HS 240499 Other

For products classified under Harmonized System (HS) subheading 2404.99 ('Other' nicotine-containing products intended for inhalation without combustion, and other nicotine-containing products intended for the uptake of nicotine into the human body), the Most Favored Nation (MFN) duty rate in the United States is 6.50% ad valorem. However, many countries benefit from preferential duty treatment. For example, imports from countries eligible for Generalized System of Preferences (GSP) (indicated by 'A+' or 'A' in the HTSUS), Australia (AU), Bahrain (BH), Chile (CL), Colombia (CO), Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) countries (D), El Salvador (E), Israel (IL), Jordan (JO), Korea (KR), Morocco (MA), Oman (OM), Panama (PA), Peru (PE), Singapore (SG), and others may be 'Free' (0% ad valorem) under specific trade agreements or preference programs. Importers should consult the latest Harmonized Tariff Schedule of the United States (HTSUS) and verify the country of origin to determine eligibility for preferential rates.

HS 2404.99 covers 'Other' nicotine-containing products intended for inhalation without combustion, and other nicotine-containing products intended for the uptake of nicotine into the human body, not elsewhere specified in heading 2404. This subheading is a residual category for nicotine products that do not fall under 2404.11 (for oral use), 2404.12 (for transdermal absorption), or 2404.19 (other, for therapeutic or prophylactic uses). Key classification criteria focus on the presence of nicotine, the intended method of nicotine uptake (e.g., inhalation without combustion, oral, transdermal), and whether the product is specifically designed for therapeutic or prophylactic purposes. Products like certain nicotine pouches, lozenges, or other novel nicotine delivery systems that are not for therapeutic use and do not involve combustion would typically fall here if not specifically covered elsewhere in 2404. Classification should always be guided by the General Rules of Interpretation (GRIs) and relevant WCO Explanatory Notes.

Importers of products under HS 2404.99 must generally provide standard customs documentation, including a commercial invoice, packing list, and bill of lading or air waybill. Additionally, due to the nature of these products, specific regulatory compliance documentation may be required. In the United States, products containing nicotine are regulated by the Food and Drug Administration (FDA). Importers may need to comply with FDA regulations, which could include submitting prior notice, ensuring product labeling meets FDA standards, and potentially providing evidence of FDA approval or compliance with premarket authorization requirements, depending on the specific product. For preferential duty treatment, a valid Certificate of Origin (e.g., USMCA Certificate of Origin, GSP Form A) or a declaration of origin may be required to substantiate claims for reduced or free duties. Importers should verify all applicable FDA and customs requirements prior to importation.

Several major trade agreements and preference programs offer preferential (often 'Free' or 0% ad valorem) duty rates for products classified under HS 2404.99, provided the goods meet the respective rules of origin. Examples include: the United States-Mexico-Canada Agreement (USMCA), which provides duty-free treatment for qualifying goods from Mexico and Canada; various Free Trade Agreements (FTAs) with countries such as Australia, Chile, Colombia, Israel, Jordan, Korea, Morocco, Oman, Panama, Peru, and Singapore; and the Generalized System of Preferences (GSP) for eligible developing countries. To benefit from these preferential rates, importers must ensure the goods originate in the partner country according to the specific agreement's rules of origin and possess the necessary documentation, such as a valid Certificate of Origin or a compliant declaration. Customs brokers can assist in verifying eligibility and preparing the required documentation to claim these benefits, leading to significant cost savings on import duties.