HS 220820 Spirits obtained by distilling grape wine or grape marc

Duty rates for HS 2208.20 vary significantly by importing country and any applicable trade agreements. For example, the United States applies a Most Favored Nation (MFN) duty rate of $2.35 per proof liter. However, under certain free trade agreements, the duty rate can be 'Free'. The European Union's TARIC database typically shows a 0.00% ad valorem duty rate for imports from most MFN countries, though excise duties apply separately. The UK Global Tariff also generally lists a 0.00% ad valorem duty rate for this heading. Importers should always verify the specific duty rate applicable to their country of origin and destination via the official tariff databases (e.g., USITC HTS, EU TARIC, UK Trade Tariff).

HS 2208.20 specifically covers 'Spirits obtained by distilling grape wine or grape marc'. The critical classification criteria are: 1) The spirit must be derived from grapes, either through the distillation of grape wine (e.g., brandy, Cognac, Armagnac) or the distillation of grape marc (e.g., grappa, pisco). 2) The alcoholic strength must typically be 80% volume or less, as spirits with higher strengths are generally classified under HS 2207. This heading excludes spirits obtained from other fruits (e.g., apple brandy under 2208.90) or grain-based spirits (e.g., whisky under 2208.30). The World Customs Organization (WCO) Explanatory Notes for Chapter 22 provide detailed guidance on these distinctions.

Beyond standard commercial invoices, packing lists, and bills of lading/air waybills, importing spirits under HS 2208.20 often requires specific documentation due to excise taxes and regulatory controls. This typically includes: 1) Certificates of Origin, especially to claim preferential duty rates under free trade agreements. 2) Age certificates or statements for aged spirits (e.g., Cognac, Armagnac). 3) Laboratory analysis reports confirming alcoholic strength and composition. 4) Health or sanitary certificates, depending on the importing country's food and beverage regulations. 5) Brand registration and label approval documentation, as many countries require pre-market approval for alcoholic beverages. Importers should consult the specific import requirements of the destination country's customs and alcohol regulatory authorities (e.g., TTB in the US, HMRC in the UK).

Numerous trade agreements can provide preferential duty treatment for spirits under HS 2208.20, often resulting in a 'Free' duty rate. Examples include: 1) The United States-Mexico-Canada Agreement (USMCA) for trade between these countries. 2) Various Free Trade Agreements (FTAs) the EU has with third countries (e.g., EU-Japan EPA, EU-South Korea FTA). 3) The UK's network of trade agreements post-Brexit (e.g., UK-Australia FTA, UK-Japan CEPA). 4) Regional agreements such as MERCOSUR or the African Continental Free Trade Area (AfCFTA). To claim preferential rates, importers must ensure the product meets the Rules of Origin specified in the respective agreement and provide a valid Certificate of Origin or origin declaration. Failure to meet these rules will result in the application of the MFN duty rate.