A Customs Broker or Customs Representative is a licensed professional who holds a customs broker diploma and a professional license to practice customs brokerage. They are authorized to perform customs clearance procedures on behalf of and as a representative of the owner of the goods.
Customs clearance tasks can be carried out by the owner of the goods (either an individual or, in the case of legal entities, their legal representative) or by a duly authorized Customs Broker - Customs Representative. No other individual is legally permitted to perform customs clearance tasks, and such individuals will not be accepted by customs authorities.
The Customs Broker - Customs Representative diploma and professional license are issued following written examinations conducted by the Independent Authority for Public Revenue (IAPR), provided specific criteria are met.
Customs clearance procedures are defined by current customs legislation and include all necessary formalities required by Customs Authorities for the movement of foreign and domestic goods through customs.
Within the framework of the European Union's internal market, which has been operational since January 1, 1993, "foreign goods" refer to goods originating from third countries, while "domestic goods" refer to all Community goods, i.e., goods from Greece or other EU member states.
Customs clearance procedures also include processes for goods subject to Special Consumption Tax (SCT), as well as procedures for the payment of SCT and Excise and Registration Fees.
The customs value of imported goods refers to the transaction value, i.e., the price actually paid or payable for the goods when sold for export to the customs territory of the Community.
In addition to the invoice value, the customs value includes elements such as transportation costs, insurance, commissions, royalties, etc., up to the first point of entry into the European Union.
A duty (economic charge) is imposed on this value as a percentage of the customs value during the import of goods by the customs authorities of the country.
This percentage is determined by the TARIC (Integrated Tariff of the European Union), a database that provides information on the calculation of customs duties for any product based on its type and country of origin upon entry into the Community.
Additionally, in cases where certain goods are imported into the Community from specific countries or companies that offer them at prices below the actual production cost, anti-dumping duties may be imposed.
Therefore, the correct customs classification of imported goods during clearance by professional Customs Brokers - Customs Representatives is crucial.
For VAT calculation, the customs value is taken into account, to which the applicable duty is added. The VAT charge is calculated as follows:
(Customs Value + Duty) × VAT Rate
The EORI (Economic Operators Registration and Identification) number is a unique identifier issued by the competent customs authorities of EU Member States to economic entities involved in transactions governed by customs legislation.
By obtaining an EORI number, an economic entity is assigned a unique identification number and is registered in a central database used for all transactions with customs authorities across EU Member States.
The term Incoterms stands for International Commercial Terms. These are a set of international rules that define the terms of delivery for goods in global trade and specify the risks involved when goods are transported from one point to another.
By applying and defining these terms, Incoterms facilitate international trade transactions and clarify the terms of transportation and delivery.
Each Incoterm consists of three letters and represents a list of terms and conditions that define the following:
- The condition in which the goods must be delivered.
- How the goods will be delivered, by whom, when, and at what point.
- How the goods will be delivered, by whom, when, and at what point.
- Who is responsible for costs (e.g., transportation, loading/unloading, insurance).
- Who is responsible for import and export duties.
The most common Incoterms are:
EXW, FCA, FOB, CFR, CIF, CPT, CIP, DPU, DAP, DDP
The main guarantees include:
- Guarantees covering products subject to SCT that are under suspension in a tax warehouse.
- Guarantees covering, where applicable, the risks associated with the intra-Community movement of SCT products.
- For manufactured tobacco, guarantees covering the credit provided, where applicable, for the payment of SCT.
- The duration for the transportation of products under the electronic Accompanying Administrative Document (e-AAD), under the suspension regime, is determined based on the means of transport and the distance to be covered.
- However, this period cannot exceed 92 days
VAT on the importation of goods, intra-community acquisition of new means of transport (vehicles, ships, aircraft), excisable goods, and used vehicles subject to registration tax is paid at the Customs Office upon submission of the corresponding customs document [Single Administrative Document (SAD) for imports or a Special Declaration].
The VAT paid at Customs is recorded in the VAT return submitted by the taxable importer, granting them the right to deduct the amount of VAT paid at Customs. Consequently, VAT does not constitute a cost for businesses.
