Customs Procedure 42 and Export - Complications with MRN Closure

Procedure 42 is a customs procedure used when importing goods into the EU with a VAT exemption, where the goods are immediately dispatched to another Member State (intra-community supply). But what happens when these same goods are subsequently exported outside the EU? In many cases, complications with MRN closure arise - especially when the export declaration is filed in a different country than the port through which the goods actually leave the EU.

What is Customs Procedure 42?

Procedure 42 (Customs Procedure 42) is an import procedure in which goods from outside the EU are customs cleared in one Member State but are exempt from import VAT because they will be immediately delivered to a recipient in another EU country as part of an intra-community supply of goods.

The procedure code in the import declaration is 42 00. The legal basis for the VAT exemption is the VAT Directive (2006/112/EC), and the customs procedure is regulated by the Union Customs Code (Regulation 952/2013) and its implementing provisions.

A typical scenario: goods from China are customs cleared in Rotterdam (Netherlands), but are immediately transported to a recipient in Poland. The importer pays customs duty but does not pay Dutch VAT - because the goods are the subject of an intra-community supply. VAT will be settled in Poland by the buyer.

When Does Procedure 42 Affect Export?

Procedure 42 itself is an import procedure - it has no direct connection to export. The problem appears in a specific but common scenario:

1. Goods are imported into the EU under Procedure 42 - e.g., customs clearance in the Netherlands, delivery to Poland
2. In Poland, the goods are processed, repacked, or stored
3. The goods are then exported outside the EU - e.g., shipped to a customer in Turkey, the United Kingdom, or the USA

At this point, the question arises: in which country should the export declaration be filed? And through which port will the goods actually leave the EU? When these two elements are not synchronized - the MRN may remain open.

Typical MRN Problems When Exporting Goods from Procedure 42

• Incorrect customs office of exit code - the export declaration was filed in Poland, but the customs office of exit code does not correspond to the port through which the goods actually departed. The declaration is routed to the wrong customs office, which does not see the goods.
• Lack of communication between customs systems - the export declaration filed in the Polish customs system must be forwarded to the customs system of the country through which the goods leave the EU (e.g., Germany, the Netherlands, Belgium). This communication can fail or be delayed.
• Incorrect assignment of the country of export - when goods were imported in one country and are being exported from another, questions may arise about which country is the “country of export” within the meaning of customs regulations. An incorrect determination affects the routing of the entire declaration.
• Container diversion to a different port - the goods were supposed to leave through one port, but the shipping line redirected the container to another. The customs office of exit code in the declaration does not match the actual port of exit.
• Missing export registration in the port system - even when the export declaration is correct, the goods must be registered as an export in the port system of the port of exit. If the exporter or freight forwarder fails to complete this registration, the customs office at the port does not see the declaration and does not confirm the export.

How We Help Close the MRN After Procedure 42

Exporting goods that previously went through Procedure 42 requires coordination between the customs systems of two countries. We help at every stage:

• Diagnosing the cause of an open MRN - we determine why the export declaration was not closed. We check whether the problem lies with the customs office of exit code, inter-system communication, or missing registration in the port system.
• Cross-country coordination - we have experience handling cases that require communication between the Polish customs system and systems in Germany, the Netherlands, and Belgium. We know how procedures work in each of these countries.
• Export registration in the correct port system - if the goods were not properly registered at the port of exit, we carry out retroactive registration based on transport documents.
• Obtaining the export confirmation - we bring the process to MRN closure and issuance of the export confirmation, which is essential for applying the 0% VAT rate. Submit your order.

Related Articles

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• export confirmation - what it is and how to obtain it
• 0% VAT on exports and the export confirmation