Tariffs
The mushroom industry has tariffs in place. Loopholes have been created by submitting deceptive samples to Customer and Border Production to issue rulings designed to avoid tariffs.
Complicated abusive transfer pricing schemes have been developed by Chinese companies. These Chinese companies will register US companies, and sell themselves the product over the border at lower than commercially reasonable prices, further eroding our border protections. Many of these Chinese companies work together in dumping schemes designed to put American farmers out of business.
Mushroom Substrates
“The applicable subheading for the mushroom spawn block will be 0602.90.5000, Harmonized Tariff Schedule of the United States (HTS), which provides for other live plants (including their roots), cuttings and slips; mushroom spawn, other, other, mushroom spawn. The general rate of duty will be 1.5 cents per kilogram.”
“The applicable subheading for the Mushroom Spawn and Shiitake substrate will be 0602.90.5000, Harmonized Tariff Schedule of the United States (HTS), which provides for other live plants (including their roots), cuttings and slips; mushroom spawn, other, other, mushroom spawn. The rate of duty will be 1.4 cents per kilogram.”
Mushroom Powders and Extracts
“Two samples, submitted with your inquiry, were examined and disposed of. Your firm plans to import dried, whole maitake
mushrooms (Grifola frondosa), products of China. In Canada, you will sterilize these dried mushrooms, re-dry them, and grind them into a fine powder. The powder will be imported into the United States in bulk form, sold to companies who fill the powder into capsules or incorporate it into tablets, which will then be sold as food supplements in health food stores.
The applicable tariff provision for the mushroom powder will be 0712.30.1000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared...mushrooms...air dried or sun dried. The general rate of duty will be 1.8 cents per kilogram plus 2.5 percent ad valorem.”
“Spray-dried mushroom extract is classifiable under the provision for other vegetable saps and extracts in subheading 1302.19.9040, HTSUS, and is free of duty.”
“The applicable subheading for the Spray Dried Mushroom Extract Powder will be 2106.90.9998, HTSUS, which provides for food preparations not elsewhere specified or included...other...other... other. The rate of duty will be 6.4 percent ad valorem. ”
“Dried mushroom powder consisting of mushroom extract mixed with maltodextrin is classifiable under subheading 1302.19.9040, HTSUSA, providing in part for vegetable extracts; other; other; other.
Merchandise classified under this subheading may be entered free of duty.”
“The applicable subheading for the edible mushroom extract will be 1302.19.9040, Harmonized Tariff Schedule of the United
States (HTS), which provides for Vegetable saps and extracts, other, other. The rate of duty will be 1.5 percent ad valorem”
“The subject merchandise is described as frozen, concentrated mushroom juice that will be imported in 55-gallon drums or 5-gallon pails. It is said to be obtained by mashing and pressing cleaned mushrooms, centrifuging and filtering the resulting juice, and then concentrating and freezing it. It will be used in the manufacturing of soup and/or gravy.
Articles classifiable under subheadings 2009.80.8031 and 2009.80.8039, HTS, which are products of Chile, are currently entitled to duty free treatment under the United States-Chile Free Trade Agreement (UCFTA ) upon compliance with all applicable regulations. ”
Make it right
We need to abandon the old rulings and correctly identify what’s coming across our border. Once it’s correctly categorized, then the regular tariff mechanisms will work properly
Mushroom Products - Dried and Extracted
There are two solid HTS codes that could have been identified when ruling. These are possible codes that are much closer to being correct that the current codes.
0712 - Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared:
39 - Other:
21 - Mushrooms: Other
Current Duty: 22¢/kg + 45% Duty
2003 - Mushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid:
90 - Other:
80 - Other
Current Duty: 22¢/kg on drained weight + 45% Duty
Mushroom Substrates
0709 - Other vegetables, fresh or chilled:
50 - Mushrooms and truffles
54.00 - Shiitake
Current Duty: 22¢/kg + 45%
0709 - Other vegetables, fresh or chilled:
59 - Other
91 - Other
Current Duty: 22¢/kg + 45%