HS 851712 Telephones for cellular networks (smartphones)

For HS code 851712, which covers telephones for cellular networks (smartphones), the Most Favored Nation (MFN) duty rate in the United States is typically Free. However, specific rates can vary based on the country of origin and any applicable trade agreements. For instance, under the Generalized System of Preferences (GSP), certain developing countries may also benefit from duty-free entry. It is crucial to consult the latest USITC Harmonized Tariff Schedule for the most accurate and up-to-date duty information based on the specific origin of the goods.

The duty calculation for HS code 851712 depends on the specific duty rate applicable. If the rate is ad valorem (a percentage of the value), the calculation is straightforward. For example, if a smartphone has an entered value of $500 and the applicable duty rate is 3.5% ad valorem, the duty would be calculated as: $500 (value) × 0.035 (duty rate) = $17.50. If there is a specific duty (e.g., per unit), the calculation would be rate per unit × number of units. Always ensure the declared value is the correct customs value, which typically includes the cost of the goods, insurance, and freight.

When importing smartphones classified under HS code 851712, standard import documentation is required. This includes a commercial invoice detailing the value, quantity, and description of the goods; a packing list; and a bill of lading or air waybill. Additionally, depending on the importing country's regulations, you may need proof of origin to claim preferential duty rates. For the United States, a Declaration of Conformity (DoC) might be necessary to demonstrate compliance with FCC regulations regarding radio frequency emissions. Importers should verify specific requirements with the customs authority of the destination country.

Yes, trade agreements significantly impact duty rates for HS code 851712. In the United States, the Generalized System of Preferences (GSP) allows eligible developing countries to export certain goods, including smartphones, duty-free. While the US does not have a comprehensive free trade agreement covering smartphones with major manufacturing hubs like China, other agreements with countries like South Korea or Chile might offer reduced or zero duties depending on the specific terms and rules of origin. In the European Union, the EU's network of Free Trade Agreements (FTAs) with various countries can lead to preferential duty rates, often zero, for smartphones originating from partner nations, as detailed in the EU's TARIC database. Importers must ensure the goods meet the rules of origin stipulated in the relevant trade agreement to benefit from these preferential rates.

To ensure correct classification under HS code 851712, 'Telephones for cellular networks (smartphones)', the primary criterion is that the device must be a telephone for cellular networks. Key characteristics defining a smartphone include the ability to make and receive calls over a cellular network, and the presence of advanced computing capabilities and connectivity. This typically means it runs on an operating system (like iOS or Android), has a touchscreen interface, can connect to the internet (via cellular data or Wi-Fi), and supports a wide range of applications beyond basic telephony. Devices that are solely feature phones or basic mobile phones without these advanced computing and connectivity features would be classified under different subheadings within HS 8517. Always refer to the Explanatory Notes of the Harmonized System and national tariff rulings for detailed classification guidance.