HS codes, rules of origin, and the paperwork you actually need

What a machinery exporter must prepare — HS classification, origin documentation, and the forms — to claim preferential duty rates under CETA or the EU–India FTA.

6 min read · updated 2026-08-04

Getting your HS code right

Customs duty is applied per HS (Harmonised System) code — a six-digit number that classifies your product, extended to eight or more digits by individual countries. Machinery falls mainly under HS chapters 84 (nuclear reactors, boilers, machinery and mechanical appliances), 85 (electrical machinery), and 90 (optical, measuring, medical instruments). The first step is to classify your machine to at least the six-digit level (s1 for the UK lookup, s2 for the EU). An incorrect code can result in underpaid duty, penalties, or denial of the preferential rate. If your machine performs multiple functions, apply the General Rules for the Interpretation of the Harmonised System — in practice, classify by the principal function. When in doubt, many exporters obtain a Binding Tariff Information (BTI) ruling from their own customs authority, which gives a legally binding classification valid across the customs union.

Rules of origin: the gatekeeper for the preferential rate

Shipping from the UK does not automatically qualify a machine for the CETA rate — it must be "originating" under the agreement's rules. The CETA Rules of Origin chapter (Chapter 3 of the agreement text, published on GOV.UK — s3) sets product-specific origin rules per HS code. The two most common tests are: a change-of-tariff-heading rule (the machine is manufactured from inputs classified under a different four-digit HS heading, proving substantial transformation) or a regional-value-content rule (a minimum percentage of the ex-works price must originate in the free-trade area). For most machinery, the rule requires a change of tariff heading at the four-digit level — meaning your manufacturing process must transform imported components enough to cross an HS heading boundary. Check the rule for your specific HS code in the agreement's origin schedule before committing to a customer quote.

The paperwork: what you need to prepare

To claim the preferential rate, the importer (your Indian customer) will need proof of origin. Under most modern FTAs including CETA, this is either a certificate of origin issued by a designated authority, or a self-declaration of origin by the exporter (an "origin declaration" on the invoice or a commercial document). The CETA text (s3) specifies which option applies per shipment-value threshold and per product. In practice, you should prepare: (1) your HS classification with supporting rationale, (2) a bill of materials or manufacturing statement showing the origin status of key inputs, (3) supplier declarations from your own component suppliers confirming the originating status of their parts, and (4) the completed certificate or declaration in the format required by the agreement. Customs authorities in both the exporting and importing country can audit origin claims retrospectively, so keep these records for the period specified in the agreement (typically three to five years from the date of import).

Sources