HS 870322 Of a cylinder capacity exceeding 1 000 cm3 but not exceeding 1 500 cm3

For HS code 8703.22, which covers motor vehicles with spark-ignition internal combustion reciprocating or rotary piston engines, of a cylinder capacity exceeding 1,000 cm³ but not exceeding 1,500 cm³, the duty rates vary by country. In the United States, the Most Favored Nation (MFN) duty rate is typically 2.5% ad valorem. In the European Union, under the TARIC system, the rate is often 10% ad valorem. The UK Trade Tariff also lists a standard rate of 10% ad valorem. It is crucial to consult the specific tariff schedule of the importing country for the most current and accurate rates, as these can change and may be subject to specific trade agreements.

HS code 8703.22 applies to motor vehicles primarily designed for the transport of persons. The key classification criteria are: 1) It must be a motor vehicle for the transport of persons. 2) It must be equipped with a spark-ignition internal combustion reciprocating or rotary piston engine. 3) The cylinder capacity of this engine must exceed 1,000 cm³ but not exceed 1,500 cm³. Vehicles that do not meet all these criteria, such as those with different engine types (e.g., diesel), larger or smaller cylinder capacities, or those designed primarily for the transport of goods, would be classified under different HS codes.

The import duty for HS code 8703.22 is typically calculated on an ad valorem basis, meaning it's a percentage of the declared customs value of the vehicle. For example, if a vehicle classified under 8703.22 has a customs value of $20,000 and the applicable duty rate is 2.5% (e.g., US MFN rate), the duty amount would be calculated as: $20,000 (value) × 0.025 (duty rate) = $500. If a specific duty is applied, it would be a fixed amount per unit (e.g., per vehicle). Always verify the applicable duty calculation method and rate with the importing country's customs authority.

Several trade agreements can provide preferential duty rates for vehicles under HS code 8703.22. For instance, agreements like the US-Mexico-Canada Agreement (USMCA), or agreements between the EU and certain partner countries, may offer reduced or zero duties. The specific rates and eligibility depend on the country of origin of the vehicle and the terms of the trade agreement. To claim preferential treatment, importers typically need to provide a Certificate of Origin (COO) or a declaration of origin that meets the requirements of the relevant trade agreement. For example, vehicles originating from Australia (AU), Canada (C), Mexico (M), or South Korea (KR) might benefit from preferential rates under specific agreements with the US or EU, as indicated by the sample duty rates provided (e.g., Free (A+,AU,B,BH,CL,CO,D,E,IL,JO,KR,MA,OM,P,PA,PE,S, SG) suggests potential free trade for certain origins). It is essential to confirm the origin of the goods and the specific requirements of the trade agreement.

Importing vehicles under HS code 8703.22 requires comprehensive documentation to ensure compliance with customs regulations. Key documents typically include: a commercial invoice detailing the sale and value of the vehicle, a packing list, a bill of lading or air waybill as proof of shipment, and a certificate of origin to determine applicable duties and trade agreement benefits. Additionally, specific import permits or licenses may be required depending on the destination country's regulations for vehicle imports. Proof of conformity to safety and environmental standards (e.g., EPA certification in the US, or relevant EU type-approval documents) is often mandatory. Importers and customs brokers must ensure all documentation is accurate, complete, and submitted in a timely manner to avoid delays and penalties.