EU Special Customs Procedures Guide

Discover the main ways to save customs duty in the European Union with Special Customs Procedures

Customs Special Procedures text on yellow background, includes Inward/Outward Processing, Customs Warehousing, Temporary Admission. Black logos.

The Union Customs Code (UCC) provides special customs procedures aimed at enhancing international competitiveness and facilitating trade. These procedures help businesses optimise duty payments, improve cash flow, and maintain compliance with EU customs regulations.

The UCC distinguishes four main categories of special procedures:

Transit: Internal and external transit (covered separately)
Storage: Customs warehousing and free zones
Specific Use: Temporary admission and end-use
Processing: Inward and outward processing

This guide focuses on storage, specific use, and processing procedures.

Overview:

Special Procedure	Authorisation for a Special Procedure	Placing Goods under a Special Procedure	Customs Supervision	Discharge of the Special Procedure
Customs Warehousing	✔️	✔️	✔️	✔️
Free Zone	❌	❌	✔️	✔️
Temporary Admission	✔️	✔️	✔️	✔️
End Use	✔️	✔️	✔️	✔️
Inward Processing	✔️	✔️	✔️	✔️
Outward Processing	✔️	✔️	✔️	✔️

This table reflects the same structure as the original chart, ensuring clarity in understanding the different special procedures.

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2. General Provisions

Using special customs procedures requires adherence to specific conditions and authorisations:

Authorisation Requirement: An authorisation is needed for most special procedures, except for free zones.
Economic Conditions: If a procedure may negatively impact Union producers, economic conditions must be examined at the EU level.
Retroactive Authorisation: The customs authority may grant retroactive authorisation for up to one year under certain conditions.
Guarantees: Except for free zones, goods placed under a special procedure require a financial guarantee.
Movement of Goods: Goods under a special procedure can generally move within the EU without additional customs formalities.
Equivalent Goods: The use of equivalent goods (Union goods replacing non-Union goods) is permitted under all special procedures.

3. Storage Procedures

3.1 Customs Warehousing

Customs warehousing allows traders to store non-Union goods in designated facilities with duty and VAT payments deferred until the goods leave the procedure.

Key benefits:

No time limit for storage duration
Deferral of import duties and taxes
Multiple warehouse types: Public customs warehouses (Types I, II, III) and private customs warehouses

3.2 Free Zones

Free zones are designated areas within the EU where goods are not subject to import duties, VAT, or other charges until they leave the free zone.

Key considerations:

Customs controls may apply to persons, goods, and transport entering/exiting the zone.
When goods leave a free zone, they must follow either:
- Export formalities (when leaving the EU)
- Entry formalities (when moving to another part of the EU customs territory)

4. Specific Use Procedures

4.1 Temporary Admission

Temporary admission allows non-Union goods to be used within the EU for a limited period before being re-exported, with full or partial relief from import duties and VAT.

Key details:

Maximum duration: 24 months
Monthly duty rate: 3% of the import duty due if released for free circulation
No commercial policy measures applied

4.2 End-Use

End-use allows specific non-Union goods to be used in a designated manner within the EU, benefiting from duty exemptions or reduced duties.

Key requirements:

Goods must be used as specified within a set timeframe.
If conditions are not met, standard duties apply.
Customs supervision may last up to two years after first use.
Eligible goods are listed in TARIC and relevant EU regulations.

5. Processing Procedures

5.1 Inward Processing

Inward processing allows non-Union goods to be imported, processed, and either re-exported or released into free circulation with reduced or no duties.

Benefits:

Duty suspension for imported goods used in processing
Re-export: No duties if goods are exported after processing
Reduced duty: If processed goods are released for free circulation
Waste treatment: Lower duties on waste byproducts

The customs authority sets the timeframe for discharging the inward processing procedure.

5.2 Outward Processing

Outward processing allows Union goods to be temporarily exported for processing, then re-imported with reduced or no duties.