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October 2025, question 74

Valuation, Appraisement and Duty Assessment · Tariff lookups: rates, units, programs

A car manufacturer is importing parts from its overseas subsidiary for testing in its new electric vehicle model that is in pre-production. The parts are being tested to determine whether changes need to be made before the vehicle goes to market. Under which of the following scenarios would these parts be eligible to receive duty-free treatment under subheading 9817.85.01?

  1. After the manufacturer uses the parts, the parts will be sold at a discounted rate to a local school for use in its shop classes.
  2. The company is using the parts in quality control tests for the vehicle.
  3. The manufacturer is importing 10 times more parts than other manufacturers have used in the development of similar electric vehicles.
  4. To avoid waste, the best-functioning imported parts will be incorporated into vehicles that will be sold to the public.
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CBP's answer: B. B: The company is using the parts in quality control tests for the vehicle.

Subheading 9817.85.01 gives free entry to prototypes used exclusively for development, testing, product evaluation or quality control. Using the parts in quality control tests fits (B). Selling used parts to a school, importing excess quantities, or building the parts into vehicles for sale is not exclusive testing use.

Prototypes to be used exclusively for development, testing, product evaluation, or quality control purposes 9817.85.01

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CBP's key cites: HTSUS 9817.85.01

Question and key from CBP's October 2025 exam and answer key. The walk-through is ours; quotes are from the pinned editions in the reference viewer (HTSUS 2026 Basic, 19 CFR 2025 edition).