Glossary
Updated January 2026
We have created a glossary of the most common aviation terms and words relevant to customs work and flying in the European Union.
6th VAT Directive
Council Directive 77/388/EC, known as the 6th VAT Directive, was the main basis of the system of Value Added Tax in the European Union. It was amended on many occasions and replaced on 1 January 2007 by a single consolidated text, Council Directive 2006/112/EC, also known as the VAT Directive.
Air Operator Certificate (AOC)
Air Operator Certificate. Airlines and charter companies all hold an AOC or a similar certificate, such as a Part 135 certificate.
ATA Carnet
Customs document used for transit and temporary importation of goods for a specific purpose, e.g. for displays, exhibitions and fairs, professional equipment, and commercial samples.
ATR.1 Certificate
C88 Import Form
Import details are usually collected through submission to Customs of the Single Administrative Document (SAD). This document, in the same format, is used throughout the EU to declare imports, with each EU Member State having it printed in its own language. In the UK, it is known as Form C88. See also IMA.
Cabotage
In relation to the EU and VAT, cabotage is the transport of goods or passengers between two points within the EU by an aircraft registered outside the EU. Most EU member states do not permit cabotage flying by non-EU-registered aircraft without proper documentation. Please note that the nine so-called Freedoms of the Air are not related to VAT issues. See also Freedoms of the Air.
Chicago Convention
Corporate Flying
In relation to VAT, corporate use involves all flying undertaken by a company engaged in economic activity, such as flying a corporate jet with employees and board members. It is usually defined as private flying by aviation regulators.
Customs Duty
The customs duty is 0% for all aircraft already registered and airworthy when imported into Denmark. In other EU member states, the duty may be 0%, 2.7% or 7.7%, depending on weight and type of registration.
Customs Code
EU customs legislation is contained in the Customs Code and the Code’s implementing provisions. Implementing powers are conferred on the EU Commission.
Union Customs Code (UCC)
The new EU Customs Code, the Union Customs Code (UCC), became effective on 1 May 2016. The Union Customs Code serves as the foundation for all customs work in the EU, and all EU member states must amend their national customs laws to align with the new customs code.
Customs Warehouse
A place authorised by customs for the storage of non-community goods under duty and VAT suspension.
End-Use
Certain goods entered for “free circulation” at the time of importation may be granted favourable tariff treatment on condition that they are put to a prescribed end-use.
EU
The European Union consists of 27 independent member states:
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Ireland
Italy
Latvia
Lithuania
Luxembourg
Hungary
Malta
Netherlands
Poland
Portugal
Romania
Slovenia
Slovakia
Spain
Sweden
EU - Special Member State Territories
The following territories are not a part of the EU:
- Greenland ,together with a series of British, French, and Dutch overseas territories, e.g., New Caledonia, the Netherlands Antilles, and the British Virgin Islands
- Faroe Islands
- The Channel Islands, including Jersey, Guernsey, Alderney, and Sark
- Andorra, San Marino, and the Vatican City
The following are EU territories outside the VAT area:
There are a number of territories within the EU that are not part of the EU VAT area
- Finland: Åland Islands
- France: Overseas departments, including French Guiana, Martinique, Guadeloupe, and Réunion
- Greece: Mount Athos
- Italy: Livigno, Campione d’Italia, and the Italian part of Lake Lugano
- Spain: Ceuta, Melilla, and the Canary Islands, including Gran Canaria, Tenerife, Fuerteventura, Lanzarote, and Gomo
- Germany: Helgoland and Büsingen
- Great Britain: Gibraltar
- Cyprus: Northern Cyprus
The following are countries outside the EU but within the VAT area
A number of countries and territories outside the EU are considered part of the EU VAT area:
- Monaco
- Isle of Man
- Cyprus: The UK Sovereign base areas, including Akrotiri and Dhekelia
EUA Import Form
Import details are usually collected through submission to Customs of the Single Administrative Document (SAD). This document, in the same format, is used throughout the EU to declare imports, with each EU Member State printing it in its own language. In mainland Europe (except the UK), the import form is called the EUA when the aircraft is imported from Norway, Switzerland, or Liechtenstein. Until 2008, the form was called IM4. See also C88 and IMA.
