8465.20.10

Analysis

HTS 8465.20.10 covers for sawing, planing, milling, molding, grinding, sanding, polishing, drilling or mortising under heading 8465 (machine tools (including machines for nailing, stapling, glueing or otherwise assembling)…).

The general duty rate is 3% of the customs value, which is above most the rates in chapter 84 (76th percentile of 823 lines with an ad valorem rate). On a shipment valued at $10,000 that is $300 in duty before any Chapter 99 additions or preference claims.

Neighbouring lines carry rates from 2.4% to 2.9%, so the exact line matters. The widest gap is with 8465.20.80 (machining centers: other), at 2.4%: a product that belongs there but is entered here, or the reverse, changes the duty by 0.6 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 3%. 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 35%, 11.7 times the general rate.