Analysis
HTS 8404.20.00 covers condensers for steam or other vapor power units under heading 8404 (auxiliary plant for use with boilers of heading 8402 or 8403 (for example, economizers…).
The general duty rate is 5% of the customs value, which is among the highest the rates in chapter 84 (97th percentile of 823 lines with an ad valorem rate). On a shipment valued at $10,000 that is $500 in duty before any Chapter 99 additions or preference claims.
Neighbouring lines carry rates from 3.5% to 3.5%, so the exact line matters. The widest gap is with 8404.90.00 (auxiliary plant for use with boilers of heading 8402 or 8403 (for…), at 3.5%: a product that belongs there but is entered here, or the reverse, changes the duty by 1.5 percentage points.
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%. 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%, 9.0 times the general rate.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8404.10.00 | Auxiliary plant for use with boilers of heading 8402 or 8403 | 3.5% |
| 8404.90.00 | Auxiliary plant for use with boilers of heading 8402 or 8403 (for example, economizers, super-heaters, soot removers, gas recoverers); condensers for steam or other vapor power units; parts thereof: parts | 3.5% |