Customs service

Customs as a business issue in the Netherlands is governed by European Union-level (EU) legislation, which means that all customs formalities and procedures are generally the same in all EU Member States. There are variations, however, in a number of practical areas that have been left to the discretion of each Member State. As a result, the approach of national Customs authorities can be different in the various Member States. The Dutch Customs authorities are known for their long term experience with international trade and distribution and their practical and pro-active approach when it concerns the international trade and distribution of product via The Netherlands.

The main focus of EU customs law is on (1) the import, movement and manufacture of goods into or within the EU that are not of EU origin, or subject to special customs provisions; (2) on goods for which import formalities have not been fulfilled and (3) on special control and enforcement tasks and responsibilities that are attributed to the Customs authorities in an increasing amount of special legislation in the field of for example the protection of the environment and Intellectual Property rights and the fight against terrorism. In addition, and for the same reasons, goods that leave the Union's territory also require customs monitoring.

The various occasions where Dutch Customs involvement is called for will be described. In general, though, dealing with the Customs Authorities is required for the:

1. Import of goods into the free circulation of the EU (direct import);
2. Entrance of goods into the EU territory under a suspension regime;
3. Transport of goods under customs bond (transit); and
4. Export of goods outside of EU territory.

In addition, the Customs Authorities play an increasingly important role in the protection of products against counterfeit and piracy, the protection of the environment, enforcement of health legislation and are actively involved in the (international) fight on terrorism and the enforcement of international sanctions imposed by for example the United Nations. Over the last years the Customs authorities have obtained more and more special tasks, capabilities and enforcement tools in this respect.

For any transaction drawing the attention of Customs, the goods should, in theory, be physically presented to the Authorities, and a declaration should be submitted. This declaration can be conveyed by means of a prescribed document (Single Administrative Document, or SAD) or electronically. As part of the EU Customs strategy to come to a paperless customs environment, companies are encouraged to update and improve their electronic systems and to file the declarations electronically. In many cases it is already obliged to file customs declarations electronically. For those companies unable to carry out the import formalities themselves (e.g., if there is no presence in the EU), a third party such as a logistics-service provider can be appointed to act on their behalf. In the Netherlands, the logistic gateway to Europe, many specialized companies are providing services in this respect.

The declaration must, at a minimum, state who the owner of the goods is (or the person with a similar right), their identification, destination, origin, and whatever other information that will enable the Customs Authorities to determine the amount of duties due (if any). Although there is a long list of information and documentation that should be submitted to the Customs Authorities in order to apply one of the customs regimes, it is in some cases possible to submit information/documentation at a later stage.

Upon import, customs duties, import VAT, excise duties, anti-dumping duties and/or agricultural levies may become due. Once all import formalities have been fulfilled, the goods are considered to be in "free circulation", meaning that the goods can in principle be moved throughout the EU without any additional customs interference. It is noted however that certain goods may remain subject to customs formalities due to the special nature or special destination of the goods in question.

Other than direct importation of the goods into the EU, it is also possible to apply a suspension regime, for example to manufacture or store goods in the EU. During the period of suspension, the Customs Authorities will maintain a certain level of control, either physically, administratively, or a combination of the two. The suspension regime can be ended by placing the goods under another suspension regime, importing the goods, or (re-)exporting them. For goods that are placed under a suspension regime, the levy of customs duties, import VAT, excise duties, anti-dumping duties and/or agricultural levies (all if applicable) will be suspended and can in some cases even be avoided at all.

Transport under customs bond, or Transit for short, is a regime allowing goods to be transported to their final destination without the obligation of paying customs duties, import VAT etcetera. Transit can be used for shipments entering the EU in one Member State but are destined for a customer in another Member State or for shipments to customers that are established outside the EU. For example customers in Russia or Switzerland.
The New Computerized Transit System (NCTS) is a European wide system, based upon electronic declaration and processing, that replaced the former, paper based Common Transit system providing better management and control of Community and Common Transit.

When free goods leave the EU territory, this is referred to as exportation. When exporting products, specific formalities also need to be complied with. Although the term "export" implies a permanent situation, temporary exports are also possible. This is the case when, for example, further processing is needed and will be performed outside the EU, after which the goods may be re-imported with partial or total customs-duty relief.

Furtherinformation (website):

• Dutch Customs and Excise