Analysis
HTS 8706.00.50 covers for other vehicles: other under heading 8706 (chassis fitted with engines, for the motor vehicles of headings 8701 to 8705).
Rates on the nearby lines range from duty-free to 4%. The costliest confusion would be with 8706.00.05 (for vehicles of subheading 8701.21, 8701.22, 8701.23, 8701.24 or…) at 4%, a difference of 2.6 points on the customs value.
The general duty rate is 1.4% 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 $140 in duty before any Chapter 99 additions or preference claims.
The column 2 rate, for countries without normal trade relations, is 27.5%, 19.6 times the general rate.
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 1.4%. 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.
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% |
| 8706.00.25 | For vehicles of heading 8705 | 1.6% |
| 8706.00.30 | For tractors suitable for agricultural use | Free |