Analysis
HTS 8706.00.03 covers for vehicles of subheading 8704.21 or 8704.31 under heading 8706 (chassis fitted with engines, for the motor vehicles of headings 8701 to 8705).
Within this group the rate runs from duty-free to 4%. Compared with 8706.00.30 (for tractors suitable for agricultural use), 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.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 8706.00.05 | For vehicles of subheading 8701.21, 8701.22, 8701.23, 8701.24 or 8701.29 or heading 8702 or 8704: other | 4% |
| 8706.00.15 | For vehicles of heading 8703 | 2.5% |
| 8706.00.25 | For vehicles of heading 8705 | 1.6% |
| 8706.00.30 | For tractors suitable for agricultural use | Free |
| 8706.00.50 | For other vehicles: other | 1.4% |