8407.34.44

Analysis

HTS 8407.34.44 covers to be installed in vehicles of subheading 8701.21, 8701.22, 8701.23, 8701.24 or 8701.29, or heading 8702, 8703 or 8704: used or rebuilt under heading 8407 (spark-ignition reciprocating or rotary internal combustion piston engines).

Rates on the nearby lines range from duty-free to 2.5%. The costliest confusion would be with 8407.34.55 (of a cylinder capacity exceeding 2,000 cc: other) at duty-free, a difference of 2.5 points on the customs value.

The general duty rate is 2.5% of the customs value, which is in the middle of the rates in chapter 84 (68th percentile of 823 lines with an ad valorem rate). On a shipment valued at $10,000 that is $250 in duty before any Chapter 99 additions or preference claims.

The column 2 rate, for countries without normal trade relations, is 35%, 14.0 times the general rate.

Goods that qualify under GSP, the Australia FTA, the Automotive Products Trade Act, the Bahrain FTA, the Chile FTA, and 13 others can enter duty-free instead of paying 2.5%. 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.