Background

In light of legislation enacted Oct. 10, U.S. Customs and Border Protection will provide duty-free treatment for imports of eligible infant formula base powder entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on Oct. 13, 2022, through 11:59 p.m. EST on Dec. 31, 2022. 

CBP states that duty-free treatment will only be provided to importers of base powder to be manufactured into infant formula authorized to be marketed in the U.S. or subject to an enforcement discretion letter from the Food and Drug Administration. For qualified shipments from FDA-authorized parties, duty-free treatment is limited to certain infant formula base powder classifiable under HTSUS 1901.90.62 and exported to the U.S. on or before Nov. 14.

Authorized importers seeking duty-free treatment for qualifying shipments will make a quota type entry utilizing HTSUS 9903.19.23. Any shipment qualifying for duty-free treatment under this subheading will not be subject to any additional safeguard duties that may be imposed under subchapter IV of HTSUS Chapter 99. 

CBP notes that if the import quota threshold is met before Dec. 31, duty-free treatment will no longer be granted. In that case the appropriate classification would be HTSUS 1901.90.62, which has a duty rate of $1.035/kg +13.6 percent.

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