Bulk Infant Formula Act (H.R. 8982)

Summary

Removes import taxes on certain infant formula base powder until the end of 2022 to help increase the supply of baby formula in the United States.

What problem does this solve?

There was a shortage of baby formula, making it hard for parents to feed their infants. This law makes it cheaper to import the main ingredient for formula, helping U.S. companies make more of it.

What does this law do?

Temporary removal of import taxes

Removes all import taxes (duties) on infant formula base powder imported into the U.S. until December 31, 2022.

FDA approval required

Requires that the imported powder come from a company that the Food and Drug Administration (FDA) has approved to sell infant formula in the U.S.

Limit on duty-free imports

Sets a limit on the amount of infant formula base powder that can be imported without taxes at 2,600 metric tons.

Defines base powder

Defines 'infant formula base powder' as a dry mix of protein, fat, and carbs that just needs vitamins and minerals added to become complete formula.

Who does this affect?

Infants and their families
U.S. infant formula manufacturers

What is the real world impact?

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Addresses the national infant formula shortage

Makes it cheaper and faster to get the raw materials needed to make baby formula in the United States, increasing the available supply for families.

When does this start?

The tax suspension on infant formula powder starts three days after the law is passed and ends on December 31, 2022.

Export deadline for powder

The tax-free base powder must be exported from its country of origin on or before November 14, 2022.

Effective period for tax suspension

The tax suspension is active for goods that enter the U.S. starting three days after the law is passed until December 31, 2022.

Bulk Infant Formula to Retail Shelves Act