Import Overview.

Imports make an important contribution to the economy. It can be far more cost-effective to import goods than to manufacture them in the home country, giving importers a competitive advantage.

In some cases, overseas suppliers offer goods that aren’t available from the home market sources. Purchases from overseas are treated differently depending on whether the goods come from countries within the European Union (EU) or from elsewhere.
Within the EU, most goods can be imported with minimal customs control and, mostly, no import duty or VAT to pay.

What is an import?
Within the European Union (EU) most goods are in free circulation. Importing goods from the EU is sometimes not termed as ‘importing’ – this is often referred to simply as a ‘movement’ of goods, or as an ‘acquisition’. The term ‘importing’ is often used with the implied meaning that the goods have come from outside the EU.

Goods can be moved freely within the EU, although VAT and excise within member states should be taken into consideration. Goods in free circulation in the EU can be moved from country to country with minimal customs control.
Unless the goods are subject to an excise duty, eg alcohol, or licence requirements such as agricultural goods, they generally cross borders without any special taxes and minimal import paperwork.

Imports from outside the EU are treated differently.

  • You must make an import declaration to customs.
  • You generally have to pay import duty and import Valued Added Tax  (plus VAT on import duty), although use of some customs procedures may suspend or relieve you from these taxes.

Businesses that are already involved in international trade and have an Economic Operator Registration and Identification Number (EORI), may wish to consider registering with the home Customs department as an Authorised Economic Operator (AEO). While the scheme is not compulsory, companies that meet the requirements will be registered as AEOs and can take advantage of simplified customs procedures that relate to the security and safety of their imported goods in transit.

Import declarations.
Imports from outside the European Union (EU) into the EU must be declared to the home Customs. This is usually done using the Single Administrative Document (SAD)- SADs can be submitted either electronically using the Customs Handling of Import and Export Freight (CHIEF) system, or manually. Manual presentation usually takes longer to process.

To make the declaration the correct customs classification is required. The declaration also includes a customs procedure code explaining what is being done with the goods, eg import to free circulation or use of one of the customs procedures such as temporary admission. This together with the commodity code, helps determine what rate or type of import duty is to be charged and how the goods are to be treated.

You can use an agent, such as a freight forwarder, to make the declaration on your behalf. This can make importing simpler and faster if you are not authorised to make electronic declarations yourself.

New safety and security laws in force since 1 January 2011 mean that goods destined to arrive in the EU must be declared to the Office of First Entry to the EU – that member state’s Import Control System (ICS) – within set time limits. The legal onus is on the Carrier of the goods to make the ICS declaration, however the Carrier may, with its explicit knowledge and consent, delegate this activity to the importer and/or his agent. As such, an Entry Summary Declaration must be made for your goods.

Community/common transit (CT) procedures.
Community transit (CT) is a customs procedure which allows customs and excise duties and VAT on imported goods to be suspended until the goods either reach their point of destination in the community or are exported out of it. The community transit procedure can also be used for movements to and from the European Free Trade Association (EFTA) countries, and is then known as common transit. The EFTA countries are Switzerland, Liechtenstein, Norway and Iceland.

The New Computerised Transit System (NCTS) must be used for all community/common transit declarations except for private travellers (with goods in excess of their allowances) and for some authorised simplifications. Any potential taxes and duties on the goods must be guaranteed. Use of NCTS does not normally preclude use of other customs procedures such as customs warehousing.

Traders who are approved as Authorised Economic Operators can gain access to certain simplifications in customs procedures such as guarantee waivers and approval to start NCTS movements at their own premises (Authorised Consignors) or end the movements there (Authorised Consignees) without having to produce the goods to Customs.

If the journey begins outside the EU, the Transport Internationaux Routiers (TIR) procedure can be used for movements to and from countries that are contracting parties to the TIR Convention. The goods must travel by road in approved vehicles or containers under customs seal, accompanied by a TIR carnet document. You, or your freight forwarder, must be authorised to use TIR and the potential taxes and duties on the goods must be guaranteed.

All traders moving goods across the EU under TIR are required to submit a declaration using NCTS when the consignment reaches the frontier of the EU.