End-use

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).

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.

Read more about civil aircraft and about how to declare preferential treatment for goods used in them.

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.

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”.

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.

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” 
• ”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.

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.

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.

Find out if the prerequisites for importing returned goods are met, and if an exemption from import duties meant for returned goods is to be applied in the import. You can read about the prerequisites for customs duty exemption concerning returned goods on our web page on returned goods. 

• If the prerequisites for exempting returned goods from customs duties are not met or you do not wish to use the customs duty exemption for returned goods
  • the goods can be placed under a new end-use procedure without an import duty exemption for returned goods For instructions regarding customs declarations, see “Details to be provided in the customs declaration, when the goods are placed under the end-use procedure (customs procedure 4400)”.
  • the goods can be placed under free circulation without an import duty exemption granted for returned goods.
• When the prerequisites for customs duty exemption for returned goods are met, you can apply for an import duty exemption for your goods.
  • If the goods were used prior to their import in compliance with an end-use authorisation, you can apply for preferential customs treatment for returned goods. 
  • If the goods were not used in accordance with the end-use authorisation prior to export, the end-use applied to the returned goods prior to export affects the application of preferential treatment granted to them.
    • The goods are placed under the same end-use procedure in which they were prior to export.
    • The goods are not placed under the same end-use procedure, but are instead placed under another end-use procedure.

Choose the case that is compatible with your situation

Case 1: You have exported goods placed under an end-use procedure from the territory of the EU before they were used for the purpose indicated in the authorisation. Prior to export, you were authorised for export by the supervising customs office, and you have an exit-confirmed export declaration. Exported goods return to the EU territory, and you wish to apply for preferential customs treatment for the returned goods.

If the goods are placed under the same end-use procedure, they will receive an import duty exemption for returned goods. For returned goods to qualify for preferential treatment, they must also meet other requirements set for returned goods. Read more about the requirements for customs duty exemption for returned goods.

Example: A ship engine has been placed under an end-use procedure, and its customs declaration indicates additional procedure code 651. The engine was to be installed in the ship, but the ship left the harbour before the engine could be installed. The installers decided to put the engine into place at the next harbour. Prior to export, the supervising customs office granted authorisation for the engine. The engine was sent to the next port outside the EU territory, but had to be returned to the original port in the EU territory as installation was not possible. In import, the engine was placed under the same end-use procedure, and its customs declaration indicated additional procedure codes 650 and 651. 

The following details must be provided in the import declaration:

• customs procedure code
  • requested procedure “44 – End-use”
  • previous procedure “10 – Permanent export”
• two additional procedure codes
  • additional procedure code “650 – Return for the same end-use (Article 203(3) UCC)”. This code is used for declaring returned goods that return for the same end-use as indicated in the original end-use customs declaration, and for which treatment as returned goods is applied for.
  • the additional procedure code (651‒657) based on which you are applying for the goods to be placed under the procedure, and declaring the end-use procedure to which the goods return. This additional procedure code must be the same as in the original end-use customs declaration. 
• If you are applying for VAT exemption for the returned goods at the same time, also provide the 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)”.
• The nature of your business transactions can be one of the following:
  • “11 – Outright purchase/sale”
  • “60 – Transactions not involving transfer of ownership, e.g. repair of goods; hire, loan, operational leasing or other temporary uses, for less than 24 months”
  • “91 – Hire, loan, and operational leasing longer than 24 months”.

When goods return to the same purpose of use, that is, the purpose of use indicated in the original customs declaration, the goods can be exempt from customs duty, given that the prerequisites for customs duty exemption regarding returned goods are met. Moreover, the following matters are to be noted in terms of the end-use procedure: 

• The end-use procedure starts again with the rules and information of the new procedure given in the customs declaration. The additional procedure code remains the same. 
• The new end-use authorisation holder does not have to be the authorisation holder indicated in the original customs declaration, even when preferential customs treatment is sought for the goods.

A liability guarantee is reserved on the goods based on the difference between the end-use purpose duty and general customs duty, as the original goods were not used for an end-use procedure.

However, note that an importer is exempt from paying import VAT only when the consignee of the returned goods is the same operator as the original exporter of the goods. You can apply for exemption from import VAT with an additional procedure code in your customs declaration. Operators included in the register of VAT payers declare VAT details to the Tax Administration using the MyTax service.

