HS 040630 Processed cheese, not grated or powdered

Import duty rates for HS code 040630 vary significantly by country. For example:

• United States: The standard Most Favored Nation (MFN) rate is $1.443 per kg. However, preferential rates may apply under certain trade agreements, such as Free entry for goods from Bahrain (BH), Chile (CL), Jordan (JO), South Korea (KR), Morocco (MA), Oman (OM), Peru (PE), and Singapore (SG). Specific tariff rate quotas (TRQs) or special provisions may also exist, indicated by codes like 9822.04.45 (Australia - AU), 9908.04.05 (Israel - IL), 9918.04.50/9918.04.53 (Colombia - CO), and 9919.04.50/9919.04.52/9919.04.62 (Panama - PA). Always consult the latest US HTSUS for precise rates and conditions.
• United Kingdom: The duty is typically 121.00 GBP per 100 kg. Preferential rates may apply under the UK's trade agreements.
• European Union: Rates can range, for instance, from 215.00 EUR per 100 kg to 144.90 EUR per 100 kg, depending on specific product characteristics and origin. Consult the EU's TARIC database for the most accurate and up-to-date information.

Importers and brokers must verify the specific duty rate applicable to their shipment based on the country of origin and the importing country's tariff schedule.

The duty calculation for HS 040630 often involves a combination of specific duty (per unit of weight) and ad valorem duty (percentage of value), or sometimes just one type. For example, if a shipment of processed cheese from a country subject to the standard US MFN rate of $1.443/kg arrives, and the shipment weighs 1,000 kg, the duty would be calculated as follows:

Duty = Rate × Quantity Duty = $1.443/kg × 1,000 kg Duty = $1,443.00

In other jurisdictions, like the UK, the rate might be 121.00 GBP per 100 kg. For a shipment of 500 kg:

Duty = (Rate per 100 kg / 100 kg) × Quantity Duty = (121.00 GBP / 100 kg) × 500 kg Duty = 1.21 GBP/kg × 500 kg Duty = 605.00 GBP

Always confirm the exact duty calculation basis (e.g., per kg, per 100 kg, or ad valorem percentage) and the applicable rate from the relevant customs authority's tariff schedule.

HS code 040630 specifically covers 'Processed cheese, not grated or powdered'. Key classification criteria include:

1. Processing Method: The product must be made by melting natural cheese (alone or with other cheeses) with the addition of emulsifying salts (such as sodium citrate, potassium citrate, or disodium phosphate). This process alters the cheese's structure and melting properties.
2. Form: The product must not be in grated or powdered form. It is typically sold in blocks, slices, or spreads.
3. Ingredients: While the primary ingredient is cheese, other permitted ingredients like milkfat, milk solids, water, and flavorings may be present. However, the product must retain the characteristics of cheese.
4. Exclusions: This code excludes natural cheese (Chapter 0406, subheadings 0406.10 to 0406.90), grated or powdered processed cheese (which would fall under a different subheading, typically 0406.90), and cheese preparations (like cheese sauces or dips) that are not primarily processed cheese.

Accurate classification relies on understanding the manufacturing process and the final product's presentation.

Importing processed cheese (HS 040630) generally requires standard customs documentation, plus specific certifications related to food products. Essential documents often include:

1. Commercial Invoice: Detailing the seller, buyer, quantity, description, and value of the goods.
2. Bill of Lading or Air Waybill: Proof of shipment.
3. Packing List: Itemizing the contents of each package.
4. Certificate of Origin: To determine applicable duty rates and trade agreement benefits.
5. Import Permit/License: Depending on the importing country's regulations for dairy products.
6. Health Certificate/Phytosanitary Certificate: Issued by the competent authority of the exporting country, certifying that the product is safe for human consumption and meets health standards.
7. FDA Registration (for US imports): If applicable, ensuring the facility complies with U.S. Food and Drug Administration requirements.
8. Laboratory Analysis Report: May be requested to verify composition and compliance with standards.

Importers and customs brokers should consult the specific import requirements of the destination country well in advance of shipment.

Trade agreements can significantly reduce or eliminate import duties for HS code 040630, provided the processed cheese originates from a country party to the agreement and meets the agreement's rules of origin. For example:

• USMCA (United States-Mexico-Canada Agreement): Processed cheese originating from Canada or Mexico may benefit from preferential duty rates, potentially leading to duty-free entry if all origin criteria are met. This requires a valid Certificate of Origin.
• EU Free Trade Agreements: The EU has numerous FTAs with countries like Canada, Japan, and South Korea. Processed cheese originating from these partner countries may be eligible for reduced or zero duties under the respective agreements, subject to strict rules of origin.
• Other Bilateral Agreements: As seen in the US example, agreements with countries like Chile, South Korea, and Morocco often provide preferential access.

To claim preferential treatment, importers must possess the required proof of origin documentation (e.g., Certificate of Origin) and ensure the product strictly adheres to the specific rules of origin outlined in the trade agreement. These rules often involve regional value content (RVC) requirements or specific origin processes. Consulting the text of the relevant trade agreement and the importing country's customs guidance is crucial.