How does USMCA affect duty on automotive imports?

USMCA eliminates duties on qualifying vehicles and parts that meet Regional Value Content thresholds — 75% for passenger vehicles. Camtom verifies RVC eligibility and flags components that may not qualify.

Are EV battery packs classified differently from traditional auto parts?

Yes. Lithium-ion battery packs typically classify under 8507.60, not as vehicle parts under Chapter 87. The classification affects both duty rates and USMCA RVC calculations. Camtom handles this distinction automatically.

What happens if I misclassify an aftermarket part?

Misclassification can trigger CBP penalties ranging from 20% to 40% of the lost duty, plus potential seizure. The most common error is classifying parts by material rather than function. Camtom flags these risks before entry.

Does Section 301 apply to all auto parts from China?

Not all, but a significant portion. Section 301 List 3 and List 4A cover many auto components at 25%. Camtom cross-references your HTS code against active 301 lists to calculate total landed cost.

How accurate is AI classification for automotive parts?

Camtom achieves over 95% accuracy on automotive classifications. The system was trained on CBP rulings, court decisions, and millions of real entry lines. It handles complex GRI analysis automatically.

How does USMCA affect duty on automotive imports?

USMCA eliminates duties on qualifying vehicles and parts that meet Regional Value Content thresholds — 75% for passenger vehicles. Camtom verifies RVC eligibility and flags components that may not qualify.

Are EV battery packs classified differently from traditional auto parts?

Yes. Lithium-ion battery packs typically classify under 8507.60, not as vehicle parts under Chapter 87. The classification affects both duty rates and USMCA RVC calculations. Camtom handles this distinction automatically.

What happens if I misclassify an aftermarket part?

Misclassification can trigger CBP penalties ranging from 20% to 40% of the lost duty, plus potential seizure. The most common error is classifying parts by material rather than function. Camtom flags these risks before entry.

Does Section 301 apply to all auto parts from China?

Not all, but a significant portion. Section 301 List 3 and List 4A cover many auto components at 25%. Camtom cross-references your HTS code against active 301 lists to calculate total landed cost.

How accurate is AI classification for automotive parts?

Camtom achieves over 95% accuracy on automotive classifications. The system was trained on CBP rulings, court decisions, and millions of real entry lines. It handles complex GRI analysis automatically.

HTS Classification by industry

HTS Classification for Automotive & Parts

The automotive industry deals with thousands of tariff lines spanning vehicles, engines, transmissions, electronic components, and aftermarket parts. Correctly classifying under Chapters 84, 85, 87 and others determines whether you pay 2.5% or 25% duty — and whether USMCA origin rules save you millions. Camtom uses AI to classify automotive goods with precision and speed.

Classification challenges in your industry

Distinguishing between finished vehicles (Ch. 87) and assemblies/sub-assemblies that classify as parts (Ch. 84/85)

Applying the correct USMCA Regional Value Content (RVC) threshold — 75% for passenger vehicles

Classifying EV-specific components like battery packs, inverters, and thermal management systems that straddle multiple chapters

Navigating Section 301 tariffs on Chinese-origin automotive components that overlay standard MFN rates

Identifying whether aftermarket parts classify as the vehicle part or by their own material/function

Common classification mistakes

Classifying EV battery modules under 8507 (storage batteries) instead of 8507.60 (lithium-ion) — missing the specific subheading

Failing to separate brake assemblies from brake pads, which classify under different HTS numbers

Using the vehicle HTS code for standalone transmissions that should go under 8708.40

Ignoring the "parts and accessories" general rules that push components to Chapter 87 instead of their constituent material

Not claiming USMCA preference when the vehicle meets RVC but the importer lacks a valid certificate of origin

Key HTS chapters

Chapter 87 — Vehicles

Chapter 84 — Machinery & mechanical appliances

Chapter 85 — Electrical machinery

Chapter 40 — Rubber (tires)

Chapter 73 — Steel articles

Chapter 70 — Glass

Duty rate range

MFN duty on passenger vehicles is 2.5%; light trucks face a 25% "chicken tax." Parts generally range from 0% to 6%. Section 301 can add 25% on Chinese-origin components. USMCA-qualifying goods enter at 0%.

Rules of origin

Under USMCA, passenger vehicles require 75% RVC (net cost method). Core parts like engines and transmissions have their own RVC thresholds (75%). Battery packs for EVs must meet 75% RVC by 2027. A valid USMCA certificate of origin (or certification) is required at entry.

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Frequently asked questions