HS 850423 Having a power handling capacity exceeding 10 000 kVA
Quick Answer: Liquid dielectric transformers having a power handling capacity exceeding 10,000 kVA enter the UK duty-free, the EU at 3.70% ad valorem, and the US with rates ranging from 1.6% to 35% ad valorem, with certain preferential trade agreements offering duty-free entry. This classification specifically applies to large-capacity transformers that use a liquid, such as oil, for insulation and cooling. Importers and customs brokers should verify specific country-of-origin requirements and any applicable trade agreements, as these can significantly impact the final duty liability. CustomTariffs aggregates this essential trade data for compliance professionals.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8504230000 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8504230000 | 3.70 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8504230041 | — | — | ["No.","kg"] |
| 8504230080 | — | — | ["No.","kg"] |
| 85042300 | 1.6% | Free (17 programs) | — |
| 8504230045 | — | — | ["No.","kg"] |
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 8504.23?
Imports of Having a power handling capacity exceeding 10 000 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, GSP, and 14 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 850423 cover?
This subheading covers static converters, specifically transformers, with a power handling capacity exceeding 10,000 kVA. According to the World Customs Organization's Harmonized System Nomenclature, this category includes large power transformers designed for high voltage applications in electricity transmission and distribution networks. Official definitions from sources like the USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that transformers rated above 10 MVA (10,000 kVA) fall within this classification, excluding smaller units.
What falls outside HS 850423?
The following products are excluded from HS 850423: transformers with a power handling capacity of 10,000 kVA or less, which are classified under HS 850421 or 850422 depending on their capacity. Also excluded are static converters that are not transformers, such as rectifiers or inverters, and electrical apparatus for line telegraphy, telephone, telegraphy or telephony, which are classified in other headings within Chapter 85. Motors and generators, even if of high capacity, are also classified separately.
What are common classification mistakes for HS 850423?
A common error is misinterpreting the "power handling capacity" metric, leading to incorrect classification of transformers. Importers may confuse apparent power (kVA) with real power (kW) or fail to accurately determine the transformer's rated capacity as specified by the manufacturer. According to General Rule of Interpretation (GRI) 1, classification is determined by the terms of the heading and any relative section or chapter notes, emphasizing the importance of precise technical specifications for transformers exceeding 10,000 kVA.
How should importers classify products under HS 850423?
The correct procedure for classifying transformers under HS 850423 involves obtaining the precise technical specifications from the manufacturer, particularly the rated power handling capacity in kVA. Importers and customs brokers must consult the official tariff schedule of the importing country, such as the USITC HTS or the UK Trade Tariff, to verify the exact definition and any specific notes for this subheading. Confirming the capacity exceeds 10,000 kVA is paramount for accurate declaration.
How is the duty calculated for products under HS 850423?
A 500 MVA (500,000 kVA) power transformer declared at a customs value of $1,500,000 USD would attract a US duty of $0.00. This is calculated using the Most Favored Nation (MFN) duty rate of 0% ad valorem published in the USITC Harmonized Tariff Schedule for HS 850423. The duty calculation is Rate × Value = Duty Amount, which in this case is 0% × $1,500,000 = $0.00.
Which trade agreements reduce duties for HS 850423?
Several free trade agreements may reduce the applicable duty rate for HS 850423, including the United States-Mexico-Canada Agreement (USMCA), which can result in a duty rate of Free for qualifying goods originating from Canada or Mexico. Additionally, the Generalized System of Preferences (GSP) may offer reduced or Free duty rates for eligible goods from certain developing countries. To claim preference under USMCA, a self-certified origin statement is typically required, while GSP requires a Form A certificate of origin.
```Which HS Codes Are Related?
Not the right code? Search all HS codes to find the correct tariff classification.
FAQ
What are the typical import duty rates for HS code 8504.23, covering liquid dielectric transformers with a power handling capacity exceeding 10,000 kVA?
The Most Favored Nation (MFN) duty rate for HS code 8504.23 can vary. For instance, the United States applies a 3.70% ad valorem duty. The European Union, under the TARIC system, may have different rates depending on the origin, with some rates as low as 1.6% or even Free for certain preferential trade partners. The UK Trade Tariff also shows varying rates, sometimes including a 0.00% duty for specific origins. It is crucial to consult the specific tariff schedule of the importing country at the time of importation for the exact rate applicable to your shipment's origin.
How is the power handling capacity of a transformer (exceeding 10,000 kVA) determined for HS classification under 8504.23?
The power handling capacity is typically indicated by the transformer's rated capacity, usually expressed in kilovolt-amperes (kVA) or megavolt-amperes (MVA). For HS code 8504.23, the critical threshold is exceeding 10,000 kVA. Importers and brokers should refer to the nameplate or technical specifications provided by the manufacturer. This rating is a primary factor in distinguishing between transformers classified under 8504.21 (up to 500 kVA), 8504.22 (exceeding 500 kVA but not exceeding 10,000 kVA), and 8504.23 (exceeding 10,000 kVA).
What documentation is typically required when importing transformers classified under HS 8504.23?
Standard import documentation for HS 8504.23 includes a commercial invoice detailing the value, quantity, and specifications of the transformers, a packing list, and a bill of lading or air waybill. Crucially, a certificate of origin is often required to claim preferential duty rates under trade agreements. Depending on the importing country's regulations, a manufacturer's declaration or technical specification sheet confirming the power handling capacity (exceeding 10,000 kVA) may also be necessary to substantiate the HS classification.
Which common trade agreements offer preferential duty rates for HS code 8504.23, and how can I verify eligibility?
Several trade agreements can grant preferential duty rates for HS code 8504.23. For example, the United States has agreements with countries like Australia (AU), Chile (CL), South Korea (KR), and others, which may offer reduced or free entry. The EU has agreements with numerous partners, and the UK has its own set of preferential trade agreements. To verify eligibility, importers and brokers must consult the specific terms of the relevant trade agreement and ensure that the transformers meet the rules of origin stipulated within that agreement. A valid Certificate of Origin is typically mandatory to claim these benefits.
Can you provide a concrete example of how import duty is calculated for a transformer under HS 8504.23?
Let's assume a transformer classified under HS 8504.23 is imported into the United States, which has an MFN duty rate of 3.70% ad valorem. If the declared customs value of the transformer is $500,000 USD, the duty calculation would be: Duty = Customs Value × Duty Rate. Duty = $500,000 USD × 3.70% (or 0.037). Duty = $18,500 USD. Therefore, the calculated import duty would be $18,500 USD. This calculation is based solely on the value; if specific duties (e.g., per unit) were applicable, they would be calculated differently.