Exporting From Germany

Germany is an export driven market. The main products are industrial goods and services. Germany is known for its machines, which enjoy a very high profile on the world market. Roughly 52% of the German GDP is made up of exports. It will be very helpful for you to know the procedures involved in exporting from Germany, if you are sourcing your goods from there.

Satisfied customers are the open secret of any successful business. Your customers are waiting for the goods they ordered, just as you are waiting for the arrival of the same. Keep yourself informed as lack of information can damage a business.

Your broker takes care of the importing procedures on the home front. Exporting from Germany is a straightforward affair but you will save yourself a lot of trouble, if you know how exporting works. You need to arm yourself with the following information.

VAT or no VAT?
Exporting from Germany is exempted from VAT.

Civil Aviation Authority Regulation: Known or Unknown Shipper
Is the shipper a Known Shipper? If not, an x-ray screening will be necessary. That will add to the cost. There is no fixed tariff as each forwarder has his own listing.

Export Procedures before pick up
If the commercial invoice value is 1000 EUR or more an Export Declaration called ABD is a must. It is a document (PDF file) with a bar code on the top right.

If the invoice value is below 1000 EUR, the commercial invoice is the paper used for export and must be presented to the customs, preferably in the original.

Remember: Export Declaration procedure cannot be done once the freight has been picked up from the shipper’s facility! An advance electronic application is sent to the shipper’s local customs office in order to obtain the declaration. The goods, to which this document is bound, must be physically present in the shipper’s warehouse or facility. The local customs office is determined by the geographical location of the goods and not by where the exporter is located.

Pick up
Pick up can be organised only after the Export Declaration has been done.
Freight forwarders have a time frame for pick up. It is usually 8 a.m to 5 p.m and the freight arrives in the warehouse only late in the evening.

Special Regulation Iran
Exporting from Germany to Iran is governed by a special law. Even if the value is below the above mentioned amount, an Export Declaration is mandatory.

Customs Registration or EORI Number: Pre-export formality
Only companies that have a Customs Registration Number called EORI number can export. It is the task of the exporter to get this registration done and there are no charges involved. If the company has not done this, the management should follow the instructions given on the website of the German customs and send a fax to the office of the registration. The transmission journal can be used as a proof of having applied. This proof is to be sent to the local customs office file submitting the application for export declaration.

Shippers are usually registered and, hence, most of the business houses will have the EORI number. Imports into Germany cannot be processed without the above number. If you are exporting to Germany, remember to make your consignee’s EORI number to your freight forwarder.

Packaging Material
One most important factor you need to know, before getting the goods picked up, is packaging. Your shipper will usually know this. If the packaging is made from wood, it is mandatory that it is made of treated wood. Make sure the shipper uses wood that carries the IPPC logo. If no wood is used this point does not arise.

Try to keep the dimensions to a maximum of 120 x 80 x 160 cm (L x W x H in cm) for long haul flights. Short haul flights may be smaller aircraft and it is better to keep the weight to less than 150 Kg per piece and the height to a maximum of 75 cm. This is the case for small consignments.

Freighter Service
When it comes to large machines, remember not many airlines fly a 747 freighter. MD11 is now the most popular aircraft in use has a hight limitation of 244 cm. This includes the airfreight pallet (also called ULD) under the freight! It is difficult to say anything about the width and length, but it is advisable to keep the width to less than 250 cm.

Flying: Direct or Consolidation
Direct service will have an air way bill addressed directly to you as consignee. You need to have a broker on hand, who can do a customs clearance for you.

When consolidated, your freight is forwarded under a sub way bill, called House Bill (HB) or House Air Way Bill (HAWB). Such a document will be covered by a Master Air Way Bill. The house bill will be addressed to you (the consignee) and the MAWB to the de-consolidator, who is an airfreight agent at destination.

The de-consolidator has to pass on the documents (air way bill and commercial invoice and packing list if any) to your broker for customs clearance. He will enlighten you on the procedures to follow. If you are in the US, either a Single Entry Bond or a Continuous Bond is needed before any clearance can start. Your broker will help you with these formalities.

German Export Declaration

Exports from Germany is, as anywhere else in the world, controlled by the federal customs authority. The local customs office and the one at the airport of departure are the two offices that will, usually, be involved in pre-export formalities. An invoice amount of 1000 EUR or more will mean that an export declaration is mandatory.

The standard procedure for getting an export declaration will involve the following

The Harmonised Customs Tariff Code: The eight digit code as per the harmonised system of tariffs.

The net weight of each item classified.

The total statistical value of each classified item. This will depend on the terms of sale. In general statistical value equals the “FOB value” (within the European borders).

If the terms are DAP or DDP all the charges beyond the European borders need to be deducted from the invoice amount to get the statistical value of the goods.

If the terms are EXW, named place, then the charges up to the European border must be added to the invoice value

The above statement applies, if the terms are FCA, factory facility

The total number of packages and the total gross weight.

The type of packaging used (carton, pallet, crate etc.).

The total gross weight of the consignment.

If several cartons are mounted on a pallet, the number of cartons need to be mentioned in the declaration to customs.

