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Regime 42 is an EU import clearance with deferred VAT: the goods enter free circulation in one EU country while VAT is settled in the destination country. It is used when import is combined with an intra-EU supply to another member state. It improves cash flow but demands documentary discipline.
How does it work step by step?
- Goods from outside the EU arrive in the country of clearance, for example Poland.
- A customs agency declares them for release for free circulation under procedure code 42.
- Duty is settled normally, but import VAT is not collected in the country of clearance.
- The goods travel on as an intra-Community supply to the destination country.
- The buyer settles VAT in the destination country as an intra-Community acquisition.
Conditions to meet
- Valid EU VAT numbers of the importer and of the buyer in the destination country.
- Proof that the goods actually left the country of clearance: transport documents, the CMR.
- Consistent data in the customs declaration and the commercial documents.
- In some setups, a fiscal representative in the country of clearance.
Regime 42 versus standard clearance
| Criterion | Standard clearance | Regime 42 |
|---|---|---|
| Import VAT | paid at clearance | not collected in the country of clearance |
| Cash flow | cash frozen until deduction | no VAT frozen |
| Formal requirements | standard | extra conditions and proof of onward movement |
| When it makes sense | import for the market of the clearance country | import combined with a supply to another EU country |
What should you watch for?
Regime 42 is attractive but formalised. If the documents do not prove the intra-EU supply, the tax authority can demand VAT with interest in the country of clearance. So the VAT numbers of the parties, the route and the transport documents must be tied together before the goods move. On the French-British border the procedure connects with barcode clearance and the smart border, described in the article on regime 42 on the smart border.
How do we help?
We assess whether regime 42 fits your supply chain, collect the data and run clearance together with transport to the destination country. See customs advisory and customs clearance.
Definitions
- Regime 42: A customs procedure allowing goods to enter free circulation with import tax deferred to the destination country.
- VAT (Value Added Tax): Consumption tax settled by the buyer in the destination country.
- Intra-Community Supply: Dispatch of goods from one EU member state to another member state.
- Intra-Community Acquisition: Purchase of goods transported between EU member states.
- CMR (Convention relative au contrat de transport international de marchandises par route): International consignment note serving as proof of road transport.
When does this rule not apply?
This rule does not apply if the imported goods remain in the country of clearance instead of being transported to another EU member state.
The OTSL role
We organise international cargo movement using our road transport options and support customs documentation. Read more in our article about regime 42 and smart border clearance.
Sources
Importing through Poland with delivery to another EU country? Describe the supply chain in the contact form and we will check whether regime 42 pays off.
