HS 040120 Of a fat content, by weight, exceeding 1 % but not exceeding 6 %

Quick Answer: Milk and cream, with a fat content exceeding 1% but not exceeding 6% by weight, imported under HS 040120 enters the UK at rates such as 15.00 GBP per 100 kg, the EU at rates like 17.90 EUR per 100 kg, and the US at 1.5¢ per liter for most favored nation (MFN) treatment, with certain trade agreements offering duty-free entry. This classification specifically applies to milk and cream that falls within this defined fat percentage range, excluding lower or higher fat content products. Importers should be aware of these varying duty structures across major markets. CustomTariffs aggregates this information to assist with compliance.

What Are the Import Duty Rates?

🇬🇧 United Kingdom

Code MFN Preferential Unit
0401200000 — — —
0401201100 15.00 GBP / 100 kg — —
0401201900 14.00 GBP / 100 kg — —
0401209100 18.00 GBP / 100 kg — —
0401209900 18.00 GBP / 100 kg — —

🇪🇺 European Union (TARIC)

Code MFN Preferential Unit
0401201900 17.90 EUR / 100 kg — —
0401201100 18.80 EUR / 100 kg — —
0401200000 — — —
0401209900 21.80 EUR / 100 kg — —
0401209100 22.70 EUR / 100 kg — —

🇺🇸 United States (HTSUS)

Code MFN Preferential Unit
040120 — — —
0401204000 1.5¢/liter Free (14 programs) ["liters","kg cmsc"]
0401202000 0.43¢/liter Free (17 programs) ["liters","kg cmsc"]

Special rates available under trade agreements including USMCA, KORUS, GSP.

Duty rates sourced from the USITC (US International Trade Commission) Harmonized Tariff Schedule (HTS) (accessed 2/22/2026), EU TARIC – DG TAXUD (Directorate-General for Taxation and Customs Union) (accessed 2/22/2026), and UK Trade Tariff – HMRC (His Majesty's Revenue and Customs) (accessed 2/22/2026).

Data compiled and presented by HSRates.

Which Trade Agreements Reduce Duties for HS 0401.20?

Imports of Of a fat content, by weight, exceeding 1 % but not exceeding 6 % may qualify for reduced or zero duty rates under free trade agreements and preferential programs. The overview below shows available preferential arrangements by jurisdiction, compiled by HSRates from official tariff and trade agreement data.

United States (HTSUS)

Free for USMCA, KORUS, and 15 other programs

European Union (TARIC)

Preferential rate data not yet available.

United Kingdom

Preferential rate data not yet available.

Preferential rates require proof of origin and may be subject to quotas or conditions. Always verify eligibility with a licensed customs broker.

Data compiled by HSRates.

Which Preferential Rates Apply to Your Origin Country?

Select an origin country to see if preferential rates apply.

Preferential rates based on available trade agreements. Actual rates may vary.

How to Classify This HS Code?

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What products does HS 040120 cover?

This subheading covers milk and cream that is not concentrated or does not contain added sugar or other sweetening matter, specifically where the fat content by weight exceeds 1% but does not exceed 6%. This classification aligns with the World Customs Organization's Harmonized System (WCO HS) nomenclature and is further defined by official tariff schedules like the USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database, which specify that products like partially skimmed milk and certain types of fresh cream fall within this range, provided they meet the fat content criteria.

What falls outside HS 040120?

The following products are excluded from HS 040120: milk and cream with a fat content of 1% or less (classified under 040110), milk and cream with a fat content exceeding 6% (classified under 040130 or 040140 depending on concentration), concentrated or sweetened milk and cream (classified under 0402), and milk and cream powders (classified under 0402). Products that have undergone significant processing beyond simple chilling or pasteurization, such as fermented milk products or milk-based beverages with added ingredients, are also typically classified elsewhere.

What are common classification mistakes for HS 040120?

A common error is misinterpreting the fat content percentage, leading to incorrect classification under subheadings with lower or higher fat thresholds. For instance, milk with a fat content of precisely 6% would be classified under 040130, not 040120. Another mistake involves overlooking the "not concentrated or contain added sugar" qualifier in Heading 0401, which would direct concentrated or sweetened milk to Chapter 0402. Adherence to General Interpretative Rule 1 of the HS is crucial for accurate classification based on the specific wording of the headings and subheadings.

How should importers classify products under HS 040120?

The correct procedure for classifying milk and cream under HS 040120 involves first determining the exact fat content by weight. This information is typically found on the product's technical specifications or Certificate of Analysis. Importers must then consult the relevant national tariff schedule, such as the USITC HTS or the UK Trade Tariff, to confirm that the product's fat content falls within the 1% to 6% range and that it is not concentrated or sweetened. Verification of the product's form (liquid, not powder) is also essential.

