As Monaco is very small, there is very little domestic production and having only very little domestic production is reliant on imports to meet its requirements. Though Monaco is not part of the European Union, its customs are governed by European Union or EU customs regulations Monaco is extremely closely integrated with France. Here are the key points about import duties in Monaco:
Customs union with France and the EU
Monaco is a customs union with France so Eu customs rules and tariffs apply. In this respect, the goods entering the EU are treated normally in Monaco. Customs duties are non-applicable on goods passing between Monaco and EU countries.
Imports from Non-EU countries
EU customs duties are applied to all goods imported into the EU. The rates of duty vary according to the product in question and vary according to the EU Combined Nomenclature (CN) code.
Value-added tax (VAT)
Monaco uses the French VAT System and a 20% standard VAT rate. In addition, there are specific reduced rates of 10 percent, 5.5 percent, and 2.1 percent on certain goods and services, such as food, medicine and books. An item is charged VAT on the total value of the item (that is, cost of goods, shipping, insurance, customs duty etc.).
Excise duties
These goods are in addition to these, subject to additional excise duties and EU excise tax rules for goods such as alcohol, tobacco, and petroleum products.
Exemptions and thresholds
Low-Value Imports: Customs duties for amounts of less than €150 may be excluded, but VAT must still remain applicable.
Personal Exemptions: If the total value of goods is less than value limits and the quantity of goods is less than quantity limits for personal use, goods may enter duty-free.
Customs documentation
Therefore, in order to facilitate, the importers are obliged to provide the customs documentation such as commercial Invoice, bill of lading and certificates of origin.
Luxury goods
Luxury is what Monaco is known for. The principality imports luxury goods-related packaging in a wide variety of forms including high-end fashion and accessories, jewellery, watches, perfumes and cosmetics.
Vehicles
Monaco is an automobile-oriented place and many Monaco residents own luxury cars and supercars. Luxury cars, sports cars and motorcycles are a few of the vehicles that were brought into the principality.
Electronics and technology
Monaco imports e.g. smartphones, computers, televisions, audio equipment and home appliances.
Construction materials
In Monaco, construction projects tend to limit themselves in space, and some needs need to be provided like importing building materials: like steel, concrete, glass and so forth.
Energy
Monaco has few domestic energy products and therefore relies on imported energy including electricity and fuel. It should be noted also that the French and Monegasque territories part of the Franco-Monegasque customs convention of 18 May 1968. As part of a customs union France is part of France, integrated with France, and adheres to European Union (EU) customs rules although it is not part of the EU.
In addition, goods coming into Monaco, as well as goods originally making their way outside the EU and into the Principality, also require special treatment regarding their nature.
Imported works of art and collectors’ items and antiquities were brought into Monaco. By the criteria set out in article A-187 A of the appendix to the Tax Code are taxed at 5.5%. Upon the CIF value and are subject to no customs duty. Other objects, not original works of art, or collectors’ items, will be charged customs duties and VAT at the rate of 20%, after 100 years.
Under certain conditions, works of art are imported with a principal residence duty and tax-free. If the importing person qualifies as a foreign resident for at least 12 months prior to move and has owned the goods for 6 months prior to move, and the goods are imported within 12 months of move.
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