U.S. CBP announces change to fees for duty-free treatment of infant formula, possible refund opportunities

Change in the Automated Commercial Environment (ACE) to no longer require the payment of fees on “Formula Act” entries

Possible refund opportunities

U.S. Customs and Border Protection (CBP) issued a release announcing that it has deployed a change in the Automated Commercial Environment (ACE) to no longer require the payment of fees on “Formula Act” entries.


  • The president in July 2022 signed the HR 8351, the “Formula Act,” temporarily suspending duty on imports of certain infant formula products.
  • CBP is providing duty-free treatment of the eligible infant formula products entered or withdrawn from warehouse for consumption from July 22, 2022, through December 31, 2022.
  • Duty-free treatment is limited to certain infant formula products classified under the designated United States Harmonized Tariff Schedule (HTS) numbers. 
  • Entries under the Formula Act are exempt from merchandise processing fees (MPF) and dairy fees. 

Potential refund of fees

According to the CBP release—CSMS # 53843285—a change in ACE, effective October 27, 2022, no longer requires the dairy fee or the MPF on Formula Act entries through December 31, 2022.

Importers/brokers who have submitted entries eligible for the Formula Act and paid the dairy fee and/or MPF may request a refund of those fees.

For more information, contact a professional with KPMG’s Trade & Customs services:

Doug Zuvich
Partner and Global Practice Leader
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
E: labad@kpmg.com

Irina Vaysfeld
E: ivaysfeld@kpmg.com

Amie Ahanchian
E: aahanchian@kpmg.com

Christopher Young
E: christopheryoung@kpmg.com

Gisele Belotto
E: gbelotto@kpmg.com

George Zaharatos
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
E: adoornaert@kpmg.com

Jessica Libby
E: jlibby@kpmg.com

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