Potential duty saving opportunity: EU tariff suspension update
In order to stimulate economic activity and improve EU competitiveness, provision is made for the import of specified goods into the EU free of customs duty or at reduced rates. This is done by “suspending” the autonomous duty rate that normally applies to the product. “Tariff suspensions” are intended to be applied to raw materials, semi-finished goods and components to be used in manufacture or processing in the EU but which are not produced or available in sufficient quantity in the EU. Suspensions can also be obtained for capital equipment imports. Once a tariff suspension is granted, it is available to all importers of the materials/goods /components in question and is generally valid for five years.
Publication of latest “tariff suspensions” list
The most recent, consolidated list of available suspensions is contained in Council Regulation (EU) No. 1344/2011, which came into effect from 1 January 2012. On 27 June 2012, an update to this list was published by way of Council Regulation (EU) No. 552/2012. This Regulation comes into effect from 1 July 2012 and provides the following:
We recommend that importers of materials/goods /components review the list of tariff suspensions currently available to assess whether this duty relief can be of benefit to their businesses.
Closing date for next round of tariff suspension applications
Applications for new tariff suspensions must be submitted through the Department of Jobs, Enterprise and Innovation (“DJEI”) and there are two windows for applications each year.
Please note that the next closing date for Irish companies to apply for new tariff suspensions through the Department is 31 July 2012. The application consists of a prescribed form and must be accompanied by supporting documents, including justification for the suspension to be allowed. Successful applications are likely to come into effect from 1 July 2013.
Please contact us if you would like further information on either availing of a current tariff suspension or preparing an application for a new tariff suspension.