FLEX. Fulfillment
Plain-English definitions of EU customs and import terms — EORI, IOR, CP42, DDP vs DAP, HS codes, bonded warehouses and more — for non-EU sellers crossing the EU border for the first time.
This glossary covers the EU customs and import terms non-EU sellers encounter when importing inventory into the European Union for the first time — whether shipping to Amazon FBA fulfilment centres or to a third-party logistics warehouse. Each definition is kept short and links to the full guide or service page where the mechanics are explained in depth. The terms are grouped by function: registration and responsibility, documents and classification, and procedures and costs.
Registration & Responsibility Terms
An EORI number (Economic Operators Registration and Identification number) is a unique EU-wide identifier assigned to businesses and individuals that import or export goods across EU borders. It is required by any party involved in EU customs operations — importers, exporters, customs brokers and freight forwarders acting as declarants. Without an EORI, a customs declaration cannot be filed and the shipment cannot legally enter or leave the EU. Non-EU sellers who act as their own importer of record need an EU EORI; in practice, many appoint an EU-established Importer of Record who already holds one. Customs clearance for online sellers in Europe explains EORI registration and IOR appointment in full.
The Importer of Record (IOR) is the legal entity — company or individual — responsible for ensuring that imported goods comply with all EU import laws, regulations and customs requirements, and for paying import duty and import VAT at the border. The IOR must hold a valid EU EORI number. For non-EU sellers, acting as their own IOR requires an EU establishment or a fiscal representative in many cases; it is more common to appoint a third party — a customs broker, freight forwarder or specialist IOR service — to take on the role. Amazon will not act as IOR for seller inventory entering EU FBA. Customs clearance for online sellers in Europe covers IOR options and responsibilities.
In the customs context, a fiscal representative is an EU-established entity appointed by a non-EU business to act on its behalf for customs and VAT obligations at the border. The fiscal representative takes joint and several liability for customs debt — meaning they are legally responsible if duties or taxes go unpaid. Some EU member states require non-EU importers to appoint a fiscal representative; others allow direct representation. The fiscal representative role overlaps with but is distinct from the VAT fiscal representative role — the same entity may hold both mandates, but they are separate legal functions. Customs clearance for online sellers in Europe explains representation options by country.
A customs broker is a licensed professional or company that prepares and submits customs declarations on behalf of an importer or exporter. They classify goods under the correct HS code, calculate duties and taxes, submit the customs entry to the relevant authority, and manage any queries or holds from customs. In EU customs clearance, the broker acts as the declarant — the party legally submitting the declaration — and must hold either a direct representation mandate (the importer bears all liability) or an indirect representation mandate (broker and importer share liability). Using a specialist broker reduces the risk of misclassification, delayed clearance and duty disputes. Customs clearance for online sellers in Europe covers customs broker engagement for non-EU sellers.
The declarant is the person or company that lodges a customs declaration in their own name — or in whose name a declaration is lodged by a representative. The declarant is legally responsible for the accuracy of the information in the declaration, the authenticity of supporting documents, and compliance with all customs obligations that flow from the declaration. In direct representation, the importer is the declarant and the broker acts on their behalf. In indirect representation, the broker is the declarant and bears joint liability with the importer. The distinction matters because the declarant is the party liable if a declaration is found to be incorrect. Customs clearance for online sellers in Europe explains declarant liability in EU customs.
Document & Classification Terms
An HS code (Harmonised System code), also called a commodity code or tariff code, is a standardised numerical code used globally to classify traded goods for customs purposes. In the EU, the HS code is extended to a ten-digit Combined Nomenclature (CN) code on import declarations. The HS code determines the applicable import duty rate, any trade measures (anti-dumping duties, quotas), and import licensing requirements for a product. Incorrect HS classification is one of the most common causes of customs audits, retrospective duty demands and delayed clearance. Responsibility for correct classification rests with the declarant. Customs clearance for online sellers in Europe covers HS classification support for e-commerce importers.
The commercial invoice is the primary document used by EU customs to establish the customs value of imported goods — the basis on which import duty and import VAT are calculated. It must state the seller and buyer details, the country of origin, an accurate description of the goods, the HS code (or sufficient detail to derive it), the quantity, the unit price and total value in a declared currency, and the Incoterms agreed between seller and buyer. Undervaluing goods on the commercial invoice — a common error and an illegal practice — is a customs offence that can result in seizure, retrospective duty demands and penalties. Customs clearance for online sellers in Europe covers commercial invoice requirements for EU import.
