import of goods

Import of goods

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Import

• “Import of goods” means:

– Entry in the Community, starting with 1 January 2007, of goods transported from a third party territory

Art. 131 CFArt. 131 CF

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Customs territories, of excise taxes and VAT in the EU

• Community territories for custom purposes, of excise taxes and VAT are different

Custom territory

EXCISE TAXES TERRITORY

VAT TERRITORY

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Third party territory

A “Third party territory” signifies:

– Territory of a non EU country; and

– Part of the territory of an EU country, which is not considered part of the Community, for VAT purposes

Art. 125² CFArt. 125² CF

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VAT Territory of EU

The following territories of member states are not considered part of the Community, for VAT purposes

Finland Aland Island

Federal Republic of

Germany

Helgoland Island

Busingen Territory

French Republic Foreign territoires

Hellenic Republic Athos Mountain

Kingdom of Spain Ceuta, Melilla and Canary Islands

Italian Republic Livigno, Campione d’Italia

italian waters of Lake Lugano

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VAT Territory of EU

• The following territories of member states are considered part of the Community, for VAT purposes

United Kingdom

(MS)

Man Island

France (MS) Principality of Monaco

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Imports are taxable actions

• Import is applicable only for the goods. Services can not be imported!

• Any person can import goods, the action complies VAT

• The usage of imported goods is not relevant

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Community goods and non-Community goods

Terminology:

• Import of Community Goods: entry in the Community for VAT purposes of goods which for custom purposes are already released for free circulation – proceed from third party Community territories. Ex. Goods coming from Canary Islands are Community goods but they have to be imported from the VAT point of view in the Community.

• Import of non-Community goods: introduction of goods in the Community, for VAT purposes, which for custom purposes are not released for free circulation - (according to custom legislation)- proceed from third party states

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Suspensive Arrangements

• In some cases, goods are physically introduced in the Community, they are not released for free circulation, but placed under custom suspension regimes.

• In such cases, although theoretically an import of goods takes place, it is considered that the place of import is in the MS in which the goods will be withdrawn from the suspension regime and released for free circulation.

• The VAT due to the import will be owed when the goods will cease to be placed in the respective regime (excepting the case when another dispense for VAT can be applied for that import).

Art. 136 (3) CFArt. 136 (3) CF

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Suspensive Arrangements

• For VAT purposes we name suspension custom regimes the following:

- placing of goods in a free zone or in a free harbour

- custom warehouse

- Active improvement

- VAT Fiscal ware-house

- Admission in the territorial waters of goods for drilling or production platforms

- Regime for external custom transit

- Regime for internal custom transit

Art. 125¹(1)(p.25)144 (1) (a) (2 – 7) CF

Art. 125¹(1)(p.25)144 (1) (a) (2 – 7) CF

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PLACE OF IMPORT

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Place of import

PRINCIPLE

• The place for the import of goods is considered to be in the MS where the goods are when they enter the territory of the Community

• When the Community or non-Community goods are placed, when entering the Community, in one of the Suspension Custom Regimes, the place of import for this kind of goods is considered to be the MS in which the goods cease to be placed in such regimes.

Art. 132² CFArt. 132² CF

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PLACE OF IMPORT

EXAMPLE

• In the situation in which the goods, transported from a third party territory, are in Romania when they are introduced in the Community, the import of goods takes place in Romania, for VAT purposes

• In the situation in which the goods are transported from a third party territory and they are placed in a regime of custom ware-house at the entry in Romania, the import of goods takes place in Romania, for VAT purpose, if the goods are in Romania when they cease to be placed in that regime (and are not placed in another suspension custom regime).

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EXEMPTIONS

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Exemptions

EXAMPLE

• Import of goods for which the delivery in Romania is, in any situation, exempted for VAT.

• The import of goods followed by an exempted IC delivery or by an action assimilated to an exempted IC delivery of this goods towards another MS of EU.

