by If you are a business owner who wants to trade with other countries in the European Union (EU), you need to be aware of the EU Customs Duties and Import/Export Regulations. These are the rules and procedures that govern the movement of goods across the EU’s external borders and within its internal market. In this blog post, we will give you an overview of some of the main aspects of these regulations and how they affect your business.
The EU Customs Union is a trade agreement that covers all 27 EU member states, as well as some non-EU countries that have special arrangements with the EU, such as Turkey, Andorra, San Marino and Monaco. The main benefit of the EU Customs Union is that it eliminates customs duties and import restrictions among its member countries. It also establishes a common external tariff for goods imported into the EU from third countries. This means that you only have to pay customs duties once when you import goods into the EU, and then you can move them freely within the EU without any further customs formalities or charges. The EU Customs Union also harmonises the customs rules and procedures for all its members, making it easier and faster to clear customs.
The EU Customs Tariff
The EU Customs Tariff (TARIC) is a database that contains all the information you need to know about the customs duties and other measures that apply to goods imported into or exported from the EU. It covers the following categories of measures:
- Tariff measures: These include the “third country duty”, which is the customs duty applicable to all imports originating in a non-EU country/territory, as well as tariff preferences, autonomous tariff suspensions and tariff quotas that may lower or eliminate the duty for certain products or countries.
- Agricultural measures: These include agricultural components, additional duties on sugar, on sugar content and on flour content, representative prices for poultry, standard import values and unit prices for fruits and vegetables.
- Trade defence instruments: These include antidumping duties and countervailing duties that aim to protect the EU industry from unfair trade practices by third countries, and safeguard measures that aim to prevent serious injury to the EU industry from a surge of imports.
- Prohibitions and restrictions to import and export: These include import and/or export prohibition of certain goods (e.g.: ozone-depleting substances, certain products originating in or exported to some countries/territories like Iran, North Korea, etc.), quantitative limits, import and/or export controls of certain categories of goods (e.g. products subject to CITES, luxury goods, cultural goods, products and equipment containing fluorinated greenhouse gases, dual use goods, veterinary or phytosanitary controls on animals and food, etc.) and surveillance of movements of goods at import and export.
You can access the TARIC database online or via an electronic network. You can also consult the national customs authorities of the EU member states for more information on their specific customs procedures and requirements.
Customs procedures for import and export
When you import or export goods into or from the EU, you have to follow certain customs procedures that vary depending on the type of goods, their origin and destination, their value and quantity, etc. Some of the main customs procedures are:
- Customs declaration: This is a document that contains all the information about your goods and their movement. You have to submit it electronically to the customs authorities before or upon arrival or departure of your goods. You also have to provide supporting documents such as invoices, certificates, authorisations, etc.
- Economic Operators Registration and Identification number (EORI): This is a unique identification number that you need to obtain from the customs authorities of your country if you want to trade with other countries in the EU. You have to use it in all your customs declarations and communications with the customs authorities.
- Customs debt: This is the amount of customs duties and other charges that you have to pay when you import or export goods into or from the EU. You have to pay it within a certain period of time after your goods are released by customs. You may also have to provide a guarantee or security for your customs debt.
- Temporary storage: This is a facility where you can store your goods under customs supervision until they are assigned a customs-approved treatment or use (e.g.: release for free circulation, specific use, inward processing, storage, transit or export). You have to pay fees for using temporary storage.
- Pre Arrival / Pre Departure Declarations: These are declarations that you have to submit electronically to the customs authorities before your goods arrive at or depart from an EU border crossing point. They contain information such as your EORI number, a description of your goods, their value and quantity, their origin and destination codes, etc. They help the customs authorities to perform risk analysis and select which goods need further controls.
- Single authorisation: This is an authorisation that allows you to carry out certain customs procedures in more than one EU member state using a single application and decision process. For example, you can apply for a single authorisation for centralised clearance if you want to clear your goods at one customs office in one member state while importing them through different entry points in different member states.
- Online services and databases for Customs: These are tools that help you access information and carry out transactions related to customs online. For example, you can use EORI Validation Service to check if an EORI number is valid; Binding Tariff Information System (BTI) to obtain legally binding information on how your goods are classified in the TARIC; Registered Exporter System (REX) to register as an exporter eligible for preferential tariff treatment under certain trade agreements; etc.
Common Customs Tariff (CCT):
The EU has a unified system known as the Common Customs Tariff (CCT), which sets out the customs duties applicable to goods imported into the EU. The CCT is based on the international Harmonized System (HS) classification, which categorizes goods into different tariff codes. Each tariff code corresponds to a specific customs duty rate.
Tariff Classification:
To determine the correct customs duty rate, imported goods must be classified under the appropriate HS tariff code. The HS code is determined based on the nature, composition, and intended use of the goods. Importers are responsible for correctly classifying their goods to ensure compliance with customs regulations.
Customs Valuation:
Customs duties are generally calculated based on the customs value of imported goods. The customs value is determined according to the World Trade Organization (WTO) valuation methods, which aim to determine the transaction value of the goods. Importers must provide relevant documentation, such as invoices, to support the declared customs value.
Customs Procedures:
Importers and exporters must adhere to customs procedures when dealing with goods entering or leaving the EU. These procedures include submitting customs declarations, providing supporting documentation, and paying any applicable customs duties. The EU operates a computerized customs system known as the Customs Handling of Import and Export Freight (CHIEF) for managing customs procedures.
Preferential Trade Agreements:
The EU has negotiated preferential trade agreements with several countries and trade blocs, allowing for reduced or zero customs duties on eligible goods. These agreements, such as Free Trade Agreements (FTAs) and Economic Partnership Agreements (EPAs), aim to promote trade and economic cooperation. Importers and exporters can benefit from these preferential trade arrangements by complying with the specific rules of origin and fulfilling the necessary documentation requirements.
Import and Export Licensing:
Certain goods may require import or export licenses or permits before they can be traded within the EU. These licenses are typically issued by national authorities and may be subject to specific regulations or quotas. Businesses must ensure compliance with any licensing requirements related to their goods.
Customs Compliance and Record-Keeping:
Importers and exporters must maintain accurate records of their import and export transactions, including customs declarations, invoices, and supporting documents. Customs authorities may conduct audits or inspections to verify compliance with customs regulations. Adequate record-keeping is essential to demonstrate compliance and facilitate customs clearance processes.
Risk Management and Audits:
Customs authorities in the EU employ risk management techniques to identify high-risk imports and exports. This may result in increased scrutiny, inspections, or audits for certain goods or traders. Businesses should ensure they have robust internal controls, customs compliance procedures, and documentation systems in place to manage customs-related risks effectively.
Post-Brexit Considerations:
Following the UK’s departure from the EU, separate customs procedures and import/export regulations apply to trade between the UK and the EU. Customs duties, customs valuation, and other customs-related requirements must be addressed for goods moving between the UK and the EU member states.
