What is “re-export”? This is a procedure for returning cargo that was exported to Ukraine or any other customs zone without re-paying VAT. The terms re-import and re-export are commonly used in international trade. Exporting is the selling and shipping of domestic goods abroad, and returning them back to the country of origin is called re-exporting. If any goods are imported from another country (they become foreign goods) and then exported back, such goods are subject to re-export. Example, equipment was imported to Ukraine for testing purposes, and after the necessary tests, the said equipment is sent back. Here, the process of sending such equipment is called re-export. The same applies to import/re-import.

Conditions of the procedure

Cargoes subject to re-export are constantly under customs control until they are exported from the EU. Re-exports are subject to the same customs formalities and trade policies as exports. Re-exports are often subject to the same restrictions as other exports. Re-export is a broad concept that also includes goods in transit that are not placed under any customs procedures in the EU customs territory. Examples include: transshipment of transit cargo at ports and airports or stopovers/stopovers in customs territory. In these cases, the goods in transit are either transferred only to another ship leaving the customs territory, or remain unchanged on board the vehicle. Special procedures:

  • Re-export of goods under special procedures.

If goods from third countries located in the customs territory of the EU have been placed under a special procedure, a re-export declaration must be submitted in order to re-export them. One of the conditions of the return requirement is that the goods must not be processed, repaired or used after import unless such use was necessary to detect defects or failure to meet specifications. Another condition is that the goods are either exported without claiming duty rebate, handed over to customs, or destroyed or become commercially valuable in the presence of the proper officer, within 30 days from the date on which the officer issues an order clearing the imported goods for domestic consumption. However, refunds are not provided for perishable goods and items that have expired.

  • Re-export from a customs warehouse.

When goods placed under customs warehousing are re-exported outside the Union, a re-export declaration must be submitted for the goods. While the goods are in the customs warehouse, they can be moved with a re-export declaration to the place of export, which is located in any member state of the European Union. No separate permit is required to move goods. After submitting a re-export declaration, the cargo can be placed under the transit procedure. The procedure includes:

  1. Submitting a “return” application to the customs office at the first port of entry.
  2. Submission of a certificate of payment of customs taxes/duties applicable to foreign cargo.
  3. Customs taxes/duties will be refunded once all required documents have been verified.

You will need a copy of the re-export declaration, which must be signed and stamped by a competent customs officer indicating that the goods have left the country. The procedure for applying for the return of goods exported by mail:

  • the outer packaging with the recipient’s address must also contain the words “REPLY EXPORT” in bold letters;
  • The exporter must deliver to the competent postal authority, along with the parcel, a claim on a special form in four copies, duly completed.
  • the date of receipt of the above demand form by the proper customs officer from the postal authorities shall be deemed to be the date of delivery of the goods.
  • You must indicate on the shipping or export bill of lading the description, quantity and other information necessary to decide whether the goods are eligible for return.
  • export is carried out in accordance with the requirement for compensation (in accordance with the Customs Law);
  • prove that the imported goods were not used after importation;

You must also provide the appropriate Customs officer with a copy of the import bill or any other prescribed document on which the goods were cleared upon import, the import bill, documentary proof of payment of duty, the export bill and the packing list.

When is re-export mode used? In many cases, re-import and re-export occur due to the fact that the exported goods do not meet quality criteria, buyer requirements, or are not suitable for certain purposes. 

Procedure and customs payments for re-export

When re-exporting, the exporter fully realizes the foreign currency spent on imports in freely convertible foreign currency, if the goods were imported with payment in freely convertible foreign currency. After receiving the goods at the export port, the Examining Expert will inspect the goods as per the norms and accordingly, export permission will be granted. Basics of the procedure:

  • A re-exporter is the original importer of foreign goods or any other person who convincingly proves that he acquired the specified goods.
  • Foreign consignments are subject to re-export within one year (365 days) from the date of payment of customs taxes/duties levied on them upon their first importation.
  • A claim for refund of customs taxes/duties must be made within six months (180 days) of the date of re-export.
  • Foreign goods to be re-exported must be in one shipment to facilitate identification and verification. Such a consignment may be re-exported in parts after it has been proven to Customs that such parts belong to the same consignment. 
  • The claim for refund of customs taxes/duties applies to foreign cargo that has not been cleared for domestic use and is in the same condition upon import.
  • Refunds are limited to those customs taxes/duties actually levied on foreign shipments upon importation.
  • Customs taxes/duties are refundable upon re-export of foreign cargo and verification of all supporting documents.
  • The cost of re-export of foreign goods, for which customs taxes/duties will be refunded, should not be less than five thousand dollars – a fixed rate for all countries (its equivalent is calculated in local currency).
  • Documents and details of re-exported goods must match those attached to the import declaration for re-exported goods.

Customs may request translation of foreign invoices/documents into the language of the importing country. Refund as per current rules and interest, if any, shall be paid by the Customs Officer to the exporter or to an agent specifically authorized by the exporter to receive the said amount of refund and interest. The date of payment of the refund and interest is considered, in case of approval of acceptance of the goods, the date of issuance of the re-export check is considered. 

Refund of erroneous or excess payment of reimbursement and interest. If the refund amount and interest, if any, has been paid erroneously then the applicant shall, on demand of the customs officer, refund the amount, as the case may be, and if the sender fails to pay the amount, the same shall be recovered as per the provisions of law.

Any claim made by the exporter or his authorized agent for damages in respect of goods exported before the coming into force of these regulations, but not realized before such commencement, shall be dealt with in accordance with the provisions of the existing regulations. If any cargo was exported pursuant to a claim for reimbursement prior to the effective date of these regulations, but no claim for payment of reimbursement has been filed, the exporter may file its claim within three months of the effective date of these regulations.

Re-export of goods: meaning and conditions