Customs Clearance

What to Expect in Terms of Customs Clearance Procedures

1. Formal customs declarations will be mandatory for all parcels, regardless of value.
2. Below €150 threshold & you are using IOSS then Central Customs Clearance is applicable.

a. MHI will utilise a number of central clearance gateways to access the optimum final mile solution.
b. please contact your VAT specialist to determine the most up-to-date restrictions or surcharges relating to any products subject to Excise Duties (except from IOSS)
c. Customs checks IOSS number, goods, values declared etc.
d. Customs import declaration is processed with VAT exemption (i.e. no import VAT will be charged at point of clearing).
e. Pay VAT at end of the month via IOSS single portal in the member state where you have an establishment or an intermediary. VAT distance selling thresholds do not apply.
f. IOSS can be used if the following criteria is met:
   i. B2C commerce.
   ii. The goods are dispatched from outside the EU.
   iii. The goods are not subject to excise duty.
   iv. Consignment value (parcels going to the same recipient) does not exceed €150.

IOSS Central Customs Clearance into the Netherlands

3. If you do not use IOSS, the value of your parcel exceeds €150 threshold or this is a B2B transaction, then Destination Customs Clearance becomes applicable.

a. Parcels must be cleared in the country of destination (i.e. the country of consumption based on the recipients’ delivery address).
   i. MHI can offer solutions for the following countries of consumption:
      1. Ireland, Belgium and Netherlands.
         a. MHI’s current financing arrangement is available for these countries.
      2. Rest of EU
         a. MHI’s current financing arrangement may potentially change for these countries.
      3. Customs import declaration is processed without VAT exemption (i.e. import VAT is charged at point of clearing).
      4. VAT registration in each country is required when the distance selling threshold is exceeded.

EU VAT Changes Flowchart

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When to Apply an IOSS Number

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