Analysis
HTS 8501.20.50 covers exceeding 735 W but under 746 W under heading 8501 (electric motors and generators (excluding generating sets)).
The general duty rate is 3.3% of the customs value, which is above most the rates in chapter 85 (80th percentile of 624 lines with an ad valorem rate). On a shipment valued at $10,000 that is $330 in duty before any Chapter 99 additions or preference claims.
Rates on the nearby lines range from 2.4% to 4%. The costliest confusion would be with 8501.20.60 (universal AC/DC motors of an output exceeding 37.5 W: other) at 2.4%, a difference of 0.9 points on the customs value.
Goods that qualify under GSP, the Australia FTA, the Automotive Products Trade Act, the Bahrain FTA, the civil aircraft agreement, and 14 others can enter duty-free instead of paying 3.3%. 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%, 10.6 times the general rate.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8501.20.20 | Exceeding 37.5 W but not exceeding 74.6 W | 3.3% |
| 8501.20.40 | Exceeding 74.6 W but not exceeding 735 W | 4% |
| 8501.20.60 | Universal AC/DC motors of an output exceeding 37.5 W: other | 2.4% |