End-use
Under the end-use procedure, 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.
End-use is one of the so-called special procedures.
A zero rate of custom duty or favourable tariff treatment on account of end-use is granted upon import. However, the goods will remain under customs supervision until they have been used for the end-use specified in the authorisation. The bill of discharge must show that the goods have been used for the prescribed end-use or that the procedure has otherwise been appropriately discharged.
A zero or reduced rate of custom duty on account of end-use is granted upon import. However, a liability guarantee must be provided for the released goods.
Guarantee
There must be a liability guarantee for the goods released for the end-use procedure. The liability guarantee is reserved to cover the difference between the unlevied general customs duty and the more favourable end-use duty. The liability guarantee remains reserved until the procedure has been appropriately discharged and Customs has processed the bill of discharge. Read more about the liability guarantee on the page Guarantees.
Value added tax (VAT)
VAT is payable on imports of goods. When goods are released for the end-use procedure in Finland, the taxable import takes place in Finland, so VAT must be paid for the goods.
In certain cases specified in the VAT Act, imports can also be exempt from VAT, e.g. when importing spare parts and equipment for aircraft in international traffic. Read more about value added taxation.
A customs debt shall be incurred if the procedure is not appropriately discharged
A customs debt shall be incurred if the goods are not used for the prescribed end-use, if the procedure is not appropriately discharged or if the goods are used for a purpose other than the prescribed end-use. Read more in the customer instructions for end-use. (in Finnish).
What goods can be placed under the procedure?
You can check e.g. in the Fintaric service what goods can be placed under the end-use procedure. Favourable tariff treatment on account of end-use is mentioned in the text in connection with the commodity code, under “Measure”. You must also check whether the goods you are importing and their context of use meet the requirements for the end-use procedure. Check this in the commodity code text, the footnotes concerning the use of the goods or in the general rules and special provisions for the nomenclature.
Examples of goods that can be granted favourable tariff treatment on account of end-use:
- Goods with a commodity code text indicating their purpose of use or with a footnote indicating that the goods can be used for the end-use procedure
- for example, the code text contains “for use in civil aircraft” or “for refining”, the measure text contains “Non preferential duty under end-use” and the commodity code has the footnote EU001
- for example, the measure text contains “Non preferential duty under end-use” and the commodity code has the footnotes EU001 and EU002, or only the footnote EU001
- The goods intended for incorporation in vessels listed in the table in Section II (A) of the general rules and special provisions for the Combined Nomenclature. The commodity code of the goods must have the footnote EU003.
- for example, the measure text contains “Suspension – Goods for certain categories of ships, boats and other vessels and for drilling or production platforms”, and the commodity code has the footnote EU003.
- The goods listed in Section II (B)(5) of the general rules and special provisions for the Combined Nomenclature. The commodity code of the goods must have a footnote indicating that the goods can be used for the end-use procedure.
- for example, the measure text shows “Non preferential duty under end-use” and the commodity code has the footnote EU001.
See the general rules and special provisions concerning the Combined Nomenclature, section II, A and B (in Finnish).
You can check the commodity code texts, measure texts and footnotes e.g. in the Fintaric service.
If you are importing goods to be incorporated in or used for civil aircraft, and an authorised release certificate (EASA Form 1 or some other certificate accepted as equivalent) has been issued for the goods, you can apply for a temporary autonomous tariff suspension for the goods instead of end-use. In that case, the goods are released for free circulation under some other procedure than end-use.
A facilitated procedure can also be used when importing a registered civil aircraft. This procedure can be used if the civil aircraft is classified under certain commodity codes and the commodity code has the footnotes TN101 and EU004.
Do I need an authorisation?
The use of the procedure always requires an authorisation granted by Customs. There are different ways to obtain the authorisation:
- You can apply for a written authorisation in advance from the Customs Authorisation Centre.
- A standard customs declaration can also serve as an application for authorisation.
An authorisation is to be applied for from the country where the applicant's main accounts for customs purposes are held or accessible, and where at least part of the activities to be covered by the decision are to be carried out. If the applicant for an authorisation is not established in the customs territory of the EU, the authorisation is to be applied for from the country where the goods are to be first used (Article 162 DA).
You can usually apply for an authorisation with a customs declaration. However, you must apply for a written authorisation from the Customs Authorisation Centre if
- you lodge a simplified customs declaration
- you make a customs declaration by an entry of data in the declarant’s records
- you wish to use equivalent goods
- you need a retroactive authorisation.
