One of the most fundamental tools used today in international trade is customs duty, i.e. a charge imposed by a state on goods crossing its borders. Customs duty may be applied to both imports and exports, although in practice it most often applies to imported goods. The purpose of applying customs duties is not only to generate revenue for the state budget, but also to protect the national economy, control the flow of goods, and implement the state’s trade and foreign policy. So what exactly is a customs duty? What regulations govern the imposition of customs duties? From what amount is it calculated?
What is a customs duty?
A customs duty is a charge levied by the state on goods that are imported or exported across a country’s borders. Essentially, it is a form of indirect tax that is added to the value of the goods. The amount of the duty depends on many factors, including the type of goods, their value, the country of origin, as well as the regulations in force in the country concerned and international agreements.
In accordance with Article 3(3)(a) of the Treaty on the Functioning of the European Union, the Union has exclusive competence in the field of customs union. Consequently, the primary legal instrument governing the imposition of customs duties is the Union Customs Code (i.e. Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 establishing the Union Customs Code), which introduced common rules on customs duties across all EU Member States. At national level, however, customs regulations are set out in the Act of 19 March 2004 on Customs Law. It is worth noting that, as a member of the European Union, Poland is obliged to apply common customs rates and rules resulting from EU customs policy.
It is also worth remembering that the amount of customs duty may be influenced by international agreements, such as free trade agreements, which may reduce customs rates or introduce preferences for specific products originating from countries covered by these agreements.
On what amount are customs duties calculated?
Customs duty is calculated based on the value of goods crossing customs borders, as well as other factors such as the customs classification of the goods. The customs value of the goods (on which customs duty is calculated) includes not only the purchase price of the goods, but also transport costs, insurance and other charges associated with delivering the goods to the country.
Duty-free allowance
It is worth noting that, in accordance with the provisions of Council Regulation (EC) No 1186/2009 of 16 November 2009 establishing a Community system of customs exemptions, there is a so-called duty-free allowance within the European Union, i.e. a value limit below which no duty is charged. In the case of a consignment sent directly from a third country to a recipient within the Community, this limit is set at €150. This means that if the value of the consignment does not exceed this amount, the goods may be brought into the EU (including Poland) without the need to pay customs duty. However, this exemption does not apply to alcoholic beverages, perfumes and toilet waters, or tobacco and tobacco products.
Customs duties and goods of higher value
If the value of the consignment exceeds €150, the importer will have to pay customs duty, the amount of which depends on the customs classification of the goods and the duty rate assigned to the product in question. Customs duty is calculated as a percentage of the customs value of the goods, which includes the purchase price, transport costs and insurance.
Customs duty rates may vary depending on the type of goods, country of origin and applicable international agreements. Customs duty can range from a few to several dozen per cent of the value of the goods.
Calculation of customs duty
Customs duty is a charge that must be paid when importing goods into Poland. In principle, customs duty is calculated on the customs value of the goods, which includes the purchase price, transport costs and other delivery-related expenses. There is a duty-free allowance (€150) below which no customs duty is charged. It is also worth remembering that the calculation and payment of customs duty does not exempt you from paying value added tax (VAT). If you are interested in issues such as the duty-free allowance, please contact HWW Hewelt Wojnowski Lindner i Wspólnicy.
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He specializes in tax law, focusing on the liability of taxpayers, payers and collectors, as well as issues related to income taxes and fiscal criminal law. Her master's thesis, defended at the Department of Financial Law at the University of Warsaw, dealt with tax and criminal liability for tax fraud in income taxes.
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