Customs Procedures Explained

EU Customs Basics

The EU Customs Union operates as a single customs territory:

• No customs duties between EU member states
• Common external tariff for third-country imports
• Single set of customs rules (Union Customs Code)
• Customs procedures at EU external borders only

Types of Customs Procedures

Release for Free Circulation (Import)

Standard import procedure for goods entering the EU market:

• Import duties and VAT are paid
• Goods acquire EU status and move freely
• Most common procedure for commercial imports
• Requires complete import declaration

Export

Procedure for goods leaving the EU customs territory:

• Exit declaration filed with customs
• Export licenses verified if applicable
• VAT zero-rated with proof of export
• EX1 document confirms exit from EU

Transit (T1/T2)

Moving goods through the EU without paying duties:

• T1 - Non-EU goods in transit through EU territory
• T2 - EU goods transiting through non-EU territory
• Goods under customs supervision throughout
• Guarantee required to cover potential duties

Temporary Admission

Temporary import of non-EU goods:

• Full or partial duty relief
• Goods must be re-exported unchanged
• Common for exhibitions, samples, equipment
• ATA Carnet simplifies the process

Customs Warehousing

Storage of non-EU goods without paying duties:

• Duties suspended while in warehouse
• Goods can be stored indefinitely
• Pay duties only when released to market
• Option to re-export without duty

Inward Processing

Importing materials for processing and re-export:

• Duty suspension or drawback on imported materials
• Manufacturing, repair, or processing in EU
• Finished goods must be exported
• Authorization required from customs

Key Documents

• Commercial Invoice - Transaction details and value
• Packing List - Contents and packaging details
• Bill of Lading / CMR / AWB - Transport document
• Certificate of Origin - Country where goods were made
• Customs Declaration - SAD (Single Administrative Document)
• EORI Number - EU registration for customs activities

EORI Number

Economic Operators Registration and Identification number:

• Required for all EU import/export activities
• Unique identifier valid across all EU countries
• Free registration with national customs authority
• Must be included on all customs declarations

Tariff Classification (HS Code)

Classifying goods for correct duty rates:

• Harmonized System (HS) codes are international
• EU TARIC codes add EU-specific details
• 8-10 digit codes determine duty rate
• Wrong classification causes duty underpayment or overpayment

Customs Value

Determining the value for duty calculation:

• Usually transaction value (price paid)
• Includes freight and insurance to EU border
• Additions: royalties, commissions, subsequent proceeds
• Deductions: post-import costs, EU duties

AEO Status

Authorized Economic Operator certification:

• Trusted trader status with customs authorities
• Faster processing and fewer inspections
• Simplified procedures and reduced guarantees
• Mutual recognition with partner countries