Apply for the authorisation from the Customs Authorisation Centre via the Authorisations and Decisions Service. The authorisation must be valid when the procedure is initiated. The declaration details are compared to the authorisation details, so, if necessary, submit an application for amendment of the authorisation via the Authorisations and Decisions Service.
Please note that if the place of processing or use is in another EU country, you must apply for an authorisation involving more than one Member State and submit the application to the EU Customs Decisions System.
If you use an authorisation applied for with a customs declaration, the additional details required for the authorisation are provided in the standard customs declaration. Read more about using an authorisation applied for with a customs declaration on the page Authorisation applied for and granted with a customs declaration.
A trader established in customs territory of the EU can get an authorisation. The holder of the authorisation must either use the goods for the prescribed end-use or transfer the obligation to another person under conditions determined by Customs. Read more about transferring obligations under “Transfer of rights and obligations with regard to goods”.
In occasional cases, where it is considered justified, a trader established outside the customs territory of the EU may also be granted an authorisation. This is possible e.g. if the authorisation holder is a private individual and the goods are not intended for commercial use.
Rate of yield is the quantity or percentage of products obtained from the processing or handling of goods placed under the end-use procedure.
Example: If an engine intended for fitting to a vessel is placed under the procedure, the rate of yield is 100%.
If waste or scrap is generated from the manufacturing or handling of the goods, it is considered as goods used for an end-use.
In the import declaration for end-use, the type of representation can be direct representation (2) or direct representation on guarantor’s responsibility (2 + additional information code FITAK). In the Customs Clearance Service, you can choose the type of representation in the “Parties” section under “Representative”. In the drop-down menu, select either “2 – Direct representation” or “2 – Direct representation” and tick the box “On guarantor’s responsibility”.
Does the use of the procedure involve obligations?
Although the goods placed under the end-use procedure are in free circulation, you’ll still have to observe the authorisation instructions on the procedure.
For example, records must always be kept of the procedure, the procedure must be discharged appropriately and a bill of discharge must be submitted for the procedure. Based on the records of the procedure, Customs must be able to follow a continuous audit trail regarding the goods.
Read about the obligations relating to the use of procedure in the instructions for holders of authorisations for the end-use procedure (in Finnish).
In some cases, rights and obligations can be transferred to another trader.
If the rights and obligations with regards to goods already placed under the end-use procedure are intended to be transferred to another person, either fully or partially, this can be achieved by the transfer of rights and obligations (TORO) of the holder of the procedure.
The following are examples of the rights of the holder of the procedure that may be transferred to another person:
- the right to use the goods
- the right to move goods placed under the procedure
- the right to export the goods before they have been assigned to their prescribed end-use and thereby benefit from the extinguishment of the customs debt.
The following are examples of the obligations of the holder of the procedure that may be transferred to another person:
- the obligation to assign the goods to their prescribed end-use within the time-limit for the discharge of the procedure
- the obligation to keep records
- the obligation to keep the goods available for customs control measures
- the obligation to pay the import duties if customs debt is incurred for the goods through non-compliance in accordance with UCC Article 79.
Information about TORO shall be provided in the end-use authorisation. TORO for the authorisation can also be applied for later from to the Customs Authorisation Centre.
The obligation to present a bill of discharge can never be transferred to someone else.
Instructions for submitting a customs declaration for end-use
The additional information and codes to be provided in customs declarations for end-use can be accessed from the drop-down menus below.
You can also find general instructions for submitting customs declarations on the page How do I submit a customs declaration and more specific instructions for completing a declaration in the user instructions for the Customs Clearance Service and in the message implementing guidelines for message declarants.
When you submit a customs declaration for end-use, provide the following details:
- requested procedure “44 – End-use”
- previous procedure or “00 – No previous procedure”, if there is no previous procedure
- additional procedure code based on which you are requesting the end-use procedure for the goods
- preference code, e.g.
- “100 = Erga Omnes third country duty rates”
- “110 = Erga Omnes autonomous tariff suspension”
- “120 – Non-preferential tariff quotas”
- For more detailed instructions, see the section “Preference codes”
- nature of transaction that best describes your activity, e.g. “11 – Outright purchase/sale”
- at goods item level, two additional information codes for reserving a liability guarantee:
- ”FICOM – Secondary commodity code” and, as its description, the 10-digit commodity code for the import goods that would be used if the goods were not imported for end-use
- ”FIPRE – Secondary preference” and, as its description, the preference code “100”
- Also, if a supplementary unit is to be provided for the commodity code for calculating customs duties, provide it too.