Art. 142 (1) (a) CFArt. 142 (1) (a) CF

Art. 142 (1) (l) CFArt. 142 (1) (l) CF

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Exemptions

EXAMPLE

• Import of goods exempted from custom duties according to some European directives ( restrictive)

Examples: personal goods belonging to individuals which come from countries situated

outside the Community, goods imported with the occasion of marriage; personal goods

inherited; school uniforms, teaching aid and other goods for pupils and students, in

some conditions: imports of negligible value; goods of assets and other equipments

imported with the occasion of the transfer of activity; importation of certain agricultural

products and products for agricultural use; medicament substances, certain medicines,

laboratory pets and biological and chemical substances; goods for charitable

organisations;

Art. 142 (1) (d) CFArt. 142 (1) (d) CF

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Exemptions

- Import of goods received in the context of certain aspects concerning international relationships; good for promoting the commerce (ex. Goods used or consumed in a commercial fair or similar event); goods imported for examination, analisys or testing; literature for tourist information; documents and publications of foreign governments and international organisms; coffins, funeral urns and funeral ornaments, etc.

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Exemptions

EXAMPLE

- The re-import of goods in Romania performed by the person which exported the goods outside the Community, in the same state in which they were at the time of export and which benefit from exemption from custom taxes;

- The re-import of goods in Romania, performed by the person which exported the goods outside the Community in order to redress, transform, adapt, assemble them, with the condition that this exemption is limited at the value of goods at the time they were exported outside the Community (specific to passive improvement);

Art. 142 (1) (h) si (i) CFArt. 142 (1) (h) si (i) CF

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THE PERSON COMPELD TO PAY THE VAT FOR THE IMPORT

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The person compelled to pay the VAT

• The importer has the obligation to pay the duties for the import of goods. The importer can be:

• a) the buyer to whom the goods are sent or the owner of the goods.

• b) the supplier of goods, for the delivery of goods which are set up or assembled in Romania by the supplier or in his name and if the delivery takes place in Romania in the condition of art. 132 alin. (1) lit. b) from the Fiscal Code;


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• c) the owner of goods, for goods imported for rental or leasing activities in Romania;

• d) the person that re-imports in Romania the goods exported outside the Community for redressing, transformation, adaptation or processing them, in order to apply the dispensation described in art. 142 lit. h) from Fiscal Code;

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• e) the charged person registered according to art. 153 from FC, which imports goods in Romania:

• 1) in junk shop regime or stock at the clients disposal, for verifying the conformity or testing, with the condition that the goods are bought by the charged person or re-exported by that person outside the Community, if the charged person does not buy them;

• 2) in order to redress, transform, adapt or process this goods, with the condition that the goods resulted by this actions will be re-exported outside the Community by the charged person.

Art. 21 (4) D6Art. 21 (4) D6

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PAYMENT OF VAT

• As a general rule, the VAT for the importation is paid to the custom authorities.

• NEW!!! However, the persons registered in VAT purpose according to art. 153 will not pay the VAT at the custom authorities but the duty will be distinguished in the deduction for VAT as collected duties and deducible duties

• The persons whom are not registered in VAT purpose acc. to art. 153 or whom are registered acc. to art.153¹, are paying VAT at the custom authorities proceeding from the DVI

Art. 157 (3) - (5) CFArt. 157 (3) - (5) CF

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Generating fact and exigibility in case of importation

• The generating fact and the the exigibility of duty in case of an import of goods interfere:

- As a general rule, at the time when the generating fact and the exigibility of custom duties (or it would interfere if the goods were submitted to such taxes)

-In the case in which the goods are placed in a suspensive arrangement, the generating fact and the exigibility of taxes interfere at the time when the goods cease to be place in this kind of regime.


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DELIVERIES FOLLOWING AN IMPORT

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Delivery of goods after an import of goods

PRINCIPLE

• As a general rule, the delivery of goods which are transported take place in the territory where the goods are when their transportation begins.

EXCEPTION: In the case of the delivery of goods for which the transportation begins outside the Community and ends in the Community, the delivery of this goods by the importer and any further delivery, take place in the MS in which the goods are imported, and the goods are considered to be transported from the MS of import.

