Duty Rates
General (Column 1 - MFN)
This rate follows a special calculation or is subject to specific conditions.
What HTS 0405.90.05.20 Covers
This code covers anhydrous milk fat, often sold as anhydrous butteroil or AMF, which is butter with virtually all water and milk solids removed to yield essentially pure milk fat. It is used industrially in chocolate, baked goods, ice cream and recombined dairy products. It falls under heading 0405, which covers butter and other fats and oils derived from milk.
Notes for Importers
Regular butter classifies separately under 0405.10, and dairy spreads under 0405.20, so confirm the fat and moisture content before choosing this code. Anhydrous milk fat is subject to US dairy tariff-rate quota rules, so the applicable line can depend on quota status and licensing. Ghee is closely related and importers should verify which provision applies to their specific product.
Product Category
Live Animals & Animal Products
This chapter covers live animals, meat, fish, dairy products, eggs, honey, and other animal-derived products.
Classification Details
| Field | Value |
|---|---|
| HTS Code | 0405.90.05.20 |
| Description | Anhydrous milk fat |
| Chapter | 4 - Live Animals & Animal Products |
| General Duty Rate | |
| Rate Type | Other |
| Special Rates |
Related HTS Codes
Other tariff codes under the same heading:
- 0405.10.05.00 — Described in general note 15 of the tariff schedule and entered pursuant to its provisions
- 0405.10.10.00 — Described in additional U.S. note 6 to this chapter and entered pursuant to its provisions
- 0405.10.20.00 — Other
- 0405.20.10.00 — Described in general note 15 of the tariff schedule and entered pursuant to its provisions
- 0405.20.20.00 — Described in additional U.S. note 14 to this chapter and entered pursuant to its provisions
- 0405.20.30.00 — Other
- 0405.20.40.00 — Other
- 0405.20.50.00 — Described in general note 15 of the tariff schedule and entered pursuant to its provisions
Frequently Asked Questions
What is the difference between butter and anhydrous milk fat for classification?
Butter contains water and milk solids and classifies under 0405.10. Anhydrous milk fat is nearly 100 percent milk fat with the water and solids removed, which places it in the 0405.90 provisions instead.
Is anhydrous milk fat subject to dairy import quotas?
Yes, US imports of butter substitutes and butteroil are managed under tariff-rate quota provisions, and the treatment depends on whether the shipment enters within or outside the quota. Check current quota status and licensing requirements before shipping.
Does this code cover ghee?
Ghee is a clarified milk fat product very similar to anhydrous milk fat and is classified within heading 0405. Whether it falls on this exact line depends on its composition, so verify moisture and fat content against the tariff terms.
What is the HTS code 0405.90.05.20 used for?
HTS code 0405.90.05.20 is the harmonized tariff schedule code for Anhydrous milk fat. This code is used to classify and identify this product type for customs clearance, duty calculation, and trade statistics.
What is the Column 2 rate for HTS 0405.90.05.20?
The Column 2 rate is the tariff duty rate applicable to goods from countries that do not have normal trade relations with the United States. This rate is typically higher than Column 1 (Most Favored Nation) rates and is rarely used in modern trade due to most-favored-nation agreements.
Do I need a customs broker to import goods classified under HTS 0405.90.05.20?
While not always required, using a licensed customs broker is highly recommended for most imports. A customs broker can help ensure proper HTS classification, prepare customs documentation, pay duties correctly, and avoid delays or penalties. Your broker should be familiar with Live Animals & Animal Products products.
Which countries receive special tariff rates for HTS 0405.90.05.20?
Multiple free trade agreements and trade preference programs provide reduced or free tariffs for eligible HTS classifications. Common programs include USMCA (Canada, Mexico), various bilateral FTAs (Korea, Australia, Singapore), GSP for developing countries, and AGOA for eligible African nations. Check the special rates section on this page.
How does HTS code 0405.90.05.20 affect my import costs?
The HTS code determines the applicable duty rate (either free or a percentage/specific amount), whether your product qualifies for trade agreement benefits, any quota restrictions, and special documentation requirements. Proper classification directly impacts your import expenses, so verify the correct code with your supplier or a customs professional.