If you have an authorisation granted by the Customs Authorisation Centre
If you have an authorisation granted by the Customs Authorisation Centre, you can submit the customs declaration in one or two stages. Additional information related to the procedure, such as the time limit, is generated automatically on the decision according to the authorisation.
Provide the authorisation details in two sections of the customs declaration:
- Provide the authorisation number
- in message exchange under “Authorisations”
- in the Customs Clearance Service in the first choices after choosing the procedure.
- Provide an end-use authorisation in accordance with a Taric condition covering the commodity code as follows:
- If you are a message declarant, provide the authorisation at goods item level under “Additional documents”, using the code “N990 (footnote EU001 or EU002)” or “C990 (footnote EU003)”. Provide the authorisation number as the authorisation identifier.
- If you are a submitting the declaration in the Customs Clearance Service, provide the authorisation at goods item level under “Taric information and Certificates”, using the code “N990 (footnote EU001 or EU002)” or “C990 (footnote EU003)”. Provide the authorisation number in the “Reference” field.
If you apply for an authorisation with a customs declaration
When applying for an authorisation with a customs declaration in the Customs Clearance Service,
- provide the details required for the special procedure under “Authorisation request”.
- provide the authorisation required for the commodity code at goods item level under “Taric information / Certificates” as follows:
- If the footnote is EU001 or EU002, provide the authorisation using the code “N990” and the text “N/A” as its reference.
- If the footnote is EU003, provide the authorisation using the code “C990” and the text “N/A” as its reference.
When applying for an authorisation with a message declaration,
- provide the detail about applying for an authorisation using the additional information code “00100 – Application for authorisation for the use of a special procedure other than transit based on the customs declaration”.
- Provide the authorisation required for the commodity code at goods item level under “Additional documents” as follows:
- If the footnote is EU001 or EU002, provide the authorisation using the code “N990” and the text “N/A” as its identifier.
- If the footnote is EU003, provide the authorisation using the code “C990” and the text “N/A” as its identifier.
In addition, provide the additional information for the special procedure as follows:
- Time limit required for using the procedure in whole months. If you are a message declarant, use the code “FIXBH – period for discharge”.
- The customs office supervising the procedure – only in message exchange – with the code “FIXAA – Supervising customs office”.
- In Finland, always provide “FI002000 – Electronic Service Centre”.
- Customs office(s) of discharge with the customs office identifier. If you are a message declarant, use the code “FIXBJ – Customs office(s) of discharge”.
- All places of processing and use as well as their address details. If you are a message declarant, use the code “FIXAC – Place(s) of processing or use”.
- Details of planned activities, e.g. equipping or servicing a ship or shipbuilding. If you are a message declarant, use the code “FIXBN – Details of planned activities”.
- Rate of yield of the goods as a measurement unit or a percentage (e.g. 100% when all products are used). If you are a message declarant, use the code “FIXBO– Rate of yield”.
- The processed product obtained from the goods with a 10-digit commodity code. Provide also the goods description of the product obtained from the processing. “If you are a message declarant, use the code “FIXBP – Processed products (CN code; description)”.
- Always provide the procedure record code “7” as identification of goods, as well as the address where the procedure records are stored. You can also enter other identification details by which the goods can be identified even after processing. If you are a message declarant, use the code “FIXBQ – identification of goods”. Always provide the code “7” as identification of goods, and you can also choose one of the following identification codes:
- “1 – Serial number or manufacturer number”
- “2 – Affixing lead seals, seals, stamps or other similar distinguishing signs”
- “4 – Taking samples and using illustrations or technical descriptions”
- “5 – Carrying out analyses”
- “7 – Other means of identification (an explanation to be provided on the means of identification used)”.
Additional procedure code 651
- Is used for spare parts and equipment supplied to vessels in professional international traffic and on which VAT is not levied.
- The use requires that the commodity code has the footnote EU003.
- Replaces the previously used national procedure codes 7PA/B.
Additional procedure code 652
- Is used for spare parts and equipment for aircraft in international traffic and on which VAT is not levied.
