Analysis
HTS 8501.40.20 covers of an output exceeding 37.5 W but not exceeding 74.6 W under heading 8501 (electric motors and generators (excluding generating sets)). US Customs collects import statistics for it under 2 ten-digit suffixes, reported in number of items.
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.
Within this group the rate runs from 3.3% to 4%. Compared with 8501.40.40 (of an output exceeding 74.6 W but not exceeding 735 W), which pays 4%, a misclassification either way moves the duty by 0.7 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 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.
For statistics it divides in two: 8501.40.20.20 for gear motors and 8501.40.20.40 for other. Both pay the same duty; the suffix records which kind was imported.
The column 2 rate, for countries without normal trade relations, is 35%, 10.6 times the general rate.
Statistical suffixes
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8501.40.40 | Of an output exceeding 74.6 W but not exceeding 735 W | 4% |
| 8501.40.50 | Of an output exceeding 735 W but under 746 W | 3.3% |
| 8501.40.60 | Other AC motors, single-phase: other | 3.7% |