HS Code:
The goods provided for in subheadings 0401.50.75, 0402.21.90, 0403.90.65, 0403.90.78, 0405.10.20, 0405.20.30, 0405.90.20, 2106.90.26, and 2106.90.36 cover various dairy products including cream, milk powder, buttermilk, butter, dairy spreads, other fats and oils derived from milk, and certain prepared edible products containing dairy. These subheadings fall under Chapter 4 (Dairy Produce) and Chapter 21 (Miscellaneous Edible Preparations) of the Harmonized System (HS) Code. These products are subject to quantitative limits as specified in U.S. note 5 to the relevant subchapter, often related to tariff-rate quotas (TRQs) for dairy imports into the United States. This category is critical for the global dairy trade, involving strict regulatory oversight due to health standards, market protection policies, and trade agreements.
Total Trade Volume
Approximately $8.5 billion USD
Data from 2022
Source
United Nations Comtrade Database and U.S. International Trade Commission (USITC)
$2.1 billion USD
24.7% of total trade
Increasing
$1.8 billion USD
21.2% of total trade
Stable
$1.2 billion USD
14.1% of total trade
Increasing
$900 million USD
10.6% of total trade
Stable
$600 million USD
7.1% of total trade
Decreasing
Average Rate
Approximately 15.3% ad valorem
Highest Rate
Up to 65 cents per kg + 8.5% ad valorem for over-quota imports (e.g., butter under 0405.10.20)
Lowest Rate
3.2% ad valorem for in-quota imports under certain trade agreements (e.g., USMCA)
Growing demand for organic and specialty dairy products
Increased exports of value-added dairy products from countries like New Zealand and the EU to meet consumer preferences in the U.S. market
2021-2022
Fluctuations in global milk production due to climate impacts
Supply shortages in key exporting regions have led to price volatility and shifts in trade patterns, affecting import volumes under TRQs
2022
Strengthening of regional trade agreements
Agreements like USMCA have facilitated increased dairy trade with Canada and Mexico, impacting quota allocations and tariff structures
2020-2022
The United States, Mexico, and Canada agreed to revised dairy TRQ allocations under the USMCA, increasing access for Canadian dairy products into the U.S. market.
January 2023
Expected to increase Canadian dairy imports by 5-10% over the next two years, potentially affecting domestic U.S. dairy producers.
A temporary resolution on dairy tariffs was reached, reducing retaliatory tariffs on certain EU dairy products entering the U.S., pending further negotiations.
October 2022
Likely to stabilize trade volumes from the EU, benefiting U.S. consumers with more competitive pricing on specialty dairy items.
New Zealand reported a record export volume of butter and milk powder to the U.S. under existing TRQs, driven by favorable production conditions.
March 2023
Increased competition for domestic U.S. dairy producers and potential oversaturation of certain product categories in the market.