About The Author

Elisabeth Cosmatos

Elisabeth holds a BSc in Maritime Business and Law from the University of Plymouth,UK and she then took a class in London Guildhall University for MSc in International Shipping and Trade.

She joined Cosmatos Group in 1998 while she took over its management in 2005. Through the years, apart of general shipping and port operations knowledge, she has developed considerable experience in project cargo planning and execution, defense and windmill logistics.

She is currently the Managing Director at Cosmatos Group, as well as the President of The Heavy Lift Group.

Elisabeth’s life moto: You can only reap what you had earlier sown!

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By Elisabeth Cosmatos, CEO, HUB Logistics / Cosmatos Group

The growth of solar energy across Southeast Europe is creating a parallel challenge for manufacturers and distributors: how to move increasingly high-value equipment into the region efficiently, while keeping capital tied up in the supply chain to a minimum.

For companies importing photovoltaic modules, inverters, battery storage systems and associated equipment, customs and VAT arrangements can influence the cost, cash flow and flexibility of the entire distribution operation.

This is where Customs Regime 07 in Greece deserves closer attention.

Regime 07 provides for the customs warehousing of goods with VAT exemption, subject to the relevant legal and tax requirements. It can apply to both non-EU and domestic goods and is particularly relevant where goods are ultimately intended for export, intra-community transactions or supplies to VAT-exempt recipients, including certain renewable-energy projects such as photovoltaic parks.

In practical terms, eligible businesses can avoid financing Import VAT upfront while the goods remain under the regime. This can make a significant difference where high-value solar equipment is imported in volume, particularly when there is a gap between arrival at the port and the point at which the equipment is sold, installed or moved on to another market.

Looking beyond the import transaction

The real opportunity goes beyond the VAT exemption itself. It is what the regime can enable when considered as part of a wider distribution strategy.

Solar equipment is often imported in substantial quantities, while demand across different markets can develop at different speeds. Regime 07 allows companies to hold inventory under customs warehousing and release it as and when it is required, rather than having to structure the entire import around an immediate onward movement.

This flexibility can be particularly relevant for large-scale photovoltaic projects. Equipment can be held in Greece while projects progress, with goods cleared and released in line with actual construction or installation requirements. That can help align inventory and cash flow more closely with the timing of the project.

The same principle applies to regional distribution. Greece’s geographic position provides access to the Balkans and wider Southeast Europe, making it possible to consolidate incoming shipments and then direct equipment to different markets as demand develops. Depending on the transaction and applicable requirements, goods can ultimately be destined for the Greek market, an intra-Community transaction, another Balkan market or re-export outside the EU.

This combination of VAT efficiency, inventory flexibility and regional reach is one of the reasons Regime 07 can be advantageous when designing a distribution model for solar equipment.

Making customs work within the supply chain

A customs regime is only as effective as the operation built around it. Compliance and documentation need to be right, but so do stock control, order management, cross-docking and the physical movement of goods.

HUB Logistics, part of the Cosmatos Group, operates a licensed warehouse under Customs Regime 07 and is one of only two companies in Northern Greece certified to provide this service directly to customers.  The practical question for any company considering such an arrangement is how the warehouse fits into the supply chain as a whole: where goods are coming from, where they need to go, how long they may need to be held, and how the customs and VAT arrangements fit around those movements.

For companies looking at Greece as a regional distribution gateway for solar equipment, Regime 07 offers a way to approach the supply chain with greater flexibility. It can reduce the need to finance Import VAT upfront, support phased release of equipment for projects, and provide options for distributing goods across Greece, the Balkans and wider Southeast European markets.

Talk to HUB Logistics, a Cosmatos Group company, for more information on how Regime 07 could support your distribution strategy across Greece, the Balkans and Southeast Europe.