Customs regulations in Germany

As in other EU countries, importers in Germany must present a number of documents before allowing foreign goods into the country. These include the commercial invoice, the packing list, the certificate of origin, the waybill for sea freight or the air waybill for air freight.

In addition, it is necessary to register for an EORI number. Only companies with such a number are authorized to import or export goods within and outside the EU. If you are importing goods from the USA to Germany, you should also consider the following aspects:

• Note any restrictions in relation to certain goods
• Apply for an export license if required
• Take into account the applicable customs regulations: Imported goods from the USA and non-EU countries must be declared. The amount of customs duties is regulated in the Customs Ordinance § 29.
• Know all the important requirements regarding the payment of taxes. The contact for this is the General Customs Service. As long as the customs duties and sales tax due on the imported goods are not paid, Customs will retain the goods.
• Disclose the freight price. If this is not apparent, the value of the imported goods is estimated to determine the customs duties.
• Provide transparent information about the payment of freight costs. The key here is who pays the freight charges. If the shipper from the U.S. pays them, it is important that they are listed as line items on the invoice. Otherwise, the importer may be billed twice for the import duty.

Although there are not many restrictions on importing into Germany, some products are subject to additional regulations. These include pharmaceuticals, chemicals, steel and iron products, clothing and textiles, and vegetables and fruits. More detailed information on these and other products can be found in the TARIC database.

In mid-2021, the EU abolished the threshold at which e-commerce transactions in the EU are subject to EU VAT and a customs declaration. This means that all imports to EU countries – regardless of the value of the goods – are now subject to VAT.

An electronic import one-stop-shop portal has been introduced through which non-EU businesses can register for EU VAT and the correct amount of VAT will be paid to the Member State to which it is due. This simplifies the process by allowing you to collect, declare and account for VAT and pay your invoice directly to the EU tax authorities via a periodic tax return (for goods up to a value of €150).

For your customers, this means more price transparency: when they buy from a non-EU seller registered in the One Stop Shop, the VAT is part of the price they pay to the seller.

However, the best tip is: Find a reliable and competent customs service provider like Gerlach. We will take care of all customs-related matters for you and ensure that everything runs smoothly, while you can concentrate on your core business!

Export to Europe – why?

Over 748 million people call Europe home. The continent’s 47 countries have a wide range of socioeconomic demographics, but there is one commonality that should be of interest to ambitious online entrepreneurs: the rapid growth of e-commerce.

Driven by rising Internet penetration – and the pandemic, of course – 2021 was a milestone year for e-commerce in Europe, as the number of online shoppers passed the 500 million mark for the first time. And now the part that should really interest you: Cross-border e-commerce in Europe has grown to more than 25% of the region’s total online sales, as consumers increasingly look to foreign brands in search of new products and better prices.

In 2016, the Transatlantic Trade and Investment Partnership (TTIP), a proposed comprehensive trade agreement between the European Union (EU) and the United States to promote trade and economic growth, ended without an agreement. Nevertheless, the U.S. and the EU remain solid trading partners, accounting for one-third of global trade.

However, before you rush to draw a big circle around Europe on your map of sales targets, there are a few important things to keep in mind.

Choose the right markets for your business

The largest e-commerce markets in Europe are the United Kingdom, France, and especially Germany. Consumers in these markets are used to shopping online and feel comfortable buying from sellers abroad.

Perhaps you are already receiving inquiries from potential customers abroad. Look at your web analytics – is there traffic from new markets you haven’t tapped into yet?

Research your target country thoroughly. Is the demand for your products high enough to make shipping there a worthwhile investment? If there is already a lot of competition from domestic suppliers, how can you align your business to stand out from the competition?

Look at which European markets your U.S. competitors are selling to – because if they’re shipping to a particular country, there must be a healthy customer base there.

A good strategy for your European expansion is to focus on a few select markets first, like Germany. Then you can focus on the markets with the best visible results and expand there. But please note: Depending on your business model, you also need to consider tax aspects. For example, tax registration may be required in the respective country. It is best to seek comprehensive advice from competent experts with many years of customs experience.

Whatever your business, contact Gerlach Customs today! We help you reach new international markets with minimal effort and maximum profit.

Here we would like to briefly explain three essential aspects regarding the customs clearance of goods.

1) Third country: The USA is a third country for Germany. In terms of customs and foreign trade law, exports from Germany to the USA are therefore equivalent to any other export to a third country.

2) Tariff level: The tariff level is basically low. Exemption from customs duties is provided in the customs tariff for some products from the agricultural sector. In the commercial sector, many goods are also duty-free, for example in the areas of machinery and apparatus and electrical goods.

3) Responsible customs authority in the U.S.: Responsibilities for the regulation and monitoring of international trade in the U.S. are divided among several federal agencies. There may also be different ancillary costs depending on the state.

Conclusion:

Taking into account all the rules and regulations, it is therefore important to submit all the required documents correctly and in detail, as well as to comply with the requirements. To ensure a smooth and time-saving process, it is recommended to hire a good and experienced customs service provider like Gerlach.

Do you have any further questions? We at Gerlach will be happy to support you!

The importing company was under great pressure. On the one hand, the customer received hardly any reliable information from the Far East as to whether the goods could even be produced and, if so, whether they would still arrive in Germany on time. This is because the BMG allocates fixed delivery slots; if these are not adhered to, the purchase contract is automatically cancelled by the Federal Ministry. On the other hand, the authorities were eagerly awaiting the urgently needed protective masks with which medical personnel throughout Germany would be protected against the dangerous Covid 19 viruses. But then suddenly everything had to happen very quickly.

