Tariffs

Product classification and BTI

How do I find the tariff for a particular imported product?

• Every product imported into the EU is classified in the tariff nomenclature. The product code helps you to understand which tariffs apply to your specific product. The first step is to identify the code of your product. You can find more about the product classification here.
• Once you have identified the relevant code for your specific product, you can check the tariff rate in My Trade Assistant.

Binding Tariff Information on the tariff classification of goods

• The EU's Binding Tariff Information (BTI) system can identify the correct tariff classification for the goods you want to import. It will allow you to understand what tariff applies to your good and whether you need particular import documentation. A BTI decision gives you legal certainty about that tariff classification.
• Since 1 October 2019, all BTI-related processes are electronic and economic operators have to submit applications electronically. All BTI decisions already issued can be found here.

Customs Valuation

• Customs valuation is the calculation of the economic value of goods declared for import.
• Customs tariffs (and VAT) are calculated as a percentage of the value of the goods – once the value of the goods has been determined, the customs tariff and the origin of the goods can be taken into account to calculate the total customs duties on the product.

For more information on how customs value is calculated in the EU, click here.

Duty relief and suspension

In general, most imported products are subject to import duties. However, for some special cases, an exception may apply, and no duties need to be paid.

Common Customs Tariff duties apply to goods which are imported from third countries across the EU's external borders. In some special circumstances, these import duties may be relieved.

See all the cases where duty relief can be granted (Council Regulation 1186/2009).

Import duties may also be temporarily suspended (totally or partially) for certain goods under certain circumstances. This is without prejudice to anti-dumping duties that may also apply.

• Goods imported under suspension arrangements can continue to circulate freely on the EU market in the same way as other legally imported goods.
• Suspensions are usually granted for raw materials, semi-finished goods or components not available in the EU – they are never granted for finished goods.

More information

• Commission Communication on autonomous tariff suspensions and quotas
• Search suspensions database

Tariff Quotas

Tariff quotas allow certain quantities of goods to be imported at a reduced or zero rate of duty. This does not affect any anti-dumping duties that may also apply.

Tariff rate quotas (TRQs) allow products imported within a certain quota to enter the European Union market at a lower tariff rate than for quantities outside the quota. They give consumers more choice and encourage non-EU countries to open their markets to European goods.

Preferential tariff quotas

• This type of quota is often found in trade agreements and preferential arrangements between the EU and certain other countries.
• This type of quota means that a certain amount of goods from a particular country can be imported into the EU at a preferential rate of duty.

Autonomous tariff quotas

• These quotas can be opened in some sectors in order to stimulate competition within the EU – they usually apply erga omnes (open to all competitors) and are usually granted for raw materials, semi-finished goods or components that are not available in sufficient quantities in the EU.
• Tariff quotas are not granted for finished goods.

More information on tariff quotas can be found here.

Management of quotas

• Most tariff quotas are managed by the European Commission's Directorate-General for Taxation and Customs Union, on a 'first-come, first-served' basis. This is regardless of the Member State into which a product is imported. Information on the current balances is available online.
• Certain tariff quotas for specific agricultural products, are managed by the European Commission's Directorate-General for Agriculture and Rural Development. Various regulations lay down the specific rules for the management of these tariff quotas.

• Further information by sector can be found here.

How to find out about tariff quotas?

The search results for your product in My Trade Assistant provides information on tariff quotas and standard import values. You will also find a reference to the applicable legislation.

Anti-dumping

Anti-dumping duties

Apart from regular import duties, a product can also be subject to anti-dumping or other trade defence instruments when it is imported into the EU

• EU producers can submit a complaint to the European Commission if they think a product is being unfairly dumped onto the EU market by producers in non-EU countries - community producers who are considering lodging an anti-dumping complaint, should contact the European Commission
• the European Commission can also open an investigation into dumping on its own initiative or at the request of an EU Member State

The anti-dumping proceeding

After receiving a complaint from the EU producers of the product concerned, the Commission publishes a notice in the EU's Official Journal - opening an anti-dumping proceeding. The maximum time limit for an investigation under these proceedings is 15 months. The detailed findings are published in the Official Journal. For example, these findings may include a regulation imposing anti-dumping duties or terminate the proceeding without duties being imposed.

The EU's basic anti-dumping Regulation complies with the EU's international obligations – in particular the WTO Anti-Dumping Agreement.

See also the flowchart of the anti-dumping investigation process

Conditions for anti-dumping measures

The investigation must show that

• there is dumping by the exporting producers in the country/countries concerned
• material injury has been suffered by the impacted EU industry
• there is a causal connection between the dumping and injury found
• the imposition of measures is not against the EU interest

For detailed information on conditions for imposing an anti-dumping measure, see Conditions.

If the investigation finds that the above four conditions have been met, then anti-dumping measures can be imposed on imports of the product concerned.

These measures usually take the form of one of the following

• an ad valorem duty (taxed according to transaction value)
• specific duties (taxed per specific amount of the product)
• price undertakings (the non-EU exporter agrees to sell its products at a minimum price in the EU)

The duties are paid by the importer in the EU, and collected by the national customs authorities of the EU Member State concerned.

Please note: if the EU accepts the producer's price undertaking, (a voluntary increase in price) anti-dumping duties will not be collected on imports. The Commission is not obliged to accept an offer of an undertaking.

The 'lesser duty' rule

A duty may be imposed to remove the effects of dumping on imports of a particular product. An assessment is made of the level of duty needed to remove the injurious effects of dumping. Measures will be imposed at the level of dumping or injury, whichever is lower.

Anti-dumping and ships

EU rules include a regulation on the sale of newly built ships at excessively low prices. See shipbuilding for further details.

Duration of measures and reviews

Measures are generally imposed for 5 years. They may be subject to review during this period if

• the circumstances of the exporters have changed
• importers request a full or partial refund of duties paid
• new exporting producers request an accelerated review

Measures will lapse after 5 years unless an expiry review is initiated.

The Commission monitors measures to ensure they are effective and respected by exporters and importers.

Current anti-dumping duties

You can find information on all completed and on-going anti-dumping investigations here.

Anti-subsidy or countervailing measures

• apart from anti-dumping duties, anti-subsidy measures can apply to your import product - these are also called countervailing measures and are intended to offset the effects from an unfair subsidy by a trade partner
• there are rules when such subsidies are allowed and when they may be counteracted by the EU - you can read more about these rules on EU anti-subsidy rules
• countervailing measures can consist of different types of tools, but they are usually applied in the form of increased duties - a countervailing measure can consist of an additional ad valorem or specific duty and can be applied in the form of a minimum import price, or it can consist of a 'price undertaking,' where the exporter commits to sell the product above a minimum price
• similar to anti-dumping proceedings, an EU industry can lodge a complaint with the Commission if it believes that imports of a product from a non-EU country are subsidised, and injuring the EU industry producing the same product

You can find more information on anti-subsidy measures here.

You can find information on all completed and on-going anti-subsidy investigations here.

Safeguard Duties

• safeguard measures can be applied when an EU industry is impacted by an unforeseen, sharp, and sudden increase of imports
• such measures are used very rarely, and only in very specific circumstances
• safeguard measures can consist of quantitative import restrictions (trade quotas), or of duty increases - they may apply to all imports of the product in question from all trade partners, or from goods of specific origins

You can read more about safeguards in the EU here.