Tariff suspension

A tariff suspension is a mechanism by which the European Union temporarily reduces to zero (or to a reduced rate) customs duties applicable to certain raw materials, components, or semi-finished products that are not available in sufficient quantity in the Union and are needed by European industry.

Suspensions are adopted by the EU Council on a Commission proposal, after examination of requests submitted by Member States. The main criterion is the absence of equivalent European production: if a European producer can supply the product under satisfactory economic conditions, the suspension is refused.

Suspensions are generally granted for a renewable 5-year period and concern very precisely defined products (often referencing detailed technical specifications beyond the CN code). They aim to reduce European industry's supply costs and maintain its competitiveness.

Tariff suspensions differ from tariff quotas in that they are not volume-limited: any quantity imported benefits from the reduced rate during the validity period. They are particularly important in high-technology, chemical, and aeronautical sectors.