Brief overview on exporting to non-EU member countries

When trading with non-European Union member countries, certain special points have to be observed. These special points do not represent any kind of obstacle, provided they have been taken into account prior to the business transaction. The following notes are intended to help you to avoid any difficulties.

Prerequisites for conducting export business

  • Registration of business at the local Ordnungsamt [Public Order Office] - pay attention to the correct registered name of the firm.
  • Registration in the Commercial Register for companies exceeding a certain size, or always in the case of limited liabilities companies (AG, GmbH), or partnerships (OHG).
  • Citizens from non-EU member countries require a residence permit that also allows such individuals to be self-employed.

What special points have to be observed?

It goes without saying that on receipt of an order, it has to be verified whether those conditions negotiated have been complied with.
  • Terms of delivery
When trading with non-EU member countries, costs and risks arise (transport, insurance, customs). The sharing of such costs and risks has to be regulated in advance between the exporter and the foreign importer. These delivery conditions are often internationally standardized by means of INCOTERMS 2000.
  • Terms of payment
The payment terms can range from payment in advance to payment with a long-term payment target. The exporter's payment security may also be safeguarded by issuing an irrevocable, letter of credit confirmed by his bank. The foreign importer instructs his bank to open the letter of credit in favour of the exporter. Economic and political risks may partially be insured against by means of government export guarantees (Hermes coverage, Internet: www.agaportal.de/pages/aga/). Other possibilities should be discussed in advance with the house bank.
  • United Nations Convention on Contracts for the International Sale of Goods (CISG)
The CISG was introduced especially for the international movement of goods. It frequently applies even without a specific agreement, and can act as a common basis for the contractual parties. Individual provisions can be amended. The CISG is available in all major trading languages. The trading partners should be aware of its contents and consequences.

German export regulations

  • Customs
In the event that an exporter exports on a regular basis, then he has to apply for a customs number at the Bundeszollverwaltung [Federal Customs Administration]. This number is used for identification purposes, and provides the address of the firm concerned, permits issued and network connections available to the firm, taking into account data protection laws. In other words, it serves as source of information and assistance for the customs. In general, exporters have to provide a written Ausfuhrerklärung [Export Declaration] for the export of goods exceeding a value of 1,000 Euros or a weight of 1,000 kilograms. A service provider, e.g. a freight forwarder, may be commissioned to carry out this task. Advice on how to complete the Single Administrative Document can be found under the heading "More" customs forms to be completed in typewriting. As an alternative, the customs declarations may be made via the Internet:
Please note that as of 01.07.2008, the export declaration is no longer possible in paper form and that only the electronic form (ATLAS-AES procedures) may be used.
For goods with a value in excess of 3,000 Euros, the export declaration has to be cleared in advance by the local responsible customs office. Exception: When shipping by post or rail, the export declaration has to be cleared in advance by the domestic customs for values of 1,000 euros and more.
The export declaration consists of three copies. The first two copies are retained by the responsible customs office. The third copy accompanies the consignment to the EU's external border, where the customs office at the point of exit confirms that the goods are leaving the EU. This third copy of the export declaration also serves as proof that the consignment is exempt from value added tax.
A customs tariff number is necessary for the declaration of each product. In order to enable classification, it is necessary to provide a precise declaration of the products in accordance with the "Warenverzeichnis für die Außenhandelsstatistik" [Goods Directory for Foreign Trade Statics] - the latest version is to be found under "External Links". The tariff number also determines other necessary customs handling formalities.
  • Export control
It is generally not permitted to supply countries subject to a country embargo. In addition, certain goods require an Ausfuhrgenehmigung [Export Permit]. This not only applies to weapons, but also in particular to goods used in the production of both conventional and NBC weapons, as well as for technologies that are of strategic importance. These products are, in part, described in the Ausfuhrliste [Export List], and in general require a permit. This also applies to the items covered by the EU Dual Use Directive. Such goods are included in the export list. Even if the goods are not covered by the export list, a permit may be required if the exporter has knowledge of an intended military use of such goods. It is frequently the case that technical expertise is necessary to determine whether a permit is required. The export list can be reviewed with the help of the Umschlüsselungsverzeichnisses [Conversion Table] in order to determine whether the customs tariff number of the product is included. The responsible licensing authority is the Bundesamt für Wirtschaft und Ausfuhrkontrolle (BAFA) [The Federal Office of Economics and Export Control], Eschborn, Tel.: 06196 908-0.
An overview on the topic of export control can be found on the right of this text under the heading "More".

