In this video, we briefly explain the different types of Special Procedures that can provide companies with a significant economic benefit.
What are Special Procedures?
To promote economic activity, many countries offer the possibility of using Customs Special Procedures. These Special Procedures allow you to store, process, repair, or temporarily use goods and receive suspension or even relief from customs duties.
Customs warehouses are privately owned with a designated area controlled by customs authorities that is used solely for imported goods. These goods are exempt from duties, taxes, and other customs charges until they leave the warehouse. This Special Procedure is beneficial to any companies that use distribution centres, especially for stock that may remain on the shelf for longer periods of time.
Inward Processing provides relief from import duties and taxes for goods that will then be re-exported after having undergone manufacturing, processing, or repair. This Special Procedure can result in significant savings for companies that source materials from all over the world to make products for export.
Outward Processing is the opposite of Inward Processing. It provides duty relief on goods that are temporarily exported for processing or repair, then re-imported as processed products. Using this Special Procedure, companies do not have to pay duty on the original value of the raw materials; they must only be paid on the value added abroad.
Temporary Admission allows goods to be brought into a country temporarily, typically for less than 24 months, with total or partial relief from import duty. This Special Procedure is often used for events like trade shows, art exhibits, or music festivals.
End Use Relief reduces or eliminates customs duty on certain imported goods which meet defined criteria and are put to a specific use within a set period of time. This Special Procedure only applies to certain tariff codes, such as goods in the aerospace, shipbuilding, and defence industries.
Temporary Storage allows companies to store goods at an authorized storage facility where they can be controlled by customs for up to 90 days without having to pay duty or tax. This Special Procedure gives companies time to obtain import documentation or decide what they want to do with the goods.
In order to use Special Procedures, you must obtain an authorisation from customs authorities. This can take up to six months and you will have to demonstrate your ability to comply with special administrative requirements.
C4T’s customs compliance solution, CAS, provides all of the administrative proof required by customs authorities in order to use Special Procedures. Contact us today to find out how you can save on duty costs.