A packing list is a document accompanying an import shipment that details the physical contents of each box or pallet: item descriptions, quantities per carton, gross and net weights, and dimensions. It is used by customs and by the freight forwarder or prep centre to reconcile the physical shipment against the commercial invoice and the inbound shipment plan. While not always legally required as a standalone document, a missing or inaccurate packing list delays customs clearance and creates reconciliation problems at the receiving warehouse. For FBA inbound, the packing list should align precisely with the Seller Central shipment plan contents. FBA freight forwarding in Europe covers packing list requirements for FBA inbound shipments.
An MRN (Movement Reference Number) is the unique reference assigned by the EU customs system to a customs declaration once it has been accepted. It is the primary reference for tracking the status of a customs entry and for releasing goods from customs hold. The MRN is generated when the electronic customs declaration is submitted and accepted — it confirms that the declaration has entered the EU customs system and allows the goods to proceed to the next step (examination, release or hold). The MRN is issued for both import and export declarations and for transit movements. Freight forwarders and customs brokers routinely share the MRN with importers as confirmation of submission. Customs clearance for online sellers in Europe explains MRN and customs entry tracking.
A T1 transit document (also called an External Transit document) is a EU customs procedure that allows non-EU goods that have not yet cleared customs to move through one or more EU member states to their destination country without paying import duties at each border crossing. The T1 keeps the goods under customs supervision during transit — duties and taxes are suspended until the goods reach the destination customs office and are released into free circulation. T1 is commonly used for container shipments entering the EU at Rotterdam or Hamburg and being trucked to a prep centre or warehouse in a different country. FBA freight forwarding in Europe covers T1 transit management for cross-border FBA inbound shipments.
Procedure & Cost Terms
Customs clearance is the process by which goods are officially authorised to enter or leave a country or customs territory. For EU imports, it involves submitting a customs declaration identifying the goods, their value and origin, calculating and paying any import duties and import VAT due, passing any required inspections, and receiving release authorisation from the customs authority. Until clearance is granted, goods remain under customs control and cannot be delivered to the importer or moved to a warehouse. Clearance times range from minutes for pre-lodged electronic declarations to days or weeks if the goods are selected for physical examination. Customs clearance for online sellers in Europe covers the full clearance workflow for non-EU sellers.
Customs Procedure 42 (CP42) is an EU import procedure that allows import VAT to be suspended at the point of entry when goods will be transferred to another EU member state immediately after customs clearance. Under CP42, import duty is paid at the border but import VAT is not collected at entry — instead, VAT is accounted for in the destination member state through an intra-community supply mechanism. CP42 is widely used by non-EU Amazon sellers importing inventory into one EU country (such as Germany or the Netherlands) for onward distribution to FBA fulfilment centres in other EU countries. Customs Procedure 42 and EU VAT deferral covers the full CP42 mechanics, eligibility and compliance requirements.
Import VAT deferment is a facility that allows an importer to delay the payment of import VAT — rather than paying it immediately at the point of customs clearance, the importer accounts for it in their VAT return for the relevant period. In the UK this is called postponed VAT accounting (PVA); EU member states have various national equivalents, some requiring a deferment account or duty deferment guarantee. CP42 is the most widely used EU mechanism for deferring import VAT on intra-EU distribution. Deferment improves cash flow significantly for importers handling high-value or high-volume shipments. Customs Procedure 42 and EU VAT deferral explains deferment options for non-EU Amazon sellers.
DDP (Delivered Duty Paid) is an Incoterms trade term under which the seller is responsible for all costs and risks involved in delivering the goods to the named destination — including export clearance, freight, insurance, import customs clearance, import duties and import VAT. Under DDP, the seller acts as the importer of record in the destination country. For non-EU sellers shipping to Amazon EU FBA, DDP is attractive because it removes border complexity from the buyer's side, but it requires the seller to have an EU EORI or to appoint an IOR, and to be registered for VAT in the entry country. Shipping to Amazon EU FBA from outside Europe covers DDP vs DAP decisions for non-EU FBA sellers.
