What is an indirect customs representative?
Under the EU’s Union Customs Code, a business can appoint a customs representative to deal with customs for it. There are two kinds. A direct representative acts in the name and on behalf of the business, so the business itself is the declarant. An indirect representative acts in its own name but on behalf of the business, so the representative becomes the declarant and shares liability for the customs debt.
Indirect representation matters most for companies outside the EU. The person lodging an EU customs declaration normally has to be established in the EU, so a non-EU company usually can’t be the declarant itself, and can’t use a direct representative either. An indirect representative fills that gap.
Core principle: An indirect representative signs the declaration in its own name and takes on joint liability. That is what lets a non-EU company import into the EU without an EU entity.
Direct vs indirect representation
| Direct representation | Indirect representation | |
|---|---|---|
| Acts | In the name and on behalf of the client | In its own name, on behalf of the client |
| Declarant | The client | The representative |
| Liability for customs debt | Client | Representative and client, jointly and severally |
| Usable by non-EU companies | Generally no | Yes |
| Typical cost | Lower | Higher, because the representative carries risk |
What the representative does
1. Lodges the declaration
Prepares and submits the import declaration with the right HS codes, customs value and origin, based on your commercial invoice.
Why it matters: Errors in the declaration are its liability as well as yours.
2. Pays or guarantees duty
Pays duty and often import VAT on your behalf, or uses its own customs guarantee, and invoices you.
Watch out for: Most representatives ask for a deposit or prepayment until there is a track record.
3. Handles checks and queries
Deals with customs inspections, document requests and corrections after import.
Why it matters: A good representative flags risks before goods are shipped.
Import VAT and the indirect representative
Liability for customs duty follows from the Union Customs Code, but liability for import VAT is set by each country’s law. In 2022 the EU Court of Justice ruled (case C-714/20) that an indirect customs representative can only be held liable for import VAT if national law expressly says so. In practice, many representatives will only handle import VAT if the importer has a local VAT registration, or works through a fiscal representative.
What to agree before the first shipment
- A written authorisation (power of attorney) stating that the representation is indirect
- Your EU EORI number, which customs systems record as the importer
- Who pays duty and import VAT, and whether a deposit or guarantee is needed
- How classification, valuation and origin are checked, and who keeps the records
Example: A Canadian apparel brand ships a container from Vietnam to Hamburg for its German fulfilment centre. A German customs broker declares the goods as indirect representative, using the brand’s DE EORI number. The broker pays the duty and invoices the brand. The import VAT is declared under the brand’s German VAT registration, so the brand can reclaim it.
Read more in Selling in the EU from outside the EU: VAT, EORI and stock and in our entry on the importer of record.
Frequently asked questions
Can a non-EU company import into the EU without an EU entity?
Yes, usually through an indirect customs representative, which acts as declarant in its own name on the company’s behalf.
Is an indirect representative liable for duty?
Yes. It is jointly and severally liable with the client for the customs debt arising from the declarations it lodges.
Is an indirect representative liable for import VAT?
Only if the national law of the country of import says so, following the EU Court of Justice ruling in case C-714/20.
Is a customs broker always an indirect representative?
No. Brokers can act as direct or indirect representatives. The authorisation you sign should say which one applies.