The total invoice value. (No VAT is applied to exports)

It is the duty of the shipper to know, whether there is any form of restriction on the goods! While checking the Electronic Customs Tariff System, please look for any restrictions applied. Example: is the equipment or part of it mentioned in the Dual Use List of the Council Regulation EC 428/2009? If this is the case, the shipper must get in touch with the Federal Office of Economics and Export Control and follow the procedures.

If an export permit is required, apply for it and wait until the original is on hand. The reference number and date will need to be mentioned in the export declaration to customs. The customs can demand the original document be submitted for inspection. In such a case, the commercial invoice must go with the permit.

The Export Permit will NOT accompany the goods abroad. It is to be filed safely.

There are two ways to get the Export Declaration:

1. Send the electronic export declaration to the local customs office and await the electronic reply from there. The reply will be the MRN (Movement Reference Number). Despatch the goods along with all the papers (commercial invoice, packing list, Export Permit, if any) AND the MRN. The customs office will release the electronic export declaration to the applicant, after the goods and the papers are inspected. If the application is rejected, the reason will be provided in the electronic reply. Once the declaration is released, the applicant will receive the document as an electronic file (PDF). The printed document must carry the bar code. If the bar code is not printed in the right format the fond code128 is to be installed and the document printed again. Th bar code is important only, if the export goods need to cross the European border by lorry, as the border customs office needs to scan the document electronically.

2. The second way is to send a declaration to the shipper’s local customs office 24 hours in advance (within the working hours time frame and two hours before the official closing time). The goods will stay at the shipper’s facility, who must give the customs officers a minimum of two hours for inspection, any time after 07:30 a.m. After the two hours time limit is through, the customs office will release the export declaration.

International Shipping to Paraguay – Important Tips Before You Ship Overseas to Paraguay

Located in the middle of South America, Paraguay is bordered by Boliva, Brazil and Argentina. The population of the country is estimated to be around 6.5 million. The capital of Paraguay is Asuncion.

If you are moving to Paraguay or if you are a citizen of Paraguay returning to the country after having been away for a while, chances are you might want to ship some of your personal belongings, furniture, clothing and other household goods. Before shipping cargo to Paraguay, learn some important rules and regulations. For example, any cargo shipment coming into Paraguay that is not a diplomatic shipment will be open and inspected at the port or airport by customs officials.

If you are a citizen of Paraguay returning to the country and interested in shipping goods home, you need to have been living abroad for more than 2 years in order to import personal items duty-free. If you qualify for duty free shipping to Paraguay please note that you will need the following documents:

Your Paraguayan Identification
Identification or something similar for the country you are leaving
A letter or certificate provided by the Paraguayan Consulate at origin

In addition, please note that these documents will need to be given to the Repatriation Office in Asuncion where you will receive a Repatriation Certificate. Also, you are NOT allowed to import a vehicle to Paraguay duty-free.

Temporary Residents Shipping Cargo To Paraguay

If you are not a resident of Paraguay but are interested in shipping cargo to the country as a temporary resident, there is some important information you should know in advance.

You need to obtain a temporary resident permit (valid for up to 12 months) in order to ship household goods and personal items to Paraguay. Please note that you will be expected to pay duty fees and import taxes on your goods.

Foreign Diplomats Shipping Cargo To Paraguay

For foreign diplomatic personnel and individuals working with world organizations: You should plan to be in Asuncion at least three weeks before the arrival of your shipping container in order to receive your accreditation from the Paraguayan Government.

With the diplomatic franchise, you can import your household goods, personal effects, and one vehicle duty-free to Paraguay.

Permanent Residents Sea Shipping To Paraguay

If you obtain a permanent resident permit in Paraguay (valid for up to a decade), you are allowed to import personal effects and household goods duty-free. You will need a Customs Certificate which you can obtain by bringing essential paperwork to the Immigration Office in Asuncion.

Depending on your status, an original residence permit may be required. Required paperwork must first be presented at the Ministry of Interior and the Ministry of Foreign Affairs (MOFA┬┤s) in order for the documents to become legalized. After that, you can present all documents to the Immigration Office in Paraguay.

The customs certificate is only given during the first 6 months after obtaining the residence permit. After this six month period, duties must be paid.

Prohibited and Restricted Items When Shipping to Paraguay

If you are shipping cargo to Paraguay, please note that some goods are restricted or prohibited which include the following items:

Machinery for manufacturing currency
Daggers, hatchets, firearms or swords
Immoral or obscene books, films or other materials
Military equipment, arms, or any machinery used for war

Car Shipping to Paraguay

If you are interested in shipping a car to Paraguay, it is important to be aware that vehicles older than 10 years are not allowed entry into the country.

If you are car shipping to Paraguay, there is some required documentation that includes the following:

Original commercial invoice
Original vehicle title
Proof of permanent residence permit in Paraguay

If you are shipping a car or other type of vehicle to Paraguay, you may be expected to pay duty fees. Duty fees are approximately 35% to 40% over the value established by the Paraguayan Customs Officials. Diplomatic shipments are an exception to this. All diplomatic shipments are still required to pay port taxes.