HS 040320 Yogurt

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What products does HS 040320 cover?

This subheading covers yogurt, which is defined by the World Customs Organization (WCO) Harmonized System (HS) Nomenclature as milk that has been fermented by specific bacteria, typically *Lactobacillus bulgaricus* and *Streptococcus thermophilus*. Official definitions from sources like the USITC Harmonized Tariff Schedule (HTS) and the EU TARIC database confirm that this category includes plain yogurt, flavored yogurt, and yogurt with added fruit or other ingredients, provided the milk base remains the primary component. The key characteristic is the fermentation process that results in its characteristic texture and taste.

What falls outside HS 040320?

The following products are excluded from HS 040320: milk-based beverages that have not undergone the specific fermentation process characteristic of yogurt, such as milk drinks or milk shakes (typically classified under HS 2202); desserts where yogurt is a minor ingredient or a flavoring agent, such as yogurt-based cakes or pastries (classified based on their primary component); and cultured milk products that are not technically yogurt, like kefir or buttermilk (often classified under HS 040390). Products containing significant amounts of non-dairy ingredients that alter the fundamental nature of yogurt are also excluded.

What are common classification mistakes for HS 040320?

A common error is misclassifying yogurt drinks or milk-based beverages that have undergone some form of culturing but not the specific fermentation process required for yogurt. According to General Rule of Interpretation (GRI) 1, classification is determined by the terms of the headings and any relative section or chapter notes. Importers may also incorrectly classify yogurt with a high percentage of added fruit or other solids under a different heading if the yogurt component is no longer considered the predominant characteristic of the final product.

How should importers classify products under HS 040320?

The correct procedure for classifying yogurt under HS 040320 involves verifying that the product is indeed milk fermented by specific lactic acid bacteria. Importers and customs brokers must consult the official tariff schedule of the importing country, such as the USITC HTS or the UK Trade Tariff, to confirm the precise definition and any sub-classifications. Reviewing ingredient lists and production processes is crucial to ensure the product meets the criteria for yogurt and is not a related but distinct dairy product or beverage.

How is the duty calculated for products under HS 040320?

A 500-gram container of plain Greek yogurt, declared at a customs value of $3.00 USD, would attract a US duty of $0.30. This is calculated using the Most Favored Nation (MFN) duty rate of 10% ad valorem, applied to the declared customs value ($3.00 USD × 0.10 = $0.30). This calculation is based on the MFN rate published in the USITC Harmonized Tariff Schedule for HS code 040320.9000, which covers yogurt, whether or not containing added fruit, nuts, or cocoa.

Which trade agreements reduce duties for HS 040320?

Several free trade agreements may reduce the applicable duty rate for HS 040320, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, originating yogurt from Canada and Mexico can enter the United States duty-free. To claim this preference, a valid Certificate of Origin or a self-certified origin statement meeting USMCA requirements is necessary. The specific origin of the yogurt is paramount for determining eligibility for preferential duty rates under these agreements.

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