Analysis
HTS 8502.40.00 covers electric rotary converters under heading 8502 (electric generating sets and rotary converters).
The general duty rate is 3% of the customs value, which is above most the rates in chapter 85 (78th percentile of 624 lines with an ad valorem rate). On a shipment valued at $10,000 that is $300 in duty before any Chapter 99 additions or preference claims.
Within this group the rate runs from 2% to 2.5%. Compared with 8502.20.00 (generating sets with spark-ignition internal combustion piston engines), which pays 2%, a misclassification either way moves the duty by 1 percentage points.
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%. 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%, 11.7 times the general rate.
Census statistics map these goods to NAICS 335312 (Motor and Generator Manufacturing), an industry of 398 US establishments employing 29,856 people. That concordance is how imports of this line are compared with US output.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8502.11.00 | Of an output not exceeding 75 kVA | 2.5% |
| 8502.12.00 | Of an output exceeding 75 kVA but not exceeding 375 kVA | 2.5% |
| 8502.13.00 | Of an output exceeding 375 kVA | 2% |
| 8502.20.00 | Generating sets with spark-ignition internal combustion piston engines | 2% |
| 8502.31.00 | Other generating sets: wind-powered | 2.5% |
| 8502.39.00 | Other generating sets: other | 2.5% |