HS code for non-dairy milk beverages in tetra packs

Introduction to Non-Dairy Milk Beverages and HS Codes

In recent years, the global market has witnessed a surge in the popularity of non-dairy milk beverages. As more consumers embrace plant-based alternatives, the demand for these products packaged in convenient tetra packs has skyrocketed. However, for businesses involved in the international trade of these items, understanding the correct Harmonized System (HS) code is crucial. This article delves into the world of HS codes for non-dairy milk beverages in tetra packs, exploring the challenges and implications for global trade.

The rise of non-dairy milk alternatives has been nothing short of remarkable. According to recent market research, the global plant-based milk market is expected to reach $21.52 billion by 2024, growing at a CAGR of 10.18% from 2019 to 2024. This growth is driven by factors such as increasing lactose intolerance, ethical concerns about animal welfare, and a growing preference for plant-based diets.

As we navigate the complexities of international trade in this booming sector, understanding HS codes becomes paramount. These codes, which form the foundation of the global tariff system, play a crucial role in determining customs duties, trade statistics, and regulatory compliance.

Understanding HS Codes

Before we delve into the specific HS code for non-dairy milk beverages in tetra packs, let's first understand what HS codes are and why they are essential in international trade.

HS codes, or Harmonized System codes, are standardized numerical codes used to classify traded products. Developed by the World Customs Organization (WCO), these codes are used by customs authorities around the world to identify products when assessing duties and taxes and for gathering statistics.

The HS code system is hierarchical, typically consisting of six digits. The first two digits represent the chapter, the next two represent the heading, and the last two represent the subheading. Some countries may add additional digits for further classification, but the first six digits are internationally standardized.

Challenges in Classifying Non-Dairy Milk Beverages

When it comes to non-dairy milk beverages in tetra packs, classification can be tricky. These products sit at the intersection of several categories, which can lead to confusion and potential misclassification. Here are some of the challenges:

1. Diverse Ingredients: Non-dairy milk can be made from a variety of plant sources, including soy, almond, oat, coconut, and rice. Each of these may fall under different HS codes.
2. Processing Methods: The level of processing and added ingredients can affect classification.
3. Intended Use: Whether the product is meant for direct consumption or further processing can impact its HS code.
4. Packaging: The fact that these beverages are in tetra packs adds another layer of complexity to the classification process.

HS Code for Non-Dairy Milk Beverages in Tetra Packs

Despite the challenges, most non-dairy milk beverages in tetra packs typically fall under the following HS code:

HS Code: 2202.99

This code falls under Chapter 22 (Beverages, spirits and vinegar), heading 22.02 (Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavored, and other non-alcoholic beverages, not including fruit or vegetable juices of heading 20.09).

The subheading 2202.99 covers "Other" beverages under this category, which typically includes plant-based milk alternatives.

However, it's important to note that classification can vary depending on the specific product and the importing country's regulations. For instance:

• Soy milk might be classified under 2202.99 in some countries, but under 2202.91 (Non-alcoholic beer) in others.
• Some countries might classify certain plant-based milks under 2106.90 (Food preparations not elsewhere specified or included) if they consider them more as food products than beverages.

Global Trade Implications

The correct classification of non-dairy milk beverages in tetra packs has significant implications for global trade:

1. Tariffs and Duties: Different HS codes can attract different tariff rates, directly impacting the cost of importing or exporting these products.
2. Trade Agreements: Preferential trade agreements often use HS codes to determine which products qualify for reduced tariffs.
3. Import/Export Regulations: Certain HS codes may be subject to specific regulations, such as health and safety standards or labeling requirements.
4. Trade Statistics: Accurate classification ensures reliable trade statistics, which are crucial for market analysis and policy-making.

Case Studies: HS Code Challenges for Non-Dairy Milk Beverages

To illustrate the complexities involved in classifying non-dairy milk beverages, let's look at a few case studies:

Case Study 1: Almond Milk in the EU

In 2017, the European Union faced a classification dilemma with almond milk. Some member states were classifying it under HS code 2202.99 (Other non-alcoholic beverages), while others used 2202.91 (Non-alcoholic beer). This discrepancy led to inconsistent tariff applications and trade statistics. Eventually, the EU Commission issued a regulation clarifying that almond milk should be classified under 2202.99, harmonizing the approach across the EU.

