HS 850434 Having a power handling capacity exceeding 500 kVA
Quick Answer: Transformers with a power handling capacity exceeding 500 kVA enter the EU at 3.70% ad valorem, the UK at 0.00% ad valorem, and the US at 35% ad valorem (MFN), with preferential rates as low as Free for certain trading partners. This classification specifically applies to static converters, static direct-to-direct converters, and inductors with a power handling capacity greater than 500 kilovolt-amperes (kVA). Importers and customs brokers should note the significant duty rate disparity between jurisdictions, particularly the high MFN rate in the US, and investigate applicable Free Trade Agreements or preferential programs to mitigate costs. CustomTariffs aggregates this information to aid in compliance.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8504340000 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8504340000 | 3.70 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8504340000 | 1.6% | 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 8504.34?
Imports of Having a power handling capacity exceeding 500 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 850434 cover?
This subheading covers static transformers, namely those with a power handling capacity exceeding 500 kVA, as defined by the World Customs Organization's Harmonized System (WCO HS) Nomenclature. Official definitions from sources like the USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that this category includes large power transformers used in electrical power transmission and distribution systems, industrial machinery, and specialized applications where significant voltage transformation is required. These are typically stationary units designed for continuous operation.
What falls outside HS 850434?
The following products are excluded from HS 850434: static transformers with a power handling capacity of 500 kVA or less, which are classified under HS 8504.31 or 8504.32. Also excluded are other electrical apparatus for line telephony or line telegraphy, including their accessories, classified under HS 8517, and electric motors and generators, classified under HS 8501. The key differentiator is the power handling capacity exceeding 500 kVA, distinguishing these high-capacity units from smaller transformers.
What are common classification mistakes for HS 850434?
A common error is misinterpreting the power handling capacity threshold of 500 kVA. Importers may incorrectly classify transformers with capacities slightly above or below this mark into the wrong subheading. According to General Rule of Interpretation (GRI) 1, classification is determined by the terms of the headings and any relative section or chapter notes. It is crucial to verify the kVA rating precisely, as a transformer rated at exactly 500 kVA would not fall under this subheading, while one rated at 501 kVA would.
How should importers classify products under HS 850434?
The correct procedure for classifying products under HS 850434 involves a meticulous review of the product's technical specifications, specifically its 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 confirm the exact definition and any additional notes. Verification of the manufacturer's stated kVA rating against the tariff requirements is paramount to ensure accurate declaration and avoid penalties.
How is the duty calculated for products under HS 850434?
A 1,000 kVA three-phase power transformer declared at a customs value of $15,000 USD would attract a US duty of $450.00. This is calculated using the Most Favored Nation (MFN) duty rate of 3.0% ad valorem, as published in the USITC Harmonized Tariff Schedule. The calculation is: 3.0% × $15,000 USD = $450.00. This rate applies to goods imported from countries not benefiting from preferential trade agreements.
Which trade agreements reduce duties for HS 850434?
Several free trade agreements may reduce the applicable duty rate for HS 850434, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, transformers originating from Canada or Mexico may be eligible for a preferential rate of Free. To claim this preference, a valid USMCA Certificate of Origin is required. Additionally, certain developing countries may benefit from the Generalized System of Preferences (GSP), which can also result in a Free duty rate, requiring a GSP Form A.
```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 850434, specifically for transformers with a power handling capacity exceeding 500 kVA?
The Most Favored Nation (MFN) duty rate for HS code 850434, covering transformers with a power handling capacity exceeding 500 kVA, is typically 3.70% ad valorem. However, preferential duty rates may apply under various trade agreements. For instance, under the USMCA (United States-Mexico-Canada Agreement), the rate is Free. Importers should always verify the applicable rate based on the country of origin and any relevant trade agreements. Sources like the USITC's Harmonized Tariff Schedule (HTS) provide detailed rate information.
How is the import duty for HS code 850434 calculated, and can you provide an example?
The duty for HS code 850434 is calculated on an ad valorem basis, meaning it's a percentage of the declared customs value of the goods. For example, if a transformer with a power handling capacity exceeding 500 kVA is valued at $50,000 and the MFN duty rate is 3.70%, the import duty would be $50,000 \times 0.0370 = $1,850. Importers must ensure accurate valuation of the goods for correct duty assessment.
What specific criteria determine if a transformer falls under HS code 850434?
The primary classification criterion for HS code 850434 is the power handling capacity of the transformer. It specifically covers static converters (which include transformers) 'having a power handling capacity exceeding 500 kVA'. This means that transformers rated for 501 kVA and above are classified under this code. Transformers with a capacity of 500 kVA or less would fall under different HS codes within heading 8504. The technical specifications provided by the manufacturer are crucial for accurate classification.
Which trade agreements commonly offer preferential duty rates for HS code 850434, and what documentation is needed to claim these rates?
Several trade agreements offer preferential duty rates for HS code 850434. For example, goods originating from countries party to the USMCA (United States-Mexico-Canada Agreement) may receive Free entry. Similarly, preferential rates might be available under agreements with countries like South Korea (KR) or Japan (JP), often resulting in a 0.00% duty rate. To claim these preferential rates, importers typically need to provide a valid Certificate of Origin (COO) issued by the exporter or manufacturer, or a declaration of origin on the commercial invoice, as stipulated by the specific trade agreement. Always consult the official customs regulations of the importing country and the terms of the relevant trade agreement.
Are there any specific documentation requirements beyond a Certificate of Origin for importing goods under HS code 850434?
Beyond a Certificate of Origin for preferential duty claims, importers and customs brokers should be prepared to provide supporting documentation that substantiates the classification and value of the transformer. This may include the commercial invoice, packing list, bill of lading, and technical specifications or datasheets from the manufacturer that clearly indicate the power handling capacity (exceeding 500 kVA) and other relevant electrical characteristics. In some cases, especially for high-value or complex equipment, a pro forma invoice might be required during the initial import process. Customs authorities may request additional documentation to verify compliance.