Bill Overview
Title: Formula Act
Description: This bill provides through December 31, 2022, duty-free treatment to infant formula. During this time period, articles of infant formula shall not be subject to (1) any additional safeguard duties that may be imposed under subchapter IV of chapter 99 of the Harmonized Tariff Schedule; or (2) any other import quotas, tariff-rate quotas, additional duties, or any other duties, fees, exactions, or charges that otherwise would apply to such articles. Importers shall provide the applicable and anticipated tariff classifications for articles of infant formula on applicable customs entry documents.
Sponsors: Rep. Blumenauer, Earl [D-OR-3]
Target Audience
Population: People globally who rely on infant formula for feeding infants
Estimated Size: 4000000
- The bill primarily impacts importers of infant formula by removing specific duties and import regulations, which could impact pricing and availability.
- By reducing the cost burden on importing, it is likely intended to decrease the cost and increase the availability of infant formula in the US.
- Parents and guardians of infants, especially those who rely on infant formula due to inability to breastfeed, will be directly impacted.
- Formula manufacturers and retailers might also be affected as they may face increased competition from imported products.
Reasoning
- The well-being impact of the policy is predominantly on parents of infants who use infant formula. These parents will likely experience financial relief due to decreased formula costs, but the variation in impact will depend on their socio-economic status and reliance on formula.
- Lower-income families may see a more considerable relative benefit as formula expenses could constitute a more significant portion of their budget.
- Importers and retailers might experience changes in purchasing and inventory patterns due to shifting demand dynamics.
- Some families may not notice a significant change if they don't use formula or have access to alternative breastfeeding solutions.
Simulated Interviews
Nurse (Brooklyn, NY)
Age: 29 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 15/20
Statement of Opinion:
- I always look for cheaper brands of formula because it adds up every month.
- If formula gets cheaper, it would really help with my monthly budget.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
IT Specialist (Austin, TX)
Age: 35 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.5 years
Commonness: 10/20
Statement of Opinion:
- I don't mind paying for quality products, including baby formula.
- If prices drop, that's good, but it's not critical for us.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Homemaker (Rural, IA)
Age: 41 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 1.0 years
Commonness: 10/20
Statement of Opinion:
- It's always been tough managing groceries, and formula is a big part of that.
- Any savings we can get on formula is a blessing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Entrepreneur (Los Angeles, CA)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 7/20
Statement of Opinion:
- Policy could impact my costs and margins, which could be beneficial.
- It could lower my prices and attract more customers, but competition might also increase.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Teacher (Miami, FL)
Age: 27 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- The cost of formula for twins is a real challenge.
- If prices lower, it would greatly help with our finances right now.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Logistics Manager (Chicago, IL)
Age: 52 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 20/20
Statement of Opinion:
- This policy could adjust work dynamics due to import changes, but not my personal life directly.
- It's intriguing to see how policy shapes market flavors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Pharmacist (Denver, CO)
Age: 39 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- There might be shifts in what brands customers prefer due to price.
- I could give better advice to moms looking to save money.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Sales Assistant (Phoenix, AZ)
Age: 24 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 1.5 years
Commonness: 9/20
Statement of Opinion:
- I'm worried about being able to afford everything my child will need, like formula.
- If there's a chance to buy it cheaper, it'd be a big relief.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Accountant (Nashville, TN)
Age: 33 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- Anything that helps keep the imported formula price stable or low is beneficial.
- I'm always monitoring the formula cost fluctuations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Marketing Executive (Seattle, WA)
Age: 36 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- I think the policy is interesting from a business standpoint, but doesn't affect me directly.
- I understand how families might appreciate reduced costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $70000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The policy is temporary and impacts are confined to a single year.
- Impacts on domestic infant formula manufacturers due to increased competition from imports.
- Potential reduction in infant formula costs, benefiting consumers, particularly low-income families.
- Possible adjustment periods for importers to track and comply with new paperwork requirements for the tariff classification.