HS 040520 Dairy spreads
Quick Answer: Dairy spreads imported under HS 040520 enter the UK at 8.00%, the EU at 9.00% plus an additional amount (EA), and the US at rates ranging from $1.996/kg to $2.348/kg, with some preferential rates. This HS code encompasses products such as dairy-based margarines and similar preparations, typically containing milk fat and vegetable fat, intended for spreading. Importers should be aware of potential additional duties or specific import requirements in each jurisdiction. CustomTariffs aggregates this tariff data for compliance.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 0405200000 | — | — | — |
| 0405201000 | 8.00 % | — | — |
| 0405201010 | 8.00 % | — | — |
| 0405201080 | 8.00 % | — | — |
| 0405203000 | 8.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 0405200000 | — | — | — |
| 0405201000 | 9.00 % + EA | — | — |
| 0405201010 | 9.00 % + EA | — | — |
| 0405203080 | 9.00 % + EA | — | — |
| 0405201080 | 9.00 % + EA | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 0405203000 | $1.996/kg | Free (BH,CL,CO,JO,KR,MA,OM,P,PA,PE,SG) See 9822.04.10 (AU) See 9823.03.01-9823.03.12 (1 programs) | ["kg","kg cmsc"] |
| 0405207000 | 70.4¢/kg + 8.5% | Free (BH,CL,JO,KR,MA,OM,P,PA,PE,SG) See 9822.04.25 (AU) See 9823.03.01-9823.03.12 (S+) See 9918.04.60, 9918.04.67 (1 programs) | ["kg","kg cmsc"] |
| 0405201000 | 15.4¢/kg | Free (17 programs) | ["kg"] |
| 0405204000 | 13.1¢/kg | Free (17 programs) | ["kg","kg cmsc"] |
| 0405206000 | 10% | Free (17 programs) | ["kg","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 0405.20?
Imports of Dairy spreads 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, GSP, and 16 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 Has Trade Volume Developed?
How to Classify This HS Code?
What products does HS 040520 cover?
This subheading covers dairy spreads, which are preparations of milk fat, typically containing milk fat and other edible ingredients, designed for spreading. According to the World Customs Organization's Harmonized System Explanatory Notes, these products are distinct from butter (040510) and milk fat (040590). The USITC Harmonized Tariff Schedule and the EU TARIC database confirm that this category includes items like dairy-based margarines and similar spreadable products, provided they meet the specific composition criteria outlined in Chapter 4 of the HS Nomenclature.
What falls outside HS 040520?
The following products are excluded from HS 040520: pure butter (classified under 040510), milk fat, butter, and pastes or powders of milk fat (classified under 040590), and vegetable-based margarines or spreads (typically classified under 1517). Products that are primarily cheese-based, even if spreadable, would generally fall under Chapter 0406. It is crucial to distinguish based on the primary fat content and intended use, as per General Interpretative Rule 1.
What are common classification mistakes for HS 040520?
A common error is misclassifying products that contain dairy but are primarily composed of other ingredients, such as certain flavored yogurts or cream cheese preparations that might be considered more akin to cheese products under 0406. Another mistake involves confusing dairy spreads with imitation dairy products or those with a significant non-dairy fat content, which would necessitate classification under Chapter 15. Adherence to General Interpretative Rule 3(b) for composite goods is vital.
How should importers classify products under HS 040520?
The correct procedure for classifying products under HS 040520 involves a detailed examination of the product's composition, particularly the percentage of milk fat and other ingredients. Importers and customs brokers must consult the official tariff schedule of the importing country, such as the USITC Harmonized Tariff Schedule or the EU TARIC database, and refer to the relevant Explanatory Notes from the WCO. A thorough understanding of the product's formulation and intended use is paramount for accurate classification.
How is the duty calculated for products under HS 040520?
A 500-gram tub of "Dairy Spread Delight," declared at a customs value of $3.00 USD, would attract a US duty of $0.23. This is calculated using the Most Favored Nation (MFN) duty rate of 7.5% ad valorem, applied to the declared value of $3.00. The calculation is $3.00 × 0.075 = $0.225, rounded to $0.23. This rate is published in the USITC Harmonized Tariff Schedule, specifically under HTS code 040520.1000.
