How to Import Argan Oil from Morocco (to EU) : Customs Procedures, Taxes & the CPNP
Introduction
The commercialisation of Moroccan argan oil on the European Union (EU) market is promising for both cosmetic and culinary trade. Europe has witnessed a mounting demand for argan oil, recognized by its skin- enviable and tasty flavor properties. In order to import this product effectively, you must have a good understanding of customs processes and the tax payment obligations as well as EU specifics such us Cosmetic Products Notification Portal (CPNP)
Customs Procedures
Whenever argan oil is imported into the EU, it has to go through certain duty-free customs regulations as well making sure that the products meet European standards.
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To your bottoms is to be entered first into the EU so that you must be registered somewhere in an importing capacity of some description. Additionally, you require an Economic Operators Registration and Identification (EORI) number which every business importing goods into the EU needs to have.
2. Customs declaration submittal [Source: HMRC]
Argan oil will have to be accompanied by a customs declaration using the Automated Import System (AIS) of each European country, it explains. The declaration must contain a commercial invoice, the name and the description of the product, its quantity, origin details if applicable (HS TARIC CODE). Additionally, the classification under a standardized E.U customs code such as Combined Nomenclature (CN) is required to determine duties and taxes accurate.
3. Examine & Compliance:
Goods will be inspected by customs authorities to ensure they adhere to these regulations, especially in the cases of food and cosmetics. The product is considered a cosmetic, it will need to comply with EU Cosmetic Regulation standards for safety, labeling and packaging.
4. Registration of Cosmetics (CPNP)
If you plan to import argan oil for the purpose of cosmetics, it should be registered on the Cosmetic Products Notification Portal (CPNP). The CPNP is an online notification system for manufacturers/importers of cosmetic products that also applies to those who import cosmetics in the EU. Thus, they meet the EU's consumer safety regulations.
Taxes and Duties
1. Customs Duties:
The Generalized System of Preferences (GSP) offers duty-free entry for goods imported from developing countries, which includes Morocco. In connection with this, depending on its correct classification under the CN code argan oil may be subject to a reduction of or set at zero rate tariffs. Note : To profit, you need to deliver a proof of origin documents stating the product falling under Moroccan origins.
2. Value-Added Tax (VAT):
Importers will also have to pay VAT on items entering the EU, as they do now when importing from a non-EU country. A standard VAT rate is between 17% and 27%, depending on the EU country. Excise duty is calculated on the total value of goods i.e. it includes cost price as well as transport and insurance paid in connection to delivery, therefore leviable at point when property or possession passes to buyer
3. Excise Duties:
Argan oil, as far as we know, is not placed under any excise duty however you have to check the country its sold into. Some member states may impose specific taxes on the above food products.
The CPNP and Compliance for Cosmetics
Cosmetic Argan oil, which is used as a raw material for cosmetic formula, requires notification under Cosmetic Products Notification Portal (CPNP). All cosmetic products offered for sale in the EU (whether manufactured here or imported from places like Morocco) must comply with this regulation. I hereby register my product with the CPNP, meaning that I am compliant with EU Cosmetic Regulation (EC) No 1223/2009 covering safety assessments, labeling and banning of substances.
CPNP Registration
- Notification of the Product: Before placing the cosmetic product on the EU market, a notification of the product must be done on the Cosmetic Products Notification Platform .
- Labeling Compliance: The label must contain the product’s name, list of ingredients, and details of a responsible person in the EU.
- The above is only useful for cosmetic products. Importers should also ensure that a product safety report has been performed by a qualified safety assessor before making this registration. For more information, you can follow this [link to learn more about CPNP ](https://ec.europa.eu/growth/sectors/cosmetics/cpnp_en).
Free Trade Agreements (FTAs) and Regional Trade Agreements (RTAs):
- The EU has a number of trade agreements between it and many of the third countries, including Morocco, that could be extremely beneficial for businesses importing products such as argan oil. For instance, the EU-Morocco Association Agreement ensures that many of the products you produce or import to the EU have reduced or zero tariffs on them. To learn more about this, you can follow this [link to the WTO’s regional trade agreements page](https://www.wto.org/english/tratop_e/region_e/region_e.htm) to explore RTAs in detail.
Conclusion
Importing argan oil from Morocco to the EU is a great business opportunity. However, to benefit from such products properly, it is important to navigate the customs procedures and ensure that you meet tax obligations and requirements, including CPNP for cosmetic products. The information provided above will help you understand the process and tap into the ever-growing market for argan oil in a manner that meets the requisite standards while still benefiting from trade agreements. For additional information on EU trade regulations and FTAs, you can visit [WTO website](https://www.wto.org).