Duties

Customs Clearance

There are different ways of customs clearance.
The most common is to clear goods for circulation in the European Single Market, which ensues customs duties.
When goods are only stored in bonded warehouses in the European customs area to be re-exported, they are exempted from customs duties. Furthermore, goods can be exempted from customs duties when they are intended to be used in the production of other items.
In this case customs duties only arise if the final product is sold in the European Market. If the final product is exported, duties that have been paid on the pre-product will be reimbursed. A similar regulation applies, when the imported goods are processed in the Single European Market. Only the final product is subject to customs clearance.
Thus, manufacturers may profit from lower tariffs on the final product. Finally, products that have been manufactured outside the European Customs area but are based on pre-products from the Union can be charged only for the value added outside the customs territory.