HS 940531 Lighting strings of a kind used for Christmas trees

The Most Favored Nation (MFN) duty rate for HS code 940531 can vary significantly depending on the importing country. For example, the U.S. tariff rate is 3.70% ad valorem. In the European Union, under the TARIC system, the rate can be 2.00% ad valorem. The United Kingdom's Trade Tariff also lists a rate, often around 8% ad valorem. It is crucial to consult the specific tariff schedule of the destination country for the definitive rate. Preferential rates under various trade agreements may offer lower or duty-free entry for goods originating from partner countries (e.g., Free under A*, AU, BH, CL, CO, D, E, IL, JO, KR, MA, OM, P, PA, PE, S, SG, indicating specific trade agreements or zones).

HS code 940531 covers flexible strings of lights designed and marketed primarily for decorative purposes, specifically for Christmas trees. Key classification criteria include the string's flexibility, the type and arrangement of lights (e.g., LEDs, incandescent bulbs), and their intended use. Items that are not specifically designed for Christmas trees, such as general-purpose string lights for outdoor patios or permanent architectural lighting, may fall under different HS codes. The World Customs Organization (WCO) provides explanatory notes that can offer further guidance on distinguishing between similar products.

The duty calculation for HS code 940531 is typically based on the ad valorem system, meaning a percentage of the declared customs value of the goods. For instance, if the U.S. MFN duty rate of 3.70% applies, and you import lighting strings with a declared customs value of $10,000, the duty would be calculated as: $10,000 (Customs Value) × 0.0370 (Duty Rate) = $370.00. Some countries may also apply specific duties based on quantity (e.g., per unit or per meter), or a combination of ad valorem and specific duties. Always verify the applicable duty basis (ad valorem, specific, or compound) with the destination country's customs authority.

Standard import documentation for HS code 940531 includes a commercial invoice detailing the value, quantity, and description of the goods; a packing list specifying the contents of each package; and a bill of lading or air waybill for transportation. Depending on the importing country and the origin of the goods, a Certificate of Origin may be required to claim preferential duty rates under trade agreements. Importers should also be aware of any specific safety or electrical certification requirements (e.g., UL certification in the U.S., CE marking in the EU) mandated by the importing country's consumer product safety regulations, as these can affect customs clearance.

Several trade agreements can offer reduced or duty-free access for lighting strings used for Christmas trees (HS 940531). For example, goods originating from countries that are part of the Generalized System of Preferences (GSP) may receive reduced duties. Specific bilateral or regional agreements are also significant. Examples include the United States-Mexico-Canada Agreement (USMCA), where goods meeting rules of origin may be duty-free. In the EU, the Economic Partnership Agreements (EPAs) with African, Caribbean, and Pacific (ACP) countries, or Association Agreements with Mediterranean nations, can provide preferential treatment. The UK's Global Tariff also lists numerous preferential rates linked to its various trade deals. Importers must ensure they have the correct Certificate of Origin and that the goods meet the specific rules of origin for the relevant trade agreement to benefit from these rates.