Tariffs and duties when importing goods to the EU

Products imported from outside the European Union are often subject to tariffs or duties. The duty rate depends on the country of origin and product type – and whether the EU has some form of trade agreement in place with the country your supplier is located in.

This guide can help businesses located in EU member states understand how to identify the tariffs and duties applicable to their product.

Methodology

We used the following sources:

a. TARIC

b. Calculation of customs duties

c. What is the Common Customs Tariff?

d. Customs Valuation

e. Free trade agreements

f. EU-Turkey Customs Union

Supplier Overview

How do I know which tariff or customs duties applies to a product in the EU?

You can use the TARIC database – the EU’s integrated tariff – to find out which tariff applies to a product that is imported into the EU.

Using the goods code

In order to use this method, you need to know the 10-digit goods nomenclature code, consisting of 6 harmonised system (HS) digits, 2 combined nomenclature (CN) digits, and 2 TARIC digits.

Example: 6601 1000 00

For example, let’s assume we want to know which tariff applies when importing garden umbrellas. If you know the goods nomenclature code, you can:

1. Enter the goods code (6601100000), and the origin/destination (e.g. Turkey) under the “Measures” tab

TARIC example

2. Click “Retrieve Measures”

3. You will then find that the customs duty rate is 0% when importing from Turkey – due to the trade agreement between Turkey and the EU, – while the third country duty: 4.70%

TARIC tariffs

The rates differ depending on the country of origin. “Third country” in this context refers to any non-EU member state that does not have a trade agreement with the EU.

Browse the TARIC sections

Alternatively, if you don’t have the code, you can follow this method:

1. Click “Browse the Nomenclature”

2. The page lists various sections regarding different products. Click “SECTION XII – FOOTWEAR, HEADGEAR, UMBRELLAS, SUN UMBRELLAS […]”, then “CHAPTER 66”. The Goods code will initially be “6600000000”

TARIC nomenclature

3. Click “6601” for umbrellas and sun umbrellas; the goods code is now “6601000000”

4. Click “6601 10” for garden or similar umbrellas; the goods code is now “6601100000”

5. Click “Retrieve Measures”

6. Enter the origin/destination (e.g. Turkey) under the “Measures” tab

7. Click “Retrieve Measures”

How do I know which rate applies to a product in the EU?

By using the method explained in the above section, the TARIC measure information page should show that garden umbrellas (goods nomenclature code 6601100000) imported from Turkey to the EU is subject to a duty rate of 0%.

How do I calculate the customs value in the EU?

The customs value is calculated by adding the value of material and production costs, profit and general expenses, and the cost, insurance, and freight (CIF).

Case Study

In this fictional case, Pretty Umbrella Limited makes a small umbrella for sale in Turkey.

Costs of material and production costs: EUR 10,500
Profit and general expenses: EUR 12,320
Cost of transport, loading, handling, and insurance = EUR 11,640

Customs value: EUR 10,500 + EUR 12,320 + EUR 11,640 = EUR 34,460

How do I calculate the payable tariff or customs duty?

You can calculate the customs duty by multiplying the customs duty rate by customs value.

In this case, we use an umbrella imported from the EU into Turkey.

Customs duty rate: 0%
Customs value: EUR 34,460

Customs duty: EUR 34,460 x 0% = EUR 0

If we were to use the third country rate, that is 4.7%, we would obtain:

Customs duty: EUR 34,460 x 4.7% = EUR 1619.62

Are tariffs and customs duties the same in all EU member states?

Tariffs and customs duties are the same in all EU member states because those states apply the same common customs tariff (CCT) when importing products across the EU’s borders.

The EU’s Taxation and Customs Union notes that while the tariffs remain the same, the customs duty rates vary depending on the nature and origin of those imports.

This means that, for example, the tariffs may be different if you import from China or Norway.

Tariffs and duties when importing from UK to EU

The European Union and the United Kingdom’s free trade agreement (FTA) is called the EU-UK Trade and Cooperation Agreement. According to the EU website, this FTA sets a zero-rate customs duty for UK products that enter the EU market.

Tariffs and duties when importing from Turkey to EU

The EU-Turkey Customs Union agreement allows the free movement of industrial products and processed agricultural products between Turkey and the EU. These products are not subject to any customs duties or quotas.

The Customs Union does not cover:

Agricultural products
Coal and steel products

Note that, although we could not find a precise definition of “industrial products”, our understanding is that it includes consumer products.

For example, if we stick to the example of garden umbrellas (goods nomenclature code 6601100000) and we search for the tariff when importing from Turkey, we will find that it is 0%.

Tariffs and duties when importing from USA to EU

According to our research, there is not a free trade agreement between the United States and the EU. Thus, the “Third country duty”, which applies to countries that do not have a free trade agreement with the EU, would apply.

We list below three products that can be imported to the EU from the USA, and their goods nomenclature code and their third-country duty. Note that you can find this information on the TARIC database.

Women’s or girls’ blouses, shirts and shirt-blouses of wool or fine animal hair

Goods nomenclature code: 6206200000
Third country duty: 12 %

Sleeping bags

Goods nomenclature code: 940430
Third country duty: 3.70 %

Hats (knitted, of felt of wool and fur)

Goods nomenclature code: 6505001000
Third country duty: 5.70%

Tariffs and duties when importing from Mexico to EU

The EU-Mexico Global Agreement allows for preferential treatment for Mexican products. Note that your product must originate in Mexico for it to qualify for lower or zero preferential tariffs under the agreement.

You can find the duty rates in Annex I of Decision No 2/2000 of the EC-Mexico Joint Council, on in the TARIC.

Below we list three examples of products that have a zero customs duty rate, when importing from Mexico to the EU.

Headbands, linings, covers, hat foundations, hat frames, peaks and chinstraps, for headgear