Canadian Nonfat Dry Milk Powder Reallocation from Japan
Nonfat dry milk powder from Canada reallocated to HTS 9823.05.04 under USMCA secondary quota provisions of subchapter note 5(b)(2), originally classifiable in 0402.29.50 range. This overflow mechanism allows additional Canadian dairy imports after primary TRQ limits filled. Used in dry mixes and processed foods.
Duty Rate — Japan → United States
12.5%
Rate breakdown
9903.05.4912.5%Section 301 (forced labor) — Japan (col1 rate < 12.5 percent): MFN < 12.5% → total duty capped at 12.5%
Import Tips
• Track primary quota exhaustion via Federal Register notices to time entries for secondary allocation under 9823.05.04
• Maintain complete supply chain documentation proving Canadian origin from farm to processing facility
• Test for residual fat content (<1.5% allowable) to prevent reclassification from nonfat to whole milk powder categories