Regime 42: The Complete Guide to Customs Procedure 4200 (Import VAT Exemption in the EU)
What Is Regime 42?
Regime 42, officially referred to as Customs Procedure Code 4200, is a special EU VAT exemption mechanism that allows businesses to import goods into one EU country without paying import VAT, provided those goods are immediately shipped to another EU member state.
It’s a powerful tool for improving cash flow and reducing tax admin—especially for companies involved in cross-border B2B trade, e-commerce fulfilment, and EU-wide logistics operations.
Key Facts About Regime 42 (CPC 42 00)
- No Import VAT: VAT is not paid at the point of entry.
- Immediate EU Shipment Required: Goods must leave the country of import straightaway.
- Reverse Charge VAT: The receiving business in the destination country accounts for VAT via the reverse charge mechanism.
- VAT Registration Required: Importer must be VAT-registered in another EU country (not the country of import).
- Fiscal Representation Needed: In many cases, a local fiscal rep must be appointed.
Who Uses Regime 42?
This customs procedure is commonly used by:
- UK and non-EU businesses importing into the EU but distributing goods across multiple member states.
- Amazon sellers and 3PL providers using fulfilment centres in countries like the Netherlands or Belgium.
- Freight forwarders, e-commerce brands, and B2B exporters routing shipments via EU logistics hubs.
How Regime 42 Works: Step-by-Step
- Import into an EU Country
Goods are imported (e.g. via the Netherlands) using Customs Procedure Code 42 00. - Import VAT Is Waived
No VAT is paid at the point of entry under Regime 42. - Goods Are Shipped to Another EU Country
The goods are immediately transported to another member state (e.g. France, Germany, Spain). - VAT Is Accounted for in the Destination Country
The buyer or receiver uses reverse charge VAT to report and pay tax. - Proof of Movement Is Retained
Documentation such as the CMR note or airway bill must confirm that the goods left the country of import.
Requirements for Using Procedure Code 4200
To qualify for Regime 42, your business must:
- Be VAT-registered in another EU country
- Use the correct CPC code: 42 00
- Have a fiscal representative in the country of import (if required)
- Ensure goods are dispatched immediately to another EU country
- Provide a compliant invoice with the destination country’s VAT number
- Maintain full proof of transport and delivery
Common Mistakes to Avoid
Using Regime 42 incorrectly can result in penalties and delayed shipments. Watch out for:
- ❌ Missing or invalid EU VAT numbers
- ❌ Goods staying too long in the import country
- ❌ No fiscal representation in place
- ❌ No VAT reporting in the destination country
- ❌ Missing documentation for audit trail
Real-Life Example
A UK-based business imports electronics into Rotterdam with the intent to deliver them to a customer in France.
- The goods are cleared under CPC 42 00.
- A Dutch fiscal representative is appointed.
- No import VAT is paid in the Netherlands.
- The goods are transported to Paris.
- The French buyer uses reverse charge VAT for reporting.
Result? The importer avoids double VAT registration and pays no upfront VAT.
Why Use Regime 42?
Here’s how it benefits your business:
- ✅ Boosts cash flow by deferring VAT payments
- ✅ Avoids multiple VAT registrations across the EU
- ✅ Reduces paperwork with proper procedure and representation
- ✅ Optimises EU fulfilment using centralised ports like Rotterdam or Antwerp
Related Customs Codes and Terms
- CPC 42 00 – For import with onward intra-EU delivery
- CPC 63 00 – For bonded warehouse release under similar structure
- Reverse Charge – Where the buyer accounts for VAT instead of the seller
- Fiscal Representative – A required legal agent in some EU countries for non-resident businesses
How Transportify Supports Regime 42
Navigating EU VAT rules can be tough. At Transportify, we simplify it for you:
- Set up fiscal representation in the Netherlands, Belgium, France, and more
- File compliant CPC 42 00 customs declarations
- Ensure full documentation and audit trail support
- Provide door-to-door transport across the EU
- Offer hands-on help for UK, non-EU, and B2B sellers using Regime 42
Get Expert Help Today
Need help importing under Regime 42?
Let our customs specialists handle the complexity so you can focus on your business.
Visit: www.transportify.co.uk/customs
Or email: customs@transportify.co.uk
