Analysis
HTS 8501.53.80 covers of an output exceeding 75 kW: other 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.
Within this group the rate runs from duty-free to 4.2%. Compared with 8501.53.40 (exceeding 75 kW but under 149.2 kW), which pays duty-free, a misclassification either way moves the duty by 2.8 percentage points.
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.
For statistics it divides in two: 8501.53.80.40 for not exceeding 373 kW and 8501.53.80.60 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%, 12.5 times the general rate.
Goods that qualify under GSP, the Australia FTA, the Bahrain FTA, the Chile FTA, the Colombia TPA, and 12 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.
Statistical suffixes
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8501.53.40 | Exceeding 75 kW but under 149.2 kW | Free |
| 8501.53.60 | 149.2 kW or more but not exceeding 150 kW | 4.2% |