8503.00.20

Analysis

HTS 8503.00.20 covers parts suitable for use solely or principally with the machines of heading 8501 or 8502: commutators under heading 8503 (parts suitable for use solely or principally with the machines of heading 8501 or 8502).

Neighbouring lines carry rates from duty-free to 6.5%, so the exact line matters. The widest gap is with 8503.00.75 (for motors of under 18.65 W), at 6.5%: a product that belongs there but is entered here, or the reverse, changes the duty by 4.1 percentage points.

The general duty rate is 2.4% of the customs value, which is in the middle of the rates in chapter 85 (63rd percentile of 624 lines with an ad valorem rate). On a shipment valued at $10,000 that is $240 in duty before any Chapter 99 additions or preference claims.

The column 2 rate, for countries without normal trade relations, is 35%, 14.6 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 2.4%. 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.