Assessment of taxes and other charges levied on postal consignments
Non-commercial consignments worth more than 45 euros, and all commercial consignments are subject to import tax.
Simplified calculation of charges
A simplified calculation of charges by means of a flat rate of duty may be applied where goods subject to import tax
- are sent in occasional consignments by natural persons from areas that are not part of the Community customs territory or the island of Heligoland,
- are sent free of payment to another natural person, and
- are exclusively intended for the personal use or consumption of the consignee or his family, and
- the value of which does not exceed 700 euros.
Where these conditions are not given, or if you reject the flat-rate approach, the amount of taxes and duties shall be calculated on the basis of the customs tariff and the relevant individual tax regimes - a procedure known as the "tariff-based recovery".
The flat rate of duty is set at 17.5 percent of the product value. A reduced rate of only 15 percent ad valorem is charged on goods for which specific tariff concessions - known as preferences - have been granted.
Also, for certain goods special flat rates of duty shall be applied. These rates comprise the whole range of charges to be recovered on the products concerned, that is customs duty, excise and import VAT.
The flat rate of duty can not be applied in the case of beer. Here, the charges shall be calculated on the basis of the applicable customs tariff rates and the Beer Tax Act.
Flat rate charges for certain goods
Tariff-based calculation of duties
Where the customs tariff is to be applied for the calculation of duties, each individual type of charge (such as tobacco tax, customs duty, and import VAT) shall be calculated separately.
Where such method of calculation is not feasible, the amount of import charges depends not only on the value of the goods, but also on their nature and characteristics. The import charges will then be calculated on the basis of the Common Customs Tariff of the European Communities and the rates laid down in the relevant national tax legislation.
The total amount of import charges can be composed of the following types of duty:
- the customs duty levied on all imported goods,
- excise duties including, for example, the charges on energy, tobacco products and spirits, alcopops, beer, sparkling wines and intermediate products, which are due on all goods subject to excise duty, and the
- import value-added tax levied on all imported goods.
The amount of duty payable follows from the valuation of goods for customs purposes (or "customs value") and the rate of duty applicable in each case. Valuations shall be performed in accordance with the generally applicable customs valuation provisions.
Normally, calculation of the excise duties to be levied shall be based on the quantity of the goods brought into the country and the excise duty rate applicable in each case.
The basis for assessment of the import VAT shall be the goods’ "customs value" plus customs duty, plus - in the case of excise goods - any applicable excise duties.
The import VAT rate is currently set at 19 percent; there is a reduced rate of 7 percent with respect to selected goods such as food products and books.
Can the costs of postage be taken into account?
The amount of charges to be recovered shall be assessed on the basis of the "customs value". In the case of non-commercial consignments, any postal charges can only be included in the customs value if they have indeed been declared. It shall be noted that such declaration must always show every detail that may be relevant for fiscal purposes, that is, it must be accompanied by a complete set of invoices or similar documentation of the price paid or to be paid. Where postal charges are invoiced they can be declared and included in the valuation of goods for customs purposes ("customs value").
Where imports for commercial purposes are concerned, though, the full amount of postage - that is, up to the domestic place of destination – shall always be taken into account when assessing the customs value. Since the structuring of postal charges is independent of the actual mileage or distance of transport, it is not practicable to split the costs of postage in intra-Community costs and those arising outside the Community.
For goods from a number of countries specific tariff concessions - known as preferences - have been granted. Where such concession takes the form of an exemption from customs, only the import VAT and any applicable excise duty must be paid with respect to the goods imported.
Concessions for postal consignments: What are tariff preferences?
The European Community grants so-called tariff preferences with respect to the importation of goods from a large number of countries. These tariff preferences imply that only 15 percent - instead of 17.5 percent - duty is recovered where flat rates of duty are applied, or that only reduced rates of duty are levied for certain products that are subject to a high level of taxation.
Where the customs duty is charged in accordance with the customs tariff, either a reduced rate is levied or the goods are completely exempted. In such cases, only the import VAT and, where applicable, any specific excise duties (such as those on tobacco or coffee) must be paid.
This is subject to the condition that the origin or provenance of the goods is one of the beneficiary countries. Such fact must be substantiated by presenting a written proof of preferential status. There are exceptions, though, concerning goods of a non-commercial character imported as small consignments (for example, goods sent by post).
Goods in small consignments are considered eligible for preferential treatment without the need to present a written proof of preferential status, if
- they are sent by one private individual to another private individual - it means that the consigner cannot be a commercial undertaking (with the exception only of small consignments from Syria where the consignor may be a commercial entity);
- the total value of the goods does not exceed 500 euros based on the purchase price of the goods in the country of export. With respect to imports from Turkey this value limit applies only to certain agricultural and food products, apart from which there is no such limit;
- they are imports of a non-commercial character, that is, goods for the personal use or consumption of the consignee or his family, and which do not, by their nature or quantity, reflect any commercial intent;
- they have been declared as goods of preferential origin and there is no reason for doubt as to the correctness of such declaration. In the case of products sent by post, this declaration can be made on customs declaration CN22 or CN23 indicating the country of origin, attached to the postal consignment.
Where the value threshold of 500 euros is exceeded, tariff preferences may only be granted against presentation of a written proof of preferential status.
Which countries benefit from tariff preferences?
Tariff preferences are provided for in connection with imports from the EFTA countries (Iceland, Liechtenstein, Norway, Switzerland), from a number of Mediterranean countries (such as Egypt, Algeria, Israel, Jordan, Morocco, Palestine, Tunisia and Turkey), from South Africa, the Dominican Republic and from beneficiary developing countries such as Indonesia and Thailand.
Tariff preferences are not granted for imports from countries like USA, Australia, Taiwan and Hong Kong.
Levying of charges
Import charges on commercial shipments of less than 1 euro and on gifts of less than 5 euros are not levied. You will be handed the original of the calculation document. Normally, you are required to pay the set charges on the spot, and you will be given a receipt confirming the amount of import charges paid by you.
If you are unable to pay the charges directly you will have a period of 10 days in which to pay the set amount. The goods will not be released until payment has been effected.
