8701.21.00

Analysis

HTS 8701.21.00 covers with only compression-ignition internal combustion piston engine (diesel or semi-diesel) under heading 8701 (tractors (other than tractors of heading 8709)). US Customs collects import statistics for it under 3 ten-digit suffixes, reported in number of items.

Within this group the rate runs from duty-free to 4%. Compared with 8701.95.50 (exceeding 130 kW: other), which pays duty-free, a misclassification either way moves the duty by 4 percentage points.

The general duty rate is 4% of the customs value, which is above most the rates in chapter 87 (85th percentile of 212 lines with an ad valorem rate). On a shipment valued at $10,000 that is $400 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 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.

The column 2 rate, for countries without normal trade relations, is 25%, 6.2 times the general rate.