8504.31.40

Analysis

HTS 8504.31.40 covers having a power handling capacity less than 1 kVA under heading 8504 (electrical transformers, static converters (for example, rectifiers) and inductors; parts…). 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 1.6%. Compared with 8504.31.20 (having a power handling capacity not exceeding 1 kVA: unrated), which pays duty-free, a misclassification either way moves the duty by 6.6 percentage points.

The general duty rate is 6.6% 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 $660 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 civil aircraft agreement, and 14 others can enter duty-free instead of paying 6.6%. 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.

For statistics it divides in two: 8504.31.40.35 for having a power handling capacity less than 40 VA and 8504.31.40.65 for having a power handling capacity 40 VA or greater. Both pay the same duty; the suffix records which kind was imported.

The column 2 rate, for countries without normal trade relations, is 35%, 5.3 times the general rate.