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1 1 (May 23, 2022)

handle is hein.crs/govefum0001 and id is 1 raw text is: Congressional ~ Research Service informing the legisiative debate since 1914___________________ Tariffs and the Infant Formula Shortage May 23, 2022 The United States is experiencing a shortage of infant formula. The shortage is localized to the United States. Some analyses argue that high tariffs on formula impeded the development of foreign sources of infant formula for the U.S. market and exacerbated the U.S. shortage. As a result, tariffs are a focus of congressional attention, and legislation addressing tariffs has been introduced. Below are answers to key questions about trade in infant formula. How Are Imports of Infant Formula Classified? Subheading 1901.10 of the Harmonized Tariff Schedule of the United States (HTSUS) covers formula marketed both for infants and young children. Infants are defined in FDA regulation as individuals aged not more than 12 months old, whereas a child is defined as an individual older than 12 months but younger than 12 years. Defining Infant Formula The Federal Food Drug and Cosmetic Act defines infant formula as a food which purports to be or is represented for special dietary use solely as a food for infants by reason of its simulation of human milk or its suitability as a complete or partial substitute for human milk. While both infant and children's formula are considered food products, infant formula is subject to additional oversight. The current shortage applies primarily to infant formula, particularly for use in infants with specific health needs. Because HTSUS 1901.10 includes both infant formula and children's formula, some recent discussions on the impact of tariffs have relied on trade data that included both types of formula. The HTSUS codes that have been used to classify infant formula between 2012 and 2021, and which were used for the data discussed below, can be found at the end of this Insight. Does the United States Import Infant Formula? The United States imports little infant formula relative to its domestic production and consumption. Between 2012 and 2021, the United States produced an estimated average 524 million kilograms ($2.3 billion) of infant formula annually. An industry analysis calculated average demand over that time at approximately $2 billion annually, leaving the United States with an average surplus of $300 million annually. During that time, the United States exported an average of 33.5 million kilograms ($277.1 Congressional Research Service https://crsreports.congress.gov IN11932 CRS INSIGHT Prepared for Members and Committees of Congress

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