• The importing system
• Putting the goods in free circulation and free consumption

The importing system

Importing consists of bringing non EU goods into the territory to be sold in that same state . This term does not cover temporary entrances on the territory , or the re-importing of EU products.

The importing operation has two main characteristics :

• an imported product can not only be taxed with customs duties, but will also have to pay VAT and other indirect taxes. These obligations can be separated, in fact two different systems apply: the putting into free circulation and preparing for consumption. The EU has, though, agreed to free-trade areas with most of its neighbors;
• importing operations are subject to a lot more formalities and constraints than exporting operations. The stake in terms of fiscal revenues for the administration is the first reason, the orientations of economic and commercial policies is the second. Those orientations can be seen in the external commerce control measures, in the setting up of the preferential tariff regimes and in the Common Agricultural Policy ;

To know the amount of the customs duties attributed to a product on a random exporting market, consult the database on access to markets created by the European Commission. What is more, this site gives you information about barriers to entry which you might come across.

Putting goods in free circulation and free for consumption

Usually, when merchandise enters a customs territory, it can be put on sale as soon as the appropriate taxes and duties have been paid. It enjoys the same status as the merchandise directly taken from the internal market and is free to circulate.

Yet the EU exhibits a particularity here : if the customs duties are owed from the moment of entry into the EU territory, taxes, of which mainly VAT, only are from the moment of the good is put on the market of a Member State, VAT being a national tax on consumption. This particularity allows for the distinction of two regimes: free circulation and free consumption.

This allows for the separation of the two payments, in time and space. However, the majority of firms prefer to do both payments at the same time, in a customs office in the country where the merchandise will be made available for consumption, to avoid several administrative acts. The merchandise will thus be transported to the office under the transit regime.