Union Customs Code — Legal Framework and Scope
Regulation (EU) No 952/2013 of the European Parliament and of the Council establishes the Union Customs Code (UCC), which lays down the general rules and procedures applicable to goods brought into or taken out of the customs territory of the European Union. The UCC entered into force on 30 October 2013 and has applied in its entirety since 1 May 2016, replacing the Modernised Customs Code (Regulation (EC) No 450/2008).
Scope and Uniform Application
Article 1 of the UCC establishes that the Code applies uniformly throughout the customs territory of the Union, without prejudice to international law and conventions and EU legislation in other fields. The customs territory of the Union comprises the territories of all EU Member States (including their territorial waters, internal waters, and airspace), with specific exceptions listed in Article 4(1). For example, the Island of Heligoland and the territory of Büsingen in Germany are excluded, as are French overseas countries and territories to which the provisions of Part Four of the Treaty on the Functioning of the European Union (TFEU) apply. Conversely, certain third-country territories are treated as part of the EU customs territory under applicable treaties: the territory of Monaco (as defined in the Customs Convention signed in Paris on 18 May 1963) and the territory of the United Kingdom Sovereign Base Areas of Akrotiri and Dhekelia (as defined in the Treaty concerning the Establishment of the Republic of Cyprus, signed in Nicosia on 16 August 1960).
Mission of Customs Authorities
Under Article 3 of the UCC, customs authorities are primarily responsible for the supervision of the Union's international trade, thereby contributing to fair and open trade, to the implementation of the external aspects of the internal market and of the common trade policy, and to overall supply chain security. Customs authorities must put in place measures aimed at: (a) protecting the financial interests of the Union and its Member States; (b) protecting the Union from unfair and illegal trade while supporting legitimate business activity; (c) ensuring the security and safety of the Union and its residents, and the protection of the environment, where appropriate in close cooperation with other authorities; and (d) maintaining a proper balance between customs controls and facilitation of legitimate trade.
Key Definitions
Article 5 of the UCC defines core terms. "Customs authorities" (Article 5(1)) means the customs administrations of the Member States responsible for applying the customs legislation and any other authorities empowered under national law to apply certain customs legislation. "Customs legislation" (Article 5(2)) is not defined in a single self-contained provision in the UCC; instead, the term is used throughout the Code to refer to the body of legislation setting out rules in the customs field and provisions of other fields of EU law governing the entry, exit, transit, transfer, and end-use of goods moved between the customs territory of the Union and countries or territories outside that territory, and the presence of non-Union goods and goods placed under the end-use procedure.
Implementing and Delegated Regulations
The UCC is complemented by two principal acts that provide detailed implementing rules. Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplements the UCC as regards detailed rules concerning certain provisions, ensuring that the main rules established in Regulation (EU) No 952/2013 are implemented to meet the needs of economic operators and customs administrations. Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 lays down detailed rules for implementing certain provisions of the UCC, ensuring uniform conditions for implementation and a harmonised application of procedures by all Member States. Both regulations were published in the Official Journal on 29 December 2015 and have been amended on numerous occasions to adapt to evolving trade patterns and IT-system deployment.
Source: Taxation and Customs Union — UCC legislation (European Commission)
Customs Declarations — Electronic Filing Requirements and Data Elements
Under the Union Customs Code (UCC), all goods brought into the customs territory of the European Union must be covered by a customs declaration. Article 158 of Regulation (EU) No 952/2013 establishes that goods shall be declared for a customs procedure by lodging a customs declaration with the customs authorities. The declaration places goods under the chosen procedure — whether release for free circulation (import), transit, storage, or a special procedure — and triggers the determination of duties, taxes, and applicable trade-policy measures.
Electronic Data-Processing Requirement
Article 6(1) of the UCC mandates that all information required under the customs legislation shall be made available to customs authorities by using electronic data-processing techniques. This establishes the principle of a paperless, fully electronic customs environment. Member States have been progressively deploying electronic systems for customs declarations, though transitional derogations were granted to certain Member States under Article 278 UCC to continue using paper or legacy electronic systems until the new UCC-compliant national import and export systems are operational. Commission Implementing Decision (EU) 2023/237 of 1 February 2023 granted temporary derogations to several Member States to use means other than electronic data-processing techniques for customs declarations related to goods brought into the customs territory of the Union under Articles 158, 162, 163, 166, 167, 170–174, 201, 240, 250, 254, and 256 of the UCC. These derogations have time limits tied to the deployment of upgraded national systems, with final deadlines extending into 2024 and 2025 under the UCC Work Programme.
