Electronics Import Tariffs: HS Codes and Duty Rates for Tech Products
Importing electronics into the United States requires navigating a complex landscape of tariff codes and duty rates that vary widely by product type. Most consumer electronics fall under HS Chapters 84 and 85, with duty rates ranging from 0% for certain Information Technology Agreement (ITA) items t
Importing electronics into the United States requires navigating a complex landscape of tariff codes and duty rates that vary widely by product type. Most consumer electronics fall under HS Chapters 84 and 85, with duty rates ranging from 0% for certain Information Technology Agreement (ITA) items to over 25% for products subject to Section 301 China tariffs. Proper classification is critical — misclassifying a smartphone component versus a complete device can mean the difference between paying zero duty and facing substantial import costs.
In this guide, you'll learn:
- Which HS codes apply to common electronics and tech products
- How the ITA zero-duty list affects computer and telecom equipment
- The impact of Section 301 tariffs on Chinese-manufactured electronics
- Common classification mistakes that trigger costly reclassifications
- Practical strategies for reducing electronics import duties
- Current duty rates for laptops, smartphones, semiconductors, and components
What Are HS Chapters 84 and 85 for Electronics?
The Harmonized System classifies most electronics under two primary chapters: Chapter 84 (nuclear reactors, boilers, machinery and mechanical appliances, computers) and Chapter 85 (electrical machinery and equipment, sound recorders/reproducers, television equipment, telecommunications apparatus).
Chapter 84 covers computers, data processing machines, and their parts. For example:
- 8471.30 - Portable automatic data processing machines (laptops, tablets)
- 8471.50 - Processing units for computers
- 8471.70 - Storage units for computers
Chapter 85 encompasses consumer electronics, communications equipment, and electrical components:
- 8517.12 - Smartphones and cellular network telephones
- 8517.62 - Networking equipment (routers, switches, modems)
- 8518 - Microphones, speakers, headphones, amplifiers
- 8528 - Monitors, projectors, television receivers
- 8542 - Integrated circuits and microassemblies (semiconductors)
The distinction matters significantly. A device classified as a "computer" under 8471 may qualify for ITA zero-duty treatment, while a similar device classified as a "television receiver" under 8528 faces a 5% duty rate [U.S. International Trade Commission, 2024].
Which Electronics Qualify for Zero Duty Under the ITA?
The Information Technology Agreement (ITA), implemented in 1997 with expansions in 2016, eliminated tariffs on many technology products imported from participating countries (including China, despite other trade tensions). The ITA covers approximately 200 tariff lines across computers, telecommunications equipment, semiconductors, and related components.
ITA Zero-Duty Products Include:
| Product Category | HS Code Examples | Normal Duty (Non-ITA) | ITA Duty Rate |
|---|---|---|---|
| Laptop computers | 8471.30.0100 | 0% (already free) | 0% |
| Desktop computers | 8471.49.00 | 0% (already free) | 0% |
| Computer monitors | 8528.52.00 | 0% | 0% |
| Smartphones | 8517.13.00 | 0% | 0% |
| Networking routers | 8517.62.00 | 0% | 0% |
| Semiconductors (ICs) | 8542.31-8542.39 | 0% | 0% |
| Printed circuit boards | 8534.00.00 | 0% (most) | 0% |
| Hard disk drives | 8471.70.40 | 0% | 0% |
| Optical disc drives | 8471.70.50 | 0% | 0% |
Important ITA Exclusions (these pay normal duty even if from ITA countries):
- Consumer electronics for entertainment: Televisions (5%), video game consoles (varies), digital cameras not mounted in machines (0% for some, duties for others)
- Peripherals with limited functionality: Basic keyboards (0%), mice (1.1%), simple cables (2.6-5.3%)
- Power supplies and adapters: Often 1.5-2.5% depending on voltage and output
- Batteries: Lithium-ion batteries typically 3.4%
The ITA's product scope is specific, not categorical. A device that "looks like" a computer may not qualify if its primary function doesn't meet the ITA definition. The U.S. Customs and Border Protection (CBP) has issued numerous classification rulings on edge cases [U.S. Customs and Border Protection Ruling Database, 2024].
How Do Section 301 Tariffs Affect Electronics Imports?
Section 301 tariffs on Chinese goods have dramatically reshaped electronics import costs since 2018. These additional tariffs apply on top of normal duty rates, and they override ITA zero-duty benefits for products manufactured in China.
