Return of permanently exported goods (4010)

On this page, you can find information about goods that have been exported permanently outside the customs territory of the EU, but they are returned or they return to the customs territory of the EU.

Example: The consignee of the goods outside the customs territory of the EU doesn’t receive the goods, so the exported goods are returned the exporter in the customs territory of the EU.

Exemption from import duty can be requested for the goods if the goods return to the customs territory of the EU within three years of their export from the customs territory of the EU.It must also be possible to verify the export of the goods, and the goods must be returned in the same state in which they were exported. If the returning goods are agricultural products, they may be subject to import restrictions, and e.g. the time limit for return to the customs territory of the EU is shorter.

Customs duties and taxes on returned goods

Returned goods can be exempted from import duty if the conditions set out in UCC Article 203 are met. The conditions for duty exemption are the following:

  • the export of the goods outside the customs territory of the EU can be verified
  • the goods are returned to the customs territory of the EU within three years of the export
  • the goods are returned unchanged, that is, in the unaltered state.

Value added tax (VAT)

Imports of returned goods can be subject to VAT or exempt from VAT. When the goods have been sold exempt from tax to a country or region outside the customs territory of the EU, they can be imported back as returned goods, but VAT must be levied on them.  VAT is also levied when goods used in Finland in a way that entitles to a deduction have been exported outside the customs territory of the EU, sold there and are then imported back to Finland as returned goods. Import VAT must be paid for returned goods if the trader who exported the goods from the customs territory of the EU is not the same company that imports the goods back to the customs territory of the EU.

Exemption from VAT can be requested for returned goods with a customs declaration, even if the importer is a VAT-registered company. Exemption from VAT is granted on the basis of the VAT Act (section 94(1)(18) VAT Act).

VAT-registered importers must always declare the details concerning import to the Finnish Tax Administration on their own initiative by filing a VAT return. Read more about import VAT on the Tax Administration’s website:. Read also Customs’ customer bulletin Tax-exempt imports in value added taxation.

1. It must be possible to verify the export from the customs territory of the EU

The previous export of goods from the customs territory of the EU can be proved e.g. with one of the following documents:

  • decision on release with certification of exit
  • Information sheet INF 3
  • other reliable document, for example
    • an import clearance decision by a non-Union country, or a copy of the document
    • regarding vehicles, a certificate of the removal of the vehicle from the Finnish vehicle register.

2. The goods must be returned to the customs territory of the EU within three years of the export

Extension of the time limit can be applied for in special circumstances. Authorisation for extending the return time for returned goods is applied for from the Customs Authorisation Centre via the Authorisations and Decisions Service. Read more about authorisations for import.. Please note the following:

  • Agricultural products must be returned to the customs territory of the EU within 12 months of their export. 
  • Agricultural products for which export refunds have previously been received are not treated as returned goods.
  • Agricultural products are also subject to other restrictions regarding relief from import duty upon their return to the customs territory of the EU. For more information about the restrictions, see Article 159 of Commission Delegated Regulation (EU) 2015/2446 (DA).

3. The goods must return to the customs territory of EU in the unaltered state

The returned goods must be returned in the in the state in which they were exported (Article 158 DA). The goods can, however, be handled to preserve them or to maintain them in good condition. However, the handling mustn’t improve the characteristics of the goods. The goods can, for example, be re-packaged in a package of a different size, but the marketing characteristics of the goods mustn’t change. 

Returned goods can also be composed of part of the goods exported outside the customs territory of the EU. It can be e.g. a part or an accessory for a machine device or other product exported outside the customs territory of the EU.

The goods are also considered to be in the same state when the customer returns an incorrect or defective product sent from the customs territory of the EU. Read more in the UCC guidance documents on the Commission’s website.

Declaring returned goods that have been permanently exported

Read the following guidance on declaring imports of returned goods when the goods have been permanently exported. In that case, the previous procedure is “10 – Permanent export”. 

Codes to be provided in the customs declaration

When you use the customs procedure 4010 for returning permanently exported goods to the customs territory of the EU, provide the following details in the Customs Clearance Service or via message exchange:

  • customs procedure
    • requested procedure “40 – Release for free circulation”
    • previous procedure “10 – Permanent export”
  • one of the following additional procedure codes:
    • F01 – Relief from import duties for returned goods (Article 203 of the Code)
    • F02 – Relief from import duties for returned goods (Special circumstances provided for in Article 159 of Delegated Regulation (EU) 2015/2446: agriculture goods)
    • F03 – Relief from import duties for returned goods (Special circumstances provided for in Article 158(3) of Delegated Regulation (EU) 2015/2446 repair or restoration)
  • preference “100 – Erga Omnes third country duty rates”
  • additional document C660 (export declaration), MRN. 

