In the EU context, importation means moving goods from outside the EU into the EU customs territory. However, this only describes the process up to the point where the goods arrive at the border for customs controls.
Before goods can enter the European single market, they need to be cleared by customs. This procedure allows goods to circulate freely throughout the EU customs territory, thus changing the status of non-EU goods to the same as goods produced in the EU.
Entry Summary Declaration (ENS) – safety and security requirements before the arrival of the goods
An ENS is a safety/security requirement for goods entering the EU customs territory. Carriers are obliged to supply customs authorities with advanced information on to-be-imported goods. This speeds up processing and release on arrival.
Deadlines:
- For goods brought in by sea, if the voyage is longer than 24 hours: 24 hours
- In most other cases (exports, imports and transit):
- 2 hours for electronic declarations
- 4 hours for paper declarations
Temporary storage
Goods arriving from outside the EU into the EU customs territory are considered to be in ‘temporary storage’ from the moment they arrive and are presented to customs (Articles 139 and 144 UCC). This status lasts until they are placed under a specific customs procedure or re-exported. During this time, the goods are considered to be under customs supervision as they are in an authorised facility (Article 148 UCC).
The facility is operated either:
- by the importer or a warehouse owner (who must provide a guarantee to cover any customs debt that may arise – Article 148 (2)(c) in conjunction with Article 89 UCC), or
- by the customs authority itself.
In specific cases (and for a limited period), goods in temporary storage may be stored at another place designated or approved by the customs authority (Article 115 UCC DA). During the temporary storage, the only handling or treatment of goods permitted is any steps needed to preserve them, such as cooling (Article 147 UCC). However, if the customs authorities agree, the importer may examine the goods or take samples (Article 134(2) UCC).
Storage period – After 90 days, the goods must (Article 149 UCC) be either:
- placed under a customs procedure, or
- re-exported.
If this limit is exceeded, customs authorities will take measures to dispose of the goods by selling or destroying them, at the expense of the party who made the initial customs declaration. Alternatively, if the customs authorities agree, the goods can be ‘abandoned to the state’ by the holder of the goods or the declarant.
Moving the goods – Under certain conditions, if the customs authorities authorise it, goods under temporary storage may be moved between different facilities. However, if the authorities do not provide that authorisation, any movement must use the transit procedure. When the transit procedure has ended, the goods will again be under a new 90-day period of temporary storage.
Free circulation – meaning, scope and purpose
‘Free circulation’ refers to the status of goods that have been released into EU customs territory and can thus move freely within this area in the same way as goods made in the EU. This happens after the applicable import duty has been paid and the goods have been checked to ensure they meet all applicable prohibition and restriction requirements.
Goods enter free circulation by means of a customs declaration. Free circulation is triggered at the time when the goods are released by the customs authorities. However, the date of acceptance of the customs declaration (Article 172(2) UCC) is the date used to calculate and apply:
- the amount of import duty (where applicable);
- any VAT/excise duty applicable;
- any prohibitions or restrictions the goods are subject to before they are consumed within the EU.
This calculation is based on the nature, customs value and quantity of the goods.
Goods lose free circulation status if they leave the EU customs territory (Article 154 UCC). However, this can be avoided by:
- placing the goods under the internal transit regime when taking them out of the EU, or
- asking customs authorities to issue a ‘proof of customs status’ for those goods.
Under Article 201(2) UCC, release for free circulation entails:
- the collection of import duty and other charges where
- goods are subject to them under the EU customs tariff and;
- no duty/tax relief is applicable;
- the application of trade policy measures (e.g. the need to present an import licence for goods subject to quotas) and any other requirements for importing the goods in question, like the ones deriving from prohibitions and restrictions (e.g. the need to present a veterinary certificate for certain animals or animal products).
Special customs procedures
Inward processing
‘Inward processing’ is when non-EU goods are imported into the EU customs territory to be used in one or more processing operations, such as manufacturing or repair. When goods arrive under these circumstances, they are not subject to:
- import duty
- other taxes related to import, such as VAT/excise duties
- commercial policy measures
The procedure is designed to give businesses the possibility of processing goods imported from outside the EU even before they decide, according to logistical, commercial or other considerations, whether to sell the finished products in the EU or outside of it.
The procedure can also be used for goods which only have to undergo minimal forms of handling intended to preserve them, improve their appearance or marketable quality, or prepare them for distribution or resale.
After processing, goods can be:
- re-exported
- stored under customs warehousing or in a free zone, or
- released into the EU market under ‘free circulation’
When released for free circulation, the goods holder has to pay import duty and taxes, and comply with any commercial policy measures that have been imposed.
If the processed products are released into the EU market, there are 2 options:
- The business responsible can apply to pay the duties applicable on the imported goods at the time the customs declaration was accepted.
- Otherwise, the duty and import VAT will be calculated according to the rate and customs value of the processed products at the time they are released.
To use the inward processing procedure, importers need to obtain authorisation from customs authorities. These authorities must specify the period within which the procedure is to be discharged. The authorisation can also allow businesses to export EU products which have already been processed, in return for the import of an equivalent quantity of non-EU raw materials.
To obtain authorisation, you must:
- be established (i.e. have your registered office) in the EU customs territory. Only in exceptional cases can authorisation be granted to a party not established here.
- provide necessary assurance that the operations will be properly implemented.
- provide a guarantee if you may be liable for customs debt or other charges.
- be carrying out processing operations on goods or arrange for them to be carried out.
Specific use
‘Specific use’ is a special procedure that allows for the relief or suspension of duties on goods imported into the EU. There are two forms of specific use: ‘temporary admission’ and ‘end-use’.
Under temporary admission, goods can be brought into the EU temporarily (for a maximum of 24 months):
- with total or partial relief from import duty
- and sometimes, without having to complete customs formalities (e.g. temporary admission for vehicles)
Example: goods imported for exhibiting at a trade fair or taking part in a music show.
Partial relief from import duty
The duty to be paid is 3% of the duty which would have been payable if the goods had been released for free circulation on the date they were declared for the temporary admission procedure. This amount is payable in full for every month or fraction of a month during which the goods are under the temporary admission procedure.
Conditions for temporary admission
- No alteration of the goods is intended, other than changes brought about by normal depreciation.
- The goods can be clearly identified, unless abuses are unlikely given the nature of the goods or their intended use.
- The holder of the procedure is established (has their registered office) outside EU customs territory (in some cases, this is not necessary). For instance, individuals who have their habitual residence in EU customs territory and work for an employer established outside the territory are entitled to 100% relief from import duty on the vehicle they use there (as owner or renter) for either commercial or private purposes.
- The general customs requirements must have been met.
- A guarantee is provided (if required).
For temporary admission, an ATA or CPD carnet may also be used. See: list of customs coordination offices of ATA and CPD Carnets in EU countries.
Under end-use, goods may be released for free circulation in the EU at a reduced or zero rate of duty if they are used for a specific purpose listed in EU rules, such as:
- shipbuilding
- aircraft for civil aviation
- oil/gas drilling platforms
Obtaining authorisation
To obtain authorisation for this procedure, you must:
- be established (have your registered office) in the EU customs territory;
- provide necessary assurance that the operations using these goods will be properly implemented;
- provide a guarantee.
See also: rules for private boats
Please note that a customs declaration for placing goods under a customs procedure may be submitted to a customs office different from the one where the goods are presented to customs. This simplification can be used by persons who have been granted an authorisation for the use of centralised clearance (Article 179 UCC).