HS 870123 With both spark-ignition internal combustion piston engine and electric motor as motors for propulsion
Quick Answer: Tractors for the non-road mobile machinery, with both spark-ignition internal combustion piston engine and electric motor as motors for propulsion, imported under HS 870123 enter the UK at 10.00%, the EU at 16.00%, and the US at 4% (MFN). This classification specifically covers hybrid tractors designed for off-road use, combining a gasoline engine with an electric motor for propulsion. Importers should note the varying MFN rates across major markets, which can significantly impact landed costs. CustomTariffs aggregates this information, highlighting the need for careful tariff verification for each import destination.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8701230000 | — | — | — |
| 8701231000 | 10.00 % | — | — |
| 8701239000 | 10.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8701230000 | 16.00 % | — | — |
| 8701231000 | 16.00 % | — | — |
| 8701239000 | 16.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 87012300 | 4% | Free (18 programs) | — |
| 8701230045 | — | — | ["No."] |
| 8701230015 | — | — | ["No."] |
| 8701230080 | — | — | ["No."] |
Special rates available under trade agreements including USMCA, KORUS, GSP.
Duty rates sourced from the USITC (US International Trade Commission) Harmonized Tariff Schedule (HTS) (accessed 2/22/2026), EU TARIC – DG TAXUD (Directorate-General for Taxation and Customs Union) (accessed 2/22/2026), and UK Trade Tariff – HMRC (His Majesty's Revenue and Customs) (accessed 2/22/2026).
Data compiled and presented by HSRates.
Which Trade Agreements Reduce Duties for HS 8701.23?
Imports of With both spark-ignition internal combustion piston engine and electric motor as motors for propulsion may qualify for reduced or zero duty rates under free trade agreements and preferential programs. The overview below shows available preferential arrangements by jurisdiction, compiled by HSRates from official tariff and trade agreement data.
United States (HTSUS)
Free for USMCA, KORUS, and 16 other programs
European Union (TARIC)
Preferential rate data not yet available.
United Kingdom
Preferential rate data not yet available.
Preferential rates require proof of origin and may be subject to quotas or conditions. Always verify eligibility with a licensed customs broker.
Data compiled by HSRates.
Which Preferential Rates Apply to Your Origin Country?
Select an origin country to see if preferential rates apply.
Preferential rates based on available trade agreements. Actual rates may vary.
How to Classify This HS Code?
What products does HS 870123 cover?
This subheading covers tractors that are equipped with both a spark-ignition internal combustion piston engine and an electric motor for propulsion. According to the World Customs Organization's Harmonized System Nomenclature, these are specifically hybrid tractors where both power sources contribute to the vehicle's movement. The USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm this classification for vehicles designed for agricultural or similar purposes utilizing this dual-propulsion technology.
What falls outside HS 870123?
The following products are excluded from HS 870123: tractors powered solely by an internal combustion engine (classified under 8701.20), those powered solely by an electric motor (typically classified under 8701.30 if self-propelled, or other relevant headings for electric vehicles), and vehicles that are not primarily designed as tractors for agricultural or similar work, even if they possess hybrid propulsion systems. For instance, hybrid construction vehicles or hybrid road tractors would fall under different HS codes.
What are common classification mistakes for HS 870123?
A common error is misinterpreting the primary propulsion method or failing to recognize that both an internal combustion engine and an electric motor must be present and functional for propulsion. General Rule of Interpretation (GRI) 1 of the Harmonized System emphasizes that classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes. Importers may mistakenly classify a vehicle with regenerative braking but no electric motor for primary propulsion under this code.
How should importers classify products under HS 870123?
The correct procedure for classifying tractors under HS 870123 involves a thorough examination of the vehicle's technical specifications. Importers and customs brokers must verify the presence and function of both a spark-ignition internal combustion piston engine and an electric motor for propulsion. Reviewing manufacturer's documentation, technical manuals, and cross-referencing with official tariff databases like the USITC HTS or EU TARIC is crucial for accurate classification.
