HS 850650 Lithium

Import duty rates for lithium batteries (HS code 8506.50) can vary significantly depending on the importing country and applicable trade agreements. For example, under the U.S. Harmonized Tariff Schedule (USHTS), the Most Favored Nation (MFN) rate is often 3.5% ad valorem. However, preferential rates under Free Trade Agreements (FTAs) may offer duty-free entry. For instance, goods originating from countries with FTAs with the US may have a 0% duty rate. It is crucial to consult the specific tariff schedule of the importing country, such as the USITC's HTS, the EU's TARIC database, or the UK Trade Tariff, for the most accurate and up-to-date rates applicable to your specific import.

The duty for HS code 8506.50 is typically calculated on an ad valorem basis, meaning it's a percentage of the declared customs value of the goods. For instance, if a shipment of lithium batteries valued at $10,000 USD is imported into the U.S. and is subject to the MFN duty rate of 3.5%, the import duty would be calculated as: $10,000 (Value) × 0.035 (Duty Rate) = $350 USD. Always ensure the customs value is correctly determined according to the WTO Valuation Agreement or the importing country's specific valuation rules.

HS code 8506.50 specifically covers 'Lithium, other than those primary cells and primary batteries'. This means the classification applies to lithium primary cells and primary batteries. Key criteria include the electrochemical system (lithium-based), whether they are primary (non-rechargeable) cells or batteries, and their construction. For example, a non-rechargeable button cell battery using lithium metal as the anode would fall under this code. It's essential to distinguish these from rechargeable lithium-ion batteries, which are classified under HS code 8507.60. Refer to the Explanatory Notes of the Harmonized System (WCO) for detailed guidance on classification.

Several trade agreements can provide preferential duty rates for HS 8506.50. For imports into the U.S., agreements like the USMCA (United States-Mexico-Canada Agreement) or bilateral FTAs with countries such as Australia (AU), South Korea (KR), or Chile (CL) may offer reduced or zero duty rates. For imports into the EU, the EU's network of preferential trade agreements applies. To claim preferential treatment, importers typically need to provide a Certificate of Origin or a declaration of origin from the exporter, certifying that the goods meet the rules of origin stipulated in the respective trade agreement. This documentation is crucial for customs brokers to file the correct entry and claim reduced duties.

Yes, in addition to standard import documents like the commercial invoice, packing list, and bill of lading, importing lithium batteries (HS 8506.50) often requires specific documentation related to safety and transport regulations. Depending on the mode of transport (air, sea, road) and the quantity, these may include: Material Safety Data Sheets (MSDS) or Safety Data Sheets (SDS), UN 38.3 test certification (confirming the battery has passed safety tests for transport), and compliance with regulations from bodies like the International Civil Aviation Organization (ICAO) for air cargo or the International Maritime Dangerous Goods (IMDG) Code for sea cargo. Importers and customs brokers must verify the specific requirements of the importing country and the carrier.