Importing spare parts: customs, HS codes, Incoterms, documents

When the right spare part is in stock abroad, the purchase does not end with the order: customs paperwork can delay a shipment as easily as a missing pallet. This article explains the main concepts. It is general information, not legal or tax advice, so always check the details with your customs broker.

Incoterms 2020: who does what

Incoterms are standard trade terms published by the International Chamber of Commerce. The current edition is Incoterms 2020. Each rule defines where the seller hands over the goods, who pays for transport and insurance and who handles export and import clearance. They do not define the price or transfer of ownership.

There are 11 rules. 7 can be used for any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and 4 are for sea and inland waterway transport only (FAS, FOB, CFR, CIF). The rules you will meet most often with spare parts are:

For small, urgent shipments by courier, FCA, DAP or DDP are common. Always name the exact place after the rule, for example "DAP Bratislava, buyer's warehouse", and the edition, "Incoterms 2020".

HS codes: classifying the part

Every imported item must be classified under the Harmonized System (HS), an international nomenclature maintained by the World Customs Organization. The first 6 digits are the same in all member countries. Countries add further digits: the EU uses the 8 digit Combined Nomenclature and the 10 digit TARIC code, and the United States uses the Harmonized Tariff Schedule.

The HS code determines the duty rate and whether licenses are needed. Industrial parts can be tricky: a part may be classified on its own merits (for example as a bearing, valve or electric motor) or as a "part of" a specific machine, and the result can differ. A wrong code can mean overpaying, a later correction or delays at the border.

Tip: If you import the same type of part repeatedly, ask your customs broker about a binding tariff information decision. In the EU this is called BTI and gives legal certainty about the classification.

Documents you will need

The exact set depends on the countries involved and the goods, but these documents appear in most shipments:

• Commercial invoice. Seller and buyer details, a clear description of each item, part numbers, quantity, unit and total value, currency, Incoterms rule, HS code and country of origin. Vague descriptions such as "spare parts" or "machine components" often cause questions at customs.
• Packing list. Number of packages, weights, dimensions and contents of each package.
• Transport document. Air waybill, bill of lading, CMR note or courier waybill.
• Proof of origin, when you want to claim a preferential duty rate under a trade agreement.
• Licenses or certificates for regulated items, if applicable.

When you send a part request, a precise description and part number help not only with sourcing but also with correct customs paperwork later. Our guide on how to read a machine nameplate shows what details to collect.

EORI in the European Union

Businesses that import into or export from the EU need an EORI number (Economic Operators Registration and Identification). It is issued by the customs authority of the member state where the company is established and is used across the whole EU. Without it, customs declarations cannot be lodged. It should be in place before the first shipment.

Origin: where the part was made

Country of origin is not the country the part was shipped from. A bearing made in Japan and sold by a distributor in Germany still has Japanese origin. Customs distinguishes between:

• Non-preferential origin, used for statistics, labeling and trade measures.
• Preferential origin, which can reduce or remove duty when the goods qualify under a trade agreement and the correct proof of origin is provided.

Claiming preferential origin without proper evidence can result in duty being reclaimed later.

Duties and import VAT

On import, the authorities typically charge:

• Customs duty, based on the HS code, origin and customs value. Many industrial parts carry low duty rates in many countries, but some carry higher rates or extra measures, so never assume.
• Import VAT or sales tax, usually calculated on the customs value plus duty and certain costs. VAT registered businesses can often recover import VAT, depending on local rules.
• Other charges, such as excise or anti-dumping duties for specific goods, and broker or courier handling fees.

The customs value is generally based on the transaction value, adjusted for transport and insurance costs up to the border according to local rules.

Export controls

Some electronics, controllers and precision components fall under export control rules, including dual-use regulations, or sanctions. The seller may need a license, so clarify this early.

Practical checklist

1. Agree the Incoterms 2020 rule and named place in writing.
2. Confirm the HS code with your broker.
3. Check that the commercial invoice has full descriptions, part numbers, values and origin.
4. Have your EORI or local importer registration ready.
5. Ask whether preferential origin applies and which proof is needed.
6. Estimate duties, VAT and fees before approving the purchase.

Key takeaways

• Incoterms 2020 decide who handles transport, insurance and clearance, so always name the rule and place.
• The HS code drives duty rates and requirements, and parts can be hard to classify.
• A detailed commercial invoice prevents many customs delays.
• EU importers need an EORI number before the first shipment.
• Duties, VAT and origin rules vary, so check with your customs broker.