End-Use Procedure: Reduced Duty for Specific Goods
Quick answer
The end-use customs procedure allows EU businesses to benefit from a reduced rate or exemption of import duty on certain goods imported into the EU, provided these goods are used for specific purposes defined by the customs authorities. This procedure requires an authorisation and compliance with strict obligations to maintain duty relief.
DAsk the AI Customs Broker — free, no sign-up to try.Key takeaways
- The end-use procedure grants duty reductions or exemptions for goods imported into the EU when used for specific authorised purposes [1].
- Authorisation holders must commit to using the goods as specified or transfer that obligation under customs supervision [1:1].
- The procedure applies not only to direct imports but also to goods processed under inward processing, where end-use relief conditions are met [2].
- Eligible goods for end-use relief are listed by tariff codes and include various machinery, equipment, and other specified products [3].
- Other duty relief situations exist for goods used in tests, exhibitions, or temporarily imported under specific conditions [4][5][6][7].
- Applications for end-use authorisation must demonstrate compliance with the Union Customs Code and supporting regulations [8].
What is the End-Use Procedure?
The end-use customs procedure is a special customs arrangement under the Union Customs Code (UCC) that allows EU importers to pay reduced or zero import duty on goods brought into the EU, provided these goods are used for specific purposes authorised by customs. This procedure recognises that certain goods, due to their intended use, merit a lower customs duty rate than the general tariff.
In practice, the end-use procedure requires that the importer or holder of the authorisation use the goods exclusively for the authorised end-use or transfer this obligation to another person under customs control. The procedure is governed by Article 254 of Regulation (EU) No 952/2013 (the UCC) and detailed rules in Commission Delegated Regulation (EU) 2015/2446 and Commission Implementing Regulation (EU) 2015/2447 [1:2][8:1].
The term “end use customs procedure” specifically refers to this customs special procedure allowing duty relief based on the intended use of goods, distinct from other customs procedures such as inward processing or temporary admission.
Who Can Benefit from End-Use Relief?
End-use relief is available to businesses established within the EU that import goods qualifying for reduced duty rates due to their specific use. The authorisation to apply the end-use procedure is granted only if the applicant commits to fulfilling the obligations linked to the authorised end-use, such as using the goods for the declared purpose or transferring this obligation under customs supervision [1:3].
This procedure benefits importers who handle goods that would otherwise attract higher customs duties but are destined for uses recognised as deserving relief under EU customs law. It is particularly relevant to sectors importing specialised equipment, machinery, or materials that are subject to preferential duty treatment when used for approved purposes.
Obligations of the Authorisation Holder
The holder of an end-use authorisation must undertake to:
- Use the goods exclusively for the purposes laid down for the application of the duty exemption or reduced rate of duty; or
- Transfer the obligation to use the goods for the authorised purpose to another person, subject to conditions imposed by the customs authorities [1:4].
These obligations ensure that the duty relief granted is not abused and that goods benefiting from reduced duties are used as intended. Failure to comply with these obligations may result in the withdrawal of the authorisation and recovery of unpaid duties.
The authorisation holder must maintain appropriate records and evidence to demonstrate compliance with the conditions of the end-use procedure, facilitating customs control and audits.
End-Use Relief in Inward Processing
The end-use procedure also intersects with the inward processing procedure, which allows goods to be imported into the EU for processing and subsequent re-export or release for free circulation.
According to Commission Delegated Regulation (EU) 2015/2446 Article 73, when determining the import duty on processed products resulting from inward processing, the goods may benefit from a duty exemption or reduced rate applicable under the end-use procedure, provided:
- An authorisation for the end-use procedure could have been issued; and
- The conditions for duty exemption or reduction based on specific use were fulfilled at the time the customs declaration for inward processing was accepted [2:1].
This means that businesses using inward processing can benefit from end-use relief if the goods meet the relevant criteria, ensuring consistent application of duty reductions across customs procedures.
Goods Eligible for End-Use Relief
The goods eligible for reduced duty under the end-use procedure are specified by their tariff classification codes. Commission Implementing Regulation (EU) 2022/1998 amends the Common Customs Tariff to list goods eligible for this relief, including various machinery and equipment types under specific Combined Nomenclature (CN) codes such as 3917 40, 4011 30, 4012 13, 7324 10, 8302 10, 8407 10, 8411, 8412 10, 8413 19, 8414 10, 8415 81, 8418 10, 8419 50, 8421 19, 8479 90, 8483 10, and 8501 32, among others [3:1].
