HS 870323 Of a cylinder capacity exceeding 1 500 cm3 but not exceeding 3 000 cm3
Quick Answer: Motor vehicles for the transport of persons, with spark-ignition internal combustion reciprocating or rotary piston engine, of a cylinder capacity exceeding 1,500 cm³ but not exceeding 3,000 cm³, enter the UK at 10.00%, the EU at 10.00%, and the US at 2.5% under the MFN rate. This classification specifically covers passenger cars and similar vehicles powered by gasoline or other spark-ignition fuels within the specified engine displacement range. Importers should be aware that preferential duty rates may apply in the US for goods originating from certain Free Trade Agreement partner countries, as indicated by CustomTariffs data. Careful attention to the specific engine capacity is crucial for accurate classification and duty assessment.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8703231100 | 10.00 % | — | — |
| 8703239000 | 10.00 % | — | — |
| 8703230000 | — | — | — |
| 8703231900 | 10.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8703230000 | 10.00 % | — | — |
| 8703231100 | 10.00 % | — | — |
| 8703231900 | 10.00 % | — | — |
| 8703239000 | 10.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8703230120 | — | — | ["No."] |
| 8703230130 | — | — | ["No."] |
| 8703230140 | — | — | ["No."] |
| 8703230160 | — | — | ["No."] |
| 8703230170 | — | — | ["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 8703.23?
Imports of Of a cylinder capacity exceeding 1 500 cm3 but not exceeding 3 000 cm3 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 870323 cover?
This subheading covers motor vehicles designed for the transport of persons, specifically those with internal combustion piston engines of a cylinder capacity exceeding 1,500 cubic centimeters (cm³) but not exceeding 3,000 cm³. According to the World Customs Organization's Harmonized System Nomenclature, this category includes a wide range of passenger cars, station wagons, and similar vehicles that meet these engine displacement criteria. Official definitions from sources like the USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that the primary determinant for classification here is the engine's cubic centimeter displacement.
What falls outside HS 870323?
The following products are excluded from HS 870323: vehicles with engines of a cylinder capacity less than or equal to 1,500 cm³ or greater than 3,000 cm³, which would fall into other subheadings within 8703. Also excluded are vehicles primarily designed for the transport of goods (classified under heading 8704), special purpose vehicles like ambulances or police cars (unless they also meet the passenger transport criteria and engine specifications), and vehicles powered by electric motors or hybrid systems that do not primarily rely on internal combustion engines within the specified capacity range.
What are common classification mistakes for HS 870323?
A common error is miscalculating or misinterpreting the engine's cylinder capacity, leading to classification under the wrong subheading within 8703. For instance, confusing liters with cubic centimeters or failing to account for all cylinders in multi-cylinder engines can result in incorrect duty assessments. Another mistake involves classifying vehicles that are primarily for goods transport, even if they have passenger seating, under 8703 instead of 8704. Adherence to General Interpretative Rule 1 and 3 is crucial for accurate classification.
How should importers classify products under HS 870323?
The correct procedure for classifying vehicles under HS 870323 involves first identifying the vehicle's primary purpose as the transport of persons. Next, the engine's total cylinder capacity must be precisely determined in cubic centimeters. This figure is then compared against the thresholds of 1,500 cm³ and 3,000 cm³. Importers and customs brokers must consult the official tariff schedule of the importing country, such as the USITC HTS or the EU TARIC, to confirm the exact subheading and any associated notes or exclusions before declaring the goods.
How is the duty calculated for products under HS 870323?
A 2023 Toyota Camry LE with a 2.5-liter (2,500 cm³) engine, declared at a customs value of $20,000 USD, would attract a US Most Favored Nation (MFN) duty of $500. This is calculated using the ad valorem rate of 2.5% published in the USITC Harmonized Tariff Schedule (HTS) for subheading 8703.23.00 (2.5% × $20,000 USD = $500 USD). This rate applies to vehicles meeting the specified engine capacity criteria and not eligible for preferential treatment under a free trade agreement.
Which trade agreements reduce duties for HS 870323?
Several free trade agreements may reduce the applicable duty rate for HS 870323, including the United States-Mexico-Canada Agreement (USMCA), which can result in a duty rate of Free for qualifying vehicles originating from Canada or Mexico. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) also offers preferential rates, potentially Free, for originating goods from member countries like Japan. To claim these preferences, a valid USMCA Certificate of Origin or a CPTPP Certificate of Origin (Form A) is typically required, depending on the specific agreement and origin of the vehicle.
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FAQ
What are the typical import duty rates for HS code 870323?
For HS code 870323, which covers motor vehicles with spark-ignition internal combustion reciprocating or rotary piston engines, of a cylinder capacity exceeding 1500 cm³ but not exceeding 3000 cm³, the Most Favored Nation (MFN) duty rate in the United States is typically 2.5% ad valorem. Other countries have different rates; for instance, the UK's standard rate is 10.00% ad valorem. It is crucial to consult the specific tariff schedule of the importing country for the definitive rate applicable to your shipment.
How is the cylinder capacity of a vehicle determined for HS 870323 classification?
The cylinder capacity is determined by the total swept volume of all the cylinders in the engine. For HS code 870323, the vehicle must have an engine with a cylinder capacity that is strictly greater than 1500 cm³ and less than or equal to 3000 cm³. This measurement is usually found in the vehicle's technical specifications or manufacturer's certificate of conformity. Incorrect reporting of cylinder capacity can lead to misclassification and potential penalties.
What documentation is required for importing vehicles classified under HS 870323?
When importing vehicles under HS 870323, standard import documentation typically includes a commercial invoice, bill of lading or air waybill, and an import declaration. Additionally, depending on the importing country's regulations, you may need a certificate of origin, proof of compliance with safety and environmental standards (e.g., EPA compliance for the US, Type Approval for the EU), and potentially a customs bond. Importers should verify specific requirements with the customs authority of the destination country.
Which trade agreements offer preferential duty rates for HS 870323?
Several trade agreements can provide reduced or duty-free access for vehicles under HS 870323. For example, under the USMCA (United States-Mexico-Canada Agreement), vehicles meeting specific rules of origin may qualify for preferential treatment. Similarly, agreements like the EU's with various countries, or the UK's trade deals post-Brexit, often list preferential rates. For instance, the EU TARIC system shows preferential rates such as Free (A+, AU, B, BH, CL, CO, D, E, IL, JO, KR, MA, OM, P, PA, PE, S, SG) for certain partner countries, subject to meeting origin criteria. Importers must consult the relevant trade agreement and the importing country's tariff database to confirm eligibility and applicable rates.
How is the import duty calculated for a vehicle under HS 870323?
The import duty for HS 870323 is typically calculated on an ad valorem basis, meaning it's a percentage of the vehicle's value. For example, if a vehicle classified under HS 870323 has a declared value of $20,000 USD and the applicable MFN duty rate is 2.5%, the import duty would be calculated as: $20,000 (Value) × 0.025 (Duty Rate) = $500 USD. If a specific duty (per unit) were applicable, the calculation would be rate per unit × number of units. Always use the customs value, which often includes costs like freight and insurance to the border, as the basis for ad valorem duties.