Customs

For any import, the import VAT must be paid. Specifically, assuming that your company is registered for VAT in Luxembourg, you must declare the import in your VAT return in order to pay the import VAT that is owed. You can deduct it immediately, which prevents you from having to make a direct payment of the import 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, excise duties may also be due.

Your company can verify the duties and taxes applicable upon importation in Luxembourg by consulting the TARLUX website.

To declare an importation of goods in 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 file it to the Customs and Excise Administration using the eDouane system.

You must pay the customs duties to the Customs and Excise Administration 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 on your behalf.

Customs authorities may carry out a customs control on the declared goods.

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. An exception would concern goods being delivered from a customs warehouse, which should be announced by the seller.

For goods in free circulation, 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.

To declare an export of goods in Luxembourg, you must comply with the customs requirements and you must have an EORI number.

You must establish an export declaration in Luxembourg and file 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 on your behalf.

Customs authorities may carry out a customs control on the declared goods.

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.

Depending on the product and the destination country, you should check whether an export license for dual-use goods is required.

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.

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.

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 upon importation as long as the goods remain placed under the chosen customs procedure.

Temporary storage, customs warehousing or free zone allow storage of goods, inward processing allows their processing, temporary admission allows their use and transit allows their transport under 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 complete the customs procedures formalities on your behalf.

Assuming that the goods are in free circulation (not stored under a customs warehouse):

No customs declaration is required if the goods are sent to the European Union. 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 after repair.

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.

You have the possibility of working with a customs representative who will complete the customs formalities on import on your behalf. The customs representative may also help you determining the tariff classification and assessing applicable customs costs. 

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 have the possibility of working with a customs representative who will complete the customs formalities on import on your behalf. The customs representative may also help you determining the tariff classification and assessing applicable customs costs.

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

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.

Local customs representatives in the destination country may also provide practical information on applicable customs regulations and taxes due upon importation. 

The origin of goods may 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.

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.

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 responsibility of the transport. They do not settle the other disputes concerning 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.

In order to benefit from an import duty relief for returned goods, your company has to provide information that the conditions to benefit from the relief have been fulfilled.

The information has to be provided to the customs office where the customs declaration for release for free circulation has been lodged, by one of the following ways:

1. give access to the relevant particulars of the customs declaration on the basis of which the returned goods were originally exported or re-exported from the customs territory of the EU
2. provide a print out, authenticated by the competent customs office, of that customs declaration
   
3. provide a document issued by the competent customs office, with the relevant particulars of that customs declaration 
   
4. provide a document issued by the customs authorities, certifying that the conditions for the import duty relief have been fulfilled (information sheet INF 3).

This procedure does not apply where goods can be declared for release for free circulation orally or by any other act. Nor does it apply to the international movement of packing materials, means of transport or certain goods admitted under a specific customs arrangements, unless otherwise provided.