HS 870520 Mobile drilling derricks
Quick Answer: Mobile drilling derricks imported under HS 870520 enter the UK duty-free, the EU at 3.70% ad valorem, and the US at either free or 25% ad valorem depending on specific product origin and trade agreements. This HS code specifically covers self-propelled drilling rigs mounted on wheeled chassis, designed for oil, gas, or water well exploration and extraction. Importers should be aware of potential variations in US duty rates and consult specific trade agreements. CustomTariffs aggregates this tariff information, highlighting the need for careful classification and duty rate verification for accurate customs declarations.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8705200000 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8705200000 | 3.70 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 8705200000 | Free | — | ["No."] |
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.
How Has Trade Volume Developed?
Trade Volume 2023
How to Classify This HS Code?
What products does HS 870520 cover?
This subheading covers mobile drilling derricks, which are specialized vehicles equipped with drilling machinery for operations such as oil and gas exploration, water well drilling, or mineral prospecting. According to the World Customs Organization (WCO) Harmonized System Explanatory Notes, these are self-propelled or towed vehicles designed for mobility and equipped with a derrick structure and associated drilling equipment. The USITC Harmonized Tariff Schedule (HTS) and the EU TARIC database confirm that this classification applies to complete units, including the chassis, power unit, and drilling apparatus, intended for on-site drilling operations.
What falls outside HS 870520?
The following products are excluded from HS 870520: static drilling rigs that are not designed for mobility, drilling equipment that is designed to be mounted on a general-purpose chassis but is imported separately, and vehicles that are primarily designed for other purposes but may have some drilling capabilities. For instance, a truck equipped with a small auger for soil sampling would likely not be classified here if its primary function remains transportation, and a large, stationary offshore drilling platform would fall under a different heading entirely, typically related to vessels or structures.
What are common classification mistakes for HS 870520?
A common error is misclassifying mobile drilling derricks based solely on their chassis type rather than their primary function as specialized drilling machinery. For example, a vehicle that is essentially a truck chassis with a permanently mounted drilling rig should be classified under 870520, not under headings for trucks (e.g., 8704). This often arises from a misunderstanding of General Rule of Interpretation (GRI) 3(b), which states that goods mixed or combined of different materials or components are to be classified as if they consisted of the material or component which gives them their essential character, in this case, the drilling derrick.
How should importers classify products under HS 870520?
The correct procedure for classifying products under HS 870520 involves a thorough examination of the product's design, intended use, and the integrated nature of its components. Importers and customs brokers must verify that the vehicle is specifically designed and equipped as a mobile drilling derrick, including the presence of a derrick structure and drilling machinery. Consulting the official tariff schedules of the importing country, such as the USITC HTS or the UK Trade Tariff, and reviewing the relevant Explanatory Notes from the WCO are crucial steps to ensure accurate classification.
How is the duty calculated for products under HS 870520?
A mobile drilling derrick, weighing 25,000 kg and declared at a customs value of $500,000 USD, would attract a US duty of $12,500. 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% × $500,000 USD = $12,500 USD. This rate applies to goods imported from countries not benefiting from preferential trade agreements with the United States.
Which trade agreements reduce duties for HS 870520?
Several free trade agreements may reduce the applicable duty rate for HS 870520, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, qualifying mobile drilling derricks originating from Canada or Mexico can enter the United States duty-free. To claim this preference, a self-certified origin statement is typically required. Additionally, depending on the origin country, Generalized System of Preferences (GSP) benefits might apply, potentially reducing the duty rate to Free for eligible developing countries, requiring a GSP Form A. The EU and UK also have various agreements that could offer reduced or zero duties for goods originating from partner countries.
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FAQ
What are the typical import duty rates for HS code 870520, 'Mobile drilling derricks'?
The import duty rates for HS code 870520 can vary significantly depending on the importing country and any applicable trade agreements. For example, under the US Harmonized Tariff Schedule (HTS), the Most Favored Nation (MFN) duty rate is 3.70% ad valorem. However, preferential rates under trade agreements like USMCA (United States-Mexico-Canada Agreement) may offer duty-free entry (0.00%). It is crucial to consult the specific tariff schedule of the importing country, such as the USITC Harmonized Tariff Schedule or the EU TARIC database, to determine the exact rate applicable to your shipment. Always verify the rate based on the origin of the goods and any qualifying trade agreements.
What specific criteria define a 'mobile drilling derrick' under HS code 870520?
HS code 870520 covers 'Mobile drilling derricks'. According to the World Customs Organization (WCO) Explanatory Notes and general tariff interpretations, these are drilling rigs mounted on a wheeled chassis or other mobile base, designed for drilling operations, such as oil, gas, or water wells. Key characteristics include their self-propelled or towed mobility and their primary function as a derrick structure for drilling. They are distinguished from fixed drilling rigs or other specialized vehicles by their specific drilling derrick apparatus. Importers should ensure the primary function and structure align with this description to avoid misclassification.
How is the import duty for a mobile drilling derrick (HS 870520) calculated, and can you provide an example?
The import duty for mobile drilling derricks (HS 870520) is typically calculated on an ad valorem basis, meaning it's a percentage of the declared customs value of the goods. For instance, if the MFN duty rate in the US is 3.70% and a mobile drilling derrick is valued at $500,000 USD, the duty calculation would be: $500,000 (Value) × 0.0370 (Duty Rate) = $18,500 USD (Duty Amount). Some countries may also have specific duties based on weight or other units, but ad valorem is most common for this classification. Always confirm the basis of duty calculation with the importing country's customs authority.
What documentation is typically required when importing mobile drilling derricks under HS code 870520?
When importing mobile drilling derricks (HS 870520), standard import documentation is required, along with any specific certifications. This typically includes a commercial invoice detailing the value, quantity, and description of the goods; a packing list; a bill of lading or air waybill; and a certificate of origin to claim preferential duty rates if applicable. Depending on the importing country and the specific use of the derrick, additional documentation might be necessary, such as import permits, safety certifications, or environmental compliance documents. Customs brokers should advise importers on any country-specific requirements to ensure smooth clearance.
Which major trade agreements might offer preferential duty rates for mobile drilling derricks (HS 870520) into the United States?
For imports into the United States, the United States-Mexico-Canada Agreement (USMCA) is a significant trade agreement that often provides preferential duty rates, potentially including duty-free entry (0.00%) for goods originating from Canada or Mexico, provided they meet the rules of origin. Other trade agreements or special trade programs, such as those for developing countries, might also apply. Importers and customs brokers must carefully review the origin of the mobile drilling derrick and the specific provisions of relevant trade agreements, consulting resources like the USITC HTS or CBP.gov, to determine eligibility for preferential treatment.