HS 870850 Drive-axles with differential, whether or not provided with other transmission components, and non-driving axles; parts thereof
Quick Answer: Drive-axles with differential, and non-driving axles, along with their parts, imported under HS 870850 enter the UK at 4.00%, the EU at 4.50%, and the US with rates varying significantly from 2.5% to 25%, with some preferential trade agreements allowing for duty-free entry. This classification specifically covers essential components of a vehicle's drivetrain that transmit power to the wheels or support the vehicle's weight. Importers should be aware of the substantial duty rate differences, particularly in the US market, and consult specific trade agreements for potential relief. According to CustomTariffs data, understanding these varied rates is crucial for accurate landed cost calculations and compliance.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8708500000 | — | — | — |
| 8708502000 | — | — | — |
| 8708502015 | — | — | — |
| 8708502018 | — | — | — |
| 8708502020 | — | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8708500000 | — | — | — |
| 8708502000 | — | — | — |
| 8708502015 | — | — | — |
| 8708502018 | — | — | — |
| 8708502020 | — | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8708509110 | — | — | ["No.","kg"] |
| 8708507900 | 2.5% | Free (18 programs) | ["No."] |
| 87085011 | Free | — | — |
| 8708501150 | — | — | ["No."] |
| 8708503110 | — | — | ["No.","kg"] |
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 8708.50?
Imports of Drive-axles with differential, whether or not provided with other transmission components, and non-driving axles; parts thereof 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 870850 cover?
This subheading covers drive-axles with integrated differentials, whether or not they include other transmission components like shafts or universal joints, and non-driving axles. It also encompasses parts specifically designed for these axles. According to the WCO Harmonized System Explanatory Notes and definitions found in official tariff schedules like the USITC Harmonized Tariff Schedule (HTS) and the EU TARIC, this classification is for components that form the axle assembly of a motor vehicle, transmitting power to the wheels or providing structural support.
What falls outside HS 870850?
The following products are excluded from HS 870850: complete powertrains, separate transmission shafts, universal joints not integrated into an axle assembly, and braking components. For instance, a standalone driveshaft (HS 8483.10) or a differential housing without the internal gearing and axle components would not be classified here. Similarly, brake assemblies (HS 8708.30) are distinct and fall under a different subheading.
What are common classification mistakes for HS 870850?
A common error is misclassifying partially assembled axle units or components that are not integral to the drive or non-driving axle function. For example, classifying a complete transmission unit that *includes* an axle as part of HS 870850, when it should be classified under a heading for transmissions (e.g., HS 8708.40). Adherence to General Rule of Interpretation (GRI) 1, which states classification is determined by the terms of the headings and any relative section or chapter notes, is crucial.
How should importers classify products under HS 870850?
The correct procedure for classifying products under HS 870850 involves a thorough examination of the product's design, function, and components. Importers and customs brokers must consult the official tariff schedule of the importing country, such as the USITC HTS or the UK Trade Tariff, and compare the product's characteristics against the wording of heading 8708 and subheading 8708.50, as well as any relevant Explanatory Notes or rulings. Verification of whether the item is a drive-axle with differential or a non-driving axle, or a specific part thereof, is paramount.
How is the duty calculated for products under HS 870850?
A rear drive-axle assembly for a commercial truck weighing 150 kg and declared at a customs value of $2,500 USD would attract a US duty of $125.00. This is calculated using the MFN rate of 5.0% ad valorem published in the USITC Harmonized Tariff Schedule (HTS 8708.50.0000), applied to the declared value: 5.0% × $2,500 = $125.00. Note that specific components or assemblies might have different rates, and weight-based duties are also possible for certain items.
Which trade agreements reduce duties for HS 870850?
Several free trade agreements may reduce the applicable duty rate for HS 870850, including the United States-Mexico-Canada Agreement (USMCA), which can result in a Free duty rate for qualifying goods originating from Canada or Mexico. For goods originating from the United Kingdom, the UK-US Free Trade Agreement (if enacted and applicable) or existing preferential arrangements could offer reduced rates. Documentation such as a USMCA Certificate of Origin or a UK EUR.1 movement certificate is typically required to claim these preferences.
```Which HS Codes Are Related?
Not the right code? Search all HS codes to find the correct tariff classification.
FAQ
What are the typical import duty rates for HS code 870850 (drive-axles and non-driving axles)?
The Most Favored Nation (MFN) duty rate for HS code 870850 in the United States is 4.00% ad valorem. However, preferential duty rates are available under various Free Trade Agreements (FTAs). For example, under the US-Australia FTA, the rate is Free. Importers should consult the latest USITC Harmonized Tariff Schedule for specific rates applicable to their country of origin. For the European Union, the TARIC database indicates a Common Customs Tariff rate of 4.50% ad valorem for goods originating from most countries, with reduced or zero rates for goods from certain preferential partners.
How is the import duty for HS 870850 calculated? Can you provide an example?
Import duty for HS code 870850 is typically calculated on an ad valorem basis, meaning a percentage of the declared customs value of the goods. For example, if a shipment of drive-axles valued at $10,000 is imported into the US under the MFN rate of 4.00%, the import duty would be calculated as: $10,000 (value) × 0.04 (duty rate) = $400. If the goods were subject to a specific duty (e.g., per unit), the calculation would be rate per unit × number of units. Always verify the basis of duty calculation (ad valorem, specific, or compound) with the relevant tariff schedule.
What are the key classification criteria for HS code 870850?
HS code 870850 covers drive-axles with a differential, whether or not they include other transmission components, and non-driving axles. It also includes parts of these axles. The critical distinction lies in the presence of a differential for drive-axles. Non-driving axles are also covered. Parts must be specifically designed for these axles to be classified here. Items that are complete transmission systems or general vehicle parts not specific to axles would fall under different HS codes.
Which trade agreements commonly offer preferential duty rates for HS code 870850?
Several trade agreements provide preferential duty rates for HS code 870850. In the US context, agreements like the US-Australia FTA (rate: Free), US-Korea FTA (rate: Free), and US-Mexico-Canada Agreement (USMCA) often provide reduced or zero duties for qualifying goods. For the UK, the UK Global Tariff may offer preferential rates under agreements with countries like Australia, Canada, and the EU. Importers must ensure their goods meet the rules of origin stipulated in the relevant trade agreement to claim preferential treatment.
What documentation is typically required for importing goods under HS code 870850?
Standard documentation for importing goods under HS code 870850 generally includes a commercial invoice, packing list, and bill of lading or air waybill. Crucially, importers must provide a declaration of origin to determine applicable duty rates. If claiming preferential treatment under a Free Trade Agreement, a Certificate of Origin or other specific declaration as required by the agreement (e.g., the USMCA Certificate of Origin) is mandatory. Depending on the importing country and the specific product, additional certifications related to safety or emissions might be necessary.