Common Data Requirements — Annex B
The precise data elements that must be included in a customs declaration are governed by Annex B to Commission Delegated Regulation (EU) 2015/2446 (the Delegated Act) and Annex B to Commission Implementing Regulation (EU) 2015/2447 (the Implementing Act). These annexes were amended in December 2020 and February 2021, respectively, to harmonize common data requirements across all declaration types and ensure interoperability between the various electronic customs systems (national import systems, export systems, transit systems, and the Import Control System). Annex B of the Delegated Act sets out the substantive data requirements — what information must be provided and under what conditions. Annex B (now redesignated and supplemented by Annex C in the consolidated Implementing Act) of the Implementing Act sets out the formats, codes, and cardinality rules — how the data must be structured, which code lists to use (e.g., UN/LOCODE for places, ISO country codes, commodity codes from the Combined Nomenclature), and how many times a data element may or must be repeated.
Mandatory data elements for an import declaration typically include: the declarant's Economic Operators Registration and Identification (EORI) number; the importer of record (consignee); the supplier (consignor) in the country of export; the customs procedure code (a two-digit code identifying the requested customs procedure and the previous procedure, if any); the Combined Nomenclature (CN) classification code for each item; the customs value and statistical value; the origin (preferential or non-preferential); the currency and invoice amount; transport details (mode of transport, means of transport identification, and place of loading); and any supporting documents (import licenses, certificates of origin, phytosanitary certificates, etc., referenced by document code). Commission Delegated Regulation (EU) 2021/234 of 7 December 2020 further refined the common data requirements to support the progressive roll-out of centralized clearance for import and to align data elements across customs, VAT (under the EU's e-commerce VAT regime), and safety-and-security reporting (the Entry Summary Declaration under ICS2).
Who May Lodge a Declaration
Article 170 of the UCC specifies that a customs declaration may be lodged by any person who is able to present the goods in question or to have them presented to the competent customs authorities, together with all the documents required to be produced for the application of the rules governing the customs procedure for which the goods are declared. In practice, declarations are lodged by the importer, a customs representative acting in direct representation (on behalf and in the name of another person, per Article 18(1)(a) UCC), or in indirect representation (in their own name but on behalf of another, per Article 18(1)(b) UCC). A customs representative must be established in the customs territory of the Union unless acting for persons who are exempted from that requirement under Article 18(2) UCC.
Pre-Arrival Safety and Security — Entry Summary Declaration (ICS2)
Separately from the customs declaration itself, economic operators must also comply with pre-arrival safety-and-security requirements. Under Articles 127–129 UCC, goods brought into the customs territory must be covered by an Entry Summary Declaration (ENS) before arrival, unless specifically exempted. The ENS is lodged via the Import Control System 2 (ICS2), an EU-wide advance cargo information system that performs risk analysis for security and safety purposes. ICS2 was deployed in three releases: Release 1 (15 March 2021) for postal and express consignments by air (pre-loading phase); Release 2 (1 March 2023) for all air cargo (complete ENS); and Release 3, which began deployment on 3 June 2024 for maritime and inland waterway transport and extended to road and rail from 1 April 2025, with deployment windows granted by national customs authorities for economic operators who needed additional transition time. The ENS data set is distinct from the customs declaration data set, though they share some common elements (consignor, consignee, commodity description, gross mass, etc.). The ENS is submitted by the carrier or, in some cases, the freight forwarder, express courier, or postal operator, depending on the transport mode and the "multiple filing" regime under ICS2 Release 2 and 3.
Timing and Amendment
A customs declaration for release for free circulation must be lodged after the goods have been presented to customs (Article 139 UCC) and, in most cases, after the ENS risk-assessment results are available. The declarant may amend the declaration after lodgement but before release, subject to Article 173 UCC conditions. Post-clearance amendments and invalidation are governed by Articles 174 (invalidation by customs) and national administrative procedures.
Source: Import Control System 2 (ICS2) — European Commission Taxation and Customs Union
Customs Duties — Tariff Structure, Rates, and TARIC Database
Customs duties payable on goods imported into the European Union are determined by the Common Customs Tariff (CCT), a unified tariff schedule applicable across all EU Member States. Article 1(1) of Council Regulation (EEC) No 2658/87 establishes the Combined Nomenclature (CN), an eight-digit goods nomenclature that serves simultaneously as the basis for the CCT and for EU external trade statistics. The CN is based on the World Customs Organization's six-digit Harmonized System, with two additional EU-specific digits. Article 12(1) of Regulation (EEC) No 2658/87 requires the Commission to adopt by Regulation each year a complete version of the CN together with the corresponding autonomous and conventional rates of duty; this annual Regulation is published not later than 31 October and applies from 1 January of the following year.
