Analysis
HTS 8501.51.40 covers exceeding 74.6 W but not exceeding 735 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 2.5% of the customs value, which is in the middle of the rates in chapter 85 (67th percentile of 624 lines with an ad valorem rate). On a shipment valued at $10,000 that is $250 in duty before any Chapter 99 additions or preference claims.
Rates on the nearby lines range from 2.5% to 3.3%. The costliest confusion would be with 8501.51.50 (exceeding 735 W but under 746 W) at 3.3%, a difference of 0.8 points on the customs value.
For statistics it divides in two: 8501.51.40.20 for gear motors and 8501.51.40.40 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%, 14.0 times the general rate.
Goods that qualify under GSP, the Australia FTA, the Automotive Products Trade Act, the Bahrain FTA, the Chile FTA, and 14 others can enter duty-free instead of paying 2.5%. 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.
Statistical suffixes
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8501.51.20 | Exceeding 37.5 W but not exceeding 74.6 W | 2.5% |
| 8501.51.50 | Exceeding 735 W but under 746 W | 3.3% |
| 8501.51.60 | Of an output not exceeding 750 W: other | 2.5% |