HS 870220 With both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion

The Most Favored Nation (MFN) duty rate for HS code 870220 typically falls around 10.00% or 16.00% ad valorem, depending on the specific importing country's tariff schedule. For instance, under the US Harmonized Tariff Schedule (USHTS), the general rate is 2.5% ad valorem. However, preferential rates can significantly reduce or eliminate duties. For example, under certain trade agreements, rates can be as low as Free (A, AU, B, BH, CL, CO, D, E, IL, JO, KR, MA, OM, P, PA, PE, S, SG). It is crucial to consult the specific tariff schedule of the destination country for the exact rate applicable to your shipment.

HS code 870220 is specifically for 'Motor vehicles for the transport of persons, goods or goods (including single cabin pick-ups) of a cylinder capacity exceeding 2 800 cm³ or with a net power of more than 150 kW, other: With both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion'. The critical criteria are: 1) The vehicle must be designed for the transport of persons or goods. 2) It must be equipped with both a compression-ignition internal combustion piston engine (diesel or semi-diesel) AND an electric motor that serve as motors for propulsion. 3) The vehicle's cylinder capacity must exceed 2,800 cm³ OR its net power must exceed 150 kW. If a vehicle has only one of these propulsion types, or does not meet the engine capacity/power thresholds, it would be classified under a different HS code.

Import duty for HS code 870220 is typically calculated on an ad valorem basis, meaning it's a percentage of the declared customs value of the goods. For example, if a vehicle classified under HS 870220 has a declared customs value of $50,000 and the applicable MFN duty rate is 10.00%, the duty would be calculated as follows: Duty Amount = Declared Customs Value × Duty Rate. Duty Amount = $50,000 × 10.00% = $5,000. If the duty were based on a combination of value and quantity (e.g., a specific duty per unit), the calculation would involve both elements. Always confirm the basis of duty assessment with the importing country's customs authority.

Several trade agreements can provide preferential duty rates for HS code 870220. For example, the United States has agreements like the US-Mexico-Canada Agreement (USMCA) which might offer reduced or zero duties on qualifying vehicles. The European Union's TARIC system details preferential rates under agreements with countries like Canada (CETA), Japan (EPA), and others. To claim preferential treatment, importers typically need to provide a 'Proof of Origin' document, such as a Certificate of Origin or a declaration of origin on the invoice, completed according to the specific requirements of the trade agreement. This document certifies that the goods meet the rules of origin stipulated in the agreement. Consult the relevant trade agreement and the customs authority of the importing country for precise documentation requirements.

When importing vehicles under HS code 870220, standard documentation includes a commercial invoice detailing the value, quantity, and description of the goods; a packing list; a bill of lading or air waybill for transport; and a customs declaration. Crucially, for vehicles, you will likely need a Certificate of Title or other proof of ownership, compliance certificates (e.g., EPA or NHTSA compliance for the US, or equivalent safety and emissions standards for other regions), and potentially a Bill of Sale. If claiming preferential duty rates under a trade agreement, the relevant Proof of Origin is also mandatory. Importers and customs brokers should verify the exact requirements with the destination country's customs agency, as specific regulations for motor vehicles can be stringent.