Customs duty can be reclaimed, among other cases, for overpayment, an error by the customs authorities, an invalidated declaration, or when you return defective or non-conforming goods to the supplier. The claim goes to the customs authority within 3 years of notification of the customs debt – or within one year for defective goods.
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When customs duty can be reclaimed in the EU
The Union Customs Code lists four grounds for repaying or remitting import and export duty: overcharged amounts, defective goods or goods not complying with the contract, error by the competent authorities, and equity (Article 116 UCC). Duty is also repaid where it was paid on a declaration that has been invalidated (Regulation (EU) No 952/2013). No repayment is granted if the customs debt arose from deception by the debtor.
| Ground | UCC article | Time limit for the application |
|---|---|---|
| Overcharged duty | Art. 117 | 3 years from notification of the customs debt |
| Defective goods or goods not complying with the contract | Art. 118 | 1 year from notification of the customs debt |
| Error by the competent authorities | Art. 119 | 3 years |
| Equity | Art. 120 | 3 years |
| Invalidation of the customs declaration | Art. 116(1), Art. 174 | period set by the rules on invalidation |
The Article 121 time limits can be extended where the applicant shows they were prevented from meeting them by unforeseeable circumstances or force majeure, and they are suspended while an appeal against the customs debt is pending. The authority repays or remits amounts of EUR 10 or more, unless the applicant asks for a lower amount. Repayment does not normally carry interest, unless the decision is not implemented within three months.
If the declaration contains an error, check before applying for a refund whether correcting or invalidating it would be enough – see Amending and Invalidating a Customs Declaration and What to Do About an Error in a Customs Declaration. You can also appeal against the authority's decision – see Appealing a Customs Decision.
Questions and answers — customs duty and VAT refunds
What documents are needed to apply for a customs duty refund?
- A written application to the competent customs authority (the Head of the Customs and Tax Office in Poland)
- A copy of the customs declaration (SAD/PZC) with its MRN
- Proof of payment of the customs duty
- Justification for the application (e.g. a corrected invoice, a certificate of destruction, or a decision confirming incorrect classification)
- For goods returned to the UK: proof that the goods left the EU customs territory (e.g. a confirmed export document)
Can I reclaim customs duty if I've returned goods to my supplier in the UK?
Yes, if you rejected the goods because at the time of release they were defective (including damaged before release) or did not comply with the contract (Article 118 UCC). Conditions:
- The goods have not been used, other than initial use needed to establish the defect.
- The goods have been taken out of the EU customs territory. On application, the authority may instead allow them to be placed under, for example, inward processing (including destruction), external transit, customs warehousing or a free zone.
- The application is made within 1 year of notification of the customs debt.
No repayment is granted where the defect was taken into account in setting the terms of the contract (including the price), or where the applicant sold the goods after finding the defect.
Duty and VAT refunds paid in the United Kingdom
If duty and VAT were paid on import into Great Britain, you claim from HMRC. Time limits per HMRC: 3 years for overpayments, 1 year for rejected imports and 90 days for a withdrawn import declaration. You claim online in CDS (if you have an EORI number and the declaration was made in CDS), or with form C285 if you do not have an EORI number or you are a private individual. Repayments can only be paid to a UK bank account.
A UK VAT-registered business does not recover overpaid import VAT through CDS or C285 – it corrects it by reducing the output tax in Box 1 of its VAT return (gov.uk). If you pay duty on deferment, see how a UK deferment account works.
Import VAT in Poland
How import VAT is settled depends on how it was paid and on the importer's status, and an active VAT payer usually accounts for it on its own VAT return, so a "refund" from the customs office mainly arises where the tax was charged incorrectly. Confirm the details with the tax office or a tax adviser; general rules are in How to Settle VAT on Import?.
What is inward processing, and who can use it?
Inward processing lets you bring in goods without paying customs duty, process them and re-export them as a finished product; it requires an authorisation from the customs authority and record-keeping. It is used by, among others, manufacturers importing raw materials and exporting finished goods, companies repairing equipment for overseas customers, and contract packers. More: Inward and Outward Processing Relief (IPR and OPR).
Not sure which ground for a refund fits your situation? Get in touch – we will review the declaration and documents.
Frequently asked questions
How long do I have to claim a customs duty refund in the EU?
Usually 3 years from notification of the customs debt (overpayment, authority error, equity), and 1 year for defective goods or goods not complying with the contract (Article 121 UCC). The limits can be extended in cases of force majeure and are suspended during an appeal.
Can I get duty back after returning goods to a supplier in the UK?
Yes, if the goods were defective or did not comply with the contract at release, have not been used (other than as needed to establish the defect) and have been taken out of the EU customs territory. The application must be made within one year of notification of the customs debt.
What is the minimum amount of customs duty that can be refunded in the EU?
The authority repays or remits amounts of EUR 10 or more, unless the applicant asks for a lower amount (Article 116(2) UCC).
How do I reclaim duty paid in the United Kingdom?
Apply to HMRC online in CDS (if you have an EORI number and the declaration was made in CDS) or with form C285. Time limits: 3 years for overpayments, 1 year for rejected imports and 90 days for a withdrawn declaration. Repayments are paid only to a UK bank account.
Can I reclaim overpaid UK import VAT with form C285?
Not if you are VAT-registered in the UK. You correct overpaid import VAT by reducing the output tax in Box 1 of your VAT return, and keep records supporting the adjustment.
Related guides
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