According to the European Union, these regimes allow companies to perform three of their essential functions - storage, use, or processing of goods, before selling them on the European market or re-exporting them outside of it.
These preferential conditions range from the reduction to the suspension of taxes, duties, and trade policy measures (e.g. anti-dumping tariffs).
What are the different types of specific regimes?
- Temporary admission: this special procedure allows the temporary import of goods that will subsequently be re-exported without having been modified. It concerns, for instance, goods intended to be presented at exhibitions or fairs. Importers are thus completely exempted from duties and taxes as well as from any trade policy measures on this type of goods (anti-dumping taxes for example).
- The end-use: this special scheme grants preferential tariff conditions to importers of goods intended to be used for a specific purpose. For example, an importer manufacturing bicycles can benefit from this scheme when importing certain parts necessary for its production. The end-use license allows a reduction or even suspension of duties and taxes as well as trade measures in force to encourage certain sectors of activity.
- Customs warehousing: this special regime allows the storage of goods that are waiting to be reassigned to another customs destination within or outside the EU. Customs warehousing thus encourages importers to store goods in the EU by deferring the payment of duties and taxes or even suspending them for goods that will be re-exported outside the territory.
- Active inward processing: it promotes the import of goods into the EU to be used for processing operations and then re-exported or released directly for consumption on the European market. This allows shippers to rework or process these goods without having to advance duties and taxes in the EU. This measure is intended to improve their export competitiveness by encouraging them to "add value" to these goods in order to release them for consumption or re-export outside the market.
- Passive inward processing: this scheme allows shippers to export goods from the EU for processing or repair in a third country, and then reimport them with total or partial exemption from customs duties.
What are the effects and benefits of such schemes for importers?
The various special regimes are designed to favor EU importers by meeting their needs as traders. Customs authorities consider that they have two effects:
- A suspensive effect: importers are relieved of obligations related to the import and export of goods, such as payment of duties and taxes and compliance with trade policy measures.
- An economic effect: importers can increase their competitiveness on the international market through savings on duties and taxes and facilitation of trade policy measures.
Finally, the special arrangements are very interesting for European importers, although they do not apply to all operations, nor to all types of goods.
💡 4 tips from the OVRSEA experts for all importers who want to try:
- Make sure that your activity and your goods can be placed under a special regime.
- Contact the local chambers of commerce for assistance in obtaining authorizations.
- Once the authorization has been obtained, monitor its use on an ongoing basis to be able to justify to the customs authorities that the goods have been correctly assigned to the planned procedure.
- Inform the authorities in the event of any changes and ensure in advance that the preferential arrangements still apply.
