Analysis
HTS 8406.10.10 covers turbines for marine propulsion: steam turbines under heading 8406 (steam turbines and other vapor turbines, and parts thereof).
Rates on the nearby lines range from duty-free to 6.7%. The costliest confusion would be with 8406.90.75 (other: other) at duty-free, a difference of 6.7 points on the customs value.
The general duty rate is 6.7% of the customs value, which is among the highest the rates in chapter 84 (99th percentile of 823 lines with an ad valorem rate). On a shipment valued at $10,000 that is $670 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 6.7%. 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 20%, 3.0 times the general rate.
Census statistics map these goods to NAICS 333611 (Turbine and Turbine Generator Set Units Manufacturing), an industry of 199 US establishments employing 25,748 people, the industry a domestic producer of these goods reports under.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8406.10.90 | Turbines for marine propulsion: other | Free |
| 8406.81.10 | Of an output exceeding 40 MW: steam turbines | 6.7% |
| 8406.81.90 | Of an output exceeding 40 MW: other | Free |
| 8406.82.10 | Of an output not exceeding 40 MW: steam turbines | 6.7% |
| 8406.82.90 | Of an output not exceeding 40 MW: other | Free |
| 8406.90.20 | Rotors, finished for final assembly | 5% |
| 8406.90.30 | Rotors, not further advanced than cleaned or machined for removal of fins, gates, sprues, and risers, or to permit location in finishing machinery | 5% |
| 8406.90.40 | Blades, rotating or stationary | 5% |
| 8406.90.45 | Of steam turbines: other | 5% |
| 8406.90.50 | Rotors, finished for final assembly | Free |
| 8406.90.60 | Rotors, not further advanced than cleaned or machined for removal of fins, gates, sprues, and risers, or to permit location in finishing machinery | Free |
| 8406.90.70 | Blades, rotating or stationary | Free |
| 8406.90.75 | Other: other | Free |