Analysis
HTS 8501.31.20 covers exceeding 37.5 W but not exceeding 74.6 W under heading 8501 (electric motors and generators (excluding generating sets)).
The general duty rate is 2.8% of the customs value, which is above most the rates in chapter 85 (77th percentile of 624 lines with an ad valorem rate). On a shipment valued at $10,000 that is $280 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 8501.31.40 (exceeding 74.6 W but not exceeding 735 W) at 4%, a difference of 1.2 points on the customs value.
The column 2 rate, for countries without normal trade relations, is 35%, 12.5 times the general rate.
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 2.8%. 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.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8501.31.40 | Exceeding 74.6 W but not exceeding 735 W | 4% |
| 8501.31.50 | Exceeding 735 W but under 746 W | 3.3% |
| 8501.31.60 | Motors: other | 2.4% |
| 8501.31.81 | Of an output not exceeding 750 W: generators | 2.5% |