HS 854231 Electronic integrated circuits

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What products does HS 854231 cover?

This subheading covers electronic integrated circuits, also known as microcircuits or chips, which are devices containing a miniaturized electronic circuit fabricated on a semiconductor material. According to the World Customs Organization's Harmonized System Explanatory Notes and definitions found in official tariff schedules like the USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC, this category includes microprocessors, memory chips, and other semiconductor devices that perform specific electronic functions, whether packaged or unpackaged.

What falls outside HS 854231?

The following products are excluded from HS 854231: discrete semiconductor devices (like transistors and diodes not forming an integrated circuit), printed circuits assembled with components (which may fall under HS 8534), and electronic assemblies or modules that are not considered a single integrated circuit. For instance, a circuit board with multiple discrete components soldered onto it, or a complex system built from several interconnected integrated circuits, would typically be classified elsewhere based on its overall nature and function.

What are common classification mistakes for HS 854231?

A common error is misclassifying assembled printed circuit boards (PCBs) with integrated circuits as integrated circuits themselves. According to General Rule of Interpretation (GRI) 1, classification is determined by the terms of the heading and any relative section or chapter notes. An assembled PCB, even if it contains integrated circuits, is generally classified under HS 8534 if it is primarily a printed circuit board with components, rather than a single integrated electronic component.

How should importers classify products under HS 854231?

The correct procedure for classifying products under HS 854231 involves a thorough examination of the product's technical specifications and its primary function. Importers and customs brokers must consult the official tariff schedule of the importing country, such as the USITC HTS or the EU TARIC, and refer to the Explanatory Notes of the Harmonized System. Verification of whether the product is a single electronic integrated circuit, as defined by the nomenclature, is paramount.

How is the duty calculated for products under HS 854231?

A shipment of 10,000 units of "Intel Core i7-12700K Processors" declared at a customs value of $2,500 USD would attract a US duty of $100.00. This is calculated using the Most Favored Nation (MFN) duty rate of 4.0% ad valorem, applied to the declared value: 4.0% × $2,500 USD = $100.00. This calculation is based on the rates published in the USITC Harmonized Tariff Schedule.

Which trade agreements reduce duties for HS 854231?

Several free trade agreements may reduce the applicable duty rate for HS 854231, including the United States-Mexico-Canada Agreement (USMCA), which can result in a duty rate of Free for originating goods from Canada and Mexico. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) also offers preferential rates, potentially Free, for qualifying goods from member countries like Vietnam. To claim these preferences, a self-certified origin statement for USMCA or a CPTPP Certificate of Origin may be required, depending on the specific jurisdiction and agreement.

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