Analysis
HTS 8503.00.75 covers for motors of under 18.65 W 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 8503.00.90 (for generators suitable for use on aircraft), at duty-free: a product that belongs there but is entered here, or the reverse, changes the duty by 6.5 percentage points.
The general duty rate is 6.5% of the customs value, which is among the highest the rates in chapter 85 (98th percentile of 624 lines with an ad valorem rate). On a shipment valued at $10,000 that is $650 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 6.5%. 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.
The column 2 rate, for countries without normal trade relations, is 90%, 13.8 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 |
| 8503.00.65 | Stators and rotors for the goods of heading 8501: other | 3% |
| 8503.00.90 | For generators suitable for use on aircraft | Free |
| 8503.00.95 | Other: other | 3% |