HS 860692 Open, with non-removable sides of a height exceeding 60 cm

HS code 860692, covering 'Other railway or tramway goods wagons and carriages, open, with non-removable sides of a height exceeding 60 cm,' generally faces a Most Favored Nation (MFN) duty rate. For instance, in the United States, the MFN rate is 1.70% ad valorem. However, preferential rates under Free Trade Agreements (FTAs) can significantly reduce or eliminate these duties. For example, under the USMCA (United States-Mexico-Canada Agreement), goods originating from Canada or Mexico may qualify for duty-free entry. Importers must ensure they have the necessary proof of origin documentation to claim these preferential rates. Always consult the latest tariff schedule for the importing country, such as the USITC Harmonized Tariff Schedule or the EU TARIC database, for the most current and specific rates applicable to your origin and destination.

The primary classification criteria for HS code 860692 are: 1. Type of Vehicle: It must be a railway or tramway wagon or carriage. 2. Open Construction: The vehicle must be open at the top. 3. Non-Removable Sides: The sides of the wagon or carriage must be fixed and not designed to be detached or folded down. 4. Side Height: The height of these non-removable sides must exceed 60 cm. If a vehicle meets these criteria, it is classified under 860692. If the sides are removable or the height is 60 cm or less, it would fall under a different subheading, likely 860699 (Other).

When importing goods under HS code 860692, standard import documentation is required. This typically includes a commercial invoice, a packing list, and a bill of lading or air waybill. Crucially, if claiming preferential duty rates under an FTA, a Certificate of Origin (COO) or a declaration of origin that meets the specific requirements of the FTA is mandatory. For certain specialized railway equipment, additional technical specifications or safety certifications might be requested by customs authorities to ensure compliance with national standards. It is advisable to consult with the customs broker and the importing country's customs agency for a comprehensive list of required documents.

The import duty for HS code 860692 is typically calculated on an ad valorem basis, meaning it's a percentage of the declared value of the goods. For example, if the MFN duty rate is 1.70% and you are importing a railway wagon valued at $100,000 USD, the duty calculation would be: Duty Amount = Value of Goods × Duty Rate. In this case, $100,000 USD × 1.70% = $1,700 USD. If the duty were based on a specific rate (e.g., per unit), the calculation would be Rate per Unit × Number of Units. Always ensure the value used for calculation is the customs value, which typically includes the cost of the goods, insurance, and freight (CIF) up to the point of import, as defined by the importing country's regulations.

Several trade agreements can offer preferential duty rates for HS code 860692, significantly impacting the cost of imports. For example, under the USMCA, goods originating from Canada or Mexico may be eligible for duty-free entry into the United States. Similarly, agreements between the EU and various countries (e.g., the EU-Korea FTA) can provide reduced or eliminated tariffs. The UK also has numerous trade agreements post-Brexit that could affect duties. The general impact is a reduction or elimination of the MFN duty rate, making imports from partner countries more competitive. Importers must verify the rules of origin for each specific trade agreement to confirm eligibility and ensure they possess the correct documentation to substantiate their claims to customs authorities.