HS Code 87049000: Motor Vehicles for Transport of Goods, Other than with Compressed Ignition or Spark Ignition Reciprocating Piston Engine, NESOI
Motor vehicles play a vital role in the transportation of goods across the globe. They are essential for the smooth functioning of supply chains and logistics networks. The HS Code 87049000 specifically refers to motor vehicles designed for the transport of goods, excluding those with compressed ignition or spark ignition reciprocating piston engines, not elsewhere specified or included.
The HS Code serves as a standardized system for classifying goods in international trade. It provides a unique code for each product, enabling customs authorities and traders to identify and categorize goods accurately. HS Code 87049000 ensures that motor vehicles for transporting goods fall under the correct category for import and export purposes.
Under this HS Code, the bound or most-favored-nation (MFN) duty rate is 25%. This means that whenever a country reduces trade barriers or opens up its market, it must apply the same duty rate for similar goods or services from all its trading partners. This principle of non-discrimination promotes fair trade practices and equal treatment among countries.
The quantity unit for HS Code 87049000 is measured in numbers (NO). This unit signifies the number of motor vehicles imported or exported under this specific code. It helps in accurately tracking the volume of trade in these goods and analyzing market trends.
In addition to the standard duty rate, there are various special tariff preference programs applicable to motor vehicles under HS Code 87049000. These programs offer preferential treatment to certain countries, either by providing duty-free access or lower duty rates. Some of the notable programs include:
1. Free Trade Agreements:
- Australia (A+): Imports from Australia enjoy duty-free treatment under the Automotive Products Trade Act (APTA).
- Bahrain (AU): Special rate applies under a specific agreement with Bahrain.
- Canada (B): NAFTA provides duty-free treatment for imports from Canada.
- Chile (BH): Special rate applies under a specific agreement with Chile.
- Israel (IL): Special rate applies under a specific agreement with Israel.
- Jordan (J): Special rate applies under a specific agreement with Jordan.
- Mexico (MX): NAFTA provides duty-free treatment for imports from Mexico.
- Oman (OM): Special rate applies under a specific agreement with Oman.
- Peru (P): Special rate applies under a specific agreement with Peru.
2. Preference Programs:
- Singapore (SG): A special rate of 7.5% applies under a specific agreement with Singapore.
These programs aim to promote economic cooperation, regional integration, and development by facilitating trade between countries. They provide incentives for businesses to engage in cross-border trade and enhance market access for goods covered by HS Code 87049000.
When it comes to importing motor vehicles under HS Code 87049000, certain US states play a significant role. The states that frequently engage in the importation of these goods include:
- District of Columbia
- Iowa
- Minnesota
- South Dakota
These states serve as significant hubs for trade and transportation, contributing to the efficient movement of goods within the United States.
HS Code 87049000 is crucial for the classification and trade of motor vehicles designed for the transport of goods, excluding those with compressed ignition or spark ignition reciprocating piston engines, not elsewhere specified or included. It ensures accurate categorization, facilitates international trade, and enables the application of appropriate duty rates and tariff preference programs. Businesses and traders involved in the import and export of motor vehicles must adhere to the regulations and requirements associated with this HS Code to ensure seamless global trade.
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