HS 870240 With only electric motor for propulsion
Quick Answer: Motor vehicles with only electric motors for propulsion, classified under HS code 870240, enter the UK at 10.00%, the EU at 10.00%, and the US at rates ranging from 2% to 25%, with certain trade agreements offering duty-free entry. This code specifically covers vehicles designed solely for electric propulsion, excluding hybrids or those with internal combustion engines. Importers should be aware of potential variations in duty rates based on origin and specific trade agreements. CustomTariffs aggregates this data to assist in compliance.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8702400000 | 10.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8702400000 | 10.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8702403100 | 2% | Free (18 programs) | ["No."] |
| 8702406100 | 2% | Free (18 programs) | ["No."] |
| 870240 | — | — | — |
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 8702.40?
Imports of With only electric motor 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, GSP, and 15 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 Has Trade Volume Developed?
Trade Volume 2023
How to Classify This HS Code?
What products does HS 870240 cover?
This subheading covers motor vehicles for the transport of ten or more persons, including the driver, which are propelled exclusively by an electric motor for propulsion. 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 specifically includes electric buses, electric minibuses, and other electric vehicles designed for mass passenger transport, provided their sole means of propulsion is an electric motor, excluding any internal combustion engine or hybrid systems.
What falls outside HS 870240?
The following products are excluded from HS 870240: vehicles propelled by internal combustion engines, hybrid vehicles that utilize both an electric motor and an internal combustion engine for propulsion, and vehicles designed for fewer than ten persons. For instance, electric cars for personal use fall under heading 8703, and electric trucks or vans designed for cargo transport are classified under heading 8704, even if they are powered solely by an electric motor.
What are common classification mistakes for HS 870240?
A common error is misclassifying hybrid vehicles as fully electric under HS 870240. General Rule of Interpretation (GRI) 1, which states that classification shall be determined according to the terms of the headings and any relative section or chapter notes, is crucial here. If a vehicle has both an electric motor and an internal combustion engine, it is typically classified under a hybrid heading, not solely electric, even if the electric motor is the primary propulsion at times.
How should importers classify products under HS 870240?
The correct procedure for classifying vehicles under HS 870240 involves a thorough review of the vehicle's propulsion system and passenger capacity. Importers and customs brokers must verify that the vehicle is designed for ten or more persons and that its sole means of propulsion is an electric motor, as confirmed by technical specifications and manufacturer documentation. Consulting the official tariff schedule of the importing country, such as the UK Trade Tariff, is essential for accurate classification.
How is the duty calculated for products under HS 870240?
A fully electric bus weighing 18,000 kg and declared at a customs value of $250,000 USD would attract a US duty of $6,250. This is calculated using the USITC Harmonized Tariff Schedule's Most Favored Nation (MFN) rate for a similar vehicle, which might be 2.5% ad valorem. The calculation is: 2.5% of $250,000 USD = $6,250 USD. This rate is subject to change and specific product details.
Which trade agreements reduce duties for HS 870240?
Several free trade agreements may reduce the applicable duty rate for HS 870240, including the United States-Mexico-Canada Agreement (USMCA), which can result in a 0% duty rate for qualifying vehicles originating from Canada or Mexico. Documentation required typically includes a USMCA Certificate of Origin. For vehicles originating from countries with preferential access to the EU, such as those under the Economic Partnership Agreements, a EUR.1 movement certificate may be required to claim a reduced or duty-free rate.
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FAQ
What are the typical import duty rates for HS code 870240 (Motor vehicles for the transport of ten or more persons, with only electric motor for propulsion)?
The Most Favored Nation (MFN) duty rate for HS code 870240 can vary by importing country. For example, the United States has an MFN rate of 2.5% ad valorem. The European Union's TARIC system may show different rates depending on specific subheadings and origin. The UK Trade Tariff also lists specific rates. It is crucial to consult the specific tariff schedule of the importing country for the definitive rate applicable to your shipment.
How is the 'only electric motor for propulsion' criterion applied for HS 870240 classification?
This classification applies to vehicles designed to transport ten or more persons that are propelled solely by an electric motor. This means there is no internal combustion engine or other non-electric motor providing primary propulsion. Hybrid vehicles, which utilize both an electric motor and an internal combustion engine, would typically fall under a different HS code (e.g., 8702.40.0000 in the US Harmonized Tariff Schedule, which covers 'Other' vehicles in this category, or specific hybrid codes if available in other jurisdictions).
What documentation is typically required for importing vehicles under HS code 870240?
Standard import documentation for vehicles includes a commercial invoice, packing list, bill of lading or air waybill, and a certificate of origin. Depending on the importing country, additional documents may be required, such as a manufacturer's certificate of origin, import permits, proof of compliance with safety and emissions standards (e.g., EPA compliance in the US, relevant EU directives), and potentially specific declarations related to the electric propulsion system. Always verify the exact requirements with the customs authority of the destination country.
Which trade agreements offer preferential duty rates for HS code 870240?
Preferential duty rates under various trade agreements significantly impact the cost of importing vehicles classified under HS 870240. For instance, the United States offers duty-free entry (Free) for eligible originating goods from countries such as Australia (AU), Canada (CA), Chile (CL), Colombia (CO), Israel (IL), Mexico (MX), and South Korea (KR) under agreements like the USMCA, CAFTA-DR, and bilateral FTAs. The EU and UK also have extensive trade agreements that can provide reduced or zero duty rates for originating goods. Importers must ensure their goods meet the rules of origin stipulated in the relevant trade agreement to claim preferential treatment.
Can you provide a numerical example of how import duty is calculated for HS 870240?
Let's assume a shipment of electric buses classified under HS 870240 is imported into the United States. The MFN duty rate is 2.5% ad valorem. If the declared customs value of the shipment is $500,000 USD, the import duty would be calculated as follows: Duty Amount = Declared Value × Duty Rate. Duty Amount = $500,000 × 2.5% = $500,000 × 0.025 = $12,500 USD. If a preferential rate applies, for example, under a Free Trade Agreement where the duty rate is 0%, the duty would be $0. It is important to note that some countries may also apply other taxes and fees in addition to the ad valorem duty.