Customs regime 42

What is customs regime 42? Definition

Customs regime 42, also referred to as customs procedureA customs procedure is the set of administrative steps, formalities, and obligations imposed by the customs authority fo… [+] 42, is a customs procedure allowing the importation of goods from third countries with full VAT exemption, provided that these goods are immediately subject to a VAT-exempt intra-community delivery to another European Union member state.

Customs regime 42 constitutes an alternative to customs transit for operators carrying out intra-community deliveries of imported goods.

This particular customs procedure works according to the following principle: the importer acquires the goods with VAT exemption at import, then delivers them immediately to a customer established in another member state who will pay the VAT themselves as an intra-community acquisition. Customs duties are due upon release for free circulation on the import declaration, but import VAT is completely exempt. Customs regime 42 offers simplified formalities at a lower cost compared to customs transit, without the need for a transit document or guarantee.

The regulatory framework for customs procedure 42 is defined in French tax law. Access to regime 42 requires compliance with strict conditions: the intra-community delivery must take place immediately after import, the purchaser must be VAT-registered in another member state, and the importer must provide customs with the required supporting documents and identification numbers before customs clearance.

Context of use

Customs regime 42 applies to specific intra-EU commercial situations:

• Imports of goods from third countries intended for immediate sale to another EU member state;
• Supplying subsidiaries or customers established in other member states without carrying out taxable operations in France;
• Commercial transactions between VAT-registered entities where the French seller imports and the customer receives the goods in another state;
• Intra-community transfers of imported goods to establishments or customers located in other member states.

Practical customs issues

The use of customs regime 42 involves significant administrative and documentary obligations:

• Strict delivery conditions: the intra-community delivery must take place immediately after import, with no delay other than that necessary for the transhipment of the goods.
• Mandatory VAT identification: the recipient purchaser must be a taxable person identified for VAT in another member state and must have provided their identification number before customs clearance.
• Supporting documents to be provided: the importer must present their VAT number, the purchaser’s VAT number, and proof that the goods are intended to be transported to another member state to customs.
• Conformity of goods: the goods delivered must be exactly those declared at import, with the invoice presented to customs in the event of a check.
• No VAT exemption for small businesses: taxable persons benefiting from the small business VAT exemption cannot use procedure 42.
• Declaration of exchange of goods (EMEBIEMEBI (Monthly Survey on Intra-EU Trade in Goods) is the French statistical system for the declaration and monitoring of… [+]): the importer carrying out an intra-community delivery is subject to a monthly statistical declaration.

How CUSTOMS via conex™ simplifies customs procedure 42

CUSTOMS via conex™ automates the complete management of procedure 42:

• Generation of the compliant import declaration
• Monitoring of customs clearance with VAT exemption
• Automatic generation of EMEBI declarations
• Archiving

With CUSTOMS via conex™, your customs regime 42 is controlled and compliant. You simplify your intra-community deliveries; we secure your tax exemption.

Associated terms

• Intra-community delivery
• VAT exemption
• Customs transit
• EMEBI