Tariff suspensions, together with tariff quotas, allow EU companies to significantly reduce the cost of customs duty they would otherwise have to pay when importing materials and semi-finished goods needed for production. Tariff suspensions and quotas allow companies to import raw materials, parts and components that are not available on the EU market, while suspensions and quotas suspend the customs duty on these selected goods, so the amount of the duty is usually zero for the duration of the suspension or quota. Suspensions can also be obtained for production machinery.
The list of suspensions and quotas is regularly extended by the European Commission following requests from individual importers, with the latest update coming into force on 1 January 2024.
Both the tariff suspension and quota are available to all importers. While the suspension is not at risk of being used up, the quota is set up on a first-come, first-served basis, and the relevant company is thus entitled to a reduction in the cost of customs duty. Once the specified quantity is used up, imports are subject to the standard rate of customs duty. For these reasons, it is highly desirable to periodically review the possibility of using existing suspensions or quotas for the products you import.
Moreover, the legislation allows to apply for a tariff suspension retrospectively if the suspension was already in force at the time of the importation of the relevant goods. Similarly, the use of quotas can be requested retrospectively if the quota has not already been used by other importers. The customs duty you paid when importing the goods can thus be recovered. Therefore, it is recommended that the list of suspensions and quotas should be reviewed regularly.
Can suspensions and quotas also apply to your company?
Any company that uses imported products as raw materials, semi-finished goods, or components for its own production can apply for tariff suspension or quota. However, the condition is that the annual value of uncollected customs duty must be at least EUR 15,000. It is also necessary to demonstrate the impossibility or difficulty of obtaining the relevant goods on the EU market. Applications for tariff suspension or quota are submitted twice a year, with the earliest deadline for submission being 14 February 2024.
How can we help you?
Our customs specialists provide the following services:
- advice in this area;
- assistance with the preparation of the application for tariff suspension or quota;
- review of the possibility of recovering tariff suspension and quota already in force;
- assistance with the preparation of a refund of duty already paid if an opportunity to retroactively use an existing tariff suspension or quota has been identified and assistance with negotiations with the Customs Administration on this matter.
Seminars, webcasts, business breakfasts and other events organized by Deloitte.
