CSMS # 53599807 - Temporary Duty-Free Treatment for FDA-Authorized Parties of Infant Formula Base Powder

U.S. Customs and Border Protection sent this bulletin at 10/12/2022 08:58 AM EDT

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CSMS # 53599807 - Temporary Duty-Free Treatment for FDA-Authorized Parties of Infant Formula Base Powder

This message is being issued to provide guidance on HR 8982, the Bulk Infant Formula to Retail Shelves Act, hereafter referred to as the Act. Signed by the President on October 10, 2022, the Act temporarily suspends duty on imports of certain infant formula base powder. The Office of Trade (OT) has updated the Harmonized Tariff Schedule (HTS) file in the Automated Commercial Environment (ACE) to account for this legislation.

U.S. Customs and Border Protection (CBP) will provide duty-free treatment of the eligible infant formula base powder entered or withdrawn from warehouse for consumption on or after 12:01 AM Eastern daylight time on October 13, 2022, through 11:59 PM Eastern Standard time on December 31, 2022.

Duty-free treatment will only be provided to importers of base powder to be manufactured into infant formula authorized to be marketed in the United States or subject to an enforcement discretion letter from the Food and Drug Administration (FDA). Should you have questions regarding enforcement discretion, please refer to the Enforcement Discretion to Manufacturers to Increase Infant Formula Supplies | FDA website.

For qualified shipments from the FDA-authorized parties, duty-free treatment is limited to certain infant formula base powder classifiable under HTS subheading 1901.90.62 and must be exported to the United States on or before November 14, 2022. Authorized importers seeking duty-free treatment for qualifying shipments will make a quota type entry utilizing subheading 9903.19.23. Any shipment qualifying for duty-free treatment under subheading 9903.19.23 will not be subject to any additional safeguard duties that may be imposed under subchapter IV of Chapter 99 of the HTS. If the import quota threshold is met before December 31, 2022, duty-free treatment will no longer be granted.

Should the importation not qualify for duty-free treatment, the appropriate classification change would be subheading 1901.90.62, which has a duty rate of $1.035/kg +13.6%. This should be the high rate for this particular quota.

Should you have questions or concerns regarding this guidance, please contact the Office of Trade, Commercial Operations Revenue and Entry (CORE) Division at OTENTRYSUMMARY@cbp.dhs.gov. Should you have questions or concerns regarding quota, please contact HQQUOTA@cbp.dhs.gov. Should you have questions or concerns regarding duty-free treatment eligibility, please contact the FDA at InfantFormulaImports@fda.hhs.gov.

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