DAP (Delivered at Place) is an Incoterms term under which the seller is responsible for all costs and risks up to the named destination — including freight and insurance — but import clearance, import duties and import VAT are the buyer's responsibility. Under DAP, the buyer acts as the importer of record. For Amazon FBA shipments, DAP means the seller delivers to the port or a freight forwarder's facility, and a third party (freight forwarder, customs broker or prep centre) handles EU import clearance. DAP is simpler for the seller but requires the buyer-side party to hold an EORI and manage customs compliance. Shipping to Amazon EU FBA from outside Europe compares DDP and DAP for different seller situations.
Incoterms (International Commercial Terms) are a set of standardised trade terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers in international trade transactions — specifically who bears costs and risks at each stage of transport, and who is responsible for export and import customs clearance. The current version is Incoterms 2020, which includes 11 terms: EXW, FCA, CPT, CIP, DAP, DPU, DDP for any transport mode, and FAS, FOB, CFR, CIF for sea and inland waterway. The chosen Incoterm affects customs liability, insurance responsibility and the basis for calculating customs value. Shipping to Amazon EU FBA from outside Europe explains Incoterms selection for EU FBA inbound.
Import duty (also called a customs duty or tariff) is a tax levied by the EU on goods imported from outside the EU, calculated as a percentage of the customs value of the goods. The applicable rate is determined by the HS code of the product and the country of origin — products from countries with which the EU has a free trade agreement may attract a reduced or zero rate. Import duty is distinct from import VAT: duty is a customs charge based on the product, while VAT is a consumption tax applied on top of the duty-inclusive customs value. Both must be paid (or deferred) before goods can be released from customs. Customs clearance for online sellers in Europe covers duty calculation and rate lookup for EU imports.
A bonded warehouse is a customs-approved facility where imported goods can be stored under customs supervision without paying import duties and taxes until the goods are either released into free circulation (duties paid), re-exported, or moved under a customs procedure such as T1 transit. Goods in a bonded warehouse remain under customs control. Bonded storage is useful for sellers who want to defer duty payment, manage inventory before allocating goods to specific EU markets, or hold stock for potential re-export. Using a bonded warehouse requires the operator to hold the relevant customs authorisation. Customs clearance for online sellers in Europe covers bonded warehouse options for EU e-commerce logistics.
Deconsolidation is the process of breaking down a consolidated shipment — typically a shared container load (LCL) or a groupage truck — into individual consignments for each shipper or receiver after it arrives at the destination port or freight hub. In the FBA context, deconsolidation happens at a freight station or prep centre: a container arrives with inventory for multiple sellers or multiple FBA shipment plans, and is broken down into individual shipments before being prepped and forwarded to the relevant fulfilment centres. Container to Amazon FBA in Europe covers container deconsolidation and onward FBA routing in detail.
Postponed VAT accounting (PVA) is a mechanism — most prominently introduced in the UK after Brexit — that allows VAT-registered importers to account for import VAT on their VAT return rather than paying it at the point of import. Instead of a cash payment at the border, the importer declares the VAT as both input and output tax in the same return, resulting in a net zero cash impact for VAT-registered businesses. PVA is a UK mechanism; the EU equivalent for most use cases is CP42 or national VAT deferment schemes. For non-EU sellers active in both the UK and EU markets, understanding the difference between PVA and CP42 is essential for correct cash flow planning. Customs Procedure 42 and EU VAT deferral contrasts CP42 with postponed VAT accounting.
Related Services & Guides
Explore the FLEX. services and deep guides behind these customs terms:
- Customs clearance for online sellers in Europe — EORI, IOR, broker engagement, HS classification and duty calculation
- Customs Procedure 42 and EU VAT deferral — full CP42 mechanics, eligibility and import VAT deferment
- Shipping to Amazon EU FBA from outside Europe — Incoterms, DDP vs DAP and end-to-end inbound logistics guide
- FBA freight forwarding in Europe — LCL, FCL and groupage freight to Amazon FBA
- Container to Amazon FBA in Europe — container deconsolidation and onward FBA routing
- Customs clearance in Germany — German port entry, Hamburg and Bremerhaven routing
- Customs clearance in France — French port entry and Le Havre routing for EU imports
Located in the center of Europe, FLEX. Fulfillment handles EU customs clearance coordination, CP42 import procedures, freight forwarding and FBA inbound logistics from warehouses in Germany, Poland and France.
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