TARIC — The Integrated Tariff Database
Under Article 5(1) of Regulation (EEC) No 2658/87, the Commission establishes an integrated tariff of the European Union, known as TARIC, based on the CN. TARIC extends the eight-digit CN codes to ten digits (and, where necessary, additional four-character alphanumeric codes) to identify goods subject to specific EU commercial-policy or agricultural-policy measures—including anti-dumping and countervailing duties, tariff suspensions, tariff quotas, import restrictions, and preferential-origin regimes. Article 6(1) of that Regulation provides that TARIC is used by the Commission and the Member States for the application of EU measures concerning imports and, where necessary, exports. For imports from countries outside the EU, the customs declaration must include the ten-digit TARIC code for each item. The European Commission's Taxation and Customs Union directorate maintains the TARIC database and makes it publicly accessible online; the database does not, however, include Member State national levies such as VAT or excise duties.
Autonomous and Conventional Duty Rates
The CCT distinguishes between autonomous duty rates (set unilaterally by the EU) and conventional duty rates (negotiated rates resulting from WTO commitments or from bilateral or regional free trade agreements). For goods originating in a country with which the EU has concluded no preferential trade arrangement, the applicable rate is the third-country duty—often referred to as the Most Favoured Nation (MFN) rate. Goods qualifying for preferential origin under an FTA or under the EU's Generalised Scheme of Preferences may benefit from reduced or zero conventional rates, provided the importer submits valid documentary proof of origin at the time of the customs declaration. The types of proof accepted—such as movement certificates EUR.1, invoice declarations, or statements on origin under the REX (Registered Exporter) system—are specified in the legal instruments governing each preferential arrangement.
Tariff Suspensions and Quotas
The EU may temporarily suspend autonomous CCT duties on certain products (typically raw materials or intermediate goods not sufficiently produced within the Union) or may open tariff quotas under which a specified volume of imports is admitted duty-free or at a reduced rate. Once a quota volume is exhausted, the full third-country duty applies. Tariff quotas are administered either on a first-come, first-served basis (chronological order of acceptance of customs declarations, as set out in Article 49 of Commission Implementing Regulation (EU) 2015/2447) or by allocation to specific countries, operators, or end-uses, depending on the legal instrument opening the quota.
Incurrence of Customs Debt and Calculation of Import Duty
Article 77(1) of Regulation (EU) No 952/2013 (the Union Customs Code) provides that a customs debt on import is incurred through the placing of non-Union goods liable to import duty under the customs procedure of release for free circulation or under the customs procedure of temporary admission with partial relief from import duty. The debt is incurred at the time of acceptance of the customs declaration (Article 77(2) UCC). The declarant is the debtor; in the case of indirect representation, the person on whose behalf the declaration is made is also a debtor (Article 77(3) UCC). Article 56(2) UCC defines "import duty" as the duties laid down under the CCT, together with any additional duties, agricultural duties, or other charges having equivalent effect imposed under EU legislation governing specific fields relating to trade in goods. The amount of duty owed is calculated by applying the applicable tariff rate to the customs value of the goods, which is determined under Articles 70–76 UCC in accordance with the WTO Valuation Agreement.
Types of Duty Rates
Duty rates in the CCT may be expressed as:
- Ad valorem: a percentage of the customs value (e.g., 6.5%).
- Specific: a fixed monetary amount per unit of quantity (e.g., EUR 12 per 100 kg or EUR 0.80 per litre).
- Compound: a combination of ad valorem and specific, sometimes with a specified minimum; where a rate reads "X% MIN EUR Y per Z," the higher of the ad valorem calculation and the minimum specific amount applies.
For certain agricultural products, the CCT employs additional component codes for agricultural elements, additional sugar duties, and additional flour duties; these are identified by supplementary alphanumeric codes in TARIC.
Trade-Defence Measures
TARIC also records definitive anti-dumping and countervailing duties imposed following investigations under the EU Trade Defence Instruments framework. These duties are product-specific and, in some cases, vary by exporting producer or country of consignment, requiring the importer to declare an additional code that identifies the liable entity. The legal basis, duty rate, and expiry date of each measure are maintained in the TARIC database and are updated as new Commission Regulations are adopted or existing measures lapse.
