06_18 The possibility of reducing customs duties on imported components – the deadline expires on 30 June 2018

A few words about suspensions
The use of components and raw materials from outside the European Union in the automotive industry is growing constantly.  More and more manufacturers are aware of the existing mechanisms which offer the possibility of considerably reducing import-related costs.  One such mechanism is customs duty suspensions.
Customs duty suspensions offer the realistic possibility of cutting costs of purchase of raw materials and components from outside the European Union.  Practice has shown that using this mechanism brings measurable financial benefits (for example, lowering the customs duty rate from 3.5% to 0%).  Therefore, it is worth taking steps to verify imported goods for the possibility of applying to establish customs duty suspensions for them.  Furthermore the automotive industry is one of the main beneficiaries of customs duty suspensions in Poland (judging by the number of suspensions introduced for components intended for that industry).
Who can benefit?
The customs duty suspension system is specifically intended for those manufacturers and importers who manufacture products using components unavailable in the European Union or available in insufficient quantities.  Examples of the industries which are currently using this system successfully, besides the automotive industry, include the electronic, petrochemical and pharmaceutical industries.
Customs duty suspensions can be obtained for a broad range of goods, including those which, at first glance, do not seem to meet the said conditions.  In previous rounds, customs duty suspensions were introduced, among other things, specifically for: control knobs in car radio receivers; acrylic tape rolls; components of turbocompressor turbines; bearings; engines; electric batteries; lithium-ion batteries and ignition coils, etc.
How to apply?
To establish a suspension for an imported good, a Polish enterprise, like any other EU enterprise, should submit an application.  In Poland, they should be filed with the Ministry of Entrepreneurship and Technology.
Preparing the application, as well as the manner of identifying and describing a product, are of key importance to any company which applies for customs duty suspension.  It is important they are prepared in such a way that the company can use the customs duty suspension in a safe manner, while keeping the administrative burden to a minimum.
Paulina Szwed                        Piotr Kochanecki
Manager                               Senior Consultant
Customs Agent No. 014110      PwC Tax and Legal Services
PwC Tax and Legal Services