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Customs procedure for temporary import: Customs procedure for temporary import
Temporary import is one of many customs procedures. By implementing this procedure it is possible, under an exemption from import duties, other import taxes and trade policy and agricultural policy measures:
• to introduce non-Community goods into the EU from a non-EU country, and subsequently;
• to use the goods within the EU for a specific purpose, in order finally;
• to re-export the goods to a (different) non EU country.
This process is subject to the condition that the goods temporarily imported do not undergo any changes during their stay in the EU and retain the condition in which they were placed under the customs procedure. The customs procedure for temporary import can be used in a wide variety of situations.
Examples
A lorry carrying goods enters the EU from a non-EU country. The lorry unloads its goods in Rotterdam, whereupon it leaves again for the country of origin outside the EU. The temporary import procedure can be applied here in order to let the lorry stay temporarily in the EU under an exemption from import duties and/or taxes. A traveller comes to the Netherlands on holiday from a non-EU country. His luggage can be placed under the temporary import procedure and be imported under an exemption. The traveller will have to take this luggage back with him/her at the end of the holiday.
Further information:
• www.douane.nl
Customs and Tariffs: Customs and tariffs
Customs and tariffs For customs and tax purposes, the European Union (EU) distinguishes 3 distinct areas:
• A customs area;
• An excise area;
• A VAT area.
Exceptional areas Some areas fall under the geographic territory of the EU, but do not belong to the customs area, the excise area and/or the VAT area of the EU. These areas are regarded as exceptional areas. Non-EU countries are also known as 'third countries'. If you are importing goods from an exceptional area that does not belong to the customs area of the EU, the same rules apply that would also apply if you imported the goods from a non-EU country. The customs department has an overview of the customs and tax areas within the EU.
The table detailed in the link hereunder shows whether an area is part of the customs area, VAT and/or excise area: http://www.douane.nl/
Excise duty and consumer tax What are excisable goods? In the Netherlands, the following goods are classified as excisable goods:
• beer;
• wine;
• intermediate products (e.g. port, sherry and vermouth); intermediate products refers to products where additional alcohol has been added to the alcohol that has been generated during the natural fermentation process;
• other alcoholic products (e.g. spirits and perfumes);
• tobacco products - in the form of pipe/cigarette tobacco, cigarettes and cigars;
• mineral oils (e.g. petrol, diesel oil and LPG)
Excise duties must be paid for the consumption of these goods. The Excise Duty Act (Wet op de accijns) therefore comprises rules concerning stocking, importing, producing, storing and/or receiving excisable goods from another Member State. The Customs department has extensive information available on this subject.
Further information:
• www.douane.nl
• VAT For information on Value Added Tax it is advisable to contact the Tax Department (Belastingdienst). www.belastingdienst.nl
Starting a business: Starting a business in the Netherlands
Companies intending to conduct business activities in the Netherlands, are presented with several options as to how to go about it, as well as a number of legal requirements to be complied with. From a legal and taxation point of view, the first priority is deciding on which legal form to use to 'house' the proposed Dutch-based activities. Compared to other EU countries, the Netherlands has a flexible and liberal legal framework for the organisation of enterprises by non-resident companies or individuals. There are no special restrictions on foreign-owned companies that wish to start a business in the Netherlands. Business operations can be set up as having a legal entity or not. A private limited liability company, 'BeslotenVennootschap' (BV) and a public limited liability company, 'NaamlozeVennootschap' (NV), are the conventional forms of limited liability companies with a legal entity.

The Chamber of Commerce (KvK) is the prime meeting place for business people in the Netherlands, whether they have just started up in business or have been operating for many years.

"What requirements must I satisfy in order to start a business in the Netherlands?" "What legal forms are there, what taxes do I have to pay, and do I require a licence or diploma?" "How do I set up a branch office for my business?" The answers to these and many other questions can be found on the Chamber of Commerce website specified hereunder.

Further information:

Chamber of Commerce: www.kvk.nl
Investing in the Netherlands: Investing in the Netherlands
The Netherlands Foreign Investment Agency, NFIA, can assist businesses contemplating investment in the Netherlands. Many foreign companies have already established a subsidiary or headquarters in the Netherlands. NFIA presents 6 key reasons to invest in the Netherlands:
Strategic location in Europe
The Netherlands provides a strategic location from which to serve markets within the current and future European Union, the Middle East and Africa. The centrally-located geographical position of the Netherlands, combined with accessibility and an excellent infrastructure are some of the key reasons why numerous European, American and Asian companies have established facilities in the Netherlands.