Art. 8 (2) D6Art. 8 (2) D6 Art. 132 (1) (a) second sentence CFArt. 132 (1) (a) second sentence CF

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USA Romania

A A

C C

B B (1)A sels goods to B

(3)B sels goods to C

B transports the goods from USA to C headquarters in RO

(2) B, normaly registered for VAT purpose, releases the goods for free circulation and acts as an importer regarding the VAT

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Bayer B - import of goods

1. The person that qualifies (importer): B

2. Operation in VAT sphere: goods import

3. Place of import: Romania (Art. 132² CF – where the goods are at their entry in the Community)

4. Dispensation: NO

5. The person compelled to VAT payment: B (Art. 1511 CF)

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Ulterior delivery of the imported goods realized by B toward C

1. Taxable person: B (the person that imported the goods)

2. Operation in VAT sphere: delivery of goods

3. Place of delivery: Romania (Art. 132 (1) (a) the second sentence CF – MS in which the import is made, instead of the territory where the transportation starts)

4. Exemption: NO

5. The person compelled to VAT payment: B (Art. 150 (1) (a) CF, local delivery with RO VAT)

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IMPORT FOLLOWED BY AN OPERATION

ASSIMILATEDTO A IC DELIVERY

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Import following an IC delivery of goods, exempted from tax

PRINCIPLE

• An import of goods in Romania, followed by a IC delivery of the same goods, exempted from taxes, performed by the same taxable person is relieved from duty.

• The importer must prove at the moment of import that a following IC delivery will exist (ex. The proof of the transportation and the VAT code of the final consignee, if such is the case)

Art. 28c (D) D6Art. 28c (D) D6 Art. 142 (1) (l) CFArt. 142 (1) (l) CF

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PRINCIPLE

• The following IC Delivery, relieved from duty, can be

- An IC delivery (normal), relieved from duty, from Romania towards another MS of EU, case in which the client is obliged to pay the VAT for the IC acquisition;

or

- An IC delivery (assimilated), relieved from duty, in case of assignation in another MS from EU if the goods are imported by the person taxable in another MS from which then are transported to Romania.

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A A

B B

C C

RomaniaUkraine

Hungary

A sels goods to B

Flux of goods B, normally registered, imports goods in Ro and sells them (in the same state) to C

C communicates to B a Hungarian VAT code

Goods flux

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Import of goods in Romania by A

1. The person that qualifies (importer): the Romanian company B

2. Operation in VAT sphere: import of goods

3. Place of import: Romania (Art. 132² CF – where the goods are at their entry in the Community)

4. Exemption: YES (Art. 142 (1) (l) CF, because it will follow a LIC relieved from VAT)

5. The person compelled to pay the VAT: N/A

6. The operation is written down in DVI

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Delivery IC of goods from. RO to HU

1. Taxable person: Romanian company B

2. Operation in VAT sphere: IC delivery of goods

3. Place of delivery: Romania (Art. 132 (1) CF where the transport starts)

4. Exemption: YES (Art. 143 (2) CF, fulfils the two conditions: 1. transportation and 2. VAT code from another MS)

5. The person compelled to pay the VAT: N/A

6. Obligations: recapitulative declaration for relieved LIC

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IMPORT MADE IN A MS FOLLOWED BY A DISTANCE

SALE IN ANOTHER MS

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Import made in a MS followed by a distance sale in another MS

Goods are considered to be transported from MS in which the import is made if :

- Transportation is made from a third party territory by the supplier

And

- Goods are imported by the supplier and transported in another MS different from the MS of import, in order to make the delivery to the client (distance sale);

In accordance with the ceiling for distance selling established by the MS of destination, it must be pursuit if the delivery of goods imported takes place in MS of import or MS of destination;

Art. 28b (B) D6Art. 28b (B) D6 Art. 132 (8) CFArt. 132 (8) CF

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Ukraine Romania

Hungary

AA

BB

A sells goods to B, whom fulfils the conditions of a SME’s in Hungary

A releases the goods for free circulationand acts as an importer in Romania.

A’ = AA’ = A

Goods flux

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Import of goods in Romania by A

1. The person that qualifies (importer): A

2. Operation in VAT sphere: import of goods

3. Place of import: Romania (Art. 132² (1) where the goods are at their entry in the Community)

4. Exemption:

– YES, in the case when the import is followed by a distance selling with the place in HU

5. The person compelled to pay the VAT: A (Art. 1511 CF), if the place of distance selling is not in HU ( without outrunning the ceiling)

import of goods

Documents

import of community

vat purposes of goods

introduction of goods

importimport of goods

party community territories

custom purposes

vat purposesart

vat territory of euthe