Customs procedure 42- Limited tax agent in France

Imported goods released into free circulation in a member state incur a VAT tax of that member state. If, upon import, it is known that the imported goods were meant to be shipped to another member state, the VAT is paid/charged in the destination member state. The VAT exemption on import is based on the fact that the import is followed by a tax-free delivery within the European community or the transfer of goods to another member state. Such a procedure is known as “Customs Procedure 42”. The importer needs to enter a code in field 37 that begins with the number 42. This means that the import represents a “simultaneous entry for domestic usage and release into free traffic for goods exempt from VAT in the framework of delivery to another member state”.