Export declaration: exporter must be established in Union

Exporter must be established in Union

Export declaration: exporter must be established in Union

As of 1 December 2019 a non-EU established entity is no longer allowed to be reported in box 2 of the export declaration.

Exporter established in Union 

On 1 October 2019, Dutch Customs have published a news message that as of 1 December 2019 a non-EU established entity would no longer be allowed to be reported in box 2 of the export declaration. This would mean that a non-EU company can no longer act as exporter for exports from the Netherlands, while this is currently allowed for non-EU companies which appointed an indirect customs representative. Non-EU companies exporting from the Netherlands therefore have a 2 month period within which they must arrange alternative means of ensuring Dutch exports continue to flow as usual from 1 December 2019.

Impact

The change in approach of the Dutch Customs will have an impact on non-EU principal companies, non-EU companies in general or, considering Brexit, UK companies currently exporting from the Netherlands.

Authorization other company

As of 1 December 2019, they will now need to authorise another company to act as exporter, or change their EU customs presence so that they will be regarded a company established in the EU Customs Territory (either by setting up an EU entity, or by establishing a “permanent business establishment” for customs purposes).

Steps to limit impact

Non-EU companies exporting from the Netherlands should review their supply chain and ensure it is in conformity with the new changes. Businesses should also work with their local tax professional to:

  • Determine which other EU established party may act as exporter for customs purposes in the EU, and appoint that party as exporter by means of business and contractual arrangements (e.g. authorize this
    company by way of a Power of Attorney covering the export activities);
  • Consider the EU presence of the company: by establishing a “permanent business establishment” for customs purposes, the non-EU company might qualify as an EU established entity allowing it to export from the Netherlands;
  • Review the current supply chain set-up and address supply chain & trade flow optimization;
  • Address modifications to upcoming or existing IT implementation programs (e.g., implementation of ERP systems) resulting from the alterations to the roles of the stakeholders in the distribution model.

Source: EY Tax professionals / Belastingdienst

More info

If you require more background information or assistance with your declaration or need advice, please contact one of the consultants at SGS Maco. We are happy to help.

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Customs Consultant

John Sampers