Frequently Asked Questions

The Harmonized System (HS) code is an internationally standardized numerical method of classifying traded products. Every product crossing international borders must be assigned an HS code. This code determines the applicable customs duty rate, regulatory requirements, trade statistics reporting, and eligibility for preferential treatment under trade agreements. Without the correct HS code, goods cannot be properly declared to customs, and incorrect codes can result in wrong duty payments, delays, or penalties.

Customs duties and VAT are both taxes on imports but serve different purposes. Customs duties are tariffs collected when goods enter the EU customs territory—they protect EU industries and form part of the EU's budget. VAT (Value Added Tax) is a consumption tax collected on behalf of individual EU member states at the rate applicable in that country. Both are calculated on the customs value, but VAT is calculated on the value including any duties already applied. Businesses can typically recover VAT as input tax, while customs duties are generally a final cost.

Yes, in most cases. The EU does not have a general exemption for gifts sent by individuals outside the EU. Goods sent between private individuals may qualify for relief from customs duties up to €45 in value, but import VAT typically still applies. Commercial shipments described as "gifts" to avoid duties are illegal and subject to penalties. If someone sends you a genuine gift from outside the EU, you may still need to pay VAT when it arrives, and the postal or courier service may collect this along with a handling fee.

EORI (Economic Operators Registration and Identification) is a unique identifier used throughout the EU for customs purposes. If you're importing goods commercially into the EU, you need an EORI number. Private individuals generally don't need one for personal imports. Businesses established in the EU register for EORI in their country of establishment. Non-EU businesses typically need to appoint an EU-based representative to obtain an EORI on their behalf. The EORI number appears on all customs declarations and related documents.

Customs duties are typically calculated as a percentage of the "customs value" of your goods. The customs value is usually the transaction value—what you actually paid for the goods—plus transport and insurance costs to the EU border if not already included. This is then multiplied by the applicable duty rate for your product's HS code. Some products have specific duties based on weight or quantity instead of value. The formula is: Customs Duty = Customs Value × Duty Rate (%). Check the TARIC database for the exact rate applicable to your goods.

For customs duties, the de minimis threshold is €150. Commercial consignments with an intrinsic value of €150 or less are exempt from customs duties (but not VAT). This threshold does not apply to excise goods, perfumes, or certain other restricted items. Note that for direct-to-consumer ecommerce shipments, this applies per consignment—shipping multiple packages to reduce individual values below the threshold to avoid duty is illegal.

The €22 VAT exemption was abolished on July 1, 2021. Previously, goods valued under €22 could enter the EU without paying import VAT. This exemption was eliminated as part of the EU ecommerce package because it created unfair competition for EU businesses and was widely exploited through undervaluation. Now all goods imported into the EU are subject to VAT regardless of value. The Import One-Stop Shop (IOSS) system was introduced to simplify VAT collection for low-value consignments.

Yes, there are legal ways to reduce duty liability. Using preferential trade agreements when goods originate from countries with EU free trade deals can significantly reduce or eliminate duties—but you need proper origin documentation. Duty suspensions apply to certain products when EU production is insufficient. Special customs procedures like inward processing can suspend duties on goods being processed for re-export. Ensuring accurate classification is also important—sometimes products can legitimately be classified under codes with lower duty rates. What you cannot do legally is undervalue goods, misdescribe them, or falsify origin.

Start by identifying the chapter and section that covers your product type in the HS nomenclature. Then work through the headings and subheadings to find the most specific description. Read applicable section and chapter notes carefully—they legally define what each heading includes or excludes. Use the official TARIC database for EU classification, which includes explanatory notes. For complex or high-value products, consider requesting a Binding Tariff Information (BTI) ruling from customs authorities for legal certainty. When in doubt, consult a customs broker or classification specialist.

A Binding Tariff Information (BTI) is a legally binding classification decision issued by EU customs authorities. It confirms the correct customs code for your product and is valid throughout the EU for six years. You should consider getting a BTI when: classification is uncertain, incorrect classification would be costly (high-duty products), you import the same products regularly, or you need certainty for business planning. BTI applications require detailed product information and take several months to process, so plan ahead.

Standard documentation includes: commercial invoice (showing seller, buyer, goods description, quantity, value, terms of sale), packing list, bill of lading or airway bill, and the customs declaration itself. Depending on your goods, you may also need: certificates of origin for preferential treatment, phytosanitary or veterinary certificates for agricultural products, CE declarations of conformity, import licenses for controlled goods, and various product-specific certificates. Your customs broker can advise on specific requirements for your shipment.

If you underpay duties due to wrong classification, customs can demand the difference plus interest, potentially going back three years. Penalties may apply if the error was negligent or intentional. If you overpay, you can apply for a refund, but this requires documentation and takes time. Wrong codes can also trigger regulatory issues if your goods needed licenses or certificates you didn't obtain. For repeated or significant errors, customs may increase scrutiny of your future shipments. Accurate classification from the start is always the best approach.

Yes. Since January 1, 2021, the UK (excluding Northern Ireland for goods) is treated as a "third country" for EU customs purposes. All goods moving between the UK and EU require customs declarations, and potentially payment of duties and VAT. The EU-UK Trade and Cooperation Agreement provides for zero tariffs and zero quotas on goods meeting the rules of origin, but paperwork is still required. If goods don't meet origin requirements, standard MFN duties apply. UK VAT-registered businesses need to understand their new obligations for selling to EU customers.

If you're shipping inventory to Amazon's EU fulfillment centers from outside the EU, you're conducting imports that must comply with all standard customs requirements. You need an EORI number, must pay customs duties and import VAT, ensure product compliance (CE marking where required), and maintain proper documentation. Amazon does not act as importer of record—you remain responsible for customs clearance. For sales to consumers, understand whether Amazon's marketplace facilitation applies to your VAT obligations. See our Amazon FBA guide for details.

Yes, through "returned goods relief." If you originally exported goods from the EU and they're returning within three years in the same condition, you can apply for relief from customs duty and VAT. You need to prove the goods' EU origin (original export documentation helps), demonstrate they're unchanged, and complete the relief application process. This is commonly used for goods returned from exhibitions, samples sent abroad, or items sent for repair that couldn't be fixed. Time limits and documentation requirements are strict.

The Import One-Stop Shop (IOSS) is a simplified VAT system for sellers shipping goods valued up to €150 directly to EU consumers. It allows you to collect VAT at the point of sale and report it through one monthly return. Benefits include predictable pricing for customers (no surprise VAT charges on delivery), faster customs clearance, and simplified compliance. You should consider IOSS if you have significant direct-to-consumer EU sales from outside the EU. Non-EU sellers must register through an EU-based intermediary.

The European Commission's Taxation and Customs Union website provides official guidance and access to TARIC. Individual EU member states have national customs administration websites with country-specific information. The World Customs Organization provides international HS resources. For specific questions about your situation, contact the customs authority in the EU country where you're importing, or consult a licensed customs broker or trade compliance specialist.