Are You Using Regime 42 For Your DDP EU Exports?
By using the DDP Regime 42 scheme, Simarco are able to improve EU customs efficiencies, and even reduce door to door transit times, for DDP export shipments moving to European Union countries.
Regime 42 allows for an intra-community supply of goods to another EU Member State. Under this scheme, we can present goods to our French partner to clear into EU free circulation at the time of arrival at the French border (Calais or Dunkirk). An intra-community supply is then made for the goods to the destination EU Member State (if located outside France).
The benefits include:
- Simarco can customs clear goods at the EU frontier SMART border (Calais or Dunkirk) and defer the payment of Import VAT, so no monies need to be exchanged. Should duty be incurred, this cost will be charged back to the GB exporter.
- This avoids delays in delivering goods, or waiting for consignees to pay Import VAT or duty before the release of goods at destination.
- Larger shipments can deliver directly on an international trailer, rather than transhipping via one of our partner hubs, by removing the barrier of customs clearance and/or payment delays at final destination.
Simarco are able to set these benefits up in as little as 2 days, but we do require some forms completed to do so:
- Power of Attorney (authorising our customs partner to fulfil the import formalities on your behalf in France).
- Fiscal Mandate (appointing our tax partner as your Tax Agent, who then register you for VAT in France and report the transactions to French Tax Authorities for VAT and Intrastat purposes).
- EU EORI Application (unless you already have an EORI).
- Regime 42 Process Document to be signed by the consignee. (If goods are for delivery outside of France, they need to sign this to confirm their understanding of the goods being cleared in France, but still need to enter the purchase into their records as usual).
Unfortunately, for French deliveries, the process of registering for VAT takes approximately 3 months. However, during this time, you can share your Tax Agents global VAT number and still use Regime 42 for DDP sales into all other EU countries.
Once set up, there will be specific requirements for the export commercial invoice and a need to provide the consignee with a copy of the customs entry, but Simarco will guide you through this process at the time.
If you would like to find out more about the above feature, then please do not hesitate to contact us.