Analysis
HTS 8706.00.25 covers for vehicles of heading 8705 under heading 8706 (chassis fitted with engines, for the motor vehicles of headings 8701 to 8705).
Neighbouring lines carry rates from duty-free to 4%, so the exact line matters. The widest gap is with 8706.00.05 (for vehicles of subheading 8701.21, 8701.22, 8701.23, 8701.24 or…), at 4%: a product that belongs there but is entered here, or the reverse, changes the duty by 2.4 percentage points.
The general duty rate is 1.6% of the customs value, which is in the middle of the rates in chapter 87 (47th percentile of 212 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.
Goods that qualify under GSP, the Australia FTA, the Bahrain FTA, the Chile FTA, the Colombia TPA, and 12 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 |
|---|---|---|
| 8706.00.03 | For vehicles of subheading 8704.21 or 8704.31 | 4% |
| 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% |
| 8706.00.30 | For tractors suitable for agricultural use | Free |
| 8706.00.50 | For other vehicles: other | 1.4% |