Second Hand Machinery

There are a number of good strategic reasons why companies wish to buy secondhand machinery from foreign countries:

Big Savings: Used gear is usually a lot cheaper than new gear. This lets firms, especially small and medium-sized ones and new ones, minimize their capital spending by a lot.

Access to Proven Technology: The second-hand market enables you obtain high-quality, long-lasting machinery from well-known global manufacturers that you might not be able to afford otherwise. Companies can receive technology that has worked well in the past using this.

Faster Availability: Since the machinery is already created and ready to use, it can often be supplied and bought much faster than new equipment, which might take a long time to make.

You need to do more study when you buy used machinery than when you buy new machinery. The most crucial things to do are:

Picking the proper tools and inspecting their condition: Picking the right tools and ensuring sure they are in good working order by looking at their service history, operational condition, and maintenance records.

Supplier Evaluation: Look into possible overseas suppliers to make sure they are reliable and can provide you with clear documents and a history of the equipment.

Technical Due Diligence: Before shipment, a third-party agency normally does an independent technical assessment to ensure sure the machine is in good shape and meets all the requirements.

Signing a full purchase agreement that makes clear the price, condition, warranty (if there is one), and delivery details.

Finding the relevant Harmonized System (HS) code for the machinery so that the customs duty is computed accurately.

Import License and Clearance: Finding out if you need a specific import license for the sort of secondhand machinery you want to buy and getting ready to file the Bill of Entry.

Paying customs duty means paying all the taxes and fees that apply to used products based on their value and kind.

Inspection and Certification: When you get to India, you have to go through any inspections or certifications that the Indian government (like BIS) says you have to.

Delivery and installation means taking care of the remaining details, such bringing the equipment to the appropriate spot and putting it together.

It is very vital to have all the right papers for second-hand machinery to get through customs. The most important papers are these:

Business Invoice and Order Form

List of things to pack with a bill of lading or airway bill

A third-party body that is certified and gives an Inspection Certificate that describes the machine's condition, age, and value.

The machine's service and maintenance records, if any exist.

Certificate of Origin (required to gain possible FTA benefits)

Import License (if the type of machinery needs one).

To make sure that used machinery is safe and of good quality when it comes into the country, there are a number of rules that must be followed:

Customs Duty: The amount of duty depends on the machine's HS Code and its estimated value. Customs checks used goods to see how much they are worth.

BIS, or the Bureau of Indian Standards Certification: The Bureau of Indian Standards establishes standards for some types of machinery, and they may need to be certified before they may be utilized.

Import approval: The DGFT needs to give specific permission for some types of used goods to be brought into the country, however this isn't always the case.

Age Limit: The Indian government puts strict age limits on certain types of used machinery to stop the import of obsolete technology. You need to check these limits before you buy anything.

Required Inspections: Before items can be shipped to India, they usually have to be checked by a qualified and approved company to make sure they are in good condition, worth the price, and safe.

Arrow provides tailored services to help businesses deal with the unique risks and issues that come with buying used machinery. What we need to do is:

We assist you do due diligence and verify things by helping you check out suppliers and set up technical evaluations with third-party inspection organizations before the shipment.

Regulatory Compliance Check: We make sure that everything you buy fulfills all the rules that apply in India, like age limits and certification requirements.

Customs Clearance Management: We handle the entire clearance process, making sure that the HS code is correct, the value is proper, and the paperwork is done appropriately so that the deal goes off without a hitch.

Is it okay to bring in secondhand machines?

India does let people bring in secondhand machinery. But the machine has to obey very strict guidelines about its age, condition, safety standards, and certification requirements.

What are the taxes on used machinery that enters into the country?

Used machinery is subject to customs charges and IGST. The fee depends on the machine's HS Code category and the value that customs officials choose, which may not be the same as the transaction amount.

Do you have to look over used machinery that enters into the country?

Yes, in most cases, a certified agency must check the asset before it is transported to make sure it is in good shape, will last a long time, and is worth the money.

Are there any age constraints on bringing in secondhand machines?

Yes, India maintains strict age limits on several kinds of machinery to keep harmful or obsolete machines from entering the nation. It's very crucial to examine these guidelines for your type of machine before you buy it.

Is it possible for secondhand machinery to be free of duties?

It's harder for used machinery to acquire tariff exemptions like EPCG than it is for new goods. It is possible in some cases, but it needs a good explanation and is not guaranteed. Importers should normally expect to pay all of their taxes.

What documents do you need to bring when you buy used machinery?

The most crucial paper, outside the normal ones like the invoice and bill of shipping, is the Inspection Certificate from a chartered engineer or agency that is well-known. This paper says how much the machine is worth and what condition it is in.

Can I bring in secondhand machines for my personal use?

No, the laws about bringing in used machinery are only for corporations and industries. Most of the time, it's not okay to bring this kind of equipment in for personal use.

Buying used machinery from other nations can be a great strategy to build your business and make money without spending a lot of money. But to make things safer, the process needs to be carefully planned and someone who knows how to follow difficult rules.
Arrow's expert team makes sure that your import is handled flawlessly, from the first stage of due diligence to the last step of getting it through customs. Please get in touch with us so we can chat about how we can assist you buy secondhand equipment.