Buying used plant machinery from overseas can offer excellent value, but import duties, customs codes and paperwork can quickly turn a good deal into a headache if you are not prepared. The good news is that none of it is particularly complicated once you understand the basics.

After forty years moving machinery across borders, we have seen most things that can go wrong and more importantly, we know how to make sure they do not. This guide walks you through what you actually need to know about used plant imports, from calculating your landed cost to making sure your telehandler or roller clears customs without delay.

Understanding HS Codes and Commodity Codes

Every piece of machinery that crosses an international border needs a classification code. In the UK (and most of the world), we use the Harmonised System, or HS code. Think of it as a universal language for customs officials to understand exactly what you are importing.

HS codes are typically eight to ten digits long. The first six digits are internationally agreed, while the remaining digits get more specific to regional tariff structures. For plant machinery, you will usually be looking at codes starting with 84 (machinery and mechanical appliances) or 87 (vehicles).

Getting the Code Right Matters

An incorrectly assigned HS code can trigger a reclassification by customs, which means delays, potential fines, and recalculated duties after your machine has already arrived. Common mistakes include:

• Classifying based on function rather than construction (a wheeled loader might have a different code than a tracked one)
• Missing distinctions between self propelled and non self propelled equipment
• Not accounting for whether a machine is road legal or site only

If you are unsure, HMRC’s Trade Tariff tool is the official starting point, but for anything remotely complicated, it is worth getting proper advice. We have seen excavators reclassified at port because the paperwork described them generically rather than specifying tracked versus wheeled chassis.

How Import Duties Are Calculated

Import duty on second hand machinery into the UK depends on three main factors: the commodity code, the country of origin, and whether any trade agreements apply.

For most used plant coming from the EU post Brexit, duty rates typically sit between 0% and 4.5%, depending on the specific machinery type. Non EU imports can attract higher rates, though trade agreements with countries like Japan or South Korea may reduce or eliminate duties on certain equipment.

Working Out Your Landed Cost

Here is a straightforward worked example. Say you are exporting a used backhoe loader from the UK for £25,000:

Sale price: £25,000
Freight and insurance: £1,500
Total export cost: £26,500

Your buyer will then pay any import duty, local VAT or taxes, and customs clearance charges when the machine arrives in their country. These costs vary depending on the destination and the machinery classification, so it is always worth flagging this early so your buyer can budget properly.

We also recommend building in a small contingency, because exchange rate movements, port fees, or customs checks can sometimes shift the final numbers.

 

Essential Paperwork for Customs Clearance

Getting your paperwork right is the single biggest factor in whether your machinery sails through customs or sits in a compound racking up storage fees. Here is what you will need:

Commercial invoice: Must show a detailed description of the machinery (make, model, serial number, year), purchase price, HS code, seller and buyer details, and terms of sale (Incoterms). Vague descriptions or missing serial numbers are red flags for customs.

Bill of lading or CMR: Transport documents proving the machine is on its way and who has title to it.

Certificate of origin (if claiming preferential duty rates): Shows where the machine was manufactured, not just where you bought it from.

Valuation declaration: HMRC may ask you to prove the declared value reflects true market rate, particularly for older equipment or private sales.

EORI number: Both buyer and seller need valid Economic Operator Registration and Identification numbers to trade with the UK.

When You Might Need an ATA Carnet

An ATA Carnet is essentially a passport for temporarily importing machinery. If you are bringing equipment into the UK for a specific project or exhibition and plan to re export it within twelve months, a Carnet can save you paying duties and VAT upfront. It is particularly useful for dumpers or trailers you are hiring short term from overseas suppliers.

The Carnet system works because customs in both countries agree to waive duties on the understanding the goods will leave again. You post a bond (usually a percentage of the value), present the Carnet at both borders, and get your bond back when the machine returns. Miss the deadline or fail to re export, and you will be liable for the full duty and VAT as if you had imported permanently.

VAT on Imports and Second Hand Schemes

Since Brexit, VAT is charged on all goods entering the UK, whether from the EU or further afield. The standard 20% rate applies to most plant machinery, calculated on the total customs value plus any duty.

For used equipment, the VAT is not usually reclaimable by the seller under a second hand margin scheme in the way it might be for a domestic UK purchase, so you need to factor the full 20% into your costs. If you are VAT registered and buying for business use, you will reclaim it on your next return, but you still need to pay it upfront at import.

Common Pitfalls and How to Avoid Them

Valuation Disputes

HMRC can challenge your declared value if they believe it is unrealistically low. This is more common with private sales, auctions or part exchange deals where the paper price does not reflect market value. Always keep evidence: recent sales of similar machines, independent valuations, auction results. Transparency is your friend.

Reclassification at Port

Even if you have assigned an HS code, customs officers can reclassify if they disagree. The best defence is a detailed, accurate description on your commercial invoice. “Used excavator” is not enough. “Komatsu PC210LC 11, 21 tonne tracked hydraulic excavator, 2018, serial number KMTPC210ACEJ12345” gives customs no room for doubt.

Missing or Incorrect Paperwork

Incomplete documents are the number one cause of delays. A missing certificate of origin, a wrong EORI number or a commercial invoice without an HS code will stop your shipment cold. Double check everything before the machine moves, and keep digital copies accessible.

When to Hire a Customs Broker

For straightforward used plant imports with clear provenance and standard HS codes, many businesses handle customs declarations themselves using HMRC’s Customs Declaration Service. But there are times when paying a customs broker makes sense:

• First time imports, when you are still learning the process
• Complex or unusual machinery that sits between classification categories
• High value shipments where a mistake would be expensive
• Shipments from countries with complicated rules of origin
• When you simply do not have the time or internal expertise

A good broker will cost £100 to £300 per shipment but can save you far more in avoided delays, correct duty calculations and compliance peace of mind. We work with trusted brokers who understand plant machinery and can guide you through every step if you need support, just get in touch.

Import Compliance and Record Keeping

Customs compliance does not end when your machine clears the port. HMRC can audit your import records up to four years after the fact, so keeping proper documentation is essential:

1. All commercial invoices and shipping documents
2. Proof of duty and VAT payment
3. Correspondence regarding classifications or valuations
4. Certificates of origin and preferential tariff claims
5. Records of who handled declarations (if using a broker)

Store these digitally and keep them organised by shipment. If HMRC ever queries an import, you will need to produce evidence quickly.

Making Used Plant Imports Straightforward

Import duties, HS codes and paperwork are not complicated once you know what you are doing, but they do require attention to detail and proper preparation. Work out your full landed cost before committing to a purchase, make sure your paperwork is accurate and complete, and do not be afraid to ask for specialist help when you need it.

We have been handling used plant imports for forty years, and we are always happy to talk through the practicalities with customers. Whether you are buying a telehandler from Europe, arranging finance on an imported excavator, or just trying to work out if a deal makes financial sense once duties are included, we can help you get it right.

For more information about our stock, services or advice on importing plant machinery, get in touch with us or speak to the team directly. We also stock a wide range of quality used machines at our depot and can arrange spares and servicing for equipment you have imported or purchased elsewhere.

If you would like to know more about how we work, we explain our approach to doing business properly.