Analysis
HTS 8501.10.20 covers synchronous, valued not over $4 each under heading 8501 (electric motors and generators (excluding generating sets)).
The general duty rate is 6.7% of the customs value, which is among the highest the rates in chapter 85 (99th percentile of 624 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.
Within this group the rate runs from 2.8% to 4.4%. Compared with 8501.10.60 (of 18.65 W or more but not exceeding 37.5 W), which pays 2.8%, a misclassification either way moves the duty by 3.9 percentage points.
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 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 90%, 13.4 times the general rate.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8501.10.40 | Of under 18.65 W: other | 4.4% |
| 8501.10.60 | Of 18.65 W or more but not exceeding 37.5 W | 2.8% |