Denmark Customs and Import Duties Guide

Customs Classification (TARIC and CN Codes)

CN codes (8-digit): The Combined Nomenclature (CN) is the EU's 8-digit coding system based on the Harmonised System (HS). All imports into Denmark must be declared using the correct CN code. The first 6 digits are the HS code (international), the 7th–8th digits are the EU CN subdivision, and the 9th–10th digits are the TARIC subdivision for specific EU measures (anti-dumping duties, quotas, embargoes, surveillance).

How to classify: Use the General Interpretative Rules (GIRs) in the HS Convention. The primary rule: classification is determined by the objective characteristics of the goods as defined by the heading text and any section/chapter notes. If goods are classifiable under two or more headings, use GIR 3 — specific description prevails over general, essential character determines classification for composite goods, and last in numerical order applies as a fallback. Toldstyrelsen publishes binding tariff information (BTI) decisions that you can rely on for classifications of identical goods. You can apply for a BTI decision (binding tariferingsoplysning) from Toldstyrelsen — valid for 3 years across the EU.

Common pitfalls for Danish importers: Misclassification is the most common customs error. Common mistakes include: classifying spare parts under the machinery heading (they typically fall under their own heading if separately declared), classifying software on media under data media instead of the functional unit, misclassifying food supplements (medicinal vs food classification can change duty rates from 0% to 12%), and misclassifying electronic goods (e.g., smart speakers as speakers vs telecommunications equipment). If in doubt, apply for a BTI — they are free and protect you from post-clearance recovery.

Customs Valuation

Transaction value (primary method): The customs value is primarily the price actually paid or payable for the goods when sold for export to the EU, adjusted for: (a) commissions and brokerage fees (except buying commissions), (b) cost of containers and packing, (c) royalties and licence fees related to the imported goods, (d) proceeds from subsequent resale that accrue to the seller, (e) transport and insurance to the EU border (CIF — cost, insurance, freight), and (f) loading and handling charges to the EU border. The transaction value must be the price in a genuine sale — related party transactions are accepted if the relationship did not influence the price (tested by the circumstances of sale test or a test value).

Deductions from customs value: The following costs are not included in the customs value (if separately identified): import duties and VAT, transport costs within the EU after import, buying commissions, interest charges under a deferred payment agreement (if separately identified), and software reproduction costs outside the EU (for imported data media). To benefit from these exclusions, the costs must be clearly identified and documented on the invoice or contract.

Secondary valuation methods (if transaction value cannot be used): (a) transaction value of identical goods, (b) transaction value of similar goods, (c) deductive value (based on the resale price in the EU minus profits, duties, and post-import costs), (d) computed value (based on the cost of materials, production, and profit in the country of export), and (e) fallback method (reasonable means consistent with WTO principles). Toldstyrelsen generally expects the transaction value to be used unless there are specific reasons it cannot be applied.

Customs Procedures

Release for free circulation: The most common procedure — goods are released for free circulation in the EU, paying any customs duties and VAT due. You must submit a customs declaration (fortoldning) electronically via the EU's Customs Decision System (CDS) or Denmark's Toldstyrelsen portal. The declaration can be lodged up to 30 days before the goods arrive (pre-arrival) or on the day of arrival. Use postponed accounting for import VAT (available since 2022) to avoid upfront VAT payment — report the import VAT on your VAT return as both output and input VAT. Since 1 January 2025, the EU Import Control System 2 (ICS2) requires pre-arrival electronic cargo information for all goods entering the EU by air, sea, road, and rail (phased rollout completed by mid-2025).

Customs warehousing: Goods can be stored in a customs warehouse (toldoplag) without payment of duties or VAT. While in the warehouse, no customs debt accrues. The warehouse can be public (owned by a warehouse operator accessible to any importer) or private (owned by the importer for their own goods). Goods can remain in the warehouse for an unlimited period. They can be re-exported (no duty), released for free circulation (duty paid at the time of release), or moved to another customs procedure (e.g., inward processing). A customs guarantee is required — typically 100% of the duty amount at risk.

Inward processing (IP): Goods imported from outside the EU for processing, repair, or incorporation into other goods can be imported under inward processing (forædlingsfortoldning) with suspension of duties and VAT. The processed goods must be re-exported within a specified period (typically 6–12 months, extendable). Duties are calculated only on the waste or scrap if any, or on the imported goods if they are not re-exported. IP requires authorisation from Toldstyrelsen and a guarantee. The authorisation can be for individual transactions or for a period (usually 1 year, renewable). The equivalent compensation rule allows you to use EU-origin goods in the processing while exporting the processed goods under IP — the duty is suspended without needing to physically use the imported goods. This is commonly used in manufacturing and electronics assembly.

