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2022 HTS Paper: Part 2 (Fats and Oils, Food Preparations and Tobacco)

January 24, 2022 by Brian Feito|White Paper

Olive Oil Gets New Classification Scheme; New Provisions for Extra Virgin

Olive oil is given a new classification framework in the 2022 Harmonized Tariff Schedule. Provisions in heading 1509 for organic olive oil are removed, and olive oil is now classified at the six-digit level by whether it is extra virgin, virgin or “other.”

Heading 1509 is now divided into six-digit provisions 1509.20 for extra virgin olive oil, 1509.30 for virgin olive oil, and 1509.40 for “other virgin” olive oils, with provisions for “other,” non-virgin olive oil under 1509.90 unchanged.

New subheading note 1 to Chapter 15 is added to distinguish between virgin and “other virgin” olive oils. It says that, “for the purposes of subheading 1509.30, virgin olive oil has a free acidity expressed as oleic acid not exceeding 2.0 g/100 g and can be distinguished from the other virgin olive oil categories according to the characteristics indicated in the Codex Alimentarius Standard 33-1981.”

Each of these six-digit provisions is in turn divided by container size. As in the previous classification scheme, the dividing line is whether the oil weighs with the immediate container under 18 kg:

Olive pomace oil. Crude olive pomace oil, not classifiable in heading 1509 because it is produced using solvents, is given its own tariff breakout in heading 1510. New subheading 1510.10.10 covers pomace oil in containers under 18 kg, dutiable at 5¢/kg, and in subheading 1510.10.90, dutiable at 3.4¢/kg, if in larger containers.

Provisions in heading 1510 for “other” olive oils not classifiable in heading 1509 are renumbered 1510.90.10 if rendered unfit for use as food, and 1510.90.20 and 1510.90.90 if not, depending on if imported in containers under or over 18 kg, respectively.

Microbial Oils Now Classified in Chapter 15

For the first time, microbial fats and oils are given a home in the tariff schedule. Separate provisions for microbial fats are now included under tariff headings 1515 and 1516, and microbial fats are also added to the terms of headings 1517 and 1518 and classifiable under their residual provisions if they otherwise meet the terms of the headings. Mentions of microbial fats are also added elsewhere in the tariff schedule, including in various notes, headings and subheadings in chapters 23, 27, 34, 38 and 84 that previously covered only animal and vegetable fats.

Microbial fats added to headings 1515-1519. Heading 1515 now refers to “other fixed vegetable or microbial fats and oils; heading 1516 to “animal, vegetable or microbial fats or oils” if hydrogenated, interesterified, reesterified or elaidinized; heading 1517 to mixtures or preparations of animal, vegetable or microbial fats; and 1518 to “animal, vegetable or microbial fats” that have been “boiled, oxidized, dehydrated, sulfurized, blown, polymerized by heat” or otherwise chemically modified, as well as inedible mixtures of animal, vegetable or microbial fats. All four headings had previously referred only to animal and vegetable fats.

Two new subheadings specifically describe microbial fats. New subheading 1515.60.05 is added to the tariff schedule for “microbial fats and oils and their fractions” otherwise classifiable in heading 1515, dutiable at 3.2%. Likewise, new subheading 1515.30.00 is added for hydrogenated, interesterified, reesterified or elaidinized microbial fats and oils, dutiable at 8.8%.

Section and chapter titles changed. The title of Section III of the tariff schedule, which includes only Chapter 15, is renamed to refer to “animal, vegetable or microbial fats and oils.” Previously it had referenced only animal and vegetable fats and oils. The same change is made to Chapter 15, which now refers to animal, vegetable or microbial fats and oils in its title.

Microbial fats added throughout tariff schedule. Tariff provisions throughout the tariff schedule that mention animal and vegetable fats are also changed to reflect the addition of microbial fats to the HTS. Affected provisions include:

Provisions for Food Preparations of Insects Added to Chapter 16

As it does in Chapter 4 for edible insects, the 2022 tariff schedule also provides for the first time for food preparations made from insects in chapter 16.

Chapter name, notes now refer to insects. The name of Chapter 16 is amended so that it now refers to “Preparations of Meat, of Fish, of Crustaceans, Molluscs or Other Aquatic Invertebrates, or of Insects.”

Relevant notes to Chapter 16 are also updated. Note 1 to chapter 16 now also says it does not cover insects prepared or reserved by the processes specified in chapters 2 or 3, note 6 to chapter 4 or in heading 0504. Note 2 to chapter 16 now also explains that food preparations fall in the chapter if they contain more than 20% by weight of insects, and also now includes insects in its explanation of how to classify preparations containing two or more of sausage, meat, meat offal, blood, insect, fish, crustacean, mollusc or other aquatic invertebrate components. Subchapter note 1 to Chapter 16 now includes insects in its definition of homogenized preparations for the purposes of subheading 1602.10, and says sch preparations may contain a small quantity of visible pieces of insects.

For each of those notes, language on treatment of meat and seafood remain unchanged.