Source: EU Customs Tariff (TARIC) — European Commission Taxation and Customs Union
Deferred Payment and Customs Guarantees — Authorization, Types, and Reference Amount
Importers in the European Union may defer payment of customs duties under Article 110 of Regulation (EU) No 952/2013 (the Union Customs Code) upon application to and authorization by the competent customs authorities. Deferred payment allows the debtor to postpone the immediate settlement of import duty, improving cash flow, but requires the provision of a guarantee to secure the amount owed.
General Payment Rule and Deferment
Under Article 108(1) UCC, the amount of duty corresponding to a customs debt must be paid within ten days following notification to the debtor or, where goods are released before the amount has been determined, within ten days of that determination. Article 110 UCC, however, permits customs authorities to authorize deferment of payment upon request by the debtor. The deferment period is thirty days under Article 111(1) UCC. Article 111(2) specifies three alternative starting points for the thirty-day period, depending on the type of deferment granted:
- (a) Entry-in-the-accounts deferment: the period begins on the sixteenth day of the month following the period during which the amounts in question were entered in the accounts;
- (b) Consolidated-payment deferment: the period begins on the first day of each month and covers all amounts entered in the accounts during a specific period of the previous month, as determined by the customs authorities;
- (c) Separate-notification deferment: the period begins on the date the debtor is notified of the amount of duty.
The most common form in practice is option (b), the consolidated monthly payment, which allows an importer to aggregate all customs debts entered during (for example) the first to the fifteenth of the month, with payment due by the sixteenth of the following month.
Requirement to Provide a Guarantee
Article 195(1) UCC establishes that goods may not be released for free circulation unless the amount of import duty corresponding to the customs debt has been paid or a guarantee has been provided. When an operator is granted an authorization for deferred payment under Article 110, that operator must provide a guarantee to cover the potential or actual customs debt unless a waiver or reduction applies. Article 89(1) UCC provides that when customs authorities require security for a customs debt—whether already incurred or which may be incurred—the person concerned must furnish a guarantee. The guarantee serves as financial cover for customs duties and, where applicable, other charges such as VAT or excise duties. Article 89(5) UCC permits customs authorities to accept, upon application, a comprehensive guarantee to cover the amount of import or export duty corresponding to customs debts in respect of two or more operations, declarations, or customs procedures. Alternatively, the debtor may provide an individual guarantee that covers a single operation (Article 89(3) UCC).
Forms of Guarantee
Article 92(1) UCC sets out three permissible forms:
- Cash deposit or any other means of payment recognized by the customs authority as equivalent to a cash deposit;
- An undertaking given by a guarantor (typically a bank guarantee or surety bond approved by the customs authority under Article 93 UCC);
- Another form of guarantee that provides equivalent assurance that the charges will be paid, subject to acceptance by the Member State where the guarantee is lodged (Article 92(2) UCC).
For comprehensive guarantees used in more than one Member State, Article 151(1) of Commission Delegated Regulation (EU) 2015/2446 requires the guarantor to indicate an address for service or appoint an agent in each Member State in which the guarantee may be used.
Comprehensive Guarantee: Reference Amount, Reduction, and Waiver
A comprehensive guarantee must cover a reference amount determined by the customs authorities to reflect the highest level of customs debt the holder is likely to incur at any given time (typically over one month), based on the operator's import volume and tariff exposure. Under Article 89(5) UCC and Article 84 of Delegated Regulation (EU) 2015/2446 (as amended by Delegated Regulation (EU) 2018/1118), an applicant may obtain a reduced-level comprehensive guarantee or, in certain cases, a guarantee waiver if stringent compliance and financial criteria are met.
Article 84 of Delegated Regulation (EU) 2015/2446 establishes three tiers:
- 50% reduction (Article 84(1)): Granted where the applicant demonstrates a record of compliance with customs and tax obligations, sound financial standing, and—where the reference amount exceeds €100,000—implementation of an appropriate system of managing commercial and transport records. AEO status is not required for this tier, though the criteria are similar.
- 70% reduction (to 30% of the reference amount; Article 84(2)): Granted where the applicant holds Authorised Economic Operator (AEO) status for customs simplifications (AEOC) or both customs simplifications and security/safety (AEOF), or where the applicant does not hold AEO status but meets equivalent criteria, including absence of serious or repeated infringements, proven solvency, and effective internal-control systems. The applicant must also demonstrate practical standards of competence or professional qualifications and proven compliance with customs and tax obligations.
