Import Tariffs and INCOTERMS

What You Need to Know When Importing Assistive Technology

Overview

When importing mobility and rehabilitation equipment, it’s important to understand two key concepts: import tariffs and INCOTERMS. These influence the final delivered cost, shipping responsibilities, customs requirements, and overall timelines.

This guide offers a clear, practical explanation designed to help Loh Medical distributors, clinics, and purchasing teams navigate international shipments confidently.

What Are Import Tariffs?

Import tariffs—also called customs duties—are taxes charged by a country when goods enter its borders. Tariff rates depend on the product type, its classification, and the country’s regulations.

Why Tariffs Matter

• They affect the total landed cost of equipment.

• They influence pricing for end users, tenders, and reimbursement.

• They determine how much must be paid at the port of entry before goods are released

Key Components of Tariffs

Common HS Codes for Mobility Products

(Note: Always verify with your local customs authority.)

• 8713.10 – Wheelchairs and mobility devices, mechanical propulsion

• 8713.90 -  Wheelchairs and mobility devices, power propulsion

• 9021.10 – Orthopedic appliances

• 9021.90 – Assistive devices and components

Understanding INCOTERMS

INCOTERMS (International Commercial Terms) are globally accepted rules that define the responsibilities of buyers and sellers in international shipping.

They clarify:

• Who arranges transportation

• Who pays for freight and insurance

• Who handles customs processes

• When the risk transfers from seller to buyer

INCOTERMS help avoid misunderstandings and ensure smoother international transactions.

Common INCOTERMS Used in International Equipment Shipments

Below are the INCOTERMS most frequently used when importing assistive technology and mobility equipment.

EXW – Ex Works

Responsibility: Buyer

Under EXW, the buyer manages nearly the entire logistics chain, including pickup from the seller’s warehouse or factory, shipping, export documentation, and customs.

Best for:

Buyers who prefer full control over logistics and have established relationships with freight forwarders.

FCA – Free Carrier

Responsibility: Shared

The seller handles export clearance and delivers the goods to the buyer’s nominated carrier. From there, the buyer takes over.

Best for:

Buyers who want the seller to manage export steps but want control over international freight.

Advice:

In most cases, the local country can secure more competitive domestic freight rates. When this is true, this Incoterm is the best option to achieve the lowest domestic shipping cost in both the exporting and importing countries.

CPT – Carriage Paid To

Responsibility: Seller pays freight; buyer assumes risk during transit

The seller pays for transportation to the named destination, but the risk transfers to the buyer once the goods are handed to the first carrier.

Insurance is not mandatory under this Incoterm; however, when shipping assistive technology, we strongly recommend insuring the goods for their full invoice value.

Best for:

Buyers looking for competitive freight rates from the supplier.

DAP – Delivered at Place

Responsibility: Seller handles international freight; buyer handles import duties and customs

Goods are delivered to the buyer’s door or specified location, but the buyer is responsible for customs clearance and local taxes.

Best for:

Buyers who want simpler logistics while managing their own local import processes.

Advice:

As with FCA, the local country can often secure more competitive domestic freight rates. Confirm the shipping cost from the port or airport to the buyer’s door to ensure this is the best option.

DDP – Delivered Duty Paid

Responsibility: Seller handles everything, including import duties

The seller delivers goods ready for use, with customs and taxes already completed.

Best for:

Situations where the buyer wants the simplest possible delivery process.

Note: Some countries restrict or complicate DDP procedures due to tax regulations.

Advice: 

Depending on the importing country, regulations may prevent the seller from clearing customs directly. Confirm the import requirements and process before selecting this Incoterm to ensure a smooth import.

How Tariffs and INCOTERMS Affect Total Landed Cost

Your final cost depends on both the INCOTERM and your country’s tariff structure.

Example

If equipment ships under EXW:

• You handle the freight, insurance, import documents, and duties.

• Costs depend heavily on your logistics provider and customs requirements.

If the same shipment uses DAP:

• The seller takes care of international freight and delivery to your door.

• You only manage customs clearance and import taxes.

Understanding both elements helps you estimate the complete, real cost of importing equipment.

Tips for a Smooth Import Process

1. Verify the Correct HS Code

This ensures the right tariff rate is applied.

2. Understand Your Chosen INCOTERM

Know when costs, risks, and responsibilities shift.

3. Work with Experienced Freight Agents

This minimizes delays and unexpected fees.

4. Request a Landed Cost Estimate

Before shipping, ask your freight forwarder to calculate:

• Customs duties

• Taxes

• Port fees

• Freight costs

• Insurance

5. Review Local Regulations

Some countries have special requirements for medical equipment, such as registration or import licenses.

Summary

Import tariffs and INCOTERMS are essential to understanding the true cost and logistics of importing assistive technology. By knowing how duties are calculated and how shipping responsibilities are divided, you can make informed decisions that reduce surprises, delays, and costs.

If you have questions about the INCOTERM used on your order or need additional support, Loh Medical’s team is here to help.