Exportation
An export document is the official proof that an aircraft has left the EU, for example, in connection with a sale to an entity outside the EU.
Free Circulation
The term Free Circulation is often used for imported goods that have been released for free circulation after payment of the applicable import duties. Please note that the nine so-called Freedoms of the Air are not related to VAT issues. See also Freedoms of the Air.
Freedoms of the Air
A set of commercial aviation traffic rights granting a country’s airline(s) the privilege to use another country’s airspace. These were formulated following disagreements over the extent of aviation liberalisation during the Convention on International Civil Aviation of 1944 (known as the Chicago Convention). The Convention resulted in a multilateral agreement in which the first two freedoms, known as the International Air Services Transit Agreement (IASTA), or the Two Freedoms Agreement, were open to all signatories. Since then, additional Freedoms of the Air have been added. The treaty is accepted by more than 128 countries. Please note that this is not related to VAT importation issues.
Import Control System (ICS)
The Import Control System (ICS) is operated by European Customs Services to ensure the security of international trade and combat terrorism, and runs in parallel with the import process. From 1 January 2011, any aircraft entering the customs territory of the Union – where the purpose of the flight is importation – must be cleared in advance in the ICS system before entering EU territory. OPMAS will, of course, handle ICS clearance in Denmark as part of the importation process.
IM4 Import Form
Import details are usually collected through submission to Customs of the Single Administrative Document (SAD). This document, in the same format, is used throughout the EU to declare imports, with each EU Member State having it printed in its own language. In mainland Europe (except the UK), the import form was called IM4 until 2008. From 2008 onwards, the form is called the IMA. See also C88.
IMA Import Form
Import details are usually collected through submission to Customs of the Single Administrative Document (SAD). This document, in the same format, is used throughout the EU to declare imports, with each EU Member State having it printed in its own language. In mainland Europe (except the UK), the import form is called the IMA when the aircraft is imported from any country except Norway, Switzerland, and Liechtenstein. Until 2008, the form was called IM4. See also C88 and EUA.
Importation
An import document is the official proof that an aircraft has entered the EU and that EU VAT and duty have been handled correctly. An import document issued by OPMAS is a typed original import form that is always stamped and signed by customs and serves as an effective “VAT passport” in all EU member states.
Intrastat
Intrastat is the system for collecting information and producing statistics on the trade of goods between EU member states. Intrastat began operations in 1993, when it replaced customs declarations as the source of intra-EU trade statistics.
Istanbul Convention
The Istanbul Convention of 1993 combines all existing conventions on temporary admission and importation and aims to simplify and harmonise temporary importation procedures.
Private Flying
In relation to VAT, private flying refers to non-corporate flying, such as a private owner using their aircraft primarily for private purposes (e.g., leisure trips).
Single Administrative Document (SAD)
The Single Administrative Document (SAD) is the basis form for customs declarations, such as importation or exportation, in the EU and in Switzerland, Norway, and Iceland. See also IMA and C88.
T1 Transit Document
The T1 transit procedure enables goods to move freely through EU territory to a specific destination where importation will take place. It involves a temporary suspension of the duties and taxes normally due on goods imported into the customs territory of the Union.
T2L Form
The T2L form is used throughout the EU and in Switzerland, Norway, and Iceland for the control of imports, exports, and goods in transit. It is often used to document that an aircraft bought and delivered in an EU member state is in free circulation.
Temporary Admission
Temporary Admission is limited to six months per entry. The aircraft must be owned and registered outside the EU.
Value Added Tax (VAT)
Value Added Tax (VAT) is a “sales” tax levied on the supply of goods and services within the EU and on the importation of goods from outside the EU. Each EU member state has its own national VAT rules, which are often interpreted differently.
VAT Information Exchange System (VIES)
The VAT Information Exchange System (VIES) is used to control all intra-EU VAT transactions between companies registered for VAT in the EU.