Here’s a comprehensive guide for exporting goods from Germany:
Find a market and a buyer
If you want to export goods outside the EU, you need to find a market and a buyer for your product, first. It will help you in finding out suitable markets for your product by offering you information. Additionally, it will assist you to discover the necessities of your purchaser. For example, registration or licencing requirements to engage in the buying and selling of certain goods, or some other sphere of the economy. The qualification of your buyer to assume the role of importer and thus bear responsibility for the introduction of your product into the destination country and its market is of fundamental importance, as the buyer will usually be the importer.
Know the export regulations
Legal Framework: The German Foreign Trade and Payments Act (*Außenwirtschaftsgesetz, AWG) and the EU regulations govern German exports.
Export Controls: There may be special permits required or restrictions placed on some goods. These include goods which can be considered military or which are dual-use. Contact BAFA (Federal Office for Economic Affairs and Export Control).
Obtain necessary licenses
Trade License: As required for your business type.
Export Permits: Some goods will require BAFA or other authority for export authorization.
Classify your products
You can use the Harmonized System (HS) Code to correctly classify your products.
Check EU customs regulations compliance but with TARIC (Integrated Tariff of the EU).
VAT and tax considerations
VAT Exemption: VAT-exempt export to outside the EU is normal.
Documentation: Proof of export is required to retain for VAT compliance.
Intrastat reporting: If you export within the EU and exceed certain trade thresholds, you will then need to apply for this.
Export documentation
Key documents include:
Commercial Invoice
Buyer and seller, product description, quantity, price, and payment terms.
Packing List: The contents of the shipment.
Certificate of Origin: It proves where goods were manufactured.
Bill of lading/Air Waybill: Your logistics provider’s shipping document.
Export declarations: For non-EU exports, submit through the ATLAS (Automated Tariff and Local Customs Processing System).
Choose a shipping method
Freight Forwarder: It often simplifies logistics and customs processes.
Incoterms: Specify what are the trade terms, FOB (Free on Board) or CIF (Cost, Insurance, and Freight) to define responsibilities.
Customs clearance
EORI Number: You need an Economic Operators Registration and Identification (EORI) number if you want to do customs procedures.
Customs declarations: Filed through ATLAS or by your freight forwarder.
Duties and tariffs: Trade tools like the WTO Tariff Database enable you to check destination country tariffs.
Manage payment and Insurance
Payment terms: You should use secure methods such as Letters of Credit or bank guarantees.
Insurance: insure export against the risk of shipping and get export insurance.
Comply with destination country rules
Check import regulations, labelling requirements and standards in the target market.
Research with local partners or consult with international trade agencies.
Seek professional advice
Seek advice from a Chambers of Commerce, an export promotion agency or a legal professional for custom advice.
Available are resources and support for exporters from the German Chambers of Commerce and Industry (DIHK) and Germany Trade & Invest (GTAI).
What are the constraints in your export market
You also have to make sure that the country to which you want to export does not forbid or restrict entry into the country or put on its market of your product. Your buyer will normally take on the responsibility for the import as well as the utilisation or marketing of your product but you should be aware of import prohibitions and import restrictions in the import country for successful and sustainable transactions.
What tariffs does your product fall under
When your product is put on the export market you may have to pay tariffs.
If you have an agreement with that buyer, then you can leave it to the buyer to do the import clearance. After he pays the customs duties and the taxes and other duties due at importation. Remember that the latter will increase the price of your product in your export market. That so-called landed cost should still be competitive.
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