Analysis
HTS 8301.10.40 covers over 3.8 cm but not over 6.4 cm in width under heading 8301 (padlocks and locks (key, combination or electrically operated), of base metal; clasps and…).
Rates on the nearby lines range from 2.3% to 6.1%. The costliest confusion would be with 8301.10.60 (not over 3.8 cm in width) at 6.1%, a difference of 2.3 points on the customs value.
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 3.8%. 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 general duty rate is 3.8% of the customs value, which is in the middle of the rates in chapter 83 (62nd percentile of 58 lines with an ad valorem rate). On a shipment valued at $10,000 that is $380 in duty before any Chapter 99 additions or preference claims.
The column 2 rate, for countries without normal trade relations, is 29.5%, 7.8 times the general rate.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8301.10.20 | Not over 3.8 cm in width | 2.3% |
| 8301.10.50 | Over 6.4 cm in width | 3.6% |
| 8301.10.60 | Not over 3.8 cm in width | 6.1% |
| 8301.10.80 | Over 3.8 cm but not over 6.4 cm in width | 4.8% |
| 8301.10.90 | Over 6.4 cm in width | 4.2% |