- The use requires that the commodity code has the footnote EU001 or EU002.
- Replaces the previously used national procedure codes 7HA/B.
Additional procedure code 653
- Is used when VAT is not levied on the import of goods, because the goods are moved to a VAT warehouse (section 72(h)(1)(2) VAT Act).
- The use requires that the goods can be placed under the end-use procedure based on the code text or footnote to their commodity code.
- The VAT warehouse ID is provided with the additional information code “FIALV – Identification of VAT warehouse”.
- Replaces the previously used national procedure codes 7EE/F.
Additional procedure code 655
- Is used when certain essential bicycle parts originating in China are exempted from anti-dumping duties through application of the end-use procedure (customs duty and VAT are, however, levied upon import).
- The applicant must meet the conditions for granting an authorisation. For example, no more than 299 items of each allowed commodity code or goods category can be placed under the procedure per calendar month.
- Replaces the previously used national procedure codes 7EA/B.
Additional procedure code 656
- Is used for those aircraft and their spare parts and equipment listed under the commodity codes of the customs nomenclature, which are not mentioned in Part B of the special provisions for the Combined Nomenclature, but where the text to the commodity code has a footnote indicating end-use.
- Is also used for ground flying trainers imported by foreign airlines.
- The goods must be imported for use by an entrepreneur operating mainly on international routes in return for payment on which no VAT is levied.
Additional procedure code 657
- Is used when applying for favourable tariff treatment for goods on account of end-use and VAT is levied upon import.
- Is used for both aircraft and vessels, e.g. goods used for a ship under construction. Always check for the possibility to use additional procedure codes e.g. in the text to the commodity code or the footnotes.
- Is used for goods with a commodity code where the measure text contains a condition for end-use, e.g. one of the following:
- non preferential duty under end-use
- non preferential tariff quota under end-use
- autonomous suspension under end-use.
- Replaces the previously used national procedure codes 7EA/B, 7NA/B, 7LA/B and 7DA/B.
You can use the following preference codes for the end-use procedure:
- ”100 – Erga Omnes third country duty rates”, when there is the text “1011 (erga omnes)” in connection with the commodity code under “Country”
- In that case, the measure text to the commodity code is e.g. one of the following:
- “Suspension – Goods for certain categories of ships, boats and other vessels and for drilling or production platforms”
- “Non preferential duty under end-use”
- In that case, the measure text to the commodity code is e.g. one of the following:
- ”110 – Erga Omnes autonomous tariff suspension”, when there is the text “1011 (erga omnes)” in connection with the commodity code under “Country”
- In that case, the measure text to the commodity code is e.g. “Autonomous suspension under end-use”
- ”120 – Non preferential tariff quotas”, when there is the text “1011 (erga omnes)” in connection with the commodity code under “Country”
- In that case, the measure text to the commodity code is e.g. “Non preferential tariff quota under end-use”
- “300 – Preferential duty rate without conditions or limits”, when you have a proof of preferential origin
- In that case, the measure text to the commodity code is e.g.: “Preference under end-use”
- other possible preference codes:
- “200 – GSP duty rate”
- “310 – Preferential agreements: tariff suspensions”
- “320 – Preferential tariff quotas”
- “400 – Customs duties under the provisions of customs union agreements concluded by the European Union”
- “420 – Customs union quota”.
Selecting a preference code – examples
Example 1: You are importing goods intended for production of goods. The nomenclature shows two measures, both concerning end-use. Choose the appropriate measure depending on the intended use of the goods you are importing.
1. The measure text is “Non preferential duty under end-use”, the text under “Country” is “1011 (erga omnes)” and the footnote is EU001.
- In the customs declaration, select e.g. the preference code “100 – Erga Omnes third country duty rates” and the authorisation “N990 – Authorisation for the use of end-use procedure”.
2. The measure text is “Autonomous suspension under end-use”, the text under “Country” is “1011 (erga omnes)” and the footnotes are EU001 and TM861.
- In the customs declaration, select e.g. the preference code “110 – Erga Omnes autonomous tariff suspension” and the authorisation “N990 – Authorisation for the use of end-use procedure”. The footnote TM861 indicates e.g. that the goods must be raw materials for industry, used for production.
Example 2: You are importing goods intended for end-use. The nomenclature shows the following measures concerning end-use. Choose the appropriate measure depending on the intended use of the goods you are importing and whether you have e.g. a certificate of preferential origin.
