HS 870423 Of a gross vehicle weight exceeding 20 tonnes
Quick Answer: New motor vehicles for the transport of goods, specifically those with a gross vehicle weight exceeding 20 tonnes, enter the UK at rates of 2.00% and 10.00%, the EU at 3.50% and 22.00%, and the US at 25% (with exceptions for certain free trade agreement partners). This classification applies to heavy-duty trucks and similar commercial vehicles designed for substantial cargo loads. Importers should be aware of potential variations in duty rates based on specific vehicle configurations and origin countries. CustomTariffs aggregates this data, highlighting the importance of precise classification for accurate duty assessment.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8704231000 | 2.00 % | — | — |
| 8704239900 | 10.00 % | — | — |
| 8704230000 | — | — | — |
| 8704239100 | 10.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8704230000 | — | — | — |
| 8704231000 | 3.50 % | — | — |
| 8704239100 | 22.00 % | — | — |
| 8704239900 | 22.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8704230100 | 25% | Free (A+,AU,B,BH,CL,CO,D,E,IL,JO,MA,OM,P,PA,PE,S,SG)25% (1 programs) | ["No."] |
Special rates available under trade agreements including USMCA, KORUS, GSP.
Duty rates sourced from the USITC (US International Trade Commission) Harmonized Tariff Schedule (HTS) (accessed 2/22/2026), EU TARIC – DG TAXUD (Directorate-General for Taxation and Customs Union) (accessed 2/22/2026), and UK Trade Tariff – HMRC (His Majesty's Revenue and Customs) (accessed 2/22/2026).
Data compiled and presented by HSRates.
Which Trade Agreements Reduce Duties for HS 8704.23?
Imports of Of a gross vehicle weight exceeding 20 tonnes may qualify for reduced or zero duty rates under free trade agreements and preferential programs. The overview below shows available preferential arrangements by jurisdiction, compiled by HSRates from official tariff and trade agreement data.
United States (HTSUS)
Free (A+,AU,B,BH,CL,CO,D,E,IL,JO,MA,OM,P,PA,PE,S,SG)25% for KORUS
European Union (TARIC)
Preferential rate data not yet available.
United Kingdom
Preferential rate data not yet available.
Preferential rates require proof of origin and may be subject to quotas or conditions. Always verify eligibility with a licensed customs broker.
Data compiled by HSRates.
Which Preferential Rates Apply to Your Origin Country?
Select an origin country to see if preferential rates apply.
Preferential rates based on available trade agreements. Actual rates may vary.
How to Classify This HS Code?
What products does HS 870423 cover?
This subheading covers new or used motor vehicles designed for the transport of goods, specifically those with a gross vehicle weight exceeding 20 tonnes. According to the World Customs Organization's Harmonized System Nomenclature, this category includes heavy-duty trucks, articulated lorries, and specialized vehicles like concrete mixers or dump trucks that meet the specified weight threshold. Official definitions from sources like the USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that the critical determinant for classification under 8704.23 is the maximum permissible laden weight.
What falls outside HS 870423?
The following products are excluded from HS 870423: vehicles with a gross vehicle weight of 20 tonnes or less, which would be classified under HS 8704.21 or other subheadings within 8704 based on their weight. Also excluded are chassis fitted with engines for the vehicles of heading 8704 (classified under 8704.90), special purpose vehicles not primarily designed for goods transport (e.g., fire engines, cranes, classified elsewhere), and trailers or semi-trailers (classified under 8716). Passenger vehicles, even if they have a large carrying capacity, are also excluded and fall under heading 8703.
What are common classification mistakes for HS 870423?
A common error is misinterpreting the "gross vehicle weight" (GVW) or "maximum permissible laden weight." Importers may mistakenly use the unladen weight or the weight of the chassis alone, rather than the manufacturer's specified maximum GVW. According to General Rule of Interpretation (GRI) 1, classification is determined by the terms of the headings and any relative section or chapter notes. Incorrectly applying the GVW can lead to misclassification, potentially resulting in incorrect duty payments and penalties. For instance, a vehicle with a GVW of 19,500 kg would fall under 8704.21, not 8704.23.
How should importers classify products under HS 870423?
