Analysis
HTS 8501.10.40 covers of under 18.65 W: other under heading 8501 (electric motors and generators (excluding generating sets)). US Customs collects import statistics for it under 4 ten-digit suffixes, reported in number of items.
The general duty rate is 4.4% of the customs value, which is among the highest the rates in chapter 85 (93rd percentile of 624 lines with an ad valorem rate). On a shipment valued at $10,000 that is $440 in duty before any Chapter 99 additions or preference claims.
Within this group the rate runs from 2.8% to 6.7%. Compared with 8501.10.20 (synchronous, valued not over $4 each), which pays 6.7%, a misclassification either way moves the duty by 2.3 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 4.4%. 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%, 8.0 times the general rate.
Statistical suffixes
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8501.10.20 | Synchronous, valued not over $4 each | 6.7% |
| 8501.10.60 | Of 18.65 W or more but not exceeding 37.5 W | 2.8% |