HS 850432 Having a power handling capacity exceeding 1 kVA but not exceeding 16 kVA
Quick Answer: Transformers with a power handling capacity exceeding 1 kVA but not exceeding 16 kVA enter the EU at 3.70%, the US at 2.4% (MFN), and the UK at 0.00%. This classification specifically applies to static converters and inductors within this defined power range. Importers should be aware of potential preferential duty rates in the US based on country of origin, as indicated by the extensive list of free trade agreements. CustomTariffs aggregates this data, highlighting the importance of verifying specific origin-based duties for accurate landed cost calculations.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8504320000 | — | — | — |
| 8504320010 | 0.00 % | — | — |
| 8504320090 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8504320000 | — | — | — |
| 8504320010 | — | — | — |
| 8504320090 | 3.70 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8504320000 | 2.4% | Free (19 programs) | ["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 8504.32?
Imports of Having a power handling capacity exceeding 1 kVA but not exceeding 16 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 16 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 850432 cover?
This subheading covers static converters, specifically transformers, with a power handling capacity exceeding 1 kVA but not exceeding 16 kVA. According to the World Customs Organization (WCO) Harmonized System Explanatory Notes and definitions found in official tariff schedules like the USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database, this category includes a wide range of transformers used for stepping voltage up or down in various electrical systems, excluding those with a lower or higher power capacity. These are typically used in industrial, commercial, or specialized residential applications where precise voltage transformation is required within this specific power range.
What falls outside HS 850432?
The following products are excluded from HS 850432: transformers with a power handling capacity of 1 kVA or less, which are typically classified under HS 850431, and those exceeding 16 kVA, which fall under HS 850433. Also excluded are other types of electrical apparatus of heading 8504, such as static converters (other than transformers), inductors, coils, and ballasts. For instance, small power adapters for consumer electronics or large industrial power transformers for national grids would not be classified here.
What are common classification mistakes for HS 850432?
A common error is misinterpreting the "power handling capacity" or "kVA rating" of the transformer, leading to classification in the incorrect subheading. For example, a transformer with a 1.5 kVA rating correctly falls into 850432, while one with a 0.9 kVA rating belongs to 850431. Another mistake involves confusing transformers with other electrical components like inductors or coils, which are classified elsewhere in heading 8504. Adherence to General Rule of Interpretation (GRI) 1 and 3 is crucial for accurate classification.
How should importers classify products under HS 850432?
The correct procedure for classifying transformers under HS 850432 involves first identifying the product as a transformer, as per heading 8504. Next, the critical step is to determine its power handling capacity in kilovolt-amperes (kVA). Importers and customs brokers must consult the product's technical specifications or nameplate to ascertain this value. If the kVA rating falls strictly between 1 kVA and 16 kVA (exclusive of 1 kVA and inclusive of 16 kVA), then HS 850432 is the appropriate classification. Always verify against the latest official tariff schedules.
How is the duty calculated for products under HS 850432?
A 5 kVA single-phase transformer, declared at a customs value of $500 USD, would attract a US duty of $25.00. This is calculated using the Most Favored Nation (MFN) duty rate of 5.0% ad valorem, as published in the USITC Harmonized Tariff Schedule (HTS) for HS code 850432. The calculation is: 5.0% × $500 USD = $25.00 USD. This rate applies to goods imported from countries not benefiting from preferential trade agreements or special tariff programs.
Which trade agreements reduce duties for HS 850432?
Several free trade agreements may reduce the applicable duty rate for HS 850432, 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. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) may also offer preferential rates for originating goods from member countries like Vietnam. Documentation required to claim preference typically includes a USMCA certification of origin or a CPTPP declaration of origin, depending on the agreement and jurisdiction.
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FAQ
What are the typical import duty rates for transformers classified under HS code 8504.32?
Transformers with a power handling capacity exceeding 1 kVA but not exceeding 16 kVA, classified under HS code 8504.32, face varying duty rates depending on the importing country. For instance, under the US Harmonized Tariff Schedule (USHTS), the Most Favored Nation (MFN) rate is 3.70% ad valorem. In the European Union, under the TARIC system, the rate can be 2.4% ad valorem, though specific product origins might alter this. The UK Trade Tariff also lists a duty rate of 3.70% ad valorem for this classification. Always consult the specific tariff schedule of the destination country for the most accurate and up-to-date rates.
How is the duty for HS 8504.32 calculated, and can you provide an example?
The duty for HS code 8504.32 is typically calculated on an ad valorem basis, meaning it is a percentage of the declared customs value of the goods. For example, if a transformer valued at $1,000 USD is imported into the United States, and the MFN duty rate is 3.70%, the import duty would be $1,000 (value) × 0.0370 (duty rate) = $37.00. Some countries may also apply specific duties based on weight or unit, but for 8504.32, ad valorem is most common. Ensure your customs value is accurate and documented.
What are the key classification criteria for HS code 8504.32, and what documentation is needed?
The primary classification criterion for HS code 8504.32 is the power handling capacity of the transformer, specifically falling within the range of exceeding 1 kVA but not exceeding 16 kVA. Technical specifications clearly stating this capacity are crucial. Importers and customs brokers should be prepared to provide a commercial invoice detailing the value and specifications, a packing list, and a bill of lading or air waybill. A technical datasheet or manufacturer's declaration confirming the kVA rating may also be requested by customs authorities to verify classification.
Which trade agreements offer preferential duty rates for HS 8504.32, and what are some examples?
Several trade agreements can provide preferential duty rates for transformers under HS code 8504.32. For example, the United States has agreements like the USMCA (United States-Mexico-Canada Agreement) which may offer reduced or zero duties for qualifying goods originating from Canada or Mexico. The EU has numerous Free Trade Agreements (FTAs) with countries like Switzerland, Norway, and Japan, potentially leading to lower duties. The UK also has a network of FTAs post-Brexit. For instance, under the UK's GSP (Generalised Scheme of Preferences), certain developing countries may benefit from reduced duties, while specific FTAs might offer duty-free access. It is essential to check the specific rules of origin for each trade agreement to determine eligibility for preferential treatment.
Are there any specific exclusions or alternative classifications to consider for HS 8504.32?
While HS 8504.32 covers transformers with a power handling capacity between 1 kVA and 16 kVA, it's important to be aware of potential exclusions or alternative classifications. For instance, transformers designed for specific purposes, such as welding or high-frequency applications, might fall under different HS codes. Similarly, power converters or inverters, which perform different functions, are classified elsewhere. The World Customs Organization (WCO) provides explanatory notes that can clarify the scope of Chapter 85. Always ensure the transformer's primary function and technical specifications align precisely with the definition of HS 8504.32 to avoid misclassification.