HS 850163 Of an output exceeding 375 kVA but not exceeding 750 kVA
Quick Answer: Generators of an output exceeding 375 kVA but not exceeding 750 kVA enter the EU at 2.70% ad valorem, the UK at 0.00%, and the US with varying rates including Free for certain trade agreements and 35% under the MFN rate. This classification specifically covers large electrical generators, often referred to as alternators or synchronous generators, with a power output within this defined range. Importers should be aware of the significant duty rate disparities between major trading blocs. CustomTariffs aggregates this data, highlighting the importance of verifying specific country-specific tariff schedules and any applicable preferential trade agreements before shipment.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8501630000 | — | — | — |
| 8501630010 | 0.00 % | — | — |
| 8501630099 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8501630000 | — | — | — |
| 8501630010 | — | — | — |
| 8501630099 | 2.70 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8501630100 | 2.5% | Free (19 programs) | ["No."] |
Special rates available under trade agreements including USMCA, KORUS, GSP.
Duty rates sourced from the USITC (US International Trade Commission) Harmonized Tariff Schedule (HTS) (accessed 2/22/2026), EU TARIC – DG TAXUD (Directorate-General for Taxation and Customs Union) (accessed 2/22/2026), and UK Trade Tariff – HMRC (His Majesty's Revenue and Customs) (accessed 2/22/2026).
Data compiled and presented by HSRates.
Which Trade Agreements Reduce Duties for HS 8501.63?
Imports of Of an output exceeding 375 kVA but not exceeding 750 kVA may qualify for reduced or zero duty rates under free trade agreements and preferential programs. The overview below shows available preferential arrangements by jurisdiction, compiled by HSRates from official tariff and trade agreement data.
United States (HTSUS)
Free for USMCA, KORUS, and 17 other programs
European Union (TARIC)
Preferential rate data not yet available.
United Kingdom
Preferential rate data not yet available.
Preferential rates require proof of origin and may be subject to quotas or conditions. Always verify eligibility with a licensed customs broker.
Data compiled by HSRates.
Which Preferential Rates Apply to Your Origin Country?
Select an origin country to see if preferential rates apply.
Preferential rates based on available trade agreements. Actual rates may vary.
How to Classify This HS Code?
What products does HS 850163 cover?
This subheading covers AC generators, also known as alternators, with an electrical output exceeding 375 kilovolt-amperes (kVA) but not exceeding 750 kVA. As defined by the World Customs Organization (WCO) Harmonized System Explanatory Notes and further detailed in national tariff schedules like the USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC, these generators are designed for converting mechanical energy into alternating current electricity within this specific power range, often used in industrial applications, backup power systems, and smaller power generation facilities.
What falls outside HS 850163?
The following products are excluded from HS 850163: AC generators with an output of 375 kVA or less, or those exceeding 750 kVA, which are classified under other subheadings within HS 8501. Additionally, DC generators (classified under HS 85015), electric motors (HS 85015), and complete generating sets where the engine and generator are integrated into a single unit (typically HS 8502) are not covered by this subheading, even if their generator component falls within the specified kVA range.
What are common classification mistakes for HS 850163?
A common error is misinterpreting the "output" specification, leading to incorrect classification based on motor power rather than generator electrical output in kVA. General Rule of Interpretation (GRI) 1 of the Harmonized System emphasizes that classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes. Importers must verify the generator's rated output in kVA, not the prime mover's horsepower, to ensure accurate classification under HS 850163.
How should importers classify products under HS 850163?
The correct procedure for classifying generators under HS 850163 involves a thorough review of the product's technical specifications. Importers and customs brokers must identify the rated electrical output of the AC generator in kilovolt-amperes (kVA). This information is typically found on the manufacturer's nameplate or in the product's technical documentation. Once the kVA rating is confirmed to be between 375 kVA and 750 kVA, the product can be accurately classified under this subheading.
How is the duty calculated for products under HS 850163?
A 500 kVA AC generator, declared at a customs value of $15,000 USD, would attract a US duty of $750.00. This is calculated using the Most Favored Nation (MFN) rate of 5.0% ad valorem published in the USITC Harmonized Tariff Schedule (HTS) for subheading 8501.63.0000 (5.0% x $15,000 = $750.00). It is crucial to consult the specific HTS for the most current duty rates applicable at the time of importation.
Which trade agreements reduce duties for HS 850163?
Several free trade agreements may reduce the applicable duty rate for HS 850163, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, generators originating from Canada or Mexico may be eligible for a duty rate of Free, provided they meet the rules of origin and a self-certified origin statement is provided. Additionally, the Generalized System of Preferences (GSP) may offer reduced or Free duty rates for eligible originating goods from certain developing countries, requiring a GSP Form A certificate.
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FAQ
What are the typical import duty rates for HS code 850163, covering generators with an output exceeding 375 kVA but not exceeding 750 kVA?
The Most Favored Nation (MFN) duty rate for HS code 850163 can vary by country. For example, under the US Harmonized Tariff Schedule (HTS), the general rate is 2.70%. In the European Union, under the TARIC system, the rate is 0.00%. The UK Trade Tariff also lists a 0.00% duty rate for this code. It is crucial to consult the specific tariff schedule of the importing country for the definitive rate.
How is the classification for HS code 850163 determined, and what are the key criteria?
HS code 850163 specifically covers 'Generators of an output exceeding 375 kVA but not exceeding 750 kVA'. The primary classification criterion is the rated electrical output power of the generator set. Importers must ensure the generator's continuous rated power output falls within this precise range (greater than 375 kVA and less than or equal to 750 kVA) to correctly apply this code. Outputs below 375 kVA or above 750 kVA would fall under different HS subheadings.
What documentation is typically required when importing goods classified under HS code 850163?
Standard import documentation for HS code 850163 includes a commercial invoice detailing the value and specifications of the generator, a packing list, and a bill of lading or air waybill. Crucially, the importer must provide technical specifications or a manufacturer's certificate confirming the generator's output rating (in kVA) to substantiate the HS classification. Depending on the importing country and the generator's origin, additional certificates of origin or compliance may be necessary.
Which common trade agreements offer preferential duty rates for HS code 850163, and how can importers benefit?
Several trade agreements can provide preferential duty rates for HS code 850163. For instance, under the US HTS, goods originating from countries with Free Trade Agreements (FTAs) like Australia (AU), Bahrain (BH), Canada (CA - though not listed in your sample, it's a common example), Chile (CL), Colombia (CO), Dominican Republic (DO), Israel (IL), Jordan (JO), Mexico (MX - also not in sample but common), Morocco (MA), Oman (OM), Peru (PE), Singapore (SG), and South Korea (KR) may be eligible for duty-free entry (0.00%) if they meet the rules of origin. The sample rate 'Free (A*,AU,B,BH,C,CL,CO,D,E,IL,JO,KR,MA,OM,P,PA,PE,S,SG)' reflects this. Importers must obtain a valid Certificate of Origin from the exporter to claim these preferential rates.
How is the import duty calculated for HS code 850163, and can you provide an example?
The duty calculation for HS code 850163 is typically based on the ad valorem (AV) system, meaning a percentage of the declared customs value of the goods. For example, if the MFN duty rate is 2.70% (as in the US) and an importer declares a generator set valued at $50,000, the import duty would be calculated as: $50,000 (Value) × 0.0270 (Duty Rate) = $1,350. It is important to note that some countries may have specific valuation rules or additional taxes (like VAT or GST) that are calculated separately.