HS 870421 Other, with only compression-ignition internal combustion piston engine (diesel or semi-diesel)

Import duty rates for HS code 870421, covering 'Other' vehicles with only compression-ignition internal combustion piston engines (diesel or semi-diesel), vary significantly by country. For example:

• United States: The U.S. Harmonized Tariff Schedule (USHTS) generally assigns a 25% ad valorem duty rate for vehicles under this code, unless specific trade agreements apply. (Source: USITC)
• European Union: Under the TARIC system, the Common Customs Tariff (CCT) rate for HS 870421 is typically 10% ad valorem. However, this can be reduced or eliminated for goods originating from countries with preferential trade agreements. (Source: EU TARIC)
• United Kingdom: The UK Global Tariff (UKGT) often lists a 10% ad valorem duty rate for HS 870421. As with the EU, preferential rates may apply based on origin. (Source: UK Trade Tariff)

It is crucial to consult the specific tariff schedule of the importing country for the most accurate and up-to-date duty rates, as these can change and are subject to specific product characteristics and origin rules.

The import duty for HS code 870421 is typically calculated on an ad valorem basis, meaning it's a percentage of the declared customs value of the goods. In some cases, specific duties (e.g., per unit) might apply, but ad valorem is more common for vehicles.

Example Calculation (Hypothetical based on EU rate): Assume a vehicle classified under HS 870421 has a declared customs value of €20,000. If the applicable duty rate is 10% ad valorem:

• Duty Amount = Customs Value × Duty Rate
• Duty Amount = €20,000 × 10%
• Duty Amount = €2,000

In this scenario, the importer would owe €2,000 in customs duties. Always verify the correct customs value basis (e.g., CIF - Cost, Insurance, and Freight) and the applicable duty rate from the importing country's official tariff.

To be correctly classified under HS code 870421 ('Other, with only compression-ignition internal combustion piston engine (diesel or semi-diesel)'), a vehicle must meet specific criteria:

1. Vehicle Type: It must be a 'motor vehicle for the transport of persons or goods'. This excludes chassis, tractors, and specialized vehicles not primarily for transport.
2. Engine Type: The sole or primary means of propulsion must be a 'compression-ignition internal combustion piston engine'. This specifically refers to diesel or semi-diesel engines. It excludes gasoline (spark-ignition) engines, electric motors, or hybrid systems where the primary engine is not diesel.
3. 'Other' Category: This code falls under heading 8704 ('Motor vehicles for the transport of goods'), specifically subheadings that are not otherwise specified. It generally covers trucks, vans, and similar goods vehicles that are not specifically listed in more granular subheadings within 8704 (e.g., dump trucks, refrigerated vans, etc., which might have their own codes).

Importers must ensure the vehicle's technical specifications, particularly the engine type and intended use, align precisely with these criteria to avoid misclassification.

Several trade agreements can provide preferential duty rates, often reducing or eliminating the standard Most Favored Nation (MFN) tariffs for HS code 870421. Key examples include:

• European Union: The EU has numerous Free Trade Agreements (FTAs) with countries like Canada (CETA), Japan (JEFTA), and South Korea (EUSKFTA). Goods originating from these partner countries may benefit from reduced or zero duties under the Common Customs Tariff.
• United States: The US has agreements such as the USMCA (United States-Mexico-Canada Agreement) and FTAs with countries like South Korea (KORUS FTA) and Australia. Vehicles meeting the rules of origin under these agreements can enter the US at preferential rates.
• United Kingdom: Post-Brexit, the UK has established its own set of trade agreements, including continuity agreements with countries that previously had FTAs with the EU, and new agreements with nations like Japan and Australia. Goods originating from these partner countries may qualify for preferential treatment under the UK Global Tariff.

To benefit: Importers must ensure the vehicles genuinely originate from a country party to an applicable trade agreement and meet the specific 'rules of origin' defined within that agreement. This typically requires a valid Certificate of Origin or other proof of origin acceptable to the customs authority of the importing country. Consulting the relevant trade agreement text and customs guidance is essential.

Importing vehicles classified under HS code 870421 requires comprehensive documentation to satisfy customs and regulatory requirements. Standard documents usually include:

1. Commercial Invoice: Detailing the seller, buyer, description of goods, quantity, unit price, total value, currency, and Incoterms.
2. Bill of Lading (Ocean) or Air Waybill (Air): Evidence of shipment.
3. Packing List: Itemizing the contents of each package or shipment.
4. Customs Declaration: A formal declaration of the imported goods, including the HS code (870421), value, origin, and quantity.
5. Proof of Origin: Crucial for claiming preferential duty rates under trade agreements. This could be a Certificate of Origin or origin declaration on the invoice, depending on the agreement.
6. Vehicle Title/Registration Documents: Proof of ownership and details of the vehicle.
7. Import Permit/License (if applicable): Some countries may require specific permits for vehicle imports.
8. Compliance Certificates: Depending on the destination country, certificates proving compliance with safety, emissions, or environmental standards (e.g., EPA certification in the US, Euro standards in the EU/UK) may be necessary.

Always verify the specific documentation requirements with the customs authority of the importing country and any relevant government agencies, as these can vary widely.