Insect sausages, other preparations now classifiable in headings 1601 and 1602. The text of headings 1601 and 1602 are also modified to clarify that insect sausages may be classified in heading 1601, and that other prepared or preserved insects are classifiable alongside meat, meat offal and blood. Heading 1601 now covers, “Sausages and similar products, of meat, meat offal, blood or insects; food preparations based on these products.” Heading 1602 is modified to say it covers “Other prepared or preserved meat, meat offal, blood or insects.”

Notes modified in other chapters. Notes to other chapters are modified as well to reflect classification of insect preparations in Chapter 16. Note 1 to Chapter 18 now says the chapter doesn’t cover food preparations containing more than 20% by weight of insects. Note 1(a) to Chapter 19 says the same, except for stuffed products of heading 1902, as does Note 1(b) to Chapter 20 (which is now 1(c) because of an unrelated change). Note 1(e) of Chapter 21 is changed so it says the chapter doesn’t cover preparations of insects, except of headings 2103 and 2104.

Note Added to Clarify Vegetable Oils Classified in Chapter 15

New Note 1(b) to Chapter 20 is added to clarify that vegetable fats and oils are not classifiable in that chapter, and are instead classified in Chapter 15.

Nut Juices, Including Coconut Water, Now in Heading 2009; Unfortified Language Removed

The text of heading 2009 is amended so that it now covers nut juices, in addition to fruit and vegetable juices. A specific reference to coconut water is also added to the heading. The heading’s previous restriction that the juice not be “fortified with vitamins or minerals” is removed from the text of the heading.

The superior text to subheadings 2009.81 through 2009.89 is also amended so that it now refers to “juice of any other single fruit, nut or vegetable.” Previously it had referred to only fruit and vegetable juice.

Conforming changes are made elsewhere in the tariff schedule. Heading 2202 is amended to clarify it doesn’t cover fruit, nut or vegetable juices of heading 2202, instead of just fruit and vegetable juices.

Vaping and Other Tobacco Delivery Devices Given New Heading in Chapter 24

New provisions for e-cigarettes, vaping devices and other products intended for inhalation without combustion, as well as other products intended for the intake of nicotine, are added to Chapter 24 under new heading 2404.

New heading covers e-cigarettes, nicotine gums and patches. The new heading covers “Products containing tobacco, reconstituted tobacco, nicotine, or tobacco or nicotine substitutes, intended for inhalation without combustion; other nicotine containing products intended for the intake of nicotine into the human body.”

Heading 2404 is divided into four major categories. The first is for products intended for inhalation without combustion that contain tobacco (2404.11.00, 24.7¢/kg). The second and third are for products intended for inhalation without combustion that contain nicotine but not tobacco (2404.12.05 (6.5%), 2404.12.10 (5%) or 2404.12.90 (6.5%)), or neither nicotine nor tobacco (2404.19.05 (6.5%), 2404.19.10 (5%) or 2404.19.90 (24.7¢/kg)). These second and third categories are subdivided based on whether they are mixtures for personal vaporizing devices (if not, 2404.XX.90) and, if so, whether they contain 5% more of aromatics (2404.XX.05) or not (2404.XX.10).

The final, residual “other” category includes subheadings for nicotine containing products for oral application (2404.91.00, 6.4%), for transdermal application (2404.92.00, 5%), and “other” (2404.99.00, 5%).

New notes to Chapter 24 clarify classification. New notes are added to Chapter 24 to clarify classification of the goods newly classifiable in heading 2404. Note 2 to Chapter 24 says that “any products classifiable in heading 2404 and any other heading of the chapter are to be classified in heading 2404.”

New note 3 to Chapter 24 defines “inhalation without combustion” as “inhalation through heated delivery or other means, without combustion.”

Section IV, Chapter 24 titles changed. The title of Section IV of the tariff schedule, which includes Chapters 16-24, as well as the title of Chapter 24, are changed to tack on the following: "Products, Whether or Not Containing Nicotine, Intended for Inhalation Without Combustion; Other Nicotine Containing Products Intended for The Intake of Nicotine Into the Human Body.”

Other chapter notes reflect new classification. Notes to other chapters are also modified to reflect the new classification scheme. Note 1(f) is added to Chapter 21 to say products of heading 2404 are not classifiable in that chapter. Note 1(b) to Chapter 30 is amended to exclude products “containing nicotine and intended to assist tobacco use cessation” (previously it had excluded products “intended to assist smokers to stop smoking"). It now also says such goods should be classified in heading 2404 rather than 2106 or 3824. New note 1(c) to Chapter 38 is added to say that products of heading 2404 aren’t classifiable in that chapter.

Other subheadings renumbered. Subheadings that see these products carved out under the new classification scheme are renumbered. Subheading 2106.90.98 is renumbered 2106.90.99; 2403.99.20 is renumbered 2403.99.21; 2403.99.30 is renumbered 2403.99.31; and 3824.99.28 is renumbered 3824.99.29.