HS Code:
Goods provided for in subheadings 0402.91.70, 0402.91.90, 0402.99.45, and 0402.99.55 of the Harmonized Tariff Schedule (HTS) of the United States pertain to concentrated milk products, including evaporated and condensed milk, whether or not sweetened, in airtight containers or otherwise. These subheadings fall under Chapter 4, which covers dairy produce. Products in these categories are subject to quantitative limits as specified in U.S. note 9 to this subchapter, which establishes tariff-rate quotas (TRQs) for imports to protect domestic dairy industries while allowing limited market access for foreign producers. These goods are critical in food processing industries and consumer markets for use in baking, confectionery, and other applications.
Total Trade Volume
Approximately 6,800 metric tons
Data from 2022
Source
U.S. International Trade Commission (USITC) and U.S. Customs and Border Protection data
Average Rate
3.2 cents per kilogram
Highest Rate
17.5% ad valorem for over-quota imports under 0402.99.55
Lowest Rate
0.5 cents per kilogram for in-quota imports under specific country allocations
Rising demand for shelf-stable dairy products
Increased imports of concentrated milk products for use in processed foods and beverages, driven by consumer preference for convenience foods.
2021-2022
Shift towards plant-based alternatives
Moderate downward pressure on traditional dairy imports as plant-based condensed and evaporated products gain market share.
2020-2022
Supply chain disruptions
Delays in imports and higher shipping costs have affected trade volumes, particularly from European exporters.
2021-2022
Under the U.S.-Mexico-Canada Agreement (USMCA), Canada has increased access to the U.S. market for dairy products, including concentrated milk, with revised TRQ allocations.
July 2022
Expected to boost Canadian exports to the U.S., potentially displacing some European suppliers.
Ongoing discussions between the EU and U.S. aim to address tariff barriers and quota restrictions for dairy products, including those under subheading 0402.
March 2023
Potential for increased EU market access if agreement is reached, impacting trade volumes from key exporters like the Netherlands and Germany.
The U.S. Food and Drug Administration updated import requirements for dairy products to enhance food safety monitoring, affecting import processes for concentrated milk products.
January 2023
Slight delays in import clearances and increased compliance costs for exporters.