Which trade agreements reduce duties for HS 040520?
Several free trade agreements may reduce the applicable duty rate for HS 040520, including the United States-Mexico-Canada Agreement (USMCA), which can result in a duty rate of Free for qualifying goods originating from Canada or Mexico. Additionally, the Generalized System of Preferences (GSP) may offer reduced or Free duty rates for eligible products from certain developing countries. To claim these preferences, a valid Certificate of Origin or a self-certified origin statement is typically required, depending on the specific agreement and jurisdiction.
```Which HS Codes Are Related?
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FAQ
What are the typical import duty rates for HS code 040520 (Dairy spreads) into the United States?
For imports into the United States under HS code 040520, the standard Most Favored Nation (MFN) duty rate is 8.00% ad valorem. However, preferential rates may apply under various trade agreements. For instance, goods originating from Australia under specific provisions might fall under HTSUS 9822.04.10, and those from certain countries under the "Special" category (S+) could be covered by HTSUS 9823.03.01-9823.03.12, potentially offering different duty treatments. It is crucial to consult the latest Harmonized Tariff Schedule of the United States (USITC) for definitive rates and specific country-based provisions.
How is the duty for dairy spreads (HS 040520) calculated when a specific rate per kilogram is applied?
When a duty is calculated based on a specific rate per kilogram, the total duty is the product of the net weight of the imported goods in kilograms and the specified rate per kilogram. For example, if the duty rate is $1.996/kg and you import 100 kg of dairy spread, the calculation would be: 100 kg * $1.996/kg = $199.60. This specific rate is often applied in addition to or instead of an ad valorem rate, depending on the tariff schedule. Always verify the applicable duty calculation method with the relevant customs authority.
What are the classification criteria for products to be classified under HS code 040520 (Dairy spreads)?
HS code 040520 covers 'Dairy spreads'. This typically includes preparations of milk fat, such as butter or margarine, blended with other ingredients like vegetable oils, water, or flavorings, presented in a spreadable form. Key classification criteria often revolve around the primary component (milk fat content), the intended use (spreading), and the absence of significant quantities of other ingredients that would lead to classification in different chapters (e.g., Chapter 15 for certain vegetable oil preparations). The World Customs Organization (WCO) Harmonized System Explanatory Notes provide further guidance on distinguishing these products from other dairy or fat-based preparations.
Which trade agreements commonly offer preferential duty rates for dairy spreads (HS 040520) into the US, and what documentation is needed?
Several trade agreements can provide preferential duty rates for dairy spreads (HS 040520) into the United States. Examples include agreements with countries like Bahrain (BH), Chile (CL), Colombia (CO), Jordan (JO), South Korea (KR), Morocco (MA), Oman (OM), Peru (PE), and Singapore (SG), which may offer 'Free' or reduced duty rates. To claim preferential treatment, importers must typically provide a Certificate of Origin or a declaration of origin from the exporter, certifying that the goods meet the rules of origin stipulated in the respective Free Trade Agreement (FTA). This documentation is essential for customs brokers to correctly claim reduced duties.
Are there any additional duties or charges beyond the ad valorem rate for HS code 040520 in some jurisdictions, such as the EU or UK?
Yes, in some jurisdictions, such as the European Union (EU) or the United Kingdom (UK), HS code 040520 may be subject to additional duties beyond the basic ad valorem rate. For example, the provided sample rates indicate '9.00% + EA'. The '+ EA' typically signifies an 'Additional Duty' or 'Entry Aid' which is an extra charge applied to certain agricultural products to support domestic producers. The exact nature and calculation of 'EA' can vary and must be verified against the specific tariff schedule of the importing country, such as the EU's TARIC database or the UK's Trade Tariff. Importers and customs brokers must carefully review all applicable charges to ensure accurate customs declarations and duty payments.