International business environment
The Netherlands, long Europe's trading crossroads, is an obvious choice to locate an operation, whether it is a European headquarters, a Shared Services Centre, a Customer Care Centre, a distribution and logistics operation, or an R&D facility. The country's pro-business environment creates a strong basis and provides a gateway to Europe that helps international companies penetrate into the continent. An international outlook and openness to foreign investment is firmly ingrained in the Dutch culture and this has yielded a wealth of world-class business partners who know how to deal with global business challenges in today's economy.
Superior logistics and technology infrastructure
The Port of Rotterdam is the world's third largest seaport, while Amsterdam Schiphol Airport is recognised as one of the major business hubs in Europe and has garnered over 100 international awards over the last couple of decades. The Netherlands is also classified as one of the most 'wired' countries in the world, a dynamic force in electronic commerce, communications and outsourcing. More than a decade of investment in high-speed Internet, cable and digital communication systems, as well as the rapid adoption of state-of-the-art computer and mobile phone technology, have created an ideal base for companies seeking to take advantage of modern technology.
Highly educated, multilingual and flexible workforce
The Netherlands features one of the most highly educated, flexible and motivated workforces in Europe. Dutch professionals are also among the most multilingual in the world, enabling them to successfully operate in companies in many industries, serving customers throughout the continent.
Quality of life
The Netherlands is proud to have a high standard of living, whilst also being able to maintain an affordable lifestyle for its residents. The costs of living, housing, education and cultural activities are lower than in most Western-European countries.
Fiscal climate
Since January 2007, the Dutch tax environment for international companies has become even more attractive. The corporate tax rate has been lowered to 25.5 percent; well below the EU average. Additionally, dividend tax has been reduced from 25 percent to 15 percent. Furthermore, a patent box with a 10 percent tax rate on income from innovations was introduced. Combined with other traditional features of the Dutch tax system (wide tax treaty network, participation exemption, 30 percent tax break for highly qualified foreign employees) the fiscal climate is quite simply one more reason for companies to establish or expand their European operations in the Netherlands.
Further information: www.nfia.nl
Labour market and law: Labour market and law in the Netherlands
Labour policy The primary aim of Dutch labour market policy is to increase labour participation and to reduce unemployment. This policy goal is in accordance with the objectives of the European Union’s Lisbon Agenda. The government’s labour policy is aimed at removing as many obstacles as possible for people wanting to participate in the labour market.
Social security
The Netherlands has an extensive social security system. Two categories can be distinguished: national; and employee-specific insurance schemes. The first category applies to all persons lawfully residing in the Netherlands, whereas employee insurance schemes apply only to persons in gainful employment.
Labour migration
Working in the Netherlands is permitted for persons possessing Dutch nationality, or the nationality of one of the countries within the European Economic Area, which comprises European Union Member States, plus Norway, Iceland and Liechtenstein. Citizens of Romania and Bulgaria are not permitted to work in the Netherlands without a permit.
Further information: Ministry of Social Affairs and Employment: www.employment.gov.nl/
Taxation in the Netherlands: Taxation in the Netherlands
For centuries, the Netherlands has been a nation of traders. To ensure that this long-standing tradition endures, the Dutch government has created a competitive tax regime that stimulates entrepreneurship and foreign investment in the Netherlands. While corporate tax rates are in line with the country's European neighbours, there are numerous features that serve as an inducement to foreign companies to locate their operations in the Netherlands.In comparison with other (EU) countries, the Netherlands is known for its very competitive tax climate, resulting from its far-reaching tax treaty network, its system of bonded warehouses, and the possibility to conclude so-called 'advance tax rulings', whereby a company's future tax liability is determined.
The principal taxes in The Netherlands are corporate and personal taxes on income (including wage withholding tax) and value-added tax. In addition, individuals are liable to a number of other taxes, such as inheritance and gift tax. The fact that the Netherlands has signed treaties with more than 80 countries around the world, emphasises its commitment to international and bilateral commerce. These treaties have been signed so that companies are not forced to pay double taxation.
