In the first article, “Kindergarten of Freight Forwarding,” we presented the basic concepts of customs operations, and in the second article, the customs system of the European Union. We’ve learned the basics, and now it’s time to get down to business. Through practical examples, we want to bring you closer to the possibilities in the field of import customs procedures.

 

The European Union acts as a single country vis-à-vis third countries, so all economic operators must operate within the European Union on equal terms. It means that all economic operators within the European Union can carry out customs operations in any Member State, regardless of the company's registered office.

 

The customs legislation applicable in the European Union is uniform and common. Countries are governed by national law, which refers to VAT, charged at different rates within the EU in other countries, and DMV - motor vehicle tax and excise duties.

 

What exactly does this mean?

 

An importer based in Slovenia buys goods in a third country - Bosnia and Herzegovina and wants to bring the shipment to Slovenia by truck, clear it through customs and deliver it to his customer in Slovenia - customs procedure 40:

 

A truck shipment from BIH arrives in the European Union and is cleared at the entrance to Slovenia. The driver delivers the necessary documentation to the freight forwarder, who performs the import customs clearance procedure.

 

Required documentation:

• the disposition or customs clearance order by the importer authorizing the freight forwarder to carry out the customs clearance procedure,
• import invoice for the goods, proof of preferential origin, if any, and
• CMR - transport document completed by the carrier and accompanying the consignment.

           

The importer must also specify how he will pay VAT. Slovenian importers who clear goods in Slovenia have the option of paying VAT according to the import customs declaration as import duty or by self-taxation.

 

Upon completion of customs clearance, the importer receives an import customs declaration with an MRN number and is free to dispose of the goods. He can use them for his purposes or deliver them immediately to the final buyer.

 

An importer based in Slovenia buys goods in a third country - Bosnia and Herzegovina and wants to bring the consignment by truck to Slovenia, clear it through customs, and deliver it to his buyer in another Member State - customs procedure 42:

 

A truck shipment from BIH arrives in the European Union and is cleared at the entrance to Slovenia. The driver delivers the necessary documentation to the freight forwarder, who performs the import customs clearance procedure.

 

Required documentation:

• the disposition or customs clearance order by the importer authorizing the freight forwarder to carry out the customs clearance procedure,
• import invoice for the goods,
• proof of preferential origin, if any,
• CMR - a transport document completed by the carrier and accompanying the consignment - showing that the place of unloading is in another Member State, and
• Invoice for the final purchaser, based on which the final purchaser in another Member State will pay VAT at the rate charged in that country of destination.

           

VAT is payable by the final buyer in the Member State of destination based on an invoice according to which the importer sells the goods to the final buyer.

If the importer already knows to whom he sold the goods in another Member State at the time of customs clearance, he can use customs procedure 42. Customs procedure 42. saves money in VAT and improves his cash flow, as the final buyer incurs the tax notice.

Upon completing customs clearance, the importer receives an import customs declaration with an MRN number showing that the goods were destined for another Member State and that he is a taxable person from the Member State of destination. The importer is obliged to submit a report on deliveries to another Member State under tax regulations. The end-user is obliged to pay VAT under the tax regulations in his country and is free to dispose of the goods.

As already mentioned, customs regulations outside the European Union are the same for all companies operating in the Union. This means that shipments for companies from the other Member States can be cleared through customs in Slovenia. For companies from the other Member States, consignments destined for the other Member States are cleared through customs under the customs procedure 42.

Take, for example, an import company based in Austria, which buys goods in a third country - Bosnia and Herzegovina and wants to bring the shipment to Austria by truck. An importer from Austria has the option of customs clearance of goods on the way to Slovenia under customs procedure 42:

A truck shipment from BiH arrives in the European Union and is cleared at the entrance to Slovenia. The driver delivers the necessary documentation to the freight forwarder, who performs the import customs clearance procedure. According to procedure 42, the importer in Slovenia must have his tax representative at his disposal in the case of customs clearance.

 

Required documentation:

• the disposition or customs clearance order by the importer authorizing the freight forwarder to carry out the customs clearance procedure
• import invoice for the goods
• proof of preferential origin, if any
• CMR - a transport document completed by the carrier and accompanying the consignment - showing that the place of unloading in another Member State is at the address of the importer.

           

As mentioned, the payment of VAT is governed by national legislation.

In the import of goods for an importer from Austria, the importer was liable to pay VAT at the rate charged in Austria when he receives the goods.

 

What are the advantages of choosing procedure 42 for imports for consignments destined for other Member States?

 

The importer is exempt from VAT at the time of customs clearance.

VAT is charged according to national law, at national rates according to the country of destination.

The importer relieves his cash flow by using the import customs procedure 42, as consignments cleared through customs in another Member State are treated like consignments delivered from another Member State. VAT is declared, settled, and paid in the accounting period.

 

What are the advantages of choosing our company?

The business units of RCM d.o.o. are located on the main road connections of the Western Balkans to Western Europe:

• in Gruškovje branch and Obrežje branch we are open 24/7,
• consignments may be cleared during the journey,
• drivers do not need an additional route to an inland customs office,
• the possibility of customs clearance 24/7 saves time and thus money,
• 24/7 customs clearance avoids possible delivery delays.

 

The business unit of RCM d.o.o. is located in the Port of Koper:

• in PE Koper, all consignments arriving by sea can be cleared through customs.
• consignments destined for consignees from the other Member States are cleared through customs.
• the possibility of customs clearance at the point of entry into the EU saves importers time and money.

 

The company RCM d.o.o. has customs permits, which enable customs clearance throughout Slovenia.

So, let’s get started!

RCM Team available for you 24/7/365