In terms of EU customs matters, storage comprises:
- customs warehousing
- free zones.
The procedure is designed to give businesses the flexibility to buy and import non-EU goods before they have decided (in line with logistical, commercial or other conditions) what to do with them.
As long as the non-EU goods remain in storage, they will not be subject to import duties or other charges (such as import licenses).
Customs warehousing
This means that non-EU goods may be stored in any premises authorised by the customs authorities ('customs warehouses').
The storage may be for unlimited periods, unless the nature of the goods means they could pose a threat to health or to the environment if stored for a long time.
While in warehouses, the goods will be under the supervision of the customs authorities.
Public customs warehouses can be used to store goods in this way by any person, whereas private customs warehouses can only be used by one authorised person.
End of the warehousing period
Before goods under this procedure can be consumed in the EU, they must be removed from the warehouse and released for free circulation.
At this stage, import duty and any other related taxes (e.g. VAT or excise) will become due immediately (or, in some cases, in the country of final destination in the EU ).
Alternatively the goods could, following the warehousing period, be placed under a different EU customs procedure (such as inward processing or end-use).
Running storage facilities
To operate storage facilities for the customs warehousing of goods, companies require authorisation from the customs authorities. To get it, they must:
- be established in EU customs territory
- provide necessary assurance that the operation of the facilities will be properly conducted
- provide a guarantee in cases where a customs debt or other charges are incurred.
Free zones
An EU country can designate parts of its territory as 'free zones' (provided it notifies the European Commission).
Free zones are enclosed areas on EU customs territory where non-EU goods can enter free of import duty, other charges (i.e. taxes) and commercial policy measures.
These goods may, following their stay in the free zone:
- be released for free circulation (subject to payment of import duty and other charges)
- be placed under another special EU customs procedure (e.g. inward processing, temporary admission or end-use procedures)
- be re-exported.
EU goods may also enter or be stored, moved, used, processed or consumed in free zones. They may then be exported or brought to other parts of EU customs territory.