How is the duty calculated for products under HS 040120?

A 10-liter container of partially skimmed milk weighing approximately 10.3 kg and declared at a customs value of $30.00 USD would attract a US duty of $0.31. This is calculated using the U.S. Most Favored Nation (MFN) duty rate of 3.0% ad valorem, applied to the declared value ($30.00 USD × 0.03 = $0.90 USD), and a specific duty of $0.030 per kilogram ($0.030/kg × 10.3 kg = $0.309 USD). The higher of the two duties applies, resulting in a total duty of $0.90 USD. This is calculated using the MFN rate published in the USITC Harmonized Tariff Schedule.

Which trade agreements reduce duties for HS 040120?

Several free trade agreements may reduce the applicable duty rate for HS 040120, including the United States-Mexico-Canada Agreement (USMCA), which can provide duty-free entry for originating milk and cream from Canada and Mexico. Additionally, the Generalized System of Preferences (GSP) may offer reduced or duty-free entry for products originating from designated developing countries. To claim preferential treatment under USMCA, a valid Certificate of Origin is typically required, while for GSP, a Form A (GSP) is often necessary, depending on the importing country's specific requirements.

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Which HS Codes Are Related?

HS 040140 HS 040110 HS 040150 HS 040520 HS 040620 HS 040210

Not the right code? Search all HS codes to find the correct tariff classification.

FAQ

What are the typical import duty rates for HS code 040120 (milk and cream, not concentrated, with a fat content exceeding 1% but not exceeding 6%)?

Import duty rates for HS code 040120 vary significantly by importing country and trade agreements. For example, the UK's standard rate is 15.00 GBP per 100 kg. The EU's rate under the Common Customs Tariff (CCT) is often around 17.90 EUR per 100 kg, but can be lower under preferential agreements. The US applies a rate of 1.7 cents/liter. It is crucial to consult the specific tariff schedule of the destination country for the accurate rate applicable to your shipment.

How is the fat content of milk and cream classified under HS 040120 determined for customs purposes?

Classification under HS 040120 hinges on the fat content by weight. The product must contain more than 1% but not more than 6% fat. Importers must provide a Certificate of Analysis (CoA) from the manufacturer or an independent laboratory confirming the fat content. This documentation is essential for customs authorities to verify correct classification and duty assessment. The WCO's Explanatory Notes to Chapter 04 provide further guidance on testing methods.

Which trade agreements offer preferential duty rates for HS code 040120, and what documentation is typically required?

Several trade agreements offer preferential duty rates for milk and cream under HS 040120. For instance, under agreements like the USMCA, goods originating from Canada or Mexico may benefit from reduced or zero duties. The EU has numerous Free Trade Agreements (FTAs) that can impact rates. To claim preferential treatment, importers must present a valid Proof of Origin, such as a Certificate of Origin or an origin declaration on the invoice, as stipulated by the specific trade agreement. For example, goods from Australia (AU), Bahrain (BH), Chile (CL), Colombia (CO), Israel (IL), Jordan (JO), South Korea (KR), Morocco (MA), Oman (OM), Pakistan (P), Panama (PA), Peru (PE), South Africa (S), and Singapore (SG) may have specific preferential rates or exemptions listed in various tariff schedules.

Can you provide a concrete example of how import duty is calculated for HS 040120?

Let's assume an importer is bringing 10,000 kg of milk with a fat content of 3% into the UK. The UK's standard duty rate for this category is 15.00 GBP per 100 kg. The duty calculation would be: (10,000 kg / 100 kg) * 15.00 GBP/100 kg = 100 * 15.00 GBP = 1,500.00 GBP. This is a specific duty calculated on weight. If the importing country uses an ad valorem duty (a percentage of the value), the calculation would be (Value of Goods) * (Ad Valorem Rate %). Always confirm the duty basis (weight, volume, or value) with the destination country's tariff.

What are the key differences in duty calculation for HS 040120 between weight-based and volume-based rates?

Duty rates for HS 040120 can be applied either per unit of weight (e.g., GBP/100 kg or EUR/100 kg) or per unit of volume (e.g., ¢/liter). For example, the US rate of 1.7¢/liter is volume-based. If you import 5,000 liters of milk, the duty would be 5,000 liters * 0.017 USD/liter = 85.00 USD. A weight-based rate, like 15.00 GBP/100 kg, would require knowing the weight of the shipment. If 5,000 liters of milk weigh 5,100 kg, the duty would be (5,100 kg / 100 kg) * 15.00 GBP/100 kg = 51 * 15.00 GBP = 765.00 GBP. Importers must be aware of the specific unit of measure used in the tariff schedule of the importing country.