Foreign regulations

  • Depending on the particular type of goods, many different documents, stipulated in the agreed terms of delivery (see Point 2.), have to be submitted in the relevant foreign country, some of which have to be drawn up by the exporter. Foreign customs authorities and customers stipulate commercial invoices, certificates of origin (issued by the Chamber of Commerce) and import licenses.
  • The recipient may benefit from tariff savings through preferences and the Warenverkehrsbescheinigung [Movement Certificates] (EUR.1 / Declaration of Origin, A.TR) connected with them. Furthermore, there are some, in part, detailed regulations pertaining to packaging and marking.
  • Additional assistance is also provided by: "Konsulats- und Mustervorschriften (K und M)" [Consulate and Specimen Regulations] published by the Hamburg Chamber of Commerce; supplied by C.H. Diekmann, Hamburg; ”Begleitpapiere für den Außenhandel" [Accompanying Documents for Foreign Trade], Mendel Verlag, Witten, "Importbestimmungen anderer Länder" [Import Requirements of Other Countries], Formularverlag CW Niemeyer. Whenever possible, the importer in the country of destination should bindingly stipulate which documents are required for customs clearance, and where appropriate these requirements should be observed in the letter of credit. In the case of a letter of credit, it is recommended to examine in advance whether these points can be complied with prior to acceptance.
  • Depending on the country of destination and nature of the goods, pre-shipment inspection may be necessary before exporting, or there may be certain certification requirements.

goods tariff number

All goods are ”ranked" in the Warenverzeichnis für die Außenhandelsstatistik [Goods directory for Foreign Trade Statistics], a harmonized system for classification purposes. This directory is available in bookshops, and is updated on a yearly basis. If you do not have such a goods directory, then you can refer to it at the Chamber of Commerce. The German customs call centre at:
​​​​​​​Informations- und
Wissensmanagement (IWM) Zoll
Carusufer 3-5
01099 Dresden
Telefon: 0351 44834-530
Telefax: 0351 44834-590
E-Mail: enquiries.english@zoll.de
Opening
Monday to Friday, 08:00 -17:00 Uhr
is also a source of qualified information, albeit non-binding, where experienced customs officers are available to answer your questions.
If you would like to receive binding details about the goods tariff number (customs tariff number), you can apply for free-of-charge tariff information. The form can be found in the left column. All customs office activities depend on the correct classification of goods in the customs tariff (tariff classification), such as
  • The level of assessment rates (customs duties, agricultural components, excise taxes, import turnover tax)
  • Use of quotas
  • Any possibly required import or export permits, certificates of origin or other documents
  • Applicability of various regulations pertaining to prohibitions and restrictions.

Customs tariffs for export

In foreign business transactions, the duty in the country of destination of the goods plays a major role in the pricing and stipulation of the terms of delivery and payment. Customs tariffs for export are to be found in the European Union's Market Access Database.

Temporary use abroad

This issue is especially relevant for professional equipment, commercial samples and exhibition items. Should these products only be exported to another country on a temporary basis, then the foreign customs require a security equal to the normal import duty in the respective local currency, usually in the form of cash-payment. As an alternative, in some 50 countries a Carnet ATA / CPD may be used. The relevant countries are listed in the Länderübersicht [Country Overview]. This customs guarantee certificate is issued by the chambers of industry and commerce in Germany (see heading "More"). For individual cases, take advantage of the assistance provided by the staff of our certification service department.
Please contact the appropriate persons at the Chamber of Commerce Bremen!