Manufacturers & Distributors ARTICLE - Refund Opportunity for EU Customs Duty

Target Audience: Manufacturing and Distributing Companies, M&D Industry Employees, Manufacturing Distributors

Before the extraterritorial income exclusion (EIE) was repealed, European Union (EU) countries applied additional import duties to many products from the U.S. in retaliation against export tax breaks given to U.S. companies.

Beginning March 1, 2004, the EU imposed an additional 5% duty that increased 1% every month thereafter.

In response to the U.S. repeal of its EIE legislation, the additional duty was suspended January 1, 2005. Notification of the suspension was not made until January 31, 2005. Accordingly, additional duties paid during January 2005 exceeded the normal rate for those goods.

In most instances, EU importers will pay the excess duty and will be eligible to claim the refund; however, if the shipping terms are delivered duty paid, the U.S. exporter is eligible for the refund.

Foreign subsidiaries of U.S. multinationals will want to consider possible refund claims as well.

Find out how our M&D accountants can add value to your business. Email us or call us at 1 (888) 875-9770.

related links

M&D Newsletters & Articles 

Tax Services

Audit Assurance and Accounting

Industries

Tax and Business Updates