Duty suspension allows goods entering a country’s customs territory to be conditionally released for free circulation while exempting them from import levies normally due.
Eligibility Conditions:
- Suspension applies solely to goods destined for authorized specific uses like manufacturing, not final consumption
- Security like surety bonds guaranteeing future duties are required to safeguard potential government revenue
Example:
By obtaining duty suspensions for specialty chemicals imported and consumed in its domestic pharmaceutical production, the company minimized costs rather than paying import duties upfront on each shipment.
Key Considerations:
Coordinating approved usages and audits monitoring suspension rules prevent revenue evasion while temporary exemptions stimulate just-in-time inventory strategies and industrial competitiveness versus foreign goods incurring full import duties immediately.