HTS Classification by industry
Industrial machinery classification under Chapters 84 and 85 presents unique challenges: a single production line may contain dozens of machines, each classified separately. The distinction between a machine performing a specific function (specific heading) and a general-purpose machine (residual heading) determines the duty rate. Add the complexity of parts vs. complete machines, knocked-down shipments, and multi-function equipment, and accurate classification becomes essential. Camtom automates this analysis.
Classifying complex machines that perform multiple functions — the principal function determines the heading under Section XVI Note 3
Determining whether a shipment of components constitutes a "complete machine in knocked-down form" subject to GRI 2(a)
Distinguishing between machine parts (classified with the machine) and general-use parts (classified by material/function) per Section XVI Note 2
Handling Section 301 tariffs on Chinese-origin machinery that add 25% to capital equipment costs
Classifying CNC machines, robots, and automated systems that combine mechanical and electronic elements
Classifying a complete machine under a parts heading because it was shipped disassembled — GRI 2(a) requires classifying it as the complete article
Using the residual heading 8479 (machines n.e.s.) for a machine that has a specific heading elsewhere in Chapter 84
Classifying a conveyor system component as a standalone article instead of as part of the conveyor (8428)
Treating a replacement motor as a general electric motor (8501) when it is specifically designed as a machine part and classifies with the machine
Missing duty-free temporary import provisions for machines entering for exhibition or testing under bond
Most industrial machinery under Chapter 84 faces 0-5% MFN duty. Certain equipment qualifies for duty-free entry under the ITA or specific HTS provisions. Section 301 adds 25% on Chinese-origin machinery. Parts generally face lower rates (0-3.5%).
Under USMCA, machinery qualifies through tariff shift rules — the finished machine must undergo a change in classification from its component parts within a USMCA country. Assembly alone may not suffice; substantial transformation is generally required. USMCA certification is needed.