Most machines and mechanical parts are classified in chapter 84 of the Harmonized System, and electrical machines in chapter 85. The first six digits are the same in every country that uses the HS. The digits after that are national, so the full code in India will differ from the code in your import tariff.
Your customs broker is responsible for the declaration in your country, and the importer is legally answerable for it. Agree the code with the broker before you order, not when the goods arrive.
How classification works
Classification follows the General Interpretative Rules of the HS, applied in order. The heading text and the section and chapter notes come first. A machine is classified by what it is and what it does, not by its trade name.
Many machines have a specific heading, such as lathes, presses, pumps or packaging machines. Machines with no specific heading may fall into a residual heading for machines with individual functions. Multi-function machines are usually classified by their principal function.
A machine shipped unassembled or in several crates is normally classified as the complete machine, provided the parts are presented together. A complete processing line made of separate machines may be treated as a functional unit, but the conditions are strict, so ask your broker.
The rules for parts
Parts are where most mistakes happen. Section XVI of the HS, which covers chapters 84 and 85, has a note that sets the order for parts:
- A part that is itself a good named in a heading, such as a pump, a bearing, a valve or an electric motor, goes to that heading.
- A part suitable for use solely or principally with one machine goes with that machine's parts heading.
- Other parts follow the remaining rules in the note.
- General-purpose items such as bolts, springs and many castings are often classified by their material in other chapters, not as machine parts.
Getting it right
Give the broker a full technical description, a drawing or brochure, and the machine's function. For parts, say which machine they fit and whether they are used with anything else.
Check your national tariff online, such as TARIC for the EU or the Harmonized Tariff Schedule for the United States. If the code is unclear and the duty difference matters, ask your customs authority for a binding ruling. In the EU this is a Binding Tariff Information decision.
Keep the code consistent on the invoice, packing list and certificate of origin, as covered in documents to export machinery from India. A code that differs from the Indian shipping bill is not wrong in itself, but your broker should be able to explain it. Duty is covered in what import duties apply to Indian machinery.
Next step
We collect the technical details your broker needs from the factory and check that the codes match across the document set. To start, book a free sourcing review.