Regime 42 UK — how does the customs and VAT procedure work? A guide for Polish exporters

1. What exactly is Regime 42?

Regime 42 (also known as "Procedure 4200" or "IP42") is an EU customs procedure (code 42 on the customs declaration) used in specific transit circumstances. Its legal basis is Article 143 of the Union Customs Code (UCC).

The procedure applies when:

• Goods are imported into the EU (e.g. via Rotterdam, Hamburg, Gdańsk)
• They are, at the same time, the subject of an intra-Community supply of goods to another EU country
• Import VAT is suspended in the country of entry and only becomes due in the destination country

Practical effect: the importer doesn't have to pay import VAT at the port of entry — they account for it on their VAT return in the destination country (e.g. Poland). For companies with a regular flow of goods from the UK to Poland via Benelux or German ports, this is a significant cash-flow benefit.

It's worth distinguishing: Regime 42 concerns VAT — import duties are still due in the country of entry (Regime 42 suspends only import VAT, not customs duty).

2. When should you use Regime 42?

The procedure makes sense in specific logistics and trading scenarios. Before using Regime 42, check whether you meet the conditions below.

Use Regime 42 when:

• ✓ You're importing goods from the UK via an EU port (e.g. Rotterdam, Hamburg, Antwerp) with delivery to Poland
• ✓ You're registered for VAT in Poland and can recover import VAT
• ✓ The goods are intended for further sale within the EU (not for consumption in the country of entry)
• ✓ You hold a valid EU VAT number in the destination country
• ✓ You have documentation confirming the intra-Community supply

DO NOT use Regime 42 when:

• ✗ The goods stay in the country of entry into the EU (e.g. you buy into Germany and the goods stay in Germany)
• ✗ You don't have an EU VAT registration or you're VAT-exempt
• ✗ The goods are being imported into the UK (not the EU) — in that case Postponed VAT Accounting applies
• ✗ You can't document that the goods will actually leave the country of entry

3. How does Regime 42 work step by step?

After Brexit, the procedure requires a slightly different approach than before 2021 — the UK is no longer in the EU, so the goods are treated as an import from a third country. Here's what a typical scenario looks like:

1. Step 1: The goods leave the UK with an EX1 export clearance (export to a third country — i.e. to the EU)
2. Step 2: The goods arrive at an EU port (e.g. Rotterdam NL, Hamburg DE, Gdańsk PL — but not as the destination country)
3. Step 3: The customs agency at the EU port files an import declaration with procedure code 4200
4. Step 4: Box 44 of the customs declaration states: the EU supplier's VAT number and the buyer's VAT number in the destination country (e.g. PL)
5. Step 5: Import VAT is suspended — no payment in the Netherlands/Germany
6. Step 6: The goods travel to Poland as an intra-Community supply
7. Step 7: The importer in Poland accounts for VAT on their Polish VAT return as an intra-Community acquisition

Instead of T2 (Union transit, which was possible before Brexit), since 2021 the options are T1 transit or a direct export from the UK followed by import via an EU port under procedure 4200.

4. Requirements for using Regime 42

Regime 42 requires complete documentation — customs authorities at EU ports (especially since 2026) have tightened verification. Below is a list of the required documents:

Required documents:

• Invoice from the UK — with the exporter's and the Polish recipient's details
• CMR / bill of lading (proof of transport)
• Proof of onward supply — evidence that the goods are travelling to the EU destination country (see FAQ below)
• The supplier's VAT number (UK exporter or EU intermediary)
• The buyer's VAT number in Poland (a PL VAT-EU number, verifiable via VIES)
• At some ports: a bank guarantee or customs security (especially for high-value shipments)

Main risks:

Customs authorities may challenge the use of Regime 42 in several situations:

• The goods didn't actually leave the country of entry (no proof of the intra-Community supply)
• The buyer's VAT number is invalid or not registered in VIES
• The documentation is incomplete or inconsistent
• The goods' destination changed after the 4200 clearance

If challenged, import VAT immediately becomes payable in the country of entry, often with interest. That's why careful preparation of the documentation before declaring is essential.

5. Regime 42 and post-Brexit changes (2021–2026)

Brexit changed how Regime 42 is applied, because the United Kingdom is no longer an EU member. The key changes:

• Goods from the UK are treated as an import from a third country — subject to full customs control at the EU border
• The port of entry into the EU (e.g. Rotterdam) can use Regime 42 in the same way as before Brexit — procedure 4200 is an EU procedure, independent of the UK's status
• No more T2: before Brexit, goods could travel through the UK under T2 (Union transit). Now, T1 transit or a direct EX1 export from the UK is required
• Since 2026: some EU ports (Rotterdam, Antwerp) have tightened checks on intra-Community supply documents for Regime 42 — verifying the VAT number in VIES and proof of onward supply is now standard, not the exception
• UKIMS (UK Internal Market Scheme) — separate rules apply to movements between GB and Northern Ireland, unrelated to Regime 42

For companies that used Regime 42 before Brexit: the procedure still works, but it now requires separate customs documents on the UK side (EX1) and the EU side (4200 import), which increases the complexity and cost of handling.

6. Comparison: Regime 42 vs. standard import into Poland

7. Pricing for Regime 42 handling

The cost of customs handling for Regime 42 is higher than for standard clearance, due to the complexity of the documentation and the need to coordinate with the customs agency at the EU port.

• Clearance with Regime 42: from £80 to £200
• Included: preparing the documentation, filing the customs declaration, advice, and verifying VAT numbers

Full customs clearance pricing — standard import, export, T1, ENS and other procedures.

The ranges given are indicative — an exact quote is provided once documents have been submitted.

Export handling from the UK and Regime 42 procedures are provided by Easy Clearance — UK customs agency.

FAQ — Frequently asked questions about Regime 42 UK

Frequently asked questions