2208.40

Analysis

Subheading 2208.40 covers rum and other spirits obtained by distilling fermented sugar-cane products, within heading 2208. The first six digits are shared by every country that uses the Harmonized System, so this part of the code is the same in the US, UK and EU schedules; the 4 US tariff lines below it are national.

Every one of its 4 tariff lines is duty-free at the general rate, so classification within the subheading affects statistics and Chapter 99 measures rather than the base duty.

The US splits it as follows: 2208.40.20 for valued not over $3 per proof liter (23.7¢/pf.liter), 2208.40.40 for valued over $3 per proof liter (duty-free), 2208.40.60 for valued not over 69¢ per proof liter (23.7¢/pf.liter) and 2208.40.80 for valued over 69¢ per proof liter (duty-free).

2 of the lines carry specific or compound rates (per kilogram, per dozen and so on) rather than a percentage, so their burden depends on the unit value of the goods.