In this edition of “Ask the Experts”, we are honored to have international trade and customs expert Elke Rödel give us insights on Returned Goods Relief, helping cross-border retailers navigate the complexities of exporting and re-importing goods across borders.

Returned Goods Relief (RGR) is a customs relief that allows businesses to re-import goods into a country without paying import duties, provided certain conditions are met. This relief applies when goods are returned after being exported, and no significant changes have been made to them while they were abroad.

Elke Rödel, a Trade Duty Refund partner and a Customs Consultant with Cronas based in the Netherlands, has significant expertise in customs duties within the European Union. We conducted a rapid-fire Q&A with her to gain foundational knowledge about RGR.

Can you briefly describe RGR and what the immediate benefits are?

Returned Goods Relief allows importers to avoid paying duties on goods returned to the European Union. Goods eligible for RGR are those that originated within the EU Customs Union or were in free circulation in the EU, were exported, and then re-imported. This ensures businesses do not pay duties twice on the same goods, provided they were in free circulation before export.

Compared to duty drawback, RGR enables companies to apply for duty exemption upfront, eliminating the need for the lengthy process of reclaiming duties later.

It seems like global businesses could really benefit from RGR. What are the eligibility requirements?

RGR is applicable to most goods, although specific requirements exist for agricultural products, which may necessitate expert advice. Goods shipped from bonded warehouses must meet certain conditions—free circulation goods can be shipped from bonded warehouses, but goods under bond are not eligible.

Other key criteria include:

• Timing: Goods must be returned within three years of exportation.
• Traceability: Proper documentation, including export declarations, sales invoices, and credit invoices, is essential.

RGR is applicable to goods returned from outside the EU, including countries such as Switzerland, the United Kingdom, and the United States.

If it applies to most goods, it sounds easy enough for EU companies. What might be some of the challenges they face?

Challenges often arise from traceability. For example, B2B bulk shipments may struggle with proper documentation, while e-commerce returns might benefit from more transparent logistics data.

In sectors like fashion, customs authorities may require item-level identification. Additionally, starting the RGR process without proper preparation or expert guidance can lead to compliance issues and potential financial penalties.

Common challenges include:

• Data mismatches between export and import declarations (e.g., HS code classifications or quantities).
• Discrepancies in pricing between export and return transactions.
• Errors in claiming more goods than originally exported.

What about regulations and any future considerations companies should keep in mind?

Customs regulations are evolving. The EU Customs Authority is planning significant changes, including more precise item identification requirements, which may be implemented as early as 2026.

To stay ahead, companies should consult with experts to understand pending regulations and their impacts. Retailers and e-commerce platforms should also explore automation and integration opportunities to simplify compliance and reduce administrative burdens.

These are all great recommendations. What would be your advice to companies that are eligible for RGR and looking to start this process?

As we approach the new year, it’s an ideal time for companies to organize their processes. Begin by evaluating your technology stack—for instance, e-commerce companies could integrate RGR processing into logistics operations. Automation can streamline data management and enable the use of unique reference numbers.

Engaging professional consultants or third-party experts is strongly recommended. Experts ensure compliance, mitigate risks of sanctions, and guide companies through the RGR process with precision and efficiency.

RGR is one of the key solutions provided by Trade Duty Refund worldwide. Alongside RGR, TDR also offers Duty Drawback services, creating a unique end-to-end duty cost mitigation strategy tailored for the e-commerce supply chain. Contact us at contact@tradedutyrefund.com or visit our website to learn more about managing returns and how to claim back customs duties on returned items.