Busan Port Authority publishes guide on Dutch customs and VAT for Korean exporters

Busan Port Authority (BPA) said Thursday it has published a practical guide on Dutch customs procedures and value-added tax to support Korean companies entering European markets through the Netherlands.

Companies making their first foray into Europe often struggle to identify the appropriate importer of record when they lack a local entity, and many face cash-flow pressure from having to prepay VAT to customs authorities at the time of import. Conflicting explanations of the regulatory regime from different service providers have added to the confusion. The guide was designed with hands-on practice in mind, helping companies work through these difficulties and identify the approach best suited to their individual logistics and transaction structures.

The guide covers five areas: basic terminology including customs procedures, tariffs and the EORI (Economic Operators Registration and Identification) number; import customs types such as standard clearance and bonded warehousing; fiscal representative arrangements including the General Fiscal Representative and Limited Fiscal Representative regimes; the import VAT deferment scheme under Article 23; and commonly confused concepts along with a FAQ section.

Particular attention is given to the import VAT deferment scheme under Article 23 of the Dutch VAT Act. Under the scheme, companies can defer VAT payment — rather than prepaying it to customs at the time of import — and handle it through a periodic VAT return, significantly easing cash-flow burdens. The guide also clarifies that the scheme constitutes a deferment, not an exemption, and that a separate application is required.

The guide is available for free download on the BPA website at www.busanpa.com. Companies seeking consultation may contact the BPA Rotterdam Logistics Center by email at team@bpabv.com.