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!

Background: Due to e-commerce, the import of so-called small consignments has been increasing massively for years. In some cases, foreign exporters deliberately declare fictitious low values. Due to the mass of consignments, this led to a disadvantage for domestic suppliers, for whom there was no VAT exemption. In addition, the treasury lost considerable revenue. For this reason, the EU VAT digital package stipulated that the 22 euro threshold should be abolished on 1 July 2021 and import VAT should be due from the first euro.

Now German customs has introduced the new ATLAS module IMPOST (import clearance of postal and courier consignments). This web application is intended to help manage the increase in customs declarations for small consignments under 150 euros. According to German customs, the advantage of ATLAS-IMPOST is that the clearance processes are largely automated, which is particularly beneficial for e-commerce.

Compared to a standard customs declaration, less data has to be declared and the data exchange between the application participant and customs takes place exclusively via the web application. Incidentally, consignments of goods with a value of more than 150 euro as well as goods subject to excise duty or goods subject to prohibitions and restrictions will continue to be cleared via the specialised application “ATLAS customs handling” (standard customs declaration with full data ring).

Requirements for the use of ATLAS-IMPOST

Unlike the previous ATLAS declaration procedure, IMPOST is a web-based tool. In order to use it, companies must first apply for an “Import One-Stop-Shop” identification number (IOSS-ID). The import application is linked to the IOSS registration. Prerequisite: They must be private end customers. VAT is then calculated directly to the EU buyer at the time of sale and declared to the competent tax authority of the respective member state.

In order to be able to take advantage of ATLAS-IMPOST, companies should contact their local Gerlach advisor for information and to discuss any necessary preparations regarding the correct process flow. Contact us now.

However, there are now some important changes as of 1 January 2022, as reported by the Federal Statistical Office. Some of these changes have significant effects, so we ask you to prepare yourself sufficiently here.

We would like to draw your attention in particular to these two points:

1. for shipments to other EU Member States, the country of origin of the exported goods must be declared as of the reporting month January 2022.
2. for shipments to another member state of the European Union, the VAT identification number (VAT ID) of the recipient of the goods in the country of destination must also be declared in future.

For more information, visit the website of the Federal Statistical Office. Here you can find more information  on this topic.

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.

The tax on plastic carrier bags also affects imports from third countries, such as Norway. It will already be levied at the time of import if the importer is not an Approved Stockholder – i.e. the tax will be paid each time a plastic carrier bag is imported. Being an Approved Stockholder means that the importer must periodically report the tax directly to the tax authorities in a periodic declaration.

According to the Swedish Tax Agency’s definition, a plastic carrier bag is a bag with or without a handle that is made of plastic. It is intended for consumers to pack goods in or carry home and is not intended for long-term use.

Exceptions make tax confusing

This means, for example, that paper bags with plastic handles or with a plastic film that allows the packaged product to be seen must also be taxed. The level for „free import” (import without tax) is 40 plastic bags per occasion.

Tax rate:
3 SEK/piece
30 øre/piece for plastic carriers with a capacity of not more than seven litres and a wall thickness of less than 15 microns (e.g. fruit and vegetable bags)

The tax is not levied on consumer packaging that is not intended for the packaging or transport of goods.

Examples:

• Dog bags
• Garbage bags
• Waste bag
• small freezer bags
• Carrier bags, for example made of paper, where plastic is only an additive of glue or paint used in the production process.

“Gerlach Customs can help you save time and money”

Gerlach Customs sees several advantages for companies that apply to the Swedish Tax Agency for an “Approved Stockholder” permit. One example is that as an Approved Stockholder you pay no tax when the plastic carriers are delivered to a buyer in another EU country.

If you would like help in applying for an “Approved Stockholder” permit or have any other customs questions, please contact us quickly and easily via the contact form.

The US products affected by the duties can be found in the relevant entry in the Official Journal.

The EU additional tariffs are to be imposed as long as the US applies the corresponding safeguard measures on its part.

The following products are affected

• Step 1: goods falling within CN code 9613 80 00 (cigarette lighters and lighters other than pocket gas lighters) and goods falling within CN code 3926 30 00 (fittings for furniture, coachwork and the like, of plastics)
• Step 2: goods falling within CN code 9504 40 00 (playing cards)