The correct procedure for classifying vehicles under HS 870423 involves obtaining the manufacturer's specification for the Gross Vehicle Weight (GVW) or Maximum Permissible Laden Weight. This information is typically found on the vehicle's compliance plate or in its technical documentation. Importers and customs brokers must verify that this GVW exceeds 20,000 kilograms (20 tonnes). If the GVW meets this criterion, and the vehicle is designed for the transport of goods, then HS 870423 is the appropriate classification. Always consult the latest version of the relevant country's tariff schedule for definitive guidance.
How is the duty calculated for products under HS 870423?
A new Volvo FH 16 750 tractor unit, with a declared customs value of $150,000 USD and a GVW exceeding 20 tonnes, would attract a US duty of $3,750. This is calculated using the Most Favored Nation (MFN) duty rate of 2.5% ad valorem, as published in the USITC Harmonized Tariff Schedule. The calculation is: 2.5% × $150,000 USD = $3,750 USD. This rate applies to goods imported from countries not benefiting from preferential trade agreements or specific exemptions.
Which trade agreements reduce duties for HS 870423?
Several free trade agreements may reduce the applicable duty rate for HS 870423, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, qualifying vehicles originating from Canada or Mexico can enter the United States duty-free. To claim this preference, a valid USMCA country of origin certification statement is required. Additionally, the EU's Generalised Scheme of Preferences (GSP) may offer reduced or zero duties for vehicles originating from certain developing countries, typically requiring a EUR.1 movement certificate or an origin declaration.
```Which HS Codes Are Related?
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FAQ
What are the typical import duty rates for HS code 870423, covering trucks with a gross vehicle weight exceeding 20 tonnes?
Import duty rates for HS code 870423 vary significantly by importing country. For instance, under the US Harmonized Tariff Schedule (HTS), the Most Favored Nation (MFN) rate is typically 25%. However, preferential rates under Free Trade Agreements (FTAs) can be lower or even free. For example, goods from Australia (AU) may enter duty-free. It is crucial to consult the specific tariff schedule of the destination country for precise rates. The World Customs Organization (WCO) provides the foundational HS nomenclature, but national tariff schedules detail the actual duty rates.
How is the gross vehicle weight (GVW) of a truck determined for HS classification under 870423?
The gross vehicle weight (GVW) is the maximum operating weight of a vehicle as specified by the manufacturer. This includes the vehicle's chassis, body, engine, fuel, accessories, driver, passengers, and cargo. For HS classification purposes, importers must refer to the manufacturer's stated GVW, typically found on a compliance plate or in the vehicle's documentation. If the GVW exceeds 20 tonnes (20,000 kg), the vehicle falls under HS code 870423. This is a critical criterion to avoid misclassification.
What documentation is typically required when importing trucks classified under HS 870423?
When importing trucks under HS code 870423, standard import documentation is required, including a commercial invoice, bill of lading or air waybill, and packing list. Additionally, specific documentation may be necessary depending on the importing country's regulations. This can include the vehicle's title or registration, manufacturer's certificate of origin, proof of GVW, and potentially emissions compliance certificates. Importers should verify the exact requirements with the customs authority of the destination country to ensure smooth clearance.
How do trade agreements like the US-Australia FTA affect the duty calculation for HS 870423?
Trade agreements can significantly reduce or eliminate import duties. For example, if a truck classified under HS 870423 originates from a country with a preferential trade agreement with the importing country (e.g., Australia under the US-Australia FTA), it may qualify for a reduced or zero duty rate. To claim preferential treatment, importers must provide a valid Certificate of Origin (COO) or other proof of preferential origin as stipulated by the agreement. This requires careful tracking of the goods' origin and adherence to the specific rules of origin for the trade agreement.
Can you provide an example of how import duty is calculated for a truck under HS 870423?
Certainly. Let's assume a truck with a GVW exceeding 20 tonnes (HS 870423) is imported into the United States. The MFN duty rate is 25% ad valorem. If the declared value of the truck on the commercial invoice is $100,000 USD, the import duty would be calculated as follows: Duty Amount = Declared Value × Duty Rate. Duty Amount = $100,000 USD × 25% = $25,000 USD. This calculation is based solely on the value. Some countries may also apply specific duties based on weight or other factors, which would be in addition to or instead of ad valorem duties.