Importing goods from abroad brings with it not only commercial challenges but also obligations towards the customs administration. If you are planning to import, export or transit goods outside the European Union, you will not be able to avoid customs procedures. This is where not only careful preparation of documentation comes into play, but also knowledge of the basic rules, how customs duties are calculated, how they are paid and what is at risk if the rules are broken.
Customs clearance is the process by which it is decided whether certain goods can be placed under one of the customs procedures and, if so, under what conditions. The customs procedure involves checking the documentation, verifying the origin of the goods, calculating the customs duties and other charges and then making a decision.
Customs procedures are initiated when goods are imported from third countries (outside the EU), when goods are exported from the EU to third countries and in the case of transit, when goods pass through the EU without being destined for a Member State.
Each of these cases has its own specific customs procedure requirements that must be complied with in order for the goods to legally enter or leave the Union.
Everything is governed by the Act on the Customs Administration of the Czech Republic. According to this law, the customs administration can control not only at the borders but also inside the territory of the Czech Republic, it carries out mobile surveillance (the so-called customs patrol) and can carry out emergency measures and interventions, e.g. in case of suspected smuggling of drugs, weapons, illegal alcohol, cigarettes, etc.
If you need assistance in dealing with the customs administration, help with the interpretation of the Customs Administration Act or have a specific problem in the customs procedure, do not hesitate to contact us. We will be happy to provide you with expert representation and assist you in resolving your business challenges.
In order for customs to assess the goods and decide whether to release them, you must provide them with the relevant documentation. This includes:
Without these documents, the customs administration cannot complete the customs procedure. Therefore, always check them carefully in advance for accuracy and completeness.
There are several ways in which customs procedures can be carried out. They differ in their complexity, speed and technical solutions. The choice of the appropriate procedure depends on the specific situation, the type of goods, the importer’s or exporter’s entitlements and how willing and able you are to use electronic tools. The individual schemes and their conditions are defined in detail by the Customs Administration of the Czech Republic, which also supervises their implementation.
This regime is the most common form encountered by both entrepreneurs and individuals. The standard procedure consists in declaring the goods in the form of a customs declaration, which is submitted to the competent customs office.
The customs declaration can be submitted either in writing (on request or in specific cases) or electronically, which is much more common.
When lodging a customs declaration, you must provide the exact identification of the goods(customs tariff code), the quantity, value and origin of the goods and the relevant documents (e.g. invoice, transport documents, certificate of origin).
The customs administration will then decide whether to release the goods under the required customs procedure (e.g. free circulation, transit, export)on the basis of its assessment of the information. If Customs finds irregularities, it may prolong the procedure, require supplementary documents or carry out a physical inspection of the consignment.
Tip: Do you import goods for your business from China? Find out how customs duty works when buying from China.
The simplified customs procedure is designed primarily for regular or bulky imports and exports where the standard customs declaration would be too administratively burdensome. It is mainly used by companies that have prior authorisation from Customs.
The simplified procedure can be carried out, for example, by means of a simplified customs declaration, where not all the data are entered (these will be added later), or by means of an entry in the declarant’s records, where the goods are cleared on the basis of an entry in the declarant’s internal system and subsequently a ‘supplementary declaration’ is lodged.
This procedure significantly speeds up customs clearance, allows companies to better plan logistics and reduces costs.
Customs procedures in the EU are going digital as part of the e-Customs initiative, which aims to replace paper documents with electronic ones and to link the customs administrations of the Member States. In the Czech Republic, cPortal is used for electronic reporting.
This system allows:
The use of the system requires access to a data box or a certified interface and knowledge of customs codes, customs tariff and other technical specifications.
For anyone who is not in daily contact with Customs, Customs is a very complex process. That is why there are services called customs declarant or customs agency. Both entities can act on your behalf, prepare the documentation and make the customs declaration for you. This representation can be carried out on the basis of a power of attorney (indirect representation) or as a direct representation, where the declarant is named as the person acting on behalf of and on behalf of the person represented.
The calculation of customs duties is not a simple task either. The customs value is the basic figure on which duties are calculated. This is usually the purchase price plus the cost of transport and insurance to the point of entry into the EU. The Customs Tariff(TARIC) determines what duty applies to a particular type of goods according to the Combined Nomenclature (commodity codes. The duty rates then depend on the type of goods, their origin and any trade regime.
If the goods come from a so-called preferential country (e.g. under a free trade agreement), the duty may be reduced or even waived altogether. However, in this case you must provide the correct proof of origin.
In addition to customs duty, VAT is usually payable on importation, which is calculated on the sum of the customs value, customs duty and any excise duty. And then excise duty – for example on alcohol, tobacco or fuel.
Tip: Paying a bill abroad is not something we would normally do every day. Read about the specifics of this type of payment.
Once the decision on the amount of duty has been issued, you must pay the duty (and other charges) without undue delay – typically within 10 days. You can do this by bank transfer to the customs administration’s account, through the customs declarant, who will charge you back the costs, or by making a cash deposit in the customs office’s account (this option is not often used).
For some imports (e.g. high-value goods or untrustworthy entities), Customs may require a guarantee of the debt (payment of amounts) before the goods are released for free circulation.
If you do not pay the duty, Customs may recover it in the same way as any other tax debt. It also has the right to detain your shipment, proceed to enforcement action and impose penalties and interest for late payment.
Imports of goods from outside the EU are subject to a customs procedure, during which the customs administration assesses the goods, verifies their origin, determines the customs duty and any other charges (VAT, excise duty) and decides whether the goods should be placed under the proposed customs procedure. Customs procedures are not avoided when importing, exporting or transiting goods and complete documentation is required – invoice, customs declaration and proof of origin. The procedure can be standard, simplified or electronic (e.g. via cPortal) and the entrepreneur can be represented by a customs declarant. The calculation of customs duties is based on the customs value of the goods and the TARIC tariff. After the decision has been issued, the duty must be paid, usually within 10 days – by bank transfer, through the declarant or by deposit. In some cases, security for the debt may be required in advance (e.g. in the form of a bank guarantee) and non-payment may result in penalties, detention of goods or execution.
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