HS 845959 Other

HS code 845959, classified as 'Other' machine tools for working metal, not numerically controlled, has a range of Most Favored Nation (MFN) duty rates. For instance, the USITC Harmonized Tariff Schedule may list rates such as 2.00% or 2.70% ad valorem. However, preferential rates under various trade agreements can significantly reduce or eliminate these duties. For example, rates can be Free (0%) for imports from countries like Australia (AU), Chile (CL), South Korea (KR), or Singapore (SG) under specific agreements. Importers must consult the relevant tariff schedule for the importing country and the specific trade agreement to determine the applicable preferential rate. Always verify the country of origin and eligibility requirements for preferential treatment.

HS code 845959 is a residual category for machine tools designed for working metal by drilling, boring, milling, or thread grinding, which are not numerically controlled and do not fit into more specific subheadings within 8459. Classification hinges on the machine's primary function (e.g., drilling, milling), its method of operation (e.g., mechanical, hydraulic), and the absence of numerical control systems. If a machine tool for working metal performs one of these functions but is not specifically described elsewhere in Chapter 84 (e.g., lathes, grinding machines), and lacks automated numerical control, it is likely to be classified under 845959. A detailed technical description and operational manual are crucial for accurate classification.

When importing goods under HS code 845959, standard import documentation is generally required. This includes a commercial invoice detailing the value, quantity, and description of the goods; a packing list; and a bill of lading or air waybill. Crucially, for preferential duty rates, a Certificate of Origin (COO) is often mandatory, demonstrating that the goods originate from a country with a trade agreement in force. Depending on the importing country's regulations, additional documentation such as import licenses, safety certificates, or technical specifications might be necessary. Customs brokers should verify specific requirements with the importing country's customs authority.

Import duty for HS code 845959 is typically calculated on an ad valorem basis, meaning it's a percentage of the declared customs value of the goods. For example, if the MFN duty rate is 2.70% and you import a machine valued at $10,000 USD, the import duty would be calculated as: $10,000 (Customs Value) × 0.0270 (Duty Rate) = $270 USD. If the duty were based on a specific rate (e.g., per unit), the calculation would be rate per unit × number of units. It is essential to use the correct customs value, which usually includes the cost of the goods, insurance, and freight (CIF) up to the point of importation, as per the importing country's valuation rules.

Several trade agreements can provide preferential duty treatment for goods classified under HS 845959. For example, agreements like the US-Korea Free Trade Agreement (KORUS FTA) or agreements with countries such as Australia (AU), Chile (CL), Colombia (CO), or Singapore (SG) often grant duty-free access (0%) for eligible originating goods. The implication is a significant reduction in landed cost for importers, making trade more competitive. To benefit, importers must ensure the goods meet the rules of origin stipulated in the specific trade agreement and possess the required proof of origin, such as a Certificate of Origin, to claim preferential treatment at the time of import.