Custom Duty on Plastic Injection Moulding Machine

Custom Duty on Plastic Injection Moulding Machine

Importing a plastic injection moulding machine is a significant investment for manufacturers looking to expand their production capabilities. However, beyond the cost of the machine itself, importers must consider the custom duty and related taxes, which vary depending on the destination country and machine specifications. At Yixian Molding, we aim to support our global clients by sharing useful information about import duties and logistics considerations when purchasing injection molding equipment from China.

What Is Custom Duty?

Custom duty is a type of tax levied by a country’s government on goods imported from abroad. The primary purposes of this duty are to:

• Protect local manufacturing industries

• Generate revenue for the government

• Regulate the inflow of machinery or equipment

The custom duty for plastic injection molding machines is generally calculated based on:

• Declared value of the machine (CIF value: cost, insurance, and freight)

• HS Code classification

• Import country’s specific tariff regulations

HS Code for Injection Moulding Machines

The Harmonized System (HS) Code used internationally for classifying traded products is critical for determining applicable duty rates. Most plastic injection moulding machines fall under the HS Code 847710:

HS Code 847710 – Injection-moulding machines for working rubber or plastics.

This code is recognized globally, though specific duty rates will vary by country and trade agreements.

Example: Custom Duty Rates by Region

Here are some examples of how different regions may treat the import of injection molding machines:

India

• Basic Custom Duty (BCD): 7.5% – 10%

• IGST (Integrated Goods & Services Tax): ~18%

• Additional charges: Social Welfare Surcharge, handling fees

European Union

• Import Duty: Often ranges between 0% – 5%

• VAT: Applied on top of machine cost and import duty

United States

• Import Tariff: May vary depending on trade relations; certain Chinese machines have been subject to additional tariffs under Section 301

• Total landed cost: Includes import duty, customs clearance, and inland transport

Southeast Asia

• ASEAN-China Free Trade Area (ACFTA): Some countries may enjoy reduced or zero duty on Chinese-made machinery

Tips for Importers

If you are importing an injection molding machine for the first time, consider the following steps:

1. Consult Local Customs Broker
   – They can provide accurate information on applicable duties, paperwork, and clearance procedures.

2. Use Correct HS Code
   – Misclassification can result in delays or unexpected fees.

3. Request CIF Quotation
   – This includes shipping and insurance costs, which are often needed to calculate duty.

4. Check for Trade Agreements
   – Some countries have trade deals with China that reduce or exempt import taxes.

5. Get Supplier Support
   – At Yixian, we help customers prepare documentation such as commercial invoices, packing lists, and certificates of origin.

Conclusion

Understanding custom duty on plastic injection moulding machines is essential for budgeting and planning any machinery investment. The rates and regulations depend on the destination country, trade agreements, and correct product classification. Yixian Molding supports clients not only in providing quality plastic injection solutions but also in managing the export process efficiently.

Contact Yixian Molding

If you need assistance with mold manufacturing, injection molding production, or guidance on importing related equipment, Yixian is here to help.