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Compliance in International Trade: Know the Rules in Luxembourg

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Luxembourg, a key player in international trade, has implemented strict regulations to ensure compliance with various international conventions and agreements. As a member of the European Union (EU), World Trade Organization (WTO), and Organisation for Economic Co-Operation and Development (OECD), Luxembourg adheres to EU rules that apply to all 27 member states.

Non-Tariff Barriers

While the EU has a liberal foreign trade policy, there are certain restrictions in place, particularly on farm products. The Common Agricultural Policy (CAP) imposes compensations on import and export of farm products to promote agriculture within the EU, resulting in control and regulation systems for goods entering the EU territory.

Farm Products

  • Import and export of farm products subject to compensations
  • Control and regulation systems for goods entering the EU territory

Sanitary Measures

To ensure food safety, Luxembourg regulates the presence of Genetically Modified Organisms (GMOs) in imported products. Packaging must specify GMO content, while beef cattle bred on hormones are prohibited from importation. The BSE crisis has led to strengthened phytosanitary measures to guarantee meat quality.

Food Safety Regulations

  • Regulation of GMOs in imported products
  • Packaging must specify GMO content
  • Prohibition on importing beef cattle bred on hormones
  • Strengthened phytosanitary measures for meat quality

Customs Duties and Taxes

Non-EU countries typically face low customs duties, averaging 4.2%. However, three sectors - clothing, fabrics, and agro-alimentary products - are subject to higher tariffs, ranging from 17.3%.

Tariffs

  • Average customs duty for non-EU countries: 4.2%
  • Higher tariffs for clothing, fabrics, and agro-alimentary products: up to 17.3%

Customs Classification

Tariffs are calculated Ad Valorem based on CIF value, in accordance with the Common Customs Tariff (CCT). Exporters should consult the TARIC code database for exhaustive regulations and customs tariff rates.

Tariff Calculation

  • Tariffs calculated Ad Valorem
  • Based on CIF value
  • Consult TARIC code database for regulations and rates

Import Procedures

The European Union’s “SAFE” standards have led to the implementation of the Import Control System (ICS), a new system of import controls designed to secure the flow of goods entering the EU. Since January 1, 2011, operators must submit an Entry Summary Declaration (ENS) prior to introducing goods into the customs territory.

Import Controls

  • Implementation of ICS for securing the flow of goods
  • Submission of ENS prior to introducing goods into the customs territory
  • Operators required to comply with import controls since January 1, 2011

Additional Resources

To facilitate trade, Luxembourg Customs Administration provides detailed information on the import process and requirements. Companies outside the EU are required to have an EORI number for customs declarations or Entry/Exit Summary declarations since July 1, 2009. The TARIC code and European Commission’s export helpdesk can assist in determining license requirements for specific products.

Additional Resources

  • Luxembourg Customs Administration: detailed information on import process and requirements
  • EORI number required for companies outside the EU
  • TARIC code database: regulations and customs tariff rates
  • European Commission’s export helpdesk: assistance with license requirements

For further guidance, businesses can consult our service on Import controls and Export controls.