Relief from customs duty

When goods are imported from outside the customs territory of the EU, the import duties and taxes must usually be paid, but in some cases it is possible to apply for relief from customs duty for the goods. Relief from customs duty can be claimed, for example, on the basis of the Duty Relief Regulation, the origin of the goods or the use of the goods. You can check the duty rates by commodity code in the Fintaric service.

Relief from customs duty means exemption from import duties, when goods are imported from outside the EU customs territory, from so-called third countries. Claiming duty relief does not here refer to circumstances where duties are not levied on goods because their general duty rate according to the customs tariff is zero.

Relief from customs duty is provided for e.g. in the customs legislation of the EU and the Finnish Customs Act. Exemption from import VAT is provided for in the Value Added Tax Act. Read more about exemption from import VAT.

The chosen customs procedure may affect the import duties and taxes

The import goods can be released for free circulation, but in certain cases, the goods still remain under the supervision of Customs or another authority. When the goods remain under supervision, it is usually because all import duties and taxes, such as customs duty and VAT, or other charges are not paid upon import.

Under the end-use procedure, for example, certain goods may be imported from outside the EU and released for free circulation at a reduced or zero rate of duty, provided that they will be used for a specific purpose or in a particular context. The use of the end-use procedure always requires an authorisation, and it is requested in the customs declaration with procedure “44 – End-use”. The goods placed under the procedure must be used for the purpose specified in the authorisation and the terms of the authorisation must be observed. Read more about the end-use procedure.

The time of levying the import VAT or excise duty can be moved with the chosen procedure. You can read more about VAT-free import and declaring VAT-free goods on the respective webpages.

  • If you wish to move the time of levying the import VAT with the customs procedure chosen in the import declaration, read more about these customs procedures on the page Exemption from import VAT.

 

Relief from customs duty in accordance with the Duty Relief Regulation

The Duty Relief Regulation refers to Council Regulation (EC) No 1186/2009 setting up a Community system of reliefs from customs duty.

Duty relief in accordance with the Duty Relief Regulation can only be granted for certain goods and cases of use referred to in the Regulation. These cases are often subject to additional requirements, which must be established before import.

Claiming duty relief for the goods in accordance with the Duty Relief Regulation may require that you apply for a duty relief authorisation in advance in Authorisations and Decisions Service. In some cases, a duty relief authorisation can also be applied for with a customs declaration. In the customs declaration, you should always use additional procedure codes to indicate that you are claiming duty relief in accordance with the Duty Relief Regulation.

Read more on the page Relief from customs duty on the basis of the Duty Relief Regulation.

Duty relief or tariff preference based on other customs legislation

Duty relief or tariff preference can also be claimed based on customs legislation other than the Duty Relief Regulation. Duty relief can be claimed for specific goods or on specific grounds. When the conditions for duty relief or tariff preference are met, the customs duty rate levied on the imported goods may be lower than the general duty rate or zero.

Tariff preference and duty relief are not granted automatically. You must always claim them and provide them in the customs declaration. If the conditions for tariff preference or duty relief are met, you should claim it by providing e.g. a preference code, an additional procedure or a combination of these.

 Duty relief and tariff preference – examples:

  • Under certain conditions, duty relief as well as exemption from import VAT can be granted for goods returning from outside the EU to the customs territory of the EU. Read more about goods returning to the customs territory of EU
  • Tariff quotas refer to zero or reduced rate of customs duty granted for a limited period to a limited volume of imported goods. If a quota has been exhausted, the goods concerned can still be imported by paying the normal rate of customs duty. Tariff quotas can be based on various agreements, such as WTO agreements, the EU’s Generalised Scheme of Preferences (GSP), accession treaties and free trade arrangements. Read more about tariff quotas and how to claim a tariff quota in the customs declaration.
  • Import duties for certain goods to be incorporated in or used for aircraft can be waived. In connection with the import declaration, the importer must present an authorised release certificate (EASA 1 Form) or an equivalent certificate. Read more about customs declarations for civil aircraft.
  • Tariff suspensions refer to total or partial waiver of the normal duties granted by the EU. A suspension can be granted for raw materials, semi-finished goods and components used for industrial production, if they are not available within the EU. If the above-mentioned goods are available within the EU but in insufficient quantities, an autonomous tariff quota can be granted for the missing quantity.Read more about tariff suspensions and autonomous tariff quotas.

Conditions for duty relief for goods

If you wish to claim duty relief for goods, find out the conditions and grounds for duty relief in advance. The duty relief can be based on an act, a regulation or e.g. an international agreement.

