Customs duties

Customs duties

Customs duties are taxes levied by customs authorities on goods crossing the borders of a customs territory. In the European Union, they constitute an own resource of the community budget.

Types of customs duties

• Ad valorem duties: calculated as a percentage of the customs value (e.g. 12% of the CIF value)
• Specific rights: fixed amount per unit of measurement (e.g.: 5 EUR per kg)
• Mixed rights: combination of an ad valorem duty and a specific duty
• Composite duties: the higher of an ad valorem duty and a specific duty

Computing in the EU

In the European Union, customs duties are calculated based on the CIF value (cost + insurance + freight to the EU border). The applicable rate depends on the tariff classification (10-digit TARIC code) and the origin of the goods.

Applicable rates

• Common Customs Tariff (CCT) rate: MFN (Most Favored Nation) rate applied by default
• Preferential rates: reduced or zero under free trade agreements
• Autonomous rates: tariff suspensions decided unilaterally by the EU

Payment and collection

Duties are liquidated at the time of customs clearance. The importer can benefit from a removal credit (30-day deferred payment) subject to a guarantee. In France, customs duties are not recoverable, unlike import VAT.