HS 845970 Other threading or tapping machines

The Most Favored Nation (MFN) duty rate for HS code 845970 can vary. For example, under the US tariff schedule, the MFN rate is 2.00% ad valorem. However, preferential rates are often available for goods imported from countries with trade agreements. For instance, rates can be Free (0.00%) for imports from countries like Australia (AU), Chile (CL), South Korea (KR), and Singapore (SG), among others listed under the 'A,AU,BH,CL,CO,D,E,IL,JO,KR,MA,OM,P,PA,PE,S,SG' designation. It is crucial to consult the specific tariff schedule of the importing country and verify eligibility for preferential treatment based on the country of origin and applicable trade agreements.

The import duty for HS code 845970 is typically calculated on an ad valorem basis, meaning it's a percentage of the declared customs value of the goods. For example, if a machine classified under HS 845970 has a customs value of $10,000 and the applicable MFN duty rate is 2.00%, the import duty would be calculated as: $10,000 (Customs Value) × 0.02 (Duty Rate) = $200. If the machine is subject to a specific duty or a combination of ad valorem and specific duties, the calculation would be adjusted accordingly. Always refer to the official tariff schedule for the precise duty calculation method.

HS code 845970 covers 'Other threading or tapping machines' that are not specifically covered by other headings within Chapter 84. The primary function of these machines must be the threading or tapping of materials, typically metals. This includes machines designed for creating internal threads (tapping) or external threads (threading). Key classification criteria include the machine's ability to perform these specific operations, its construction (e.g., whether it's a standalone machine or part of a larger system), and its intended use. Machines that perform other machining operations like drilling, milling, or grinding, even if they can also thread or tap, may be classified elsewhere if those other operations are their principal function. Consult the Explanatory Notes to the Harmonized System for detailed guidance.

When importing machines under HS code 845970, 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. Depending on the country of origin and destination, a certificate of origin may be necessary, especially if claiming preferential duty rates under a Free Trade Agreement (FTA). Importers may also need to provide technical specifications or brochures to substantiate the classification. Safety and compliance certifications, such as CE marking for the EU market or specific electrical safety certifications, might also be required. Always verify the specific import requirements with the customs authorities of the destination country.

Several trade agreements can provide preferential duty rates for HS code 845970. For instance, the United States has FTAs with countries like South Korea (US-Korea Free Trade Agreement), Australia (AUSFTA), and Chile (US-Chile FTA), which may offer reduced or zero duty rates for eligible goods originating from these countries. The European Union also has numerous trade agreements with third countries that could impact duties. To verify eligibility, importers must ensure the 'threading or tapping machine' is considered originating in the partner country according to the rules of origin stipulated in the specific trade agreement. This typically involves obtaining a certificate of origin from the exporter and confirming that the goods meet the required value content or tariff shift criteria. Consulting the official text of the relevant trade agreement and the customs regulations of the importing country is essential.