Analysis
HTS 8207.50.60 covers for handtools, and parts thereof under heading 8207 (interchangeable tools for handtools, whether or not power operated, or for machine-tools…).
Rates on the nearby lines range from 2.9% to 8.4%. The costliest confusion would be with 8207.50.40 (suitable for cutting metal, and parts thereof) at 8.4%, a difference of 3.2 points on the customs value.
The general duty rate is 5.2% of the customs value, which is above most the rates in chapter 82 (78th percentile of 95 lines with an ad valorem rate). On a shipment valued at $10,000 that is $520 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 5.2%. 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 45%, 8.7 times the general rate.
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% |
| 8207.50.40 | Suitable for cutting metal, and parts thereof | 8.4% |
| 8207.50.80 | Not suitable for cutting metal, and parts thereof: other | 2.9% |