Analysis
HTS 8207.50.40 covers suitable for cutting metal, and parts thereof under heading 8207 (interchangeable tools for handtools, whether or not power operated, or for machine-tools…). US Customs collects import statistics for it under 2 ten-digit suffixes, reported in number of items.
Neighbouring lines carry rates from 2.9% to 5.2%, so the exact line matters. The widest gap is with 8207.50.80 (not suitable for cutting metal, and parts thereof: other), at 2.9%: a product that belongs there but is entered here, or the reverse, changes the duty by 5.5 percentage points.
The general duty rate is 8.4% of the customs value, which is among the highest the rates in chapter 82 (94th percentile of 95 lines with an ad valorem rate). On a shipment valued at $10,000 that is $840 in duty before any Chapter 99 additions or preference claims.
Goods that qualify under GSP, the Australia FTA, the Bahrain FTA, the Chile FTA, the Colombia TPA, and 12 others can enter duty-free instead of paying 8.4%. It is also eligible under GSP, the developing-country programme, which Congress has to renew; check whether GSP is in force on the entry date.
The column 2 rate, for countries without normal trade relations, is 50%, 6.0 times the general rate.
For statistics it divides in two: 8207.50.40.30 for twist drills and 8207.50.40.60 for other. Both pay the same duty; the suffix records which kind was imported.
Statistical suffixes
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8207.50.20 | With cutting part containing by weight over 0.2 percent of chromium, molybdenum, or tungsten or over 0.1 percent of vanadium | 5% |
| 8207.50.60 | For handtools, and parts thereof | 5.2% |
| 8207.50.80 | Not suitable for cutting metal, and parts thereof: other | 2.9% |