• Service: Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 4/8/2014

EU - Duty-free imports of goods in aerospace, vehicle industries  

April 8: Customs provisions (proposed by the European Commission earlier this year) would allow duty-free imports of goods used in production, repair, or modification activities within the aircraft, aerospace, and vehicle industry sectors, effective 1 May 2016.

The draft implementing provisions provide that an importer could apply for “inward processing relief”—i.e., to import raw materials or semi-finished goods and then to subsequently process these goods under a suspension of customs duties. Once the processing is completed, the finished products could be re-exported without the payment of customs duties. Alternatively, the finished products could be “imported” with only the original customs duties (i.e., the amount of the suspended duties) having to be paid.

Read an April 2014 report [PDF 178 KB] prepared by the KPMG member firm in the Netherlands: Trade and Customs Alert: Duty-free imports of specific goods per May 2016?

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