- Guarantee waiver (Article 84(3)): Granted where the applicant holds AEO status (AEOC or AEOF) and demonstrates a high level of control of operations and the flow of goods through appropriate commercial and transport records. This waiver exempts the debtor from any requirement to furnish financial security.
The Commission's Guidance on Guarantees (Directorate-General for Taxation and Customs Union, Revision 3, 2020) clarifies that these reduced-guarantee and waiver regimes reward compliant economic operators who present low fiscal risk. The Guidance is interpretative, not binding law.
Release and Monitoring of the Guarantee
Article 98(1) UCC requires the customs authorities to release a guarantee when it is no longer necessary to secure a customs debt. For deferred-payment guarantees, once the duty has been paid and the relevant accounts settled, the portion of the reference amount tied to that transaction is released and becomes available to cover new transactions. Article 89(6) UCC requires the customs authorities to monitor the guarantee continuously.
Other Payment Facilities
Article 112(1) UCC permits customs authorities to grant payment facilities other than the thirty-day deferment under Article 110, subject to the provision of a guarantee and the charging of credit interest. However, Article 112(3) UCC grants customs authorities discretion to refrain from requiring a guarantee or from charging credit interest where it is established, on the basis of a documented assessment, that requiring security would create serious economic or social difficulties for the debtor.
No Guarantee Required from Public Bodies
Article 89(7) UCC exempts states, regional and local government authorities, and other bodies governed by public law from the guarantee requirement, in respect of the activities in which they engage as public authorities. Similarly, Article 95(2) UCC permits customs authorities to waive the guarantee requirement when the amount of duty to be secured is less than €10,000, or when the customs authorities are satisfied that the debt will be paid, though this is a discretionary waiver not an automatic exemption.
Customs Warehousing — Authorization, Types, and Duration
Customs warehousing is a special procedure under which non-Union goods may be stored in premises authorized by customs authorities without payment of import duties or application of commercial-policy measures until the goods are released for free circulation, re-exported, destroyed, or placed under another customs procedure. This procedure offers economic operators a critical cash-flow and supply-chain tool: duties and VAT remain deferred for as long as goods remain under the procedure, and the declarant may defer the choice of preferential origin until the moment of release for free circulation, allowing time to secure valid proof of origin or to monitor tariff-quota availability.
Legal Basis and Scope
Article 237(1) of Regulation (EU) No 952/2013 (the Union Customs Code) provides that the customs warehousing procedure allows the storage in a customs warehouse of (a) non-Union goods, without such goods being subject to import duty or commercial-policy measures, or (b) Union goods, where Union law governing specific fields provides that their being placed in a customs warehouse entails the application of measures normally attaching to the export of such goods. In practice, the overwhelming majority of goods placed under customs warehousing are non-Union goods. Article 237(2) UCC permits goods placed under the customs warehousing procedure to undergo the usual forms of handling intended to preserve the goods, improve their appearance or marketable quality, or prepare them for distribution or resale. Article 241 UCC expressly contemplates processing operations within a customs warehouse, provided the holder of the authorization obtains prior approval from the customs authorities and the operations do not alter the essential characteristics of the goods. The types of processing permitted are more limited than those allowed under the inward processing procedure and are typically restricted to operations such as repackaging, labelling, sorting, or cutting to size.
Authorization Requirement and Types of Warehouses
Under Article 211(1) UCC, an authorization is required to use any special procedure, including customs warehousing. There are two distinct authorizations: (i) an authorization to operate storage facilities for customs warehousing (granted under Article 211(1) UCC read with Article 240 UCC); and (ii) where applicable, an authorization to use the customs warehousing procedure itself. For public customs warehouses, these may be held by different persons. Article 240(1) UCC establishes that customs warehousing may take place in public customs warehouses or in private customs warehouses. A public customs warehouse is a storage facility that may be used by any person for the customs warehousing of goods, subject to the conditions laid down in the authorization granted to the operator. A private customs warehouse is a facility reserved for the exclusive use of the holder of the authorization. Under Article 1(13) of Commission Implementing Regulation (EU) 2015/2447, public customs warehouses are further classified into three types: Type I (where the holder of the authorization for operating the facilities is also liable for the customs debt), Type II (where the depositor is liable for the customs debt), and Type III (a warehouse operated by the customs authorities themselves). Type III public customs warehouses are rare in practice.
