HS 180620 Other preparations in blocks, slabs or bars weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg

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What products does HS 180620 cover?

This subheading covers chocolate and other food preparations containing cocoa, presented in bulk forms. Specifically, it includes products in blocks, slabs, or bars exceeding 2 kilograms, or in liquid, paste, powder, granular, or other bulk forms, when packed in containers or immediate packings with a content exceeding 2 kilograms. This classification is guided by the Explanatory Notes to the Harmonized System Nomenclature (WCO) and the definitions provided by official tariff schedules like the USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database, which emphasize the weight or volume threshold for bulk presentation.

What falls outside HS 180620?

The following products are excluded from HS 180620: chocolate and other food preparations containing cocoa in smaller retail packings (typically under 2 kg), individual confectionery items, and products where cocoa is not the predominant ingredient by weight. For instance, chocolate-flavored biscuits or cakes, even if in bulk, would generally be classified under their respective headings for biscuits (e.g., 1905) or cakes (e.g., 1905), as per General Interpretative Rule 1 of the Harmonized System.

What are common classification mistakes for HS 180620?

A common error is misinterpreting the "bulk form" and "content exceeding 2 kg" criteria. Importers may incorrectly classify smaller retail-sized units aggregated into a larger shipping container as falling under this subheading. It is crucial to assess the net weight of the individual product units or the immediate packing, not the gross weight of the outer shipping carton. Misapplication of General Interpretative Rule 3(b) can also lead to errors when multiple ingredients are present, potentially classifying a compound product incorrectly.

How should importers classify products under HS 180620?

The correct procedure for classifying products under HS 180620 involves a two-step analysis: first, confirm that the product is a food preparation containing cocoa. Second, verify that the presentation is either in blocks, slabs, or bars weighing more than 2 kg, or in liquid, paste, powder, granular, or other bulk form, with the immediate packing containing more than 2 kg. Importers and customs brokers should consult the specific Explanatory Notes and national tariff rulings for definitive guidance, ensuring the net weight of the immediate container exceeds the 2 kg threshold.

How is the duty calculated for products under HS 180620?

A 500 kg shipment of bulk unsweetened cocoa powder, declared at a customs value of $2,500 USD, would attract a US duty of $250.00. This is calculated using the Most Favored Nation (MFN) rate of 10% ad valorem, applied to the declared value ($2,500 USD × 10% = $250.00). This calculation is based on the MFN rate published in the USITC Harmonized Tariff Schedule (HTS) for HS code 1806.20.9000, which covers other bulk cocoa preparations.

Which trade agreements reduce duties for HS 180620?

Several free trade agreements may reduce the applicable duty rate for HS 180620, including the United States-Mexico-Canada Agreement (USMCA) and the Generalized System of Preferences (GSP) for eligible developing countries. Under USMCA, originating products from Canada and Mexico may receive duty-free treatment. For GSP beneficiaries, preferential rates can be as low as Free. Documentation required typically includes a USMCA certification of origin or a GSP Form A, depending on the origin country and the specific tariff schedule of the importing country.

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