In these times where minimising costs is high on all of our agendas, one of the options available for importers is to seek an autonomous duty suspension from the European Commission for a particular product. However, this is arguably one of the most political areas of customs law and an application should not be made without strong research, robust drafting and patient negotiations with (potential) objectors.

Who can make an application?

The first thing to consider is who can make an application. The persons below may all seek a duty suspension:

• Any company that is established in the EU
• Users of the product in question
• Distributors applying on behalf of customers
• Subsidiaries of third country manufacturers applying on behalf of customers
• Lawyers, accountants or consultants representing one of the above

So what are the conditions for making an application?

The conditions for applying for a Duty Suspension are very restrictive:

• The imported product, or similar competing product cannot be sourced (or sourced in sufficient quantity from within the EU),
• The imported product is to undergo further processing and;
• The level of duty saving must be at least EUR 20,000 per annum.

What does the above mean?

"The imported product or similar competing product cannot be sourced (or sourced in sufficient quantity from within the EU)"

Before making an application it is necessary to do some market research. The EU Member is fiercely protective of its own manufacturers so if a competitor of yours that is based in the EU manufactures the same product as the one that you import from the US then the application will be rejected out of hand should an opposition be raised.

"Similar competing product"

The biggest area of difficulty is "similar competing product". An EU-manufacturer may not manufacture the same product as you but may oppose your application if they can prove that the product that they manufacture is "similar" or "equivalent" (i.e. can substitute your product). This can be and has been in our experience the biggest area of contention and ultimately if an understanding cannot be reached, then the decision will ultimately be made in a committee in Brussels.

It is therefore critical that once you have conducted your market research that you draft your application in the narrowest and most specific terms possible. Please be aware though that the application must be made on objective criteria, although terms within your particular industry may be obvious, you must be aware that the industry definition and the customs definition of a product often differs quite considerably.

The product must undergo further processing

The imported product cannot simply be imported and re-packaged for export for a duty suspension to apply. There must be an actual act of processing (i.e. the manufacture of sophisticated products with a high added-value even where the activity consists mainly of the assembly of parts).

What happens once an application is made?

The UK consults domestic industry about every application that is made to give EU-based producers the opportunity to either support or oppose applications. During this period, if an opposition is made, it is the obligation of the applicant to contact the opposing party and to try and come to some sort of arrangement (either to re-negotiate the definition of the product or to get them to drop the opposition). Even if the end-result is a dead-end, you are still expected to exhaust all routes of negotiation.

All applications are then discussed within meetings of the Suspensions and Quotas Working Group in Brussels attended by representatives from each EU country. At the end of these meetings the European Commission will prepare proposals for Duty Suspensions only when there is unanimous agreement.

What happens if an opposition is made and negotiations don't succeed?

If a competitor opposes your application then it doesn't mean that your application is sunk. You may oppose the opposition and provide evidence that in your opinion the opposition is not valid or you may seek a compromise in the form of a quota (i.e. applying for a set number of products to be imported per year with duty suspended). The Department for Business, Innovation and Skills (BIS) will then evaluate the situation and present their findings to the committee and then the final decision is made by the committee in Brussels. However, please be aware of the role of politics. If a major EU company opposes your application then it is highly unlikely that your application will succeed.

When can I make an application?

There are two application deadlines per year for duty suspension applications. The first is 15 March (and if successful the suspension will become operative from 1 January the following year) and 15 September (if successful the suspension will become operative from 1 July the following year.)

To whom do I make an application?

BIS stipulates that all applications must be made in electronic format and e-mailed to This e-mail address is being protected from spambots. You need JavaScript enabled to view it

How long is a suspension or quota valid for?

Duty suspensions are normally in force for five years (though there are occasions when it is less) or until production begins in the EU. At the end of the suspension period the suspension will be reviewed and the European Commission will decide whether to prolong the suspension/quota or not.

How can International Trade Solutions help?

International Trade Solutions has first-hand experience of the Duty Suspension application process and the difficulties that may face an application. Our client experience and industry expertise ensures that we are able to understand the specifics of products and manufacturing processes but our legal background means that we are able to draft concise and effective applications that will maximise your chances of success. We have also cultivated an excellent working-relationship with the Department for Business, Innovation and Skills and work closely with them in a number of different customs-related areas.

If you would like to find out more about Autonomous Duty Suspensions and the application process or you would like to discuss any area of customs law and practice with us then please feel free to give us a call on (01905) 619229 or alternatively email us at: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .