Analysis
HTS 8503.00.65 covers stators and rotors for the goods of heading 8501: other under heading 8503 (parts suitable for use solely or principally with the machines of heading 8501 or 8502).
Rates on the nearby lines range from duty-free to 6.5%. The costliest confusion would be with 8503.00.75 (for motors of under 18.65 W) at 6.5%, a difference of 3.5 points on the customs value.
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.
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%. 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.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8503.00.20 | Parts suitable for use solely or principally with the machines of heading 8501 or 8502: commutators | 2.4% |
| 8503.00.35 | For motors of under 18.65 W | 6.5% |
| 8503.00.45 | For generators suitable for use on aircraft | Free |
| 8503.00.75 | For motors of under 18.65 W | 6.5% |
| 8503.00.90 | For generators suitable for use on aircraft | Free |
| 8503.00.95 | Other: other | 3% |