HS 850511 Permanent magnets and articles intended to become permanent magnets after magnetisation

The Most Favored Nation (MFN) duty rate for HS code 850511 is 2.20% ad valorem in the United States. However, preferential rates are available under various trade agreements. For instance, imports from Australia (AU), Canada (CA), Chile (CL), Colombia (CO), the European Union (EU - specific member states may vary), Israel (IL), Japan (JP), South Korea (KR), Mexico (MX), and Singapore (SG) may be eligible for free entry (0.00% duty). It is crucial to consult the specific trade agreement and provide the necessary proof of origin to claim these preferential rates. Always verify the most current rates with the US International Trade Commission (USITC) or your customs broker.

HS code 850511 covers permanent magnets and articles that are designed to become permanent magnets after magnetization. The key classification criterion is the material composition and the inherent magnetic properties. This includes magnets made from materials like ferrites, alnico, samarium-cobalt (SmCo), and neodymium-iron-boron (NdFeB). Articles intended for magnetization must be specifically manufactured for this purpose, often being supplied in a magnetized state or with clear indications of their intended magnetic function. Non-magnetized materials that could potentially be magnetized but are not specifically manufactured for that purpose would likely fall under different headings based on their material (e.g., Chapter 72 for iron and steel).

When importing goods under HS code 850511, standard import documentation is required, including a commercial invoice, packing list, and bill of lading/air waybill. Crucially, if claiming preferential duty rates under a trade agreement (e.g., USMCA, KORUS FTA), a valid Certificate of Origin (COO) or a declaration of origin meeting the specific requirements of the trade agreement is mandatory. For certain magnets, especially those made with rare earth elements, additional documentation related to export controls or specific material certifications might be necessary, depending on the exporting and importing countries' regulations. Consulting the Harmonized Tariff Schedule (HTS) and the relevant customs authority's guidance is recommended.

Certainly. Let's assume an importer brings in a shipment of neodymium magnets valued at $10,000 USD, and the applicable MFN duty rate for HS code 850511 is 2.20% ad valorem. The duty calculation would be: Duty Amount = Value of Goods × Duty Rate. In this case, Duty Amount = $10,000 × 0.0220 = $220.00 USD. If the shipment also included a quantity component (e.g., per kilogram), and there was a specific duty rate (e.g., $0.50 per kg), the total duty would be the higher of the ad valorem duty or the specific duty, or a combination thereof, as stipulated by the tariff. Always confirm the exact duty basis (ad valorem, specific, or compound) with the official tariff schedule.

Several major trade agreements provide preferential duty rates, often resulting in 0.00% duty, for goods classified under HS code 850511. Key examples include the United States-Mexico-Canada Agreement (USMCA), the Korea-United States Free Trade Agreement (KORUS FTA), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP - where applicable). Eligibility generally requires that the goods meet the rules of origin stipulated in the respective agreement, meaning a certain percentage of the product's value must originate from the participating countries, or it must have undergone specific manufacturing processes within those countries. Importers must obtain and retain a valid Certificate of Origin from the exporter and ensure compliance with all declaration requirements to benefit from these reduced or eliminated duties.