8408.10.00

Analysis

HTS 8408.10.00 covers marine propulsion engines under heading 8408 (compression-ignition internal combustion piston engines (diesel or semi-diesel engines)). US Customs collects import statistics for it under 6 ten-digit suffixes, reported in number of items.

Neighbouring lines carry rates from duty-free to 2.5%, so the exact line matters. The widest gap is with 8408.90.90 (other engines: other), at duty-free: a product that belongs there but is entered here, or the reverse, changes the duty by 2.5 percentage points.

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 Bahrain FTA, the Chile FTA, the Colombia TPA, and 12 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.

The ten-digit suffixes separate not exceeding 111.9 kW, exceeding 111.9 kW but not exceeding…, exceeding 149.2 kW but not exceeding…, exceeding 223.8 kW but not exceeding…, exceeding 373 kW but not exceeding 746… and exceeding 746 kW. The duty is the same across them; the suffix matters for statistics, licensing and some quotas, and an entry needs all ten digits.