Customs

My company would like to import goods from a third country, what taxes must I pay on import to Luxembourg ?

For any import, the import VAT must be paid. Specifically, you must declare the import in your VAT return in order to pay the VAT that is owed. You can deduct it immediately, which prevents you from having to make a direct payment of the VAT.

In addition, depending on the tariff classification and the origin of your goods, customs duties may be due and must be paid to Customs upon customs clearance of the goods.

If the products are concerned by a specific commercial policy measure, anti-dumping duties may also be due.

Finally, if the products are subject to excise duties, the excise duties can also apply.

Your company can verify the duties and taxes applicable on import to Luxembourg by consulting the TARLUX website.

My company plans to import goods from a third country, how will I pay the duties and taxes due on import to Luxembourg ?

To declare an import of goods to Luxembourg, you must comply with the customs requirements and VAT requirements. You must also have an EORI number as well as a Luxembourg VAT number or a tax representative.

To import the goods, you must prepare a customs declaration and provide it to the Customs and Excise Administration using the eDouane system.

You must pay the customs duties to the ADA at the time of the import, and you must declare the VAT due on import on your VAT return.

You have the possibility of working with a customs representative who will complete the customs formalities on import.

My company would like to purchase goods from European suppliers, what must I declare in Luxembourg ?

If the goods are shipped from a Member State of the European Union, they are theoretically in free circulation and no customs declaration is required.

You must however declare your intra-Community acquisition in your VAT return.

If the thresholds are exceeded, you must also declare the arrival of goods in an Intrastat declaration to be filed with the STATEC, the Luxembourg statistics institute.

If the products are subject to excise duties, additional excises formalities must be completed.

My company would like to export goods to a third country, what formalities must I complete ?

You must establish an export declaration to Luxembourg and provide it to the Customs and Excise Administration using the eDouane system.

You have the possibility of working with a customs representative who will complete the customs formalities on export.

You must declare the VAT-exempt export sale in your VAT return.

In addition, you must keep a copy of the customs declaration to support your accounting in the case of a tax audit, to document the VAT exemption on the sale.

Finally, you should check whether the goods and/or the country of destination require additional formalities or documents.

You can visit the TARLUX website to find out the additional formalities for Luxembourg, as well as the Market Access Database website of the European Commission, that will provide you with useful information on the applicable customs regulations in the destination countries.

It is especially useful to check whether a preferential agreement is in place with the destination country, in which case you must provide your customer with proof of the origin of your goods, that can be in the form of a preferential origin certificate.

My company would like to deliver goods to a European customer, what formalities must I complete ?

If the goods are shipped from Luxembourg, they are theoretically in free circulation and no customs declaration is required. You must however declare the intracommunity sale in your VAT returns.

If the thresholds are exceeded, you must also declare the shipment of goods in an Intrastat declaration to be filed with the STATEC, the Luxembourg statistics institute.

If the products are subject to excise duties, additional formalities must be completed with respect to excise duties.

My company plans to import goods from a third country, but these goods will most probably be resold outside of the European Union. Can I obtain reimbursement of the customs duties for these goods ?

No. Customs duties cannot be reimbursed. You have the possibility, however, of using suspensive customs procedures that allow you to suspend the payment of duties and taxes due on import as long as the goods remain placed under the chosen customs procedure.

Temporary storage, customs warehousing or the free zone allow storage of goods, inward processing allows their processing, temporary admission allows their use and transit allows their transport with suspendedunder duties and taxes suspension.

You must first obtain authorization from the Customs and Excise Administration to implement these different procedures.

You have the possibility of working with a customs representative who will take charge ofcomplete the customs procedures formalities.

My company plans to send goods abroad for repairs. The goods will return to Luxembourg after the repairs. What formalities must I complete ?

If the goods are sent to the European Union, and if the thresholds have been exceeded, you must declare the shipment and the return of the goods in an Intrastat declaration to be filed with the STATEC, the Luxembourg statistics institute.

If the goods are sent to a third country, you should consider using a customs procedure for outward processing to avoid having to pay duties and taxes on the total value of the goods when they are re-imported.

My company plans to import goods to Luxembourg from a third country. How can I determine the amount of customs duties to pay in Luxembourg ?

You must first establish the tariff classification of your goods, and see if they benefit from a preferential origin, and calculate their customs value.

You can consult the TARLUX website that, depending on the tariff classification and the origin of the goods, will indicate the duties rate applicable upon import to Luxembourg.

My company would like to import goods from a third country into another European country. How can I determine the amount of customs duties to pay in the country of importation ?

You must first establish the tariff classification of your goods, and see if they benefit from a preferential origin, and calculate their customs value.

You can visit the TARIC website that, depending on the tariff classification and the origin of the goods, will indicate the customs duty rate applicable on import in the European Union.

You must be vigilant to comply with the VAT rules applicable in the country of importation.

My company plans to export goods to a third country. How can I determine the amount of customs duties to pay outside of the European Union ?

Depending on the Incoterm that you decide to use, the duties and taxes at destination must be paid by your company (DDP) or by your customer (all other Incoterms).

You can consult the Market Access Database website of the European Commission, that will provide you with useful information on the customs regulations applicable in the destination country.

How can I determine the origin of certain goods ?

The origin of goods can be determined to reduce the customs duties due at destination (preferential origin) or for other purposes (non-preferential origin).

Non-preferential origin is determined on the basis of criteria defined in Article 60 of the Union Customs Code.

Preferential origin is determined on the basis of criteria defined by each preferential agreement.

My company would like to import non-EU goods to Luxembourg. What customs office should I contact ?

The competence of the customs office depends on the place where the goods are located in Luxembourg.

If you have business activities at several locations in Luxembourg, you may apply for a centralized customs clearance authorization.

Applications for suspensive customs procedures or suspensive excise arrangements must be submitted to the Customs and Excise Administration.

My company would like to import non-EU goods to Luxembourg and export goods to third countries. Which Incoterm should I choose ?

The use of Incoterms allows to distribute the costs and risks between the seller and the purchaser during the time of the transport of the goods.

The choice of the Incoterm depends on your degree of involvement for the organization and the liability of the transport. They do not settle the other disputes bearing on the goods, whose resolution must be specified in the contract with your suppliers and your customers.

If you are not familiar with the customs and tax formalities of the destination country, you are advised not to use the DDP Incoterm.

If you do not know your customer very well you are advised not to use the EXW Incoterm.

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