HS 852721 Radio-broadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles

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What products does HS 852721 cover?

This subheading covers radio-broadcast receivers specifically designed for use in motor vehicles and that require an external power source, such as the vehicle's electrical system. According to the World Customs Organization (WCO) Harmonized System Explanatory Notes, these are typically car radios, often integrated into dashboards, that receive radio waves for audio entertainment or information. The USITC Harmonized Tariff Schedule (HTS) and the EU TARIC database confirm this scope, emphasizing their automotive application and dependence on external power.

What falls outside HS 852721?

The following products are excluded from HS 852721: portable radios that can operate on batteries (classified under 852791 or similar), radio receivers not intended for motor vehicles (e.g., home stereo receivers), and devices that combine radio reception with other primary functions like navigation or video playback if those functions are dominant. For instance, a car infotainment system with a primary navigation function would likely be classified elsewhere, even if it includes a radio receiver. Devices that are solely amplifiers or speakers are also excluded.

What are common classification mistakes for HS 852721?

A common error is misclassifying multi-functional devices. If a unit primarily performs a function other than radio reception, such as a complex navigation system or a video player, it may not fall under 852721, even if it includes a radio tuner. General Interpretative Rule 3(b) of the Harmonized System, concerning composite goods or goods put up in sets for retail sale, is often relevant here. Importers may also mistakenly include receivers that can operate independently on internal power sources, which are classified under different subheadings.

How should importers classify products under HS 852721?

The correct procedure for classifying products under HS 852721 involves a thorough examination of the product's primary function and operational characteristics. Importers and customs brokers must verify that the receiver is intended for motor vehicle use and cannot operate without an external power source. Consulting the official tariff schedules of the importing country, such as the USITC HTS or the EU TARIC, and reviewing the WCO Explanatory Notes are crucial steps to ensure accurate classification and avoid potential penalties.

How is the duty calculated for products under HS 852721?

A car radio receiver weighing 0.5 kg and declared at a customs value of $150 USD would attract a US duty of $7.50. This is calculated using the Most Favored Nation (MFN) duty rate of 5% ad valorem, applied to the declared value: 5% of $150 = $7.50. This calculation is based on the MFN rate published in the USITC Harmonized Tariff Schedule (HTS) for subheading 8527.21.0000. Specific rates can vary based on origin and trade agreements.

Which trade agreements reduce duties for HS 852721?

Several free trade agreements may reduce the applicable duty rate for HS 852721, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, qualifying goods originating from Canada or Mexico can enter the United States duty-free. To claim this preference, a self-certified origin statement on the invoice or commercial document is typically required. For goods originating from countries benefiting from the Generalized System of Preferences (GSP), a GSP Form A may be necessary, potentially reducing duties to Free or a lower percentage.

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