Section 301 Electronics Impact:
| Tariff List | Implementation | Rate | Common Electronics Affected |
|---|---|---|---|
| List 1 | July 2018 | 25% | Printed circuit assemblies, connectors, certain semiconductors |
| List 2 | August 2018 | 25% | Specialized industrial electronics, measurement equipment |
| List 3 | September 2018 | 25% | Networking equipment, storage devices, computer components |
| List 4A | September 2019 | 7.5% | Smartwatches, fitness trackers, wireless earbuds |
| List 4B | Never implemented | — | Laptops, smartphones, tablets (excluded) |
Critical Point: Laptops (8471.30), smartphones (8517.13), and tablets (8471.30) remain excluded from Section 301 tariffs as of 2024, even when manufactured in China. However, many of their components and subassemblies face 25% additional duties [Office of the United States Trade Representative, 2024].
Real-World Example: A U.S. electronics retailer imports assembled smartphones from China:
- HS Code: 8517.13.00
- Normal Duty: 0% (ITA)
- Section 301 Tariff: Excluded (0%)
- Total Duty: 0%
The same retailer imports replacement LCD screens for those phones:
- HS Code: 8529.90.13
- Normal Duty: 0% (free under general rate)
- Section 301 Tariff: 25% (List 3)
- Total Duty: 25%
This disparity incentivizes importing finished devices rather than parts, reshaping supply chain decisions. Companies increasingly manufacture final assembly outside China to avoid Section 301 while still using Chinese components [Peterson Institute for International Economics, 2023].
What Are the Most Common Electronics Classification Pitfalls?
Electronics classification errors cost importers millions in underpaid duties, penalties, and retroactive reclassifications. CBP actively audits electronics shipments due to high error rates and significant revenue implications.
1. Multifunctional Devices and Principal Function
The Harmonized System uses "principal function" to classify devices that perform multiple tasks. CBP applies General Rule of Interpretation (GRI) 3 when a product could fit multiple HS codes.
Common Mistake: Classifying a tablet with a detachable keyboard as a "computer keyboard" (8471.60.20, free duty) rather than as the complete tablet (8471.30, free duty but different statistical tracking). While both are duty-free, incorrect classification affects trade statistics and Section 301 determinations.
Real Pitfall: All-in-one devices that function as both computers and TVs. If the device has a TV tuner and is marketed primarily for entertainment, CBP may classify it as a television receiver (8528.71, 5% duty) rather than a computer (8471.49, 0% duty). The marketing language and predominant use matter significantly [CBP Classification Ruling HQ H301064, 2022].
2. Parts vs. Complete Units
One of the most expensive classification errors involves distinguishing between complete machines and their parts or subassemblies.
| Item Description | Incorrect Classification | Correct Classification | Duty Impact |
|---|---|---|---|
| Laptop motherboard with CPU | Complete computer (8471.50, 0%) | Parts of computers (8473.30, 0%) | None, but Section 301 exposure differs |
| Circuit board with USB controller | Printed circuit board (8534.00, 0%) | Parts of data processing machines (8473.30, 0%) | Statistical only, but Section 301 25% if wrong |
| Smartphone display assembly | Complete phone part (duty-free) | Parts of telephones (8517.70, 0% but Section 301 25%) | 25% difference on Chinese goods |
The Rule: Parts must be identifiable as "solely or principally used" with a specific type of machine. A generic printed circuit board goes to 8534.00, but one clearly designed for installation in a smartphone goes to 8517.70. The Section 301 treatment differs significantly.
3. Finished Goods vs. Incomplete or Unfinished Articles
Products imported without certain components may face different classification and duties.
Case Study: A company imported "smartphones" without batteries, claiming they were incomplete and should be classified as parts (potentially avoiding certain restrictions). CBP reclassified them as complete smartphones, noting that:
- The devices were functional except for the battery
- Batteries were readily available and simple to install
- The primary value and functionality resided in the imported product
- Marketing materials called them "phones"
Result: The devices were treated as complete smartphones under 8517.13 (correct for duty, but triggered different import requirements and statistical tracking) [CBP Ruling NY N314367, 2020].
4. Accessories and Peripheral Equipment
Determining whether an item is a "part" of a machine or a separate "accessory" affects classification significantly.
Parts (8473.30 for computers, 8517.70 for telephones): Components that contribute to the principal function. Examples: motherboards, power management ICs, structural frames designed for specific models.
Accessories (classified independently): Items that enhance use but aren't necessary for basic function. Examples: external speakers, carrying cases, screen protectors, generic USB cables.
Gray Area Items:
- Power adapters: Usually classified separately (8504.40, typically 1.5-2.5% duty), not as parts of the device they power
- Specialized cables: Cables designed specifically for one device model may be "parts," while generic cables (HDMI, USB-C) are classified separately
- Charging docks: May be accessories (separate classification) or parts depending on integration with the device
5. New vs. Used Electronics
Used electronics often receive different tariff treatment, and CBP scrutinizes "used" claims carefully.
