GLOSSARY

EU customs, VAT and product-safety terms, defined

Selling into the EU from outside it runs on a fixed set of customs, VAT and product-safety terms. Each is defined below in plain words, with the instrument and article behind it.

Customs

  • Importer of Record. The party named as importer on the customs declaration. A trade term: the Union Customs Code calls this party the declarant, who must normally be EU-established. Union Customs Code, Regulation (EU) No 952/2013, Articles 5(15), 77(3) and 170(2). See Importer of Record.
  • EORI number. The identification number a business uses in its dealings with EU customs. Issued once and recognised at every EU customs point; it is not a VAT number. Union Customs Code, Article 9. See Importer of Record.
  • Customs representative. A person appointed to act for another before customs, directly or indirectly. Often called a customs broker. Union Customs Code, Article 18. See Importer of Record.
  • Customs value. The value duty is charged on, normally the price paid or payable. Adjusted for freight and insurance to the EU border, among other items. Union Customs Code, Articles 70 and 71. See Importer of Record.
  • HS code / Combined Nomenclature (CN code). The product classification code: 6-digit HS worldwide, 8-digit CN in the EU. The 10-digit TARIC code adds EU measures. Classification, with value and origin, decides the duty. Council Regulation (EEC) No 2658/87, Annex I. See Importer of Record.
  • Binding Tariff Information (BTI). A customs decision confirming a product's tariff classification in advance. It binds customs and the holder for three years. Union Customs Code, Article 33. See Importer of Record.
  • Non-preferential origin (rules of origin). The country where goods underwent their last substantial, economically justified processing. Storage and fulfillment in the EU never confer it. A Made in EU claim needs a per-product review. Union Customs Code, Article 60(2); Delegated Regulation (EU) 2015/2446, Annex 22-01. See Made in EU.
  • Preferential origin. Origin under a trade agreement or EU preference scheme, cutting duty. It needs proof of origin, and its rules differ from non-preferential origin. Union Customs Code, Article 64. See Importer of Record.
  • Temporary storage. Arrived goods held under customs supervision before a customs procedure applies. They must be placed under a procedure or re-exported within 90 days. Union Customs Code, Articles 144 and 149. See Importer of Record.
  • T1 transit (Union external transit). Moves non-EU goods between two EU points with duty and VAT suspended. Lets goods landing in one member state be released for free circulation in another. Union Customs Code, Article 226. See Market access.
  • Authorised consignee. A customs authorisation to end transit movements at the holder's own premises. Union Customs Code, Article 233(4)(b). See Bonded warehouse.
  • Release for free circulation. The customs step that turns non-EU goods into EU goods. Duty and import VAT fall due at that point. Union Customs Code, Article 201. See Free circulation.
  • Union goods. Goods with EU customs status, free to move across the single market. Customs status is not origin: Union goods may still be made outside the EU. Union Customs Code, Article 5(23). See Free circulation.
  • Bonded customs warehouse (customs warehousing). A customs-supervised warehouse holding non-EU goods with duty and import VAT suspended. Duty and import VAT fall due at each release for free circulation. It is not an exemption. Union Customs Code, Articles 240 to 242. See Bonded warehouse.
  • Tax warehouse (excise). An authorised place where excise goods are held under duty suspension. Covers alcohol, tobacco and energy products; separate from a customs warehouse. Council Directive (EU) 2020/262, Article 3(11). See Bonded warehouse.
  • EUR 3 customs duty. Flat EUR 3 duty per item on low-value distance sales to consumers. Runs 1 July 2026 to 1 July 2028 for consignments up to EUR 150; each declaration line counts as one item. Council Regulation (EU) 2026/382. See the 2026 customs reform.

VAT

  • VAT registration. Enrolment with a member state's tax authority to charge and declare VAT. Each VAT number is issued by one member state, for VAT in that state. VAT Directive 2006/112/EC, Articles 213 and 214. See Market access.
  • Fiscal representation (fiscal representative). A local party handling a non-EU business's VAT in one member state. In Portugal the representative and the business are jointly liable for the VAT. VAT Directive 2006/112/EC, Article 204; Código do IVA, article 30.º. See Fiscal representation.
  • Import VAT. VAT due when goods are released for free circulation in the EU. A qualifying importer can account for it in the VAT return instead of paying at the border. VAT Directive 2006/112/EC, Articles 30, 70, 71 and 211. See Market access.
  • One-Stop-Shop (OSS). One VAT registration for distance sales to consumers in other member states. Covers consumer sales only; business sales and import VAT stay outside it. VAT Directive 2006/112/EC, Articles 369a to 369k. See OSS and VAT.
  • Import One-Stop-Shop (IOSS). VAT scheme for consignments up to EUR 150 sent to EU consumers. Shipped from outside the EU, excise goods excluded; it settles VAT, not the EUR 3 duty. VAT Directive 2006/112/EC, Articles 369l to 369x. See OSS and VAT.
  • Intra-Community supply (Article 138 zero rating). A sale of goods to a VAT-registered business in another member state. Zero rated when the goods leave, the buyer gives its VAT number, and the recapitulative statement lists it. VAT Directive 2006/112/EC, Article 138. See Market access.
  • Recapitulative statement. A periodic return listing a seller's intra-EU sales to VAT-registered businesses. An error can cost the zero rating unless the seller justifies it. VAT Directive 2006/112/EC, Articles 138(1a) and 262. See Market access.
  • Distance sale. Seller-arranged delivery of goods to a consumer in another country. Intra-Community distance sales can use OSS; imported ones up to EUR 150 can use IOSS. VAT Directive 2006/112/EC, Article 14(4). See OSS and VAT.
  • Deemed supplier (marketplace). A marketplace treated for VAT as the seller to the consumer. Applies when it facilitates sales of EU-held goods by non-EU sellers, or imports up to EUR 150. VAT Directive 2006/112/EC, Article 14a. See OSS and VAT.

Product rules

  • GPSR (General Product Safety Regulation). The EU regulation setting general safety rules for consumer products. Applies since 13 December 2024; sector-specific EU law takes precedence where it covers the same risk. Regulation (EU) 2023/988. See GPSR explained.
  • Responsible Person (GPSR). The EU-established operator named on a consumer product for safety authorities. EFC can hold this role for in-scope consumer products only, never for medical devices. Regulation (EU) 2023/988, Articles 4 and 16. See Responsible Person.
  • MDR Authorised Representative. The EU party a non-EU medical device manufacturer must designate under MDR. EFC does not act as one; the GPSR Responsible Person is a different role. Regulation (EU) 2017/745, Article 11. See Responsible Person.

Commercial terms

  • Incoterms DAP (Delivered at Place). Seller delivers to the named place; buyer clears import and pays duty. ICC Incoterms 2020. See Importer of Record.
  • Incoterms DDP (Delivered Duty Paid). Seller delivers cleared for import, with duty and import taxes paid. Under DDP the seller carries import clearance, so a non-EU seller normally needs an EU-established importer. ICC Incoterms 2020. See Importer of Record.
  • CMR. The treaty and consignment note governing international road carriage of goods. Default carrier liability is capped at 8.33 SDR per kilogram of gross weight. CMR Convention 1956, Article 23, as amended by the 1978 Protocol. See Market access.
  • Ongoing Market Management. EFC's business development work, run month after month, in each chosen market. Part of the business development division, which covers research, go-to-market strategy, entry and expansion. See Business development.