Further information: Tax Department: www.belastingdienst.nl
Law on commercial agents: Law on commercial agents
In the Netherlands, the law on commercial agents is covered by directive 86/653 of the European Union. This directive can be accessed in the EUR-LEX database: eur-lex.europa.eu/en/index.htm. The EVD can assist businesses by providing a model of a contract specially developed for activities requiring a mercantile agent to promote the sale of goods in the Netherlands.
The model is laid out in such a way that it may be easily adapted to the needs of each activity and type of agent. The branch organisation for intermediaries in the Netherlands is VNT. They can provide assistance in finding a commercial agent. Members of the VNT are associations from specific sectors dealing with intermediaries.
Intellectual property in the Netherlands: Intellectual property in the Netherlands
The Netherlands Patent Office grants patents in the Netherlands and disseminates the knowledge derived from the patent literature. Small and medium-sized enterprises (SME's), entrepreneurs, inventors, technology institutes, scientists, teachers and students can visit the office to obtain essential information. The Netherlands Patent Office is an agency of the Ministry of Economic Affairs.
Further information:
• Netherlands Patent Office: www.octrooicentrum.nl
• Benelux Office for Intellectual Property: www.boip.int
Transportation law: Transportation law
The Exporter's Encyclopaedia has put together a list of regulations on transportation in the Netherlands wherein the following subjects are covered:
• entry and warehousing;
• foreign trade zones;
• shipping restrictions;
• marking of shipping cases;
• TIR carnets;
• inland transportation;
• airports;
• air cargo service;
• ports and trade centers;
• shipping information.
There are various organisations in the Netherlands that can advise on transportation regulations:
• Transport and Logistics Netherlands (website only in Dutch): www.tln.nl
• Freight Forwarders Organisation (website only in Dutch): www.evo.nl
• Port of Rotterdam: www.portofrotterdam.com
• Port of Amsterdam: www.amsterdamports.nl
• Schiphol aircargo portal: www.splfreight.com
Product safety: Product safety
Product safety in the Netherlands is regulated via the CE-standard of the European Union. There are several institutes dealing with the issue of product safety. The EVD has comprehensive information available regarding the CE-standard. The information featured on the EVD website is in Dutch, but it is possible to directly contact the account manager responsible for this topic. Another key institute is the Food and Consumer Product Safety Authority, whose task it is to protect human and animal health. The Authority monitors food and consumer products to safeguard public health and animal health and welfare and monitors the whole production chain, from raw materials and processing aids, to end-products and consumption. Another useful organisation is the NEN, which deals with standards and standardisation.
Further information:
• EVD CE-marking (Dutch only): www.evd.nl
• Food and Consumer Product Safety Authority: www.vwa.nl
• NEN: www2.nen.nl
E-business in the Netherlands: E-business in the Netherlands
Electronic commerce (e-commerce) and services are widespread in the Netherlands. Currently, there are significant transactions occurring in the B2B (business-to-business) and B2C (business-to-consumer) e-marketplaces. The number of B2C shops is increasing. One cannot underestimate the economic impact of C2C's (consumer-to-consumer) shops within the e-commerce sector. The online auction site www.marktplaats.nl/ is one example of this. Many freshly-minted businesses have begun with a C2C marketplace, doing business electronically, and now have their own web shops.
The government, similarly, is providing more and more of its services online. A wide range of government organisations show improved quality in their online services (e-Government - G2C and G2B).
Further information:
• eMarket Services: www.emarketservices.com
The Customs service in the Netherlands: The Customs service in the Netherlands
The Customs service in the Netherlands (Douane) has centralised a number of its activities and processes and transferred them to one of four customs regions. Additionally, within region, specialist teams carry out 'general activities'. These teams are engaged in:
Declaration processing
The Declaration Processing teams check whether a declaration is correct and how it should be processed. To do this, they utilise various automated systems, such as the declaration processing system Sagitta. The Declaration Processing teams also decide whether or not goods should be inspected.
Customer processing
The Customer Processing teams are engaged in: issuing authorisations, e.g. an authorisation to process goods or an authorisation to file electronic declarations; handling complaints; dealing with objections and appeals; auditing records and declarations retrospectively: the administrative audit.
Physical Supervision
The Physical Supervision teams are engaged in: inspecting incoming and outgoing goods; checking the levy of tax on these goods; surveillance activities. The Physical Supervision teams often receive their instructions from the Declaration Processing and Customer Processing teams. They also carry out inspections on their own initiative.
Further information:
• Dutch Customs Administration: www.douane.nl