French Supreme Court Clarifies Customs Broker Joint Liability for Import VAT on Indirect Representation

• The French Supreme Court ruled that customs brokers can only be held jointly and severally liable for import VAT if they have been expressly appointed as indirect representatives.
• The Court rejected the presumption that indirect representation can be inferred from circumstances, such as the exporter being outside the EU, without an express mandate.
• This decision aligns with the Union Customs Code and EU case law, emphasizing that representation must be expressly conferred.
• Without an express mandate, customs brokers are not jointly liable for import VAT but may still face customs duty reassessments.
• The ruling highlights the importance of formalizing customs representation mandates to manage risks for brokers and importers.

Source: bdo.global

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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