Case 2: You have exported goods placed under an end-use procedure from the territory of the EU before they were used for an end-use procedure. Prior to export, you were authorised by the supervising customs office, and you have an exit-confirmed export declaration. The exported goods return to the EU territory.

If the goods are not placed under the same end-use procedure, they qualify for preferential treatment for returned goods.

Example: A radar system was to be installed into a ship under construction. The end-use declaration regarding the radar system contained the additional information code 657. The ship was completed and left the dock before it was possible to install the radar system. The radar system was to installed only at the next port outside the territory of the EU. Prior to export, the supervising customs office authorised the radar system for export. The radar system was sent to the next port, but was then returned to the original port, as it was not possible to install it. The radar system was once again placed under the end-use procedure, and the customs declaration included additional procedure codes 651 and 649. 

The following details must be provided in the import declaration:

• customs procedure code 
  • requested procedure “44 – End-use”
  • previous procedure “10 – Permanent export” 
• two additional procedure codes
  • additional procedure code “649 – Not returned for the same end-use”. This code is used for declaring returned goods that return for a different end-use from that indicated in the original end-use customs declaration, and for which treatment as returned goods is applied for.
  • additional procedure code based on which you are requesting the end-use procedure for the goods
• If you are applying for VAT exemption for the returned goods at the same time, also provide the 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)”.

Qualifying for preferential customs treatment requires that the prerequisites for returned goods are met. The goods need not be returned to the same operator. The import goods can be returned for another end-use procedure to that indicated in the original end-use declaration. Goods returned in such instances are not necessary completely exempt from customs duties, as the new customs duty based on the new end-use can be higher than the duty levied upon the previous import. Customs duty is always levied according to the new end-use procedure. If the customs duty accordant with the new end-use procedure is higher than the duty levied in connection with the previous end-use declaration, customs duty is levied only in an amount corresponding to the difference between the new and previous customs duties. 

A liability guarantee is reserved on the goods based on the difference between the end-use purpose duty and general customs duty, as the original goods were not used for an end-use procedure.  

Note that if goods returning from abroad are treated as returned goods, they can be exempt from import VAT. Goods can be exempt from VAT only when the consignee is the same operator as the original importer. You can apply for exemption from import VAT with an additional procedure code in your customs declaration. Operators included in the register of VAT payers declare VAT details to the Tax Administration using the MyTax service.    

Case 3: You have exported goods placed under an end-use procedure from the territory of the EU before they were used for the purpose indicated in the authorisation. Prior to export, you were authorised for export by the supervising customs office, and you have an exit-confirmed export declaration. The exported goods return to the EU territory. 

If you wish to release the goods for free circulation, that is, when you do not intend to place the goods under an end-use procedure again, they do not qualify for customs duty exemption for returning goods.

The following codes must be provided in the import declaration:

• customs procedure code 
  • requested procedure “40 – Release for free circulation”
  • previous procedure “10 – Permanent export”
• additional procedure code ‘999 – no additional procedure’ if there is no additional procedure

When Customs does not grant preferential treatment intended for returned goods, your customs declaration cannot contain additional procedure codes used in customs declarations involving returning goods. Operators included in the register of VAT payers declare VAT details affecting import to the Tax Administration using the MyTax service.

Case 4: You have used goods placed under an end-use procedure in accordance with your end-use authorisation prior to their export from the territory of the EU. Your exit-confirmed export declaration indicated that the goods were used according to the end-use authorisation prior to export. If other requirements for preferential customs treatment of returned goods are also met, you can use the treatment of returned goods upon import.

The following codes must be provided in the import declaration:

• customs procedure code 
  • requested procedure “40 – Release for free circulation”
  • previous procedure “10 – Permanent export”
• additional information code ”F01 – Returned goods” or some other additional procedure code used in declaring returned goods that is suitable to your circumstances
• If you are applying for VAT exemption for the returned goods at the same time, also provide the 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)”.

However, note that an importer is exempt from paying import VAT only when the consignee of the returned goods is the same operator as the original exporter of the goods. You can apply for exemption from import VAT with an additional procedure code in your customs declaration. Operators included in the register of VAT payers declare VAT details affecting import to the Tax Administration using the MyTax service.

 

• 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