Suddenly everything had to go quickly

The importer was informed at short notice from China that the goods were on their way to Germany. The delivery to the BMG could just barely go ahead if all parties involved would now give their best. Fortunately, he had chosen Gerlach Customs for the customs arrangements. The experts at Europe’s leading neutral customs service provider had already prepared everything and were now working flat out. As delivery had to be made the next day due to the fixed appointment slots, it was clear that the goods had to be loaded at 4 a.m. at the latest. A Gerlach employee from the compliance department did not hesitate for long and immediately pulled out all the stops to help the customer. In record time he processed the import declaration, made a few telephone calls with the handling agent and customs, until finally customs clearance was granted and the goods reached the Federal Ministry of Health in time.

The customer was enthusiastic about the professional work and commitment of the customs experts from Gerlach Customs. He will continue to handle further shipments of masks and protective equipment with Gerlach in the future. After all, he has experienced for himself how important it is to have a partner at his side who helps quickly and without complications – no matter what the circumstances.

Gerlach is the all-in-one solution for the import and export of goods – no matter how complex the requirements are. With over 750 customs experts, the company covers the entire spectrum of customs services: From import, export and transit customs clearance to complex customs solutions, supply chain evaluation and customs consulting.

Despite the restrictions, there is still the possibility of granting special permits. The Federal Ministry of Economics and Energy cites several case constellations, including for concerted relief actions or support for calls for help from the World Health Organization’s Global Outbreak Alert & Response Network.

From a broken skateboard to an internationally operating company

Around six years have now passed and the startup company has continuously expanded its product portfolio. Victim Brand’s customers are no longer just friends and acquaintances. Thanks to its own online shop, the startup sends mobile phone cases, charms and bracelets throughout the EU. However, when a major customer from Switzerland showed interest in Victim Brand’s products, the company sought competent support from Gerlach Customs – the leading neutral provider of customs services in Europe. “Since Switzerland is a third country and not a member state of the EU, sending goods to Switzerland is very complicated. With the help of Gerlach, I was able to declare the export quickly and complete the order,” Wiktor Stec is pleased to report.

Exporting companies receive an all-round carefree package from Gerlach: The customs experts take care of the export declaration of the goods to be exported, assist with enquiries and notifications from the customs authorities, provide support in proving complete export documents and archive all relevant documents. In other words: The entire export handling is in the best hands with Gerlach.

“The process of customs clearance for the export of goods consists of many small steps. You can quickly lose track of everything and in the worst case you can lose a lot of time and money”, Daniel Tummes, Teamlead Sales & Marketing Gerlach Customs, points out. “I am glad that Victim Brand contacted us for this exciting task and that we were able to accompany the young company throughout the entire customs procedure. We are proud that we can continue to contribute to making Victim Brand’s great products available internationally.

“We are very well advised by the customs experts of Gerlach”

With Gerlach at his side, Wiktor Stec also sees himself well positioned for future challenges: “We are very well advised by Gerlach’s customs experts and can trust them. It is a good feeling to work with a competent and reliable service provider”. And this good feeling is important, because Victim Brand has a lot of plans for the future. In the future, the company wants to further optimize its production processes and develop new, sustainable products to make the world a little more colorful bit by bit.

Thanks to the cooperation with Gerlach Customs, nothing stands in the way of Victim Brand expanding its business. A path that began in a garage in Wilhelmshaven and now increasingly leads beyond the borders of Germany and the EU.

We have prepared a free whitepaper for you with the new rules, the most important terms and the changes to the previous version of the Incoterms®. On this page you can find out more: Click here to go to the Incoterms 2020.

Looking at the global economic situation, we observe increasing political uncertainties and the resulting increase in trade barriers. In our business segment and for many of our customers, the issue of Brexit and its potential impact on customs and trade is a priority. There has been a very strong increase in customer enquiries about Brexit. We have prepared well for Brexit in recent months. In this way we can advise our customers accordingly and offer possible solutions.

Furthermore, we are experiencing a major shortage of human resources in the customs area. Although we as Gerlach with our profound customs expertise are seen as an interesting employer. The shortage of skilled workers is as challenging for us as it is for the entire market.

Finding and retaining good employees is very important to us. We have therefore been training customs employees ourselves for many years and train them in the wide range of customs procedures. I personally promote “lifelong learning” in my area of responsibility. My employees, but also myself, constantly refresh our knowledge – through internal and external training, participating in expert forums and working groups.

Are there any new regulatory events – customs related – happening in your environment that customers should know about?  

On May 1, 2016, the Customs Code of the European Union (UCC) entered into full force and replaced the Community Customs Code in force since 1992. The aim of the UCC is to meet the increased security requirements as well as the simplification and digitisation of customs procedures.

Although the UCC means that some companies have to meet stricter requirements, they can also benefit from many of its advantages. For example, the requirements for an AEO authorisation have tightened in some respects – such as personal guarantee, financial solvency and security.

"Although the UCC means that some companies have to meet stricter requirements, they can also benefit from many of its advantages."

We, at Gerlach are well positioned with regard to the changes and requirements of the UCC and can provide our customers with competent and salient advice so that they can benefit from the advantages of this reform.

What makes you very proud of your team right now?

Particularly in the light of the intensive Brexit preparations, it has made me very proud to see how our team has been able to advise the customer quickly and comprehensively. Our talented IT colleagues, together with our customs experts, quickly worked out solutions that enable automatic and scalable processes. I am very proud of my Team!

Furthermore, I am very proud to see how we, as a team manage to help companies with their expansions and experience the fascination of “trade” live on a daily basis. I see us as “architects” – we help the customer to realise his ideas – by listening, planning, advising and implementing.