1. The measure text is “Non preferential tariff quota under end-use”, the text under “Country” is “1011 (erga omnes)”, there is a quota number under “Quota” and the footnote is EU001.
- In the customs declaration, select e.g. the preference code “120 – Non preferential tariff quotas” and the authorisation “N990 – Authorisation for the use of end-use procedure”. Also, the goods must fall within the quota.
2. The measure text is “Preference under end-use”, the text under “Country” is “CA (Canada)” and the footnote is EU001.
- In the customs declaration, select e.g. the preference code “300 – Preferential duty rate without conditions or limits” and the authorisation “N990 – Authorisation for the use of end-use procedure”. There must be an origin declaration according to the Canada free trade agreement for the goods, and it must be presented to Customs.
Time limit for the procedure
The procedure must be discharged within the time limit given in the authorisation. The time limit for discharging the procedure means the time needed for using the goods for the purpose prescribed in the authorisation. The procedure is not intended e.g. for storing goods.
Usually, 12 months is a sufficiently long time limit for indicating end-use. Because of the time limits of the subsequent control and subsequent recovery, the time limit for the procedure can be 24 months at most.
The time limit for the procedure is always specified in the authorisation granted by the Authorisation Centre. If you have applied for the authorisation with a customs declaration, the approved time limit for the procedure is shown in the decision on release.
You can request an extension of the time limit for the procedure from the supervising customs office (FI002000). The extension must be requested before the time limit for the procedure has expired.
Request an extension as follows:
- In the Customs Clearance Service, the extension is requested in the “Summary and submission” section of the customs declaration. Click on “Request an extension”, then enter the new time limit and send the request to Customs.
- If you are a message declarant, request an extension of the time limit with the message “Free-form contact” and choose the reason code ‘003 – Request for time limit extension”.
- If you can’t request an extension electronically, you can use customs form 975e “Extension of procedure time limits”. Send the application to the Electronic Service Centre (valvovatulli(at)tulli.fi).
If the holder of the authorisation personally requests an extension in the Customs Clearance System, and the customs declaration was submitted via message exchange by using a direct representative on guarantor’s responsibility, Customs will ask for the representative’s consent.
If you wish to extend the time limit of an authorisation granted by the Customs Authorisation Centre, submit an amendment application in the Authorisations and Decisions Service.
How to discharge the procedure
The procedure and the customs supervision concerning the goods end, when the goods have been assigned to the end-use prescribed in the authorisation. A bill of discharge bill must also be submitted for the goods.
A bill of discharge must be submitted to the supervising customs office within 30 days of the expiry of the time limit for discharging the procedure. When Customs has processed the bill of discharge, the reserved guarantee is released.
Read about the details provided in the bill of discharge in the instructions for holders of authorisations for the end-use procedure (in Finnish).
Submit the bill of discharge to the supervising customs office in one of the following ways:
- In the Customs Clearance Service, click on “Contact Customs”. Provide the MRN and click on ‘”Other reason”. As the reason for contact, choose “007 – Bill of discharge / notification of discharge”.
- If you are a message declarant, send a “Free form contact” message and choose the code “007 – Bill of discharge (IMP 2.1)” as the reason for contact.
- Send the information in a separate document by email to: valvovatulli(at)tulli.fi.
The customs supervision also ends when the goods released for the procedure have been
- taken out of the customs territory of the Union
- If you haven’t used the goods for the prescribed end-use, contact the supervising customs office before taking the goods out of the customs territory of the Union.
- destroyed
- If you haven’t used the goods for the prescribed end-use, contact the supervising customs office before destroying the goods.
- abandoned to the State.
If the goods placed under the procedure are intended to be used for a purpose other than the end-use specified in the authorisation, the general import duty in accordance with the applied commodity codes is to be paid for the goods. In that case, you must submit an amendment application concerning the original declaration for placement under the procedure.
- Union Customs Code (Regulation (EU) No 952/2013 of the European Parliament and of the Council), Articles 210-225, 254
- Commission Implementing Regulation (EU) 2015/2447, Articles 260-269
- Commission Delegated Regulation (EU) 2015/2446, Articles 161–164, 169, 171–175, 178–179, 239 and annexes 71-02 and 71-06
- Commission Delegated Regulation (EU) 2016/341
More information: yritysneuvonta(at)tulli.fi