These goods typically relate to industrial, mechanical, or electrical equipment whose specific use justifies a reduced customs duty. The exact list of eligible goods is detailed in the tariff annexes and must be consulted to verify eligibility.
Other Situations for Duty Relief
Beyond the end-use procedure, the EU customs framework provides for other duty relief scenarios for goods imported under special conditions:
- Goods imported occasionally for a period not exceeding three months or in particular situations with no economic effect in the Union may receive total relief from import duty [4:1].
- Goods used for tests, experiments, demonstrations, or acceptance tests under sales contracts qualify for total duty relief [5:1].
- Samples solely for demonstration purposes in the EU, provided quantities are reasonable, also benefit from duty exemption [5:2].
- Replacement means of production temporarily supplied pending delivery or repair of similar goods are eligible for duty relief [5:3].
- Goods exhibited or used at public events not primarily commercial, works of art for exhibition, and goods imported for auction sales may receive total duty relief [6:1].
- Spare parts and equipment used for repair and maintenance of goods under temporary admission are also eligible [6:2].
- Means of transport registered under temporary series for re-export or commercially used for limited periods may qualify for total relief [7:1].
These provisions complement the end-use procedure, offering relief tailored to specific commercial or operational contexts.
Applying for End-Use Authorisation
To benefit from the end-use customs procedure, an EU business must apply for an authorisation from the relevant national customs authority in the Member State where the goods are imported or where the business is established.
The application must demonstrate:
- The nature of the goods and their intended specific use qualifying for duty relief;
- The applicant’s commitment to comply with the obligations of the end-use procedure;
- Evidence supporting the eligibility of goods under the applicable tariff codes and customs provisions [8:2].
The customs authority will assess the application based on the Union Customs Code and implementing regulations. If granted, the authorisation will specify the conditions and duration of the end-use procedure, including any reporting or record-keeping requirements.
Businesses should prepare to provide supporting documents such as customs declarations, commercial invoices, contracts, or technical specifications to substantiate the intended use and eligibility of the goods.
Next steps
- Identify the goods you import that may qualify for end-use relief by checking their Combined Nomenclature (CN) codes against the list in Commission Implementing Regulation (EU) 2022/1998 [3:2].
- Confirm that your intended use of these goods aligns with the authorised purposes under the end-use procedure and prepare documentation demonstrating this use [1:5].
- Submit an application for end-use authorisation to the relevant national customs authority, including all required evidence and declarations [8:3].
- Upon authorisation, implement internal controls to ensure compliance with the obligations of the end-use procedure, including record-keeping and reporting [1:6].
- If using inward processing, verify whether your processed products qualify for end-use relief and apply the correct duty treatment accordingly [2:2].
FAQ
What is end-use relief in customs?
End-use relief is a customs procedure allowing reduced or exempt import duty on goods imported into the EU when those goods are used for specific authorised purposes. It requires an authorisation and compliance with conditions set by customs authorities [1:7].
How do I apply for end-use authorisation in the EU?
You apply to the national customs authority in your Member State by submitting an application detailing the goods, their intended use, and your commitment to comply with the end-use procedure obligations. Supporting documents must be provided to demonstrate eligibility [8:4].
What are the conditions for end-use procedure?
The key conditions are that the goods must be used exclusively for the authorised end-use or that the obligation to use them as such is transferred under customs control. The goods must also fall under eligible tariff codes and meet other criteria set by customs [1:8].
Can end-use relief be combined with inward processing?
Yes. Processed products under inward processing may benefit from end-use relief if an authorisation could have been issued and the conditions for duty exemption or reduction were met at the time of acceptance of the inward processing declaration [2:3].
What goods qualify for reduced duty under end-use?
Goods eligible for end-use relief are listed by specific CN codes, including various machinery, equipment, and industrial products as detailed in Commission Implementing Regulation (EU) 2022/1998 [3:3].
What are the responsibilities of an end-use authorisation holder?
The holder must ensure the goods are used for the authorised purpose or transfer this obligation under customs supervision. They must maintain records and cooperate with customs controls to prove compliance [1:9].
Sources
Ready to put this into practice?
The AI Customs Broker answers procedure questions for your specific shipment, and the Document Checklist tells you exactly what paperwork it needs.
