Customs Warehouse: Defer Duty and VAT

When importing from third countries, customs duty and VAT are generally paid as soon as the goods are released for free circulation. However, if you do not need to sell the goods immediately, or do not yet know whether they will stay in the EU, you can place them in a customs warehouse. Payment of both duty and VAT is then deferred until the moment you actually remove the goods from the warehouse into free circulation – and if you re-export them, nothing is paid at all.

What customs warehousing is

Customs warehousing is one of the special procedures under the Union Customs Code – Regulation (EU) No 952/2013 (Article 210 and Articles 240 et seq.). Under this procedure, non-Union goods are stored in premises authorised by and under the supervision of the customs authorities, without being subject to import duty and other charges, including import VAT.

Importantly, goods may remain under the customs warehousing procedure for an unlimited period (Article 237(2) UCC). The customs authorities may set exceptions for goods whose long-term storage could pose a risk to health or the environment.

The difference from temporary storage

Customs warehousing should not be confused with the temporary storage of goods after their arrival in the EU. Temporary storage is a short-term status before the customs declaration is lodged and is limited to 90 days (Article 149 UCC). A customs warehouse, by contrast, is a full customs procedure suitable for long-term storage.

How a customs warehouse improves cash flow

Deferral of duty and VAT – you pay only on removal from the warehouse, and only for the quantity you are releasing for free circulation.
No duty on re-export – if you sell the goods outside the EU, you re-export them from the customs warehouse without paying duty or import VAT.
Gradual release – you can import a large consignment at once and release it for free circulation step by step as orders come in.
Combination with procedure 42 – goods intended for a customer in another Member State can be released from the customs warehouse for free circulation with VAT exemption under § 48(3) of the Slovak VAT Act.

What can be done with goods in a customs warehouse

In a customs warehouse, goods may undergo usual forms of handling under Article 220 UCC. These are operations intended to preserve the goods, improve their appearance or marketable quality, or prepare them for distribution or resale – for example ventilation, cleaning, sorting, packing or labelling. More extensive processing requires another procedure, such as inward processing.

Types of customs warehouses

Public customs warehouse type I – may be used by any person; responsibility lies with the authorisation holder and the holder of the procedure.
Public customs warehouse type II – may be used by any person; responsibility lies with the holder of the procedure.
Private customs warehouse – used for storing goods of the authorisation holder itself.

Setting up your own customs warehouse requires an authorisation from the customs authorities (Article 211), establishment in the customs territory of the EU, reliable records and usually a guarantee covering the potential customs debt. For most importers it is therefore more advantageous to use a service provider’s public customs warehouse.

How goods leave the warehouse procedure

Release for free circulation – customs duty and import VAT are paid; duty is determined under the rules applicable when the customs debt is incurred, usually on acceptance of the customs declaration.
Re-export – the goods leave the EU without payment of import duty or import VAT.
Transfer to another special procedure – for example inward processing or transit to another customs warehouse.

VAT on removal and self-assessment

Since 1 July 2025 Slovakia has introduced self-assessment (reverse charge) of import VAT under § 84a of the VAT Act. Importers with a registered office or fixed establishment in Slovakia that hold a VAT number and a valid Authorised Economic Operator (AEO) authorisation do not pay import VAT to the customs office; instead they declare it in their VAT return and, if the conditions are met, deduct it in the same return. For other importers, a customs warehouse remains one of the most effective ways to defer VAT payment.

Frequently asked questions

How long can goods stay in a customs warehouse?

Under Article 237(2) UCC, for an unlimited period, except for goods whose long-term storage would pose a risk to health or the environment.

Is duty or VAT payable on goods in a customs warehouse?

No. Customs duty and import VAT are paid only when the goods are released for free circulation. You pay only for storage and related services.

Do I need my own authorisation to use a customs warehouse?

No. In a public customs warehouse the authorisation is held by the warehouse operator, and you can use its services, including customs representation.

Can I repack or label goods in a customs warehouse?

Yes, within the scope of usual forms of handling under Article 220 UCC, such as packing, sorting or labelling.

Looking for a customs warehouse in eastern Slovakia? Entity & Company, s.r.o. operates its own customs warehouse with a capacity of more than 1,000 m² and handles storage, customs declarations, gradual release and fulfilment for e-shops. Find out more about our services on the warehousing page, or contact us at info@entity-company.com and +421 55 381 6786.