Analysis
HTS 8504.31.60 covers having a power handling capacity of 1 kVA under heading 8504 (electrical transformers, static converters (for example, rectifiers) and inductors; parts…).
Neighbouring lines carry rates from duty-free to 6.6%, so the exact line matters. The widest gap is with 8504.31.40 (having a power handling capacity less than 1 kVA), at 6.6%: a product that belongs there but is entered here, or the reverse, changes the duty by 5 percentage points.
The general duty rate is 1.6% of the customs value, which is in the middle of the rates in chapter 85 (60th percentile of 624 lines with an ad valorem rate). On a shipment valued at $10,000 that is $160 in duty before any Chapter 99 additions or preference claims.
The column 2 rate, for countries without normal trade relations, is 35%, 21.9 times the general rate.
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 1.6%. 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.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8504.31.20 | Having a power handling capacity not exceeding 1 kVA: unrated | Free |
| 8504.31.40 | Having a power handling capacity less than 1 kVA | 6.6% |