Outward processing (OP): If you export EU-origin goods for processing outside the EU and then re-import the processed products, outward processing (passiv forædling) allows you to pay duty only on the value added abroad (processing costs, plus any non-EU materials added), not on the full value of the re-imported goods. This is useful for Danish companies that send goods abroad for finishing, repair, or customisation. Authorisation required from Toldstyrelsen.

Temporary admission (TA): Goods imported for a specific purpose (exhibitions, trade fairs, professional equipment, samples, testing) can be imported duty-free under temporary admission (midlertidig indførsel) for up to 24 months. A guarantee is required for the duties at risk. The goods must be re-exported in the same condition (normal wear and tear excepted). The ATA Carnet system simplifies temporary admission for commercial samples, professional equipment, and goods for exhibitions — the ATA carnet serves as both the customs declaration and the guarantee. ATA carnets are issued through the Danish Chamber of Commerce (Dansk Erhverv).

Import VAT and Deferment

Import VAT at 25%: All goods imported into Denmark are subject to import VAT at the standard rate of 25%, calculated on the customs value + customs duties + any other charges up to the first place of destination in the EU. The import VAT is generally payable at the same time as the customs duty.

Postponed accounting (since 2022): As of 1 January 2022, Danish VAT-registered businesses can use postponed accounting (udskudt betaling) for import VAT. Instead of paying import VAT at customs, you report the import VAT on your VAT return as both output VAT (due) and input VAT (deductible) in the same period. This eliminates the cash flow burden of upfront VAT payment. To use it: include your VAT number on the customs declaration, and report the VAT on your return. The VAT number entered on the customs declaration must match the VAT number of the importer in the commercial documents. Toldstyrelsen automatically transmits the import data to SKAT for pre-filling on your VAT return.

Authorised Economic Operator (AEO)

What is AEO: The Authorised Economic Operator (AEO) status is an EU quality mark certifying that your customs procedures are secure, compliant, and reliable. Three types: AEOC (Customs simplifications — reduced guarantees, fewer physical inspections, priority treatment), AEOS (Security and safety — facilitations for security-related customs controls, reduced data sets for entry/exit summary declarations), and AEOF (Full — combined AEOC and AEOS).

Benefits for Danish importers: Fewer physical and document-based customs controls, priority treatment if selected for control, possibility of self-assessment and simplified declarations, reduced customs guarantee (up to 100% reduction for AEOC), lower data requirements for entry/exit summary declarations (AEOF), notification of selection for control before the goods arrive, and mutual recognition with other countries (China, USA, Japan, Switzerland, Norway, UK — for AEOS recognition).

How to apply: Apply to Toldstyrelsen through the EU Customs Decision System. The application process includes a self-assessment questionnaire, a compliance review, a security audit (for AEOS/AEOF), and on-site visits. Processing time is typically 4–6 months. Eligibility requires: no serious or repeated customs or tax infringements, a demonstrated high level of control of your operations and the flow of goods, financial solvency, and (for AEOS/AEOF) appropriate security and safety standards.

Customs Audits and Post-Clearance Recovery

Post-clearance recovery: Toldstyrelsen can audit customs declarations up to 3 years after the goods are released (or up to 10 years if fraud is suspected). If duties are underpaid due to incorrect classification, valuation, or origin, Toldstyrelsen issues a post-clearage demand (efteropkrævning) for the additional duty plus interest at approximately 3.5% annually. If the error was due to the declarant's negligence, the full amount is due. If Toldstyrelsen made the original error and the declarant acted in good faith, the duty may be waived (but only if the importer relied on an official Toldstyrelsen decision, such as a BTI).

Penalties: Intentional misdeclaration (smugling, undervaluation, false origin) is a criminal offence carrying penalties of up to 2 years imprisonment (increased to up to 6 years for organised smuggling). Negligent errors (incorrect classification without intent) carry an administrative penalty of 5–10% of the underpaid duty.

Repayment of overpaid duty: If you discover that duty was overpaid (e.g., wrong CN code used, zero-duty quota should have applied), you can apply for a repayment (tilbagebetaling) within 3 years of the original declaration. Toldstyrelsen must process the repayment within 12 months of the application. Interest on overpaid duties is paid at approximately 2% annually.

Related Guides

• International Trade Guide → — EU sales, exports, imports, EC sales lists
• VAT Registration Guide → — VAT registration, returns, filing
• E-Commerce VAT Guide → — OSS, IOSS, online sales, marketplace rules
• Starting a Business Guide → — CVR, business registration, VSO
• Excise Duties Guide → — alcohol, tobacco, energy excise duties