

Analysis

HTS 2101.12.44 covers described in additional U.S. note 7 to chapter 17 and entered pursuant to its provisions under heading 2101 (extracts, essences and concentrates, of coffee, tea or maté and preparations with a basis…).

Goods that qualify under the Colombia TPA, KORUS, the Oman FTA, the Panama TPA, the Peru TPA and USMCA can enter duty-free instead of paying 10%.

The general duty rate is 10% of the customs value, which is above most the rates in chapter 21 (71st percentile of 51 lines with an ad valorem rate). On a shipment valued at $10,000 that is $1,000 in duty before any Chapter 99 additions or preference claims.

Within this group the rate runs from 8.5% to 10%. Compared with 2101.12.90 (other: other), which pays 8.5%, a misclassification either way moves the duty by 1.5 percentage points.

The column 2 rate, for countries without normal trade relations, is 20%, 2.0 times the general rate.

Census statistics map these goods to NAICS 311920 (Coffee and Tea Manufacturing), an industry of 1,155 US establishments employing 23,998 people. That concordance is how imports of this line are compared with US output.