HS 847990 Parts

Import duty rates for HS code 847990, which covers 'Parts' of machinery of heading 8479, vary significantly by country. For instance, in the United States, the Most Favored Nation (MFN) duty rate is often Free. In the European Union, under the TARIC system, rates can range from Free to higher percentages depending on the specific part and its origin. The UK Trade Tariff also shows a range of duties, often Free for many originating goods. It is crucial to consult the specific tariff schedule of the importing country for the exact rate applicable to your shipment, as preferential agreements can further reduce or eliminate these duties.

The calculation of import duty for HS code 847990 depends on whether the duty is ad valorem (a percentage of the value) or specific (a fixed amount per unit). For example, if a part classified under 847990 has an import duty of 3.5% ad valorem and its customs value is $10,000, the duty would be calculated as: $10,000 (Customs Value) × 0.035 (Duty Rate) = $350. If the duty were specific, say $1.00 per kilogram, and the shipment weighed 500 kg, the duty would be: 500 kg × $1.00/kg = $500. Always verify the basis of duty calculation (ad valorem, specific, or compound) from the official tariff schedule.

When importing parts under HS code 847990, standard import documentation is generally required. This includes a commercial invoice detailing the value, quantity, and description of the parts; a packing list specifying the contents of each package; and a bill of lading or air waybill as proof of shipment. Depending on the origin of the goods and any applicable trade agreements, a Certificate of Origin may be necessary to claim preferential duty rates. Importers should also be prepared to provide technical specifications or diagrams if customs authorities require further clarification to verify the classification of the parts.

Trade agreements can significantly reduce or eliminate import duties for goods classified under HS code 847990 if the parts meet the rules of origin stipulated in the agreement. For example, under the United States-Mexico-Canada Agreement (USMCA), parts originating from Canada or Mexico may be eligible for duty-free entry into the United States, provided they meet the specific origin requirements. Similarly, parts originating from countries with Free Trade Agreements with the European Union can benefit from reduced or zero duties under the EU's tariff schedule (TARIC). To claim these benefits, importers must possess a valid Certificate of Origin and ensure the parts satisfy all relevant origin criteria.

The classification of a component as a 'part' under HS code 847990 hinges on its specific function and relationship to a machine of heading 8479 (Machines and mechanical appliances having individual functions, not specified or included elsewhere in Chapter 84). Generally, a part is an item that is essential for the operation of such a machine, is typically produced specifically for that machine, and is not a general-purpose component that could be used in a wide variety of machines or articles. The Explanatory Notes to the Harmonized System provide guidance. If a component is a standalone machine with its own individual function, it might be classified elsewhere. If it's a part for a machine covered by a different heading (e.g., a part for an engine under Chapter 84.07/84.08), it would be classified under the part's specific heading. Verification often requires understanding the machine 8479 it's intended for and its role in that machine's operation.