IMPORT CLEARANCE – CUSTOMS PROCEDURE 42

For goods imported and released for free circulation in a member state, the VAT is paid in this same state. If it is already certain that the imported goods are destined for another member state, the VAT is paid in the final destination member state. It is the exemption from VAT for import on the basis that the import is followed by an exempt supply within the European Community or the transfer of goods to another member state.

This procedure is known as the “customs procedure 42.” In such cases the importer has to enter the code starting with 42 in the box 37 of the Single Administrative Document. The import thus implies a “simultaneous entry for home use and free circulation of goods that are exempt from VAT in the tax supplies to another member state”.

Procedure 42 is permitted if the declaration contains the following

• the Slovenian VAT identification number of the recipient in box 8 of the SAD (to be indicated under code Y040) or his tax representative (to be indicated under code Y042)
• the VAT identification number of the recipient of goods from other member states (to be indicated under code Y041)
• a proof that the goods will leave the territory of the Republic of Slovenia and will be transported into another member state (a transport document or a declaration of the shipment of goods to another member state)

The process is relatively easy for an investor who presents the standard import SAD to the customs authorities of the member state, and indicates the code of customs procedure 42 in box 37. Upon the import it must thus be already certain that the goods are intended for the transport from the member state of importation to another member state. This should be evidenced in the documents accompanying the shipment (import invoice and transport document).

The advantages of customs procedure 42

• exemption from VAT, when entering the EU only possible customs duties will be settled
• the impact on the cash flow of the importer, upon import the importer needs liquid assets only to settle any customs duties, but not to meet the VAT;
• the possibility of performing the customs procedure on the basis of simplification

OBLIGATIONS OF THE PARTICIPANTS

Importer

• valid EORI number and VAT ID,
• authorization of the freight forwarder for customs and tax representation
• submission of additional documentation at the request of the freight forwarder
• upon import must request clearance procedure 42
• it must be clear from the import invoice where the consignment is shipped and who is the ultimate beneficiary
• it must be clear from the CMR document where the consignment is shipped and who is the ultimate beneficiary – completed box 2 and 3
• self-taxation in own country.

Carrier

• a properly completed CMR, showing where the consignment is shipped and who is the ultimate beneficiary
• the shipment may not be transshipped or unloaded during the journey, it must be delivered in another member state
• return the CMR to the freight forwarder with a certificate of the ultimate beneficiary’s acceptance

Freight forwarder

• checks if the accompanying documents show that the shipment is to be dispatched to another member state
• verifies the validity of the tax and EORI numbers
• prepares the import documentation; requires the procedure 42 and the exemption from VAT
• once a month submits a recapitulation report to the tax authorities.

EXPORT CLEARANCE

The export clearance of goods indicates the shipment of goods from the territory of the European Community to third countries. It allows community goods to leave the European Community. The export covers the application of exit formalities including commercial policy measures and, if appropriate, export duties.

Customs clearance is done for any exporter from across the EU and is not limited by territorial jurisdiction.

If a shipment is of preferential origin, a EUR.1 form is issued upon export, which allows the recipient to receive a clearance at a reduced rate.

The advantages of the export customs procedure

• the procedure is carried out at the exit point from the EU.

OBLIGATIONS OF THE PARTICIPANTS

Exporter

• a valid EORI number and tax identification number,
• the authorization for customs clearance to the freight forwarder,
• if necessary, the authorization for billing EUR.1

Carrier

• a properly completed CMR, from which it is clear who the sender is and where the shipment is going.

Freight forwarder

• documentary checks,
• tax and EORI numbers validity checks,
• preparation of import documentation,
• announcement in the customs system (ECS) at the exit point.

TRANSIT

Transit is a customs procedure that allows goods to be transported between the customs territory of two or more countries involved in the transit, without paying import duties for the goods. It enables the supply of goods under the customs control to the destination customs post, where it is passed to the following customs use (release for free circulation, outward processing, inward processing, customs warehousing). The transit document is made upon entering the European Community.

A customs invoice, a CMR document and other accompanying documents (veterinary certificate, phytosanitary certificate, security instrument) are required for the transit procedure.

OBLIGATIONS OF THE PARTICIPANTS

Carrier

• a properly completed CMR, from which it is clear who the sender is and where the shipment is going,
• a customs invoice for the goods,
• other accompanying documents (veterinary certificate, phytosanitary certificate, security instrument).

Freight forwarder

• documentary checks,
• preparation of the transit document,
• applications for examinations (veterinary, phytosanitary, medical).

In 2013, Europacific became a shareholder in ZOLL POOL HAFEN HAMBURG AG, which enables the use of the transit guarantee in the amount of 33.3 million €.

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