Requirements for "Used" Classification:
- Must show actual wear from previous use
- Cannot be refurbished to like-new condition
- Packaging should reflect used status
- Documentation should indicate prior ownership
Pitfall: Importing Chinese-manufactured electronics, sending them to a third country where they're briefly "used," then importing to the U.S. as "used goods" to avoid Section 301 tariffs. CBP considers this circumvention and will reclassify as new goods from China [CBP Trade Remedy Enforcement Directive, 2023].
What Are Current Duty Rates for Common Tech Products?
This table reflects duty rates for electronics from Most Favored Nation (MFN) countries, plus Section 301 additional duties where applicable for Chinese-origin goods:
| Product | HS Code | MFN Duty | Section 301 (China) | Total (China) | ITA Member Benefit |
|---|---|---|---|---|---|
| Laptop computers | 8471.30.01 | Free | Excluded | 0% | Yes |
| Desktop computers | 8471.49.00 | Free | Excluded | 0% | Yes |
| Tablets | 8471.30.01 | Free | Excluded | 0% | Yes |
| Smartphones | 8517.13.00 | Free | Excluded | 0% | Yes |
| Smartwatches | 9102.12.80 | 9.8% + 2.5%/unit | 7.5% (List 4A) | 17.3% + $2.5 | No |
| Wireless earbuds | 8518.30.20 | 4.9% | 7.5% (List 4A) | 12.4% | No |
| Computer monitors | 8528.52.00 | Free | 25% (List 3) | 25% | Yes, but 301 overrides |
| Television sets | 8528.72.64 | 5% | 25% (List 3) | 30% | No (not ITA) |
| Desktop printers | 8443.32.10 | Free | 25% (List 3) | 25% | Yes, but 301 overrides |
| Networking routers | 8517.62.00 | Free | 25% (List 3) | 25% | Yes, but 301 overrides |
| USB flash drives | 8523.51.00 | Free | 25% (List 3) | 25% | Yes, but 301 overrides |
| Semiconductors (ICs) | 8542.39.00 | Free | Varies (List 1/3, some excluded) | 0-25% | Yes |
| Lithium batteries | 8506.50.00 | 3.4% | 7.5% (List 4A) | 10.9% | No |
| HDMI cables | 8544.42.20 | 5.3% | 25% (List 3) | 30.3% | No |
| Laptop batteries | 8507.60.00 | 3.4% | 7.5% (List 4A) | 10.9% | No |
| Webcams | 8525.80.50 | 2.1% | 25% (List 3) | 27.1% | Partial |
| Computer keyboards | 8471.60.20 | Free | 25% (List 3) | 25% | Yes, but 301 overrides |
| Computer mice | 8471.60.80 | 1.1% | 25% (List 3) | 26.1% | No |
Important Notes:
- Rates shown are accurate as of January 2024 but change frequently
- Section 301 exclusions exist for specific products; check USTR exclusion database
- Some electronics have compound duty rates (percentage + per-unit charge)
- Free Trade Agreement rates (USMCA, etc.) may differ from MFN rates
- Special rates apply for developing countries under GSP (currently suspended) and for least-developed countries
How Can Importers Reduce Electronics Tariff Costs?
Strategy 1: Precise Classification
The most immediate savings come from correct initial classification. Many importers default to broad classifications when more specific codes offer better rates.
Example: Gaming headsets with integrated microphones could be classified as:
- 8518.30 (Headphones, even combined with microphone) - 4.9% duty, 7.5% Section 301
- 8517.62 (Machines for reception/conversion/transmission of data - if they have significant processing capability) - Free duty, but 25% Section 301
The correct classification depends on principal function. If the device primarily receives audio, it's 8518.30. If it processes voice data for communication over a network, it might qualify as telecommunications equipment. The difference? Potentially several thousand dollars on a container shipment.
Strategy 2: First Sale for Export Valuation
CBP allows importers to use the "first sale" price (manufacturer to middleman) rather than the "last sale" price (middleman to importer) as the customs value if certain conditions are met. For electronics with complex supply chains, this can reduce the dutiable value by 15-30%.
Requirements:
- Document multiple sales in the chain leading to importation
- Prove the first sale was a bona fide arm's length transaction
- Show the goods were clearly destined for export to the U.S. at first sale
- Maintain detailed records of both transactions
Practical Example: Chinese manufacturer sells laptops to Hong Kong distributor: $400/unit Hong Kong distributor sells to U.S. importer: $520/unit Normal duty base: $520 × 0% = $0 Section 301 base: $520 × 0% = $0 (laptops excluded)
If the product were subject to 25% Section 301: Using last sale: $520 × 25% = $130/unit duty Using first sale: $400 × 25% = $100/unit duty Savings: $30/unit ($30,000 per 1,000-unit shipment)