If you have received a decision from the Authorisation Centre on extension of the time limit concerning the import of returned goods, provide the number of the decision at goods item level with the additional document code “4PML – Decision on extension of period”. It has the form FIPPPLXXXXX.

If the goods are returned to the original exporter

If the goods are returned to the original exporter (e.g. the consignee refuses to receive the goods you sent), enter the details related to the value of the goods and to the valuation method as follows:

  • If you are applying for VAT exemption for the returned goods, provide as another additional procedure code “642 – Returned goods, supplied inclusive of VAT, the importer is the same as the exporter. Exemption from VAT (section 94(1)(18) VAT Act)”.
  • nature of transaction “21 – Return of goods”
  • value information of the goods:
    • transaction price or the actual value of the goods
      • Provide the value of the goods in the Customs Clearance Service under “Transaction price” or with a message in the section for goods item amount invoiced.
      • The value of the goods cannot be 0 euro, even though the goods have not been paid for or sold.
      • The value of the goods must be their actual value and, as a rule, the value is determined based on purchase or sale. If the goods are completely or partially free of charge, the value is determined according to what their price would be if they were sold to the EU. The price at which the goods were sold from the EU can be used as the value of the returning goods, if they return unchanged.
  • items to be added to the transaction price, if the items are not already included in the transaction price
    • Provide the items to be added with value type codes beginning with A.
    • For example, if you have received a separate freight invoice for the transport of the goods, provide the import freight you paid with the code “AK – Transport costs, loading and handling charges and insurance costs up to the place of introduction in the European Union”.
    • Check the codes from the code list “NCL123 – Value adjustment” on the Customs github website.
  • valuation method
    • Since “21 – Return of goods” has been provided as the nature of transaction, a secondary valuation method must be used. Find out which secondary valuation method you can use. Based on that, enter one of the following codes:
      • ”2 – Transaction value of identical goods”
      • ”3 – Transaction value of similar goods”
      • ”4 – Deductive value method”
      • ”5 – Computed value method”
      • ”6 – Value based on the data available (“fall-back” method)”.

Taxable amount for VAT

If you are a VAT-registered operator, declare the import VAT to the Finnish Tax Administration. If the declarant is an operator not registered for VAT, provide the following details as adjustments to the transaction price, for the calculation of the taxable amount for VAT. Provide the following details with separate codes:

  • the costs for transport, loading, unloading and insurance as well as other import-related costs up to the first place of destination in Finland specified in the transport contract (code 3A)
  • the costs for transport, loading, unloading and insurance as well as other costs up to another destination in the territory of the Union that are known at the time when the liability to pay VAT arises (code 3D)
  • other taxes and charges, with the exception of VAT, levied by the State or the Union due to import of the goods in connection with customs clearance (code 3B)
  • any taxes and other charges payable outside Finland (code 3C).

Codes to be provided in the customs declaration

When you use customs procedure 4010 for returning permanently exported goods to the customs territory of the EU, provide the following details in the Customs Clearance Service or via message exchange:

  • customs procedure
    • requested procedure “40 – Release for free circulation”
    • previous procedure “10 – Permanent export”
  • one of the following additional procedure codes:
    • F01 – Relief from import duties for returned goods (Article 203 of the Code)
    • F02 – Relief from import duties for returned goods (Special circumstances provided for in Article 159 of Delegated Regulation (EU) 2015/2446: agriculture goods)
    • F03 – Relief from import duties for returned goods (Special circumstances provided for in Article 158(3) of Delegated Regulation (EU) 2015/2446 repair or restoration)
  • preference “100 – Erga Omnes third country duty rates”
  • additional document C660 (export declaration), MRN.

If you have received a decision from the Authorisation Centre on extension of the time limit for return of goods, provide the number of the decision at goods item level with the additional document code “4PML – Decision on extension of period”. It has the form FIPPPLXXXXX.

If the goods are returned to the customs territory of the EU, but not to the original exporter

Example: You bought goods from Norway from seller B, who bought the goods in question from Finland from seller A. Seller A has submitted an export declaration for the goods from Finland to Norway, i.e. outside the customs territory of the EU. There is an export declaration with certification of exit from Finland to Norway for the goods, i.e. outside the customs territory of the EU. Seller B delivers the goods declared for export to you from Norway back to Finland. The goods are returned to Finland, but not to the original seller A, who was the original exporter of the goods. The goods can be imported as returned goods, even though they were sold to another company outside the customs territory of the EU, when the other conditions for returned goods are met. You must also have an export declaration with certification of exit or some other acceptable proof of the export of the goods in question.