Relief from customs duty based on the Union Customs Code

Articles 208 and 209 of the Union Customs Code concern products of sea-fishing and other products taken from the territorial sea of a country or territory outside the customs territory of the Union by vessels solely registered or recorded in a Member State and flying the flag of that State. Imports of these products are exempt from customs duty. Products obtained from the products in question on board factory-ships are also exempt from customs duty.

An additional condition for duty relief is that the products are not sold before they are imported.

If the conditions for relief from customs duty are met, you can also claim exemption from VAT for the goods. Exemption from VAT for these goods is based on the Value Added Tax Act (section 94(1)(19) VAT Act).

Relief from customs duty based on the Customs Act

A crew member on duty on a means of transport that provides professional transportation between Finland and non-EU country or territory has the right to bring in the same quantity of goods free of customs duty and tax during one calendar month import as a traveller can bring in from one trip (Section 95 e of the Value Added Tax Act). However, there is an exception concerning the value limit for goods brought in by the crew of  a means of road transport.

The duty relief for the personal luggage of travellers arriving in Finland from outside the EU is based on Article 41 of the Duty Relief Regulation. The exemption from VAT and excise duty of personal luggage is based on the Value Added Tax Act (section 95). In their personal luggage, travellers can bring in the allowances specified in sections 95 a – 95 d of the Value Added Tax Act exempt from tax.

You need a customs clearance carnet

A condition for the exemption from customs duty and tax is that you enter the goods in a customs clearance carnet when you bring them in. The customs clearance carnet must be presented to Customs upon request. Read more about the customs clearance carnet.

Imports must not be commercial

A condition for the tax exemption is that the imports are of a non-commercial character. Imports are regarded as being of a non-commercial character if

  • they take place occasionally
  • they consist exclusively of goods for the personal or family use of the travellers, or of goods intended as presents
  • the nature or quantity of the goods is not such as to indicate that they are being imported for commercial reasons.

Allowances

There are duty-free and tax-free allowances for imports of tobacco products and alcoholic beverages.

In addition to products subject to quantity limits, you can bring in other products free of customs duty and tax as follows:

  • for a value of 430 euros if you arrive by air or sea
  • for a value of 300 euros if you arrive by other means (incl. aircraft and vessels in recreational use).

Please note that a crew member of a means of road transport is a allowed to bring in goods referred to in Section 95 d for a value of 430 euros in one calendar month. The value of the goods imported at the same time must not exceed 300 euros.

These limits do not include

  • personal luggage temporarily imported by the traveller
  • personal luggage brought back by the traveller after temporarily taking the luggage out of the country
  • personal medicines that are necessary for the traveller.

The fuel in the regular tank of a motor vehicle (incl. vessels) and in a portable container is exempt from VAT when brought in as traveller imports.

The duty relief for diplomatic goods is based on international agreements (Vienna Convention SopS 4/1970 and SopS 50/1980) referred to in section 44 of the Customs Act. The Ministry for Foreign Affairs of Finland confirms the conditions for duty relief by issuing a so-called French paper, certified with a stamp, for the goods.

Based on section 44 of the Customs Act, goods exempt from customs duty are also exempt from VAT in accordance with section 94(1)(20) of the Value Added Tax Act.

Conditions for duty relief for diplomatic goods

Diplomatic goods are exempt from customs duty when they are brought into Finland

  • for the official use of diplomatic missions operating in Finland
  • for the official use of other foreign missions and consulates that hold an equivalent status
  • for the personal use of diplomats, consuls and their family members
  • as personal removal goods of members of the administrative and technical staff.
    • The customs duty exemption granted for the staff’s removal goods is a one-off exemption.

Read more about declaring diplomatic goods

Check exemption from import VAT separately

Duty relief may not necessarily affect import VAT. The grounds for VAT-exempt imports have been specified separately in the Value Added Tax Act.

The grounds for VAT exemption must be provided in the customs declaration (e.g. with an additional procedure code).

Importers registered for VAT should also always declare the import details on their own initiative by filing a VAT return in the Finnish Tax Administration’s MyTax service. The Finnish Tax Administration is responsible for value added taxation of imported goods and makes decisions on VAT exemption.

Read more about exemption from import VAT:

  • If exemption from VAT is claimed for the goods only based on the Value Added Tax Act, read more about declaring the goods on the page Exemption from import VAT.
  • If exemption from VAT is claimed for the goods based duty relief, read more about exemption from VAT on the page containing information on claiming the duty relief in question. Please note that there could be specifications in the Value Added Tax Act concerning the conditions for VAT exemption.

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