Import Duty and HS Codes for Construction Machinery: How to Estimate Landed Cost

An EXW price of USD 45,000 can become USD 58,000 by the time the machine reaches your yard. Here is how to calculate the gap before you commit.

The landed cost is the only number that matters

The landed cost is: machine price + ocean freight + insurance + import duty + VAT + destination port charges. Every one of those is knowable in advance. Buyers who only compare the machine price are comparing a fraction of the real cost.

How HS codes work

Every product has an HS (Harmonized System) code that determines its import duty rate in your country. Construction machinery falls under a few broad headings — excavators, cranes, loaders and lifting equipment each have their own six-to-ten-digit code. The first six digits are international; the remaining digits are country-specific and change the duty rate.

The right HS code matters twice: it sets the duty you pay, and a wrong code can trigger penalties or delays at clearance. Always confirm the exact code for your destination with a local broker — a good exporter provides the code and the full document pack so your broker can quote accurately.

How to estimate your landed cost

1. Get the machine price on the right Incoterm — see what EXW, FOB and CIF actually mean.
2. Add ocean freight — a full comparison is in our LCL vs FCL guide.
3. Add insurance, usually a small percentage of the invoice value.
4. Add import duty — look up your country’s rate for the HS code.
5. Add VAT or GST and the port handling charges your broker quotes.

Bottom line: import duty and VAT are the buyer’s responsibility and are not included in an EXW, FOB or CIF price. Get the HS code and a broker’s quote before you order, and the “unexpected” costs stop being unexpected.