Reduce the impact of e-commerce return costs.
What is TDR Duty-Free Returns to Europe
TDR Duty-Free Returns to Europe allows businesses to reclaim goods that were previously exported without having to pay import duties upon their return. Essentially, if goods sold internationally are returned, they can re-enter the UK or EU duty-free under certain conditions. This process simplifies returns for merchants, reducing financial losses and administrative burdens.
What qualifies for duty free returns
To qualify for duty-free returns, goods must meet the following criteria:
- Previously exported goods: The items must have been originally exported from the UK or EU.
- Unaltered condition: The goods should be returned in the same condition as when exported, meaning no repairs or modifications were made while abroad.
- Ownership continuity: The goods must remain under the ownership of the same entity that originally exported them.
- Time Limit: Goods must return to the EU or UK within 3 years.
Examples include: Unused clothing returned to online fashion retailers, consumer electronics returned due to buyer dissatisfaction or wrong orders, defective goods sent back for replacement.
Who qualifies for duty free returns
Duty-Free Returns to Europe is particularly beneficial for:
- cross-border eCommerce merchants: Businesses selling goods internationally can avoid additional taxes on returned items.
- Third-party logistics providers (3PLs): Companies managing returns for merchants can streamline their customs process.
- Retailers and exporters: Any company exporting goods that might be returned by customers.
How it works in practice
- Scenario: A EU-based eCommerce store sells luxury handbags internationally. A customer in Canada purchases a handbag but returns it because the color wasn’t what they expected.
- Without our solution: Upon re-entry to the EU, the merchant might need to pay import duties and VAT on the handbag—even though it was already exported from the EU.
- With Duty-Free Returns to Europe: The merchant's broker applies for duty-free importation by providing proof of the original export (e.g., commercial invoice and shipping documents). Customs verifies the documentation and allows the handbag to re-enter duty-free.
What value TDR brings to the process
As your trusted broker in the EU and the UK, TDR ensures a seamless and integrated duty-free return process. Specifically, we keep clear records of exports, including commercial invoices and shipping documents, and submit a claim with customs when goods are returned, demonstrating they meet the eligibility criteria. Additionally, by supporting your operations globally, TDR facilitates duty drawback and duty-free importation worldwide, helping you reclaim duties at every possible point in your supply chain. Discover more ways TDR can enhance your cash flow and benefit your organization.
How Seamless Duty Refund Works
Reclaim what’s yours – Effortlessly recover Customs duties with Trade Duty Refund.
Choose TDR as Your Broker of Choice.
Inform your current carriers to designate TDR as your preferred export and import broker.
We Handle Carrier Connections.
If not already linked with your carrier, TDR will establish the necessary data exchange to manage clearances.
Keep Shipping – We Do the Rest.
Ship as usual while TDR manages inbound and outbound clearances, reclaiming duties at every opportunity.