Case Study 2: Coconut Milk in the US

The United States Customs and Border Protection (CBP) has had to make several rulings on the classification of coconut milk. In one case, a company argued that their coconut milk product should be classified under 2009.89 (Other fruit juices) to benefit from lower tariffs. However, the CBP ruled that it should be classified under 2202.99, as it was marketed and used as a milk substitute rather than a fruit juice.

Case Study 3: Oat Milk in Canada

In Canada, there was confusion about whether oat milk should be classified under 2202.99 (Other non-alcoholic beverages) or 2106.90 (Food preparations not elsewhere specified). The Canada Border Services Agency (CBSA) eventually ruled that oat milk should be classified under 2202.99, aligning with the classification of other plant-based milk alternatives.

Best Practices for Importers and Exporters

Given the complexities surrounding HS codes for non-dairy milk beverages in tetra packs, here are some best practices for businesses engaged in their international trade:

1. Research Thoroughly: Always research the specific HS code requirements for your product in both the exporting and importing countries.
2. Seek Expert Advice: Consult with customs brokers or trade compliance experts who are familiar with the nuances of HS code classification.
3. Stay Updated: Keep abreast of any changes in classification rules or new rulings that may affect your products.
4. Provide Detailed Product Information: When declaring your goods, provide as much detailed information about the product as possible to ensure accurate classification.
5. Consider Advance Rulings: If you're unsure about the classification, consider requesting an advance ruling from the customs authority of the importing country.
6. Leverage Technology: Use Digital Logistics Platforms like FreightAmigo to streamline your import/export processes and ensure compliance with HS code requirements.

How FreightAmigo Can Help

Navigating the complexities of HS codes and international trade can be challenging, especially for businesses dealing with products like non-dairy milk beverages in tetra packs. This is where FreightAmigo's Digital Logistics Platform comes into play, offering a comprehensive solution to streamline your import/export processes.

FreightAmigo's platform provides several features that can significantly ease the burden of HS code compliance and international shipping:

1. HS Code Lookup: Our platform includes a built-in HS code lookup tool, helping you quickly find the correct code for your non-dairy milk beverages.
2. Customs Documentation: We automate the generation of customs documentation, ensuring that all necessary information, including HS codes, is accurately included.
3. Real-time Updates: Our system provides real-time updates on any changes to HS codes or customs regulations, keeping you informed and compliant.
4. Expert Support: With FreightAmigo, you have access to 24/7 logistics expert support to help you navigate any HS code challenges you may face.
5. Comprehensive Shipping Solutions: From comparing freight quotes to arranging customs clearance, our platform offers end-to-end solutions for your shipping needs.

By leveraging FreightAmigo's Digital Logistics Platform, businesses can ensure accurate HS code classification, streamline their customs processes, and focus on growing their non-dairy milk beverage trade with confidence.

Conclusion

The correct classification of non-dairy milk beverages in tetra packs under the appropriate HS code is crucial for smooth international trade operations. While challenges exist due to the diverse nature of these products, understanding the nuances of HS code 2202.99 and staying informed about potential variations is key to success in this growing market.

As the plant-based milk industry continues to expand globally, the importance of accurate HS code classification will only increase. Businesses must stay vigilant, keep abreast of regulatory changes, and leverage digital solutions like FreightAmigo to navigate these complexities effectively.

By following best practices and utilizing comprehensive Digital Logistics Platforms, importers and exporters of non-dairy milk beverages can ensure compliance, optimize costs, and tap into the full potential of this booming market. Remember, in the world of international trade, knowledge is power, and the right Digital Logistics Solution can be your greatest ally.

References/Sources

1. World Customs Organization, "What is the Harmonized System (HS)?", https://www.wcoomd.org/en/topics/nomenclature/overview/what-is-the-harmonized-system.aspx

2. Market Research Future, "Plant-based Milk Market Research Report", https://www.marketresearchfuture.com/reports/plant-based-milk-market-4002

3. European Commission, "Commission Implementing Regulation (EU) 2017/1925", https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32017R1925

4. U.S. Customs and Border Protection, "What Every Member of the Trade Community Should Know About: Classification of Coconut Milk", https://www.cbp.gov/sites/default/files/assets/documents/2020-Feb/ICP-Coconut%20Milk.pdf

5. Canada Border Services Agency, "Tariff Classification of Beverages", https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn18-3-eng.html