Retirees living in Germany can benefit from new arrangements reached with the German FMOF

MANNHEIM, Germany — Retired servicemembers who live in Germany as ordinary residents can benefit from new arrangements reached with the German Government regarding duties charged on purchases made in American military exchange and commissary facilities and packages received through U.S. Forces’ post offices.

The arrangements, which took effect Nov. 1, put into law benefits which previously had been agreed to but for which no law existed, said Rula Strumpen with the U.S. Army Europe OPM Host Nation Customs Policy Branch.

The concession, meaning the authorization for retired military personnel to shop at U.S. Forces’ sales facilities, which applies also to surviving dependents, retired Reservists, 100 percent disabled veterans and unaccompanied dependents whose sponsor is serving in a restricted tour area, granted by the German Federal Ministry of Finance Customs Department during the past 50 years has now the force of law, Ms. Strumpen said.

“The ruling applies not only to U.S. personnel, but also to the personnel of the other Sending States Forces in Germany,” she said.

In 1964, the German FMOF Customs Department granted an exception to retired military personnel who live in Germany or who visit Germany for
at least 30 days but are not covered by the Status of Forces Agreement and Supplementary Agreement for Germany. The exception allowed them and their accompanying dependents to shop in Army and Air Force Exchange Service and Defense Commissary Agency facilities.

However, because of the European Community Customs Code, this ruling was always subject to revocation. The new Forces Customs Ordinance codifies that privilege and allows retirees to shop for non-rationed items in AAFES and DECA facilities in Germany, and pay German Customs a flat rate of duty of 17.5 percent for goods that cost less than €50 per item, Ms. Strumpen said.

For purchases of items with a single item sales price of €50 and more, German Customs will apply the 19 percent value-added-tax plus the customs tariff for the item. German Customs personnel will determine what the final rate will be.
Web sites are available to help retirees determine their duty rates. 

A list of the tariff rates used to determine duty rates for specific items in English can be found at www.zolltarifnummern.de. While www.ezt-online.de also provides information on tariff rates it is in German only. 

The euro rate German Customs uses to calculate the value of items is available at www.zoll.de. German Customs will use the euro rate applicable for the month the purchases were made.

Retirees must still report purchases monthly to local German Customs offices and register annually with U.S. Forces Customs-Europe offices, stressed Bill Johnson, Director of the USAREUR OPM Customs Executive Agency, and added that they cannot shop unless they have been issued the so-called pink card by the local German Customs offices.

Another benefit for retirees is the fact that the German FMOF Customs Department agreed for them to use the U.S. Forces postal system and receive packages in Germany up to a value equivalent to €22 without paying taxes or duties, Ms. Strumpen said. She added that efforts are currently on-going with the FMOF Customs Department to work out procedures for declaring parcels/packages to German Customs authorities. The 16 ounce DOD weight restriction when using the U.S. Forces postal system has not changed.

The German FMOF Customs Department has been willing to come to these arrangements because they appreciate the continuing partnership with the USAREUR Provost Marshal as the Customs Executive Agent for the U.S. Forces, she added, and this is also proven by the fact that Germany is the only European Union member state that grants U.S. retirees any benefits.

USAREUR customs officials should take part in community retiree open houses and pre-retirement briefings to help educate U.S. personnel about customs policies and procedures.

Retirees who have questions should also visit their local retirement services or military customs offices.

(Courtesy of USAREUR Public Affairs)