Doing Business in the Netherlands 2012 - American Chamber of ...

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20 International Distribution Centers/Customs Facilities Upon importation of goods into the free circulation of the European Union, import duties and import VAT (and if applicable, excise duties), in principle, become due. Import duties are calculated based on the customs value of the goods multiplied with the applicable tariff rate. The applicable tariff rate depends on the customs classification and the (preferential) origin of the goods. Once paid, import duties are in principle non-refundable and thus become a cost. Also, postponement of the levying of import duties using the applicable customs procedures may present the possibility of a cash flow advantage. Therefore, it may be beneficial to either postpone or avoid the levy of import duties for goods entering the Netherlands. One of these customs procedures is the storing of goods in a customsbonded warehouse. In the Netherlands, several customs warehousing arrangements are available by means of which the levying of import duties can be deferred. These customs warehouse facilities can be useful when goods are to be re-exported (in which case import duty and/or VAT may not be payable at all), or when there are difficulties applying certain import licensing requirements. Using the customs transit procedure, it is possible to transport goods under deferral of import duties between two places in the EU. In principle, in order to process imported goods, these goods would first have to be brought into free circulation. This could mean payment of import duties. If no measures are taken, these paid import duties cannot be refunded. In order to prevent the processing of goods from being shifted to countries outside the EU, different arrangements are in place to process goods with a deferral or refund of import duties provided that the goods are being exported from the EU (Inward Processing Relief - IPR). Also, it is possible to use an arrangement where the imported goods are subject to the tariff rate applied to processed goods (Processing 216 Baker & McKenzie
Doing Business in the Netherlands 2012 under Customs Control - PCC). This arrangement can, for instance, be beneficial to the pharmaceutical industry, where base materials, on the one hand, are subject to a relatively high import duty rate. The processed goods, on the other hand, are generally subject to a zero rate. Using the Outward Processing Relief (OPR), it is possible to have products from free circulation of the EU undergo processing or treatment in third countries and re-import these processed goods in the EU with a full or partial relief of import duties. 20.1 Customs Value and Applicable Customs Rate Import duties are calculated based on the customs value of the goods multiplied with the applicable tariff rate. The applicable tariff rate depends on the customs classification and the (preferential) origin of the goods. In order to determine the customs value of goods imported into free circulation, several methods can be used, which have to be applied in sequential order. This means that one is allowed to use only a subsequent customs valuation method if the previous method cannot be applied. The first and most common valuation method is the transaction value of the goods. In this respect, the transaction value is defined as the price actually paid or payable for the goods when sold for export to the customs territory of the EU. It is noted that certain additions or deductions to the customs value used may have to be made depending on the circumstances of the case at hand. At this point in time, Dutch customs does currently allow the use of the “first sale for export” as basis for the customs value. This means that an earlier transaction in a chain of transaction can be used, usually resulting in a lower taxable base. It should be noted that the first sale may be abolished with the introduction of the Modernized Customs Code well after 2013. However, it is expected that even then, it will still be possible to use such a transaction as the basis for the customs value, albeit that in that case the buyer in that transaction will have to act as importer of record. In general, for valuation purposes a ruling can be obtained from the Dutch customs authorities. This ruling is however valid only in the Netherlands. Baker & McKenzie 217
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Editorial Contributions Robert van
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Innovative ways to inform you Doing
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1 The Netherlands Doing Business in
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Steady-Course Policy Doing Business
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2 Legal Forms of Doing Business Doi
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2.3 Branch versus Subsidiary Doing
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4 The Subsidiary 4.1 Incorporation
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8 Commercial Contracts 8.1 General
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9 Real Estate 9.1 Ownership Doing B
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9.7 Leases Doing Business in the Ne
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10.5 The European Economic Area Doi
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12 Telecommunications 12.1 Market S
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12.9 Net Neutrality Doing Business
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14 Labor Law 14.1 Term Doing Busine
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14.4 Works Council Doing Business i
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17.5 Income Tax Ruling Doing Busine
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Tax Corporate & International Tax H
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