How is the duty calculated for products under HS 870123?
A John Deere 6195R tractor weighing 7,500 kg and declared at a customs value of $150,000 USD would attract a US duty of $7,500.00. This is calculated using the Most Favored Nation (MFN) duty rate of 0.5% ad valorem, as published in the USITC Harmonized Tariff Schedule (HTS) for tractors of heading 8701. The calculation is $150,000 (declared value) × 0.005 (MFN rate) = $7,500.00.
Which trade agreements reduce duties for HS 870123?
Several free trade agreements may reduce the applicable duty rate for HS 870123, including the United States-Mexico-Canada Agreement (USMCA), which can provide for duty-free entry for qualifying tractors originating from Canada or Mexico. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) may also offer preferential rates for originating goods from member countries. Documentation required typically includes a self-certified origin statement or a certificate of origin, depending on the specific agreement and jurisdiction.
```Which HS Codes Are Related?
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FAQ
What are the typical import duty rates for HS code 870123, specifically for vehicles with both spark-ignition internal combustion piston engines and electric motors?
Import duty rates for HS code 870123, which covers tractors for the trailering of goods, equipped with both spark-ignition internal combustion piston engines and electric motors for propulsion, vary significantly by importing country. For example, under the US Harmonized Tariff Schedule (HTS), the general most-favored-nation (MFN) rate is 25%. However, preferential rates may apply under trade agreements. For instance, the EU's TARIC system and the UK's Trade Tariff will list specific rates, which can range from 0% (Free) for certain partner countries to higher percentages like 10% or 16% for others. Always consult the specific tariff schedule of the destination country for the applicable rate.
How is the duty calculated for a vehicle classified under HS 870123, assuming a 10% ad valorem duty rate?
The duty for HS code 870123 is typically calculated on an ad valorem basis, meaning it's a percentage of the declared value of the goods. For example, if a tractor classified under 870123 has a customs value of $50,000 and the applicable duty rate is 10% ad valorem, the import duty would be calculated as follows: $50,000 (Customs Value) × 10% (Duty Rate) = $5,000 (Import Duty). Ensure accurate valuation and correct application of the duty rate based on the importing country's regulations.
What are the key classification criteria to ensure a vehicle is correctly classified under HS 870123?
To be classified under HS 870123, the vehicle must meet specific criteria. It must be a tractor designed for the trailering of goods, not for carrying goods itself. Crucially, it must be equipped with both a spark-ignition internal combustion piston engine and an electric motor that serve as motors for propulsion. The presence of both power sources is a definitive requirement. If a vehicle has only one type of motor, or if the electric motor is solely for auxiliary functions and not primary propulsion, it would likely be classified under a different HS code. Refer to the Explanatory Notes of the Harmonized System (WCO) for detailed guidance.
Which common trade agreements might offer preferential duty rates for HS code 870123, and how can importers verify these rates?
Several trade agreements can impact duty rates for HS code 870123. For example, agreements like the USMCA (United States-Mexico-Canada Agreement) may offer reduced or zero duties between member countries. Similarly, the EU has numerous Free Trade Agreements (FTAs) with countries worldwide, and the UK has its own set of trade deals post-Brexit. Importers should consult the preferential trade agreement section of the destination country's tariff schedule (e.g., USITC's HTS, EU TARIC, UK Trade Tariff) and ensure they have the necessary proof of origin documentation (like a Certificate of Origin) to claim preferential treatment.
What documentation is typically required for importing goods under HS code 870123, especially when claiming preferential duty rates?
Standard import documentation for HS code 870123 generally includes a commercial invoice, packing list, bill of lading or air waybill, and an import declaration. When claiming preferential duty rates under a trade agreement, a valid Certificate of Origin is usually mandatory. This document certifies that the goods meet the rules of origin stipulated in the specific trade agreement. Importers and customs brokers must ensure all documentation is accurate, complete, and submitted in accordance with the customs authority's requirements in the importing country to avoid delays or penalties.