Duration of Storage
Article 238 UCC provides that goods may remain under the customs warehousing procedure for an unlimited period of time. However, the customs authorities may set a time limit where the nature of the goods is such that their prolonged storage could pose a risk to human health, animal health, plant health, or the environment (Article 238 UCC). Practically, goods such as hazardous chemicals, perishable foodstuffs, or live animals may be subject to warehouse-specific time restrictions. There is no general EU-level statutory maximum duration; the decision to impose a time limit is made by the competent customs authority of the Member State in which the warehouse is located, based on the nature of the goods and the conditions of the authorization.
Placing Goods Under the Procedure and Discharge
Goods are placed under the customs warehousing procedure by lodging a customs declaration in accordance with Article 158 UCC. The declaration must include the customs-procedure code for warehousing (for example, procedure code 71 for goods placed under customs warehousing, or 76 where goods are simultaneously being entered into a free zone, as set out in Annex B to Commission Delegated Regulation (EU) 2015/2446). The procedure is discharged when the goods are declared for another customs procedure (typically release for free circulation under Article 201 UCC, re-export, or transit), when the goods are destroyed under customs supervision (Article 197 UCC), or when they are abandoned to the exchequer (Article 199 UCC). Upon discharge, the holder of the procedure must present the goods and all relevant documentation to the customs authorities. If goods are lost or destroyed as a result of their inherent nature or an unforeseeable event or force majeure, no customs debt is incurred, provided the holder of the procedure can demonstrate to the satisfaction of the customs authorities that the loss or destruction occurred while the goods were under customs supervision (Article 198 UCC and Article 206 UCC).
Responsibility of the Holder and Customs Debt
Article 242(1) UCC establishes that the holder of the authorization for the customs warehousing procedure is responsible for ensuring that the goods placed under the procedure do not leave the customs warehouse without the authorization of the customs authorities, and for compliance with the conditions governing the procedure. The holder of the procedure is the debtor in the event of a customs debt arising during the warehousing procedure. A customs debt on import is incurred under Article 79 UCC when a condition for placing goods under the customs warehousing procedure or for granting the benefit of the procedure is not fulfilled, or when goods under the procedure are removed from customs supervision. In the case of public customs warehouses of Type I, the holder of the authorization to operate the facilities is liable for the debt; in Type II public warehouses, the holder of the procedure (the depositor) is liable (Article 242(2) UCC). The amount of duty owed, should a debt arise, is calculated by reference to the tariff classification, origin, and customs value applicable on the date the debt is incurred (Article 85 UCC or Article 86 UCC, depending on the circumstances of discharge).
Guarantee Requirement
Article 89(1) UCC requires a guarantee to cover any potential or actual customs debt, unless the customs authorities grant a reduction or waiver under Article 84 of Delegated Regulation (EU) 2015/2446 (as amended by Delegated Regulation (EU) 2018/1118). For operators using the customs warehousing procedure regularly and at scale, the most common form of guarantee is a comprehensive guarantee covering multiple declarations and procedures. Operators holding Authorised Economic Operator (AEO) status for customs simplifications may qualify for a guarantee waiver under Article 84(3) of Delegated Regulation (EU) 2015/2446, provided they demonstrate a high level of control of operations and the flow of goods.
Customs Value and Origin at Discharge
One of the principal advantages of customs warehousing for importers is the deferral of the origin and customs-value determination until the moment of release for free circulation. Where goods have not been sold for export to the Union at the time of entry into the warehouse, Article 128(2) of Commission Implementing Regulation (EU) 2015/2447 provides that the customs value shall be determined on the basis of the sale that occurs while the goods are under the customs warehousing procedure or, if no such sale occurs, on the basis of the unit price at which the goods are sold in the Union in the greatest aggregate quantity at or about the time of acceptance of the declaration for release for free circulation (a fallback valuation method analogous to WTO Valuation Agreement Article 5). Similarly, the declarant may, at the time of release for free circulation, claim preferential origin if a valid proof of origin (such as a movement certificate EUR.1, a statement on origin, or a REX invoice declaration) is presented with the declaration. This flexibility is particularly valuable when tariff quotas open or close during the warehousing period, or when the importer obtains retroactive proof of preferential origin after the goods have arrived in the EU.
Source: Customs Warehousing — European Commission Taxation and Customs Union