HS Code for Butter

Introduction to HS Codes and Butter Classification

When it comes to international trade of dairy products, understanding the correct Harmonized System (HS) code for butter is crucial. The HS code system, developed by the World Customs Organization, provides a standardized method for classifying traded products. For dairy exporters and importers, especially those dealing with butter and other high-fat dairy products, knowing the correct HS code is essential for smooth customs processes and accurate tariff calculations.

Recent data from the International Dairy Federation shows that global butter production reached 11.5 million tonnes in 2022, with international trade in butter and butterfat continuing to grow. This highlights the importance of accurate HS code classification for this significant dairy commodity.

Understanding the HS Code for Butter

Butter falls under Chapter 4 of the Harmonized System, which covers "Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included". The specific HS code for butter is:

HS Code: 0405.10

This code specifically refers to butter and other fats and oils derived from milk. It's important to note that this classification includes:

• Natural butter
• Recombined butter
• Whey butter

The key factor in classifying a product under this HS code is its milk fat content. To be classified as butter, the product must have a milk fat content of 80% or more but not more than 95% by weight.

Subcategories and Variations

While 0405.10 is the primary HS code for butter, there are subcategories that further specify the type of butter:

• 0405.10.10: Natural butter
• 0405.10.20: Recombined butter
• 0405.10.30: Whey butter

These subcategories help in more precise classification and may be subject to different tariffs or regulations depending on the importing country.

Importance of Correct HS Code Classification

Accurate HS code classification for butter is crucial for several reasons:

1. Tariff Determination: Different dairy products may be subject to varying import duties. Using the correct HS code ensures appropriate tariff application.
2. Regulatory Compliance: Some countries have specific regulations for butter imports, which are tied to the HS code.
3. Trade Statistics: Correct classification contributes to accurate international trade data, which is vital for market analysis and policy-making.
4. Trade Agreements: Preferential treatment under trade agreements often depends on the HS code of the product.

Challenges in Butter HS Code Classification

While the HS code for butter seems straightforward, there can be challenges in classification:

• Butter Blends: Products that are butter-like but contain other ingredients may fall under different HS codes.
• Fat Content Variations: Products with milk fat content below 80% are not classified as butter under HS 0405.10.
• Specialized Butter Products: Flavored or processed butter products might require different classification.

Related HS Codes in the Dairy Sector

For a comprehensive understanding, it's helpful to know related HS codes in the dairy sector:

• 0401: Milk and cream, not concentrated nor containing added sugar or other sweetening matter
• 0402: Milk and cream, concentrated or containing added sugar or other sweetening matter
• 0403: Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream
• 0404: Whey and products consisting of natural milk constituents
• 0405.20: Dairy spreads
• 0405.90: Other fats and oils derived from milk

The Role of FreightAmigo in Simplifying Butter Exports

At FreightAmigo, we understand the complexities involved in international dairy trade, especially when it comes to high-fat products like butter. Our digital logistics platform is designed to streamline the export process for dairy producers and traders. Here's how we can assist:

1. HS Code Verification: Our system helps verify the correct HS code for your butter products, ensuring compliance with international standards.
2. Custom Clearance Assistance: We provide support in navigating the customs clearance process, which is crucial for perishable dairy products like butter.
3. Temperature-Controlled Logistics: Our network includes carriers specializing in temperature-controlled transportation, essential for maintaining butter quality during shipping.
4. Documentation Automation: We help automate the creation and management of necessary export documents, reducing errors and saving time.
5. Real-Time Tracking: Our platform offers real-time tracking of butter shipments, crucial for managing the supply chain of perishable goods.

By leveraging FreightAmigo's digital logistics solutions, butter exporters can ensure smoother international transactions, reduce compliance risks, and optimize their supply chain efficiency.

Conclusion

Understanding and correctly applying the HS code for butter (0405.10) is crucial for anyone involved in the international trade of this essential dairy product. It ensures compliance with customs regulations, accurate tariff applications, and smooth international trade operations. As the global butter market continues to grow, the importance of precise HS code classification cannot be overstated.

For businesses looking to navigate the complexities of international dairy trade, particularly in high-fat products like butter, FreightAmigo's digital logistics platform offers comprehensive solutions. From HS code verification to temperature-controlled logistics and real-time tracking, we provide the tools and expertise needed to streamline your butter export operations.

Remember, in the world of international trade, knowledge is power. Staying informed about HS codes and leveraging advanced digital logistics solutions can give your dairy business a significant competitive edge in the global marketplace.

References

1. World Customs Organization, "HS Nomenclature 2022 Edition", https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition.aspx

2. International Dairy Federation, "The World Dairy Situation 2022", https://fil-idf.org/news_insights/the-world-dairy-situation-2022/