If you are importing goods which were sold outside the customs territory of the EU and they return to the customs territory

  • nature of transaction “11 – Outright purchase/sale” or some other nature of transaction code that describes your activity
  • value information of the goods:
    • transaction price
      • Provide the transaction price of the goods you imported in the Customs Clearance Service under “Transaction price” or with a message in the section for goods item amount invoiced.
    • items to be added to the transaction price, if the items are not already included in the transaction price
      • Provide the items to be added with value type codes beginning with A
      • For example, if you have received a separate freight invoice for the transport of the goods, enter the import freight you paid with the code “AK – Transport costs, loading and handling charges and insurance costs up to the place of introduction in the European Union”.
      • Check the codes from the code list “NCL123 – Value adjustment” on the Customs github website.
  • valuation method
    • If the customs value you have provided is based on the transaction price, provide the valuation method using the code “1 – Transaction value of the imported goods”.
  • statistical value
    • Statistical value refers to the price of the goods in which the additional costs incurred outside the Union (such as freight and insurance) to the first border crossing point at the Finnish border have been taken into account. The taxes and charges levied in Finland are not included in the statistical value.
    • The statistical value cannot be 0.

Taxable amount for VAT

If you are a VAT-registered operator, declare the import VAT to the Finnish Tax Administration. If the declarant is an operator not registered for VAT, provide the following details as adjustments to the transaction price, for the calculation of the taxable amount for VAT. Provide the following details with separate codes:

  • the costs for transport, loading, unloading and insurance as well as other import-related costs up to the first place of destination in Finland specified in the transport contract (code 3A)      
  • the costs for transport, loading, unloading and insurance as well as other costs up to another destination in the territory of the Union that are known at the time when the liability to pay VAT arises (code 3D)       
  • other taxes and charges, with the exception of VAT, levied by the State or the Union due to import of the goods in connection with customs clearance (code 3B) 
  • any taxes and other charges payable outside Finland (code 3C).

 

If the previous procedure for the returned goods is other than “10 – Permanent export”, go back to the main page about returning goods to find the appropriate guidance 

Other things to note

This instruction is for companies whose customers, established outside the customs territory, import goods to the customs territory of the EU for repair or for replacement under warranty.

When goods are imported for repair

Goods that have been exported from the customs territory of the EU and are imported to the customs territory of the EU for repair must be declared. If one doesn’t wish to pay import duties and import VAT for the goods, the goods can be placed under the inward processing procedure. The inward processing procedure requires an authorisation. Read more about inward processing.

As a rule, the holder of the inward processing authorisation must established in the customs territory of the Union, so we recommend that the company carrying out the repair applies for the authorisation. The company can apply for the authorisation from Customs either in advance or by providing certain additional information in the customs declaration when the goods are placed under the procedure.

To be granted the authorisation requires the lodging of a guarantee. Read more about guarantees. The guarantee lodged in conjunction with import clearance is released or returned when the repaired goods have been re-exported from the customs territory of the EU and the required bill of discharge has been submitted. The goods to be re-exported must be declared for export, and the goods and the documents concerning the goods must be presented to customs before the goods exit the Union.

If the goods imported for repair are not declared for the inward processing procedure in the name of the authorisation holder, that is, in the name of the company carrying out the repair, the customer must 

  • either declare the goods as a normal import clearance, in which case the import duties and taxes are levied normally (more information: What are import duties and taxes)
  • or place the goods under the inward processing procedure. Occasionally, the inward processing authorisation may also be granted to a person established outside the customs territory of the Union. In these situations, one should contact Customs Business Information in goods time to get more information: Contact information

If it is possible that the goods are replaced with equivalent intact goods (replacement under warranty) instead of being repaired, the company doing the replacement must apply for an inward processing authorisation for this from Customs in advance.

When goods are imported for replacement under warranty

Goods imported to the customs territory of the EU for replacement under warranty must be declared. If one doesn’t wish to pay import duties for the goods, the goods can be placed under the inward processing procedure. Read more about inward processing. The inward processing procedure requires an authorisation. Replacement of goods under warranty when applying the inward processing procedure requires an inward processing authorisation applied for from Customs in advance and indicating the possibility to use equivalent goods. Read more in the guidance on the use of equivalent goods in special procedures (in Finnish).

A company should apply for an inward processing authorisation from Customs if it has customers for whom it replaces goods under warranty. For goods arriving for replacement under warranty, an import declaration must be submitted in the name of the authorisation holder, that is, the company doing the replacement. The seller and the customer must, in advance, agree on the submission of the customs declaration.

The guarantee lodged in conjunction with import clearance is released when the goods given as replacement have been exported from the customs territory of the EU and the required bill of discharge has been submitted. The goods to be exported must be declared for export, and the goods and the documents concerning the goods must be presented to customs before the goods exit the Union.

If the goods imported for replacement under warranty are not declared for the inward processing procedure in the name of the seller, the customer must declare the goods in their own name

  • either as returned goods, provided that no more than three years have passed since the export of the goods
  • or as normal import clearance, in which case the import duties and taxes are levied normally.

More information about returned goods and import duties and taxes.

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