Tariff quotas and autonomous tariff suspensions are little-known yet highly beneficial mechanisms for European businesses. Under certain conditions, they enable reductions or exemptions from customs duties on products essential for manufacturing, such as raw materials or specific components. Let’s explore how these tools can support your operations by reducing import costs.

A tariff quota allows for temporary reductions in customs duties on specific imported goods, limited to a predefined volume set by the European Union. For instance, the quota for importing raw magnesium is capped at 120,000 tons annually, with a duty rate reduced to 0% instead of 5.3%. This mechanism is particularly valuable for businesses reliant on materials not sufficiently produced within the EU.

Example: A company importing 45 tons of mushrooms for prepared dishes saves €25,200 annually in customs duties by utilizing a tariff quota that allows for a 0% duty rate instead of the usual 14.4%.

As for tariff suspensions, they offer unlimited quantity advantages. They allow companies to import certain products duty-free, provided these are unavailable in adequate quantities within the European market or partner countries. This measure is especially useful for industries requiring large-scale specific components.

Example: Importing de-terpenated orange essential oil (partially or entirely stripped of monoterpene hydrocarbons) worth €1 million results in annual savings of €77,000, with the duty rate reduced to 0% from 7%.

Why Use These Mechanisms?

Tariff quotas and suspensions are primarily designed to support European industries by lowering production costs. They enhance the competitiveness of EU businesses by enabling significant savings, fostering job creation, and modernizing production chains, particularly in innovative sectors like pharmaceuticals and information technology.

These mechanisms serve as powerful economic tools, enabling European businesses to reduce import costs and bolster their competitiveness. On average, French businesses save approximately €150 million annually in customs duties through these measures.

To make the most of these tools, it is crucial to thoroughly assess your company’s needs and monitor the availability of quotas. By integrating these mechanisms into your customs strategy, you can achieve substantial savings while ensuring uninterrupted production, even for rare or unavailable materials within Europe.