International Affairs

Import

The European Union is a Customs Union

All members of the EU have adopted the same trade measures and a common customs tariff (TARIC). This means that basically the same rules apply everywhere, irrespective of where goods are imported into the EU. Consequently, each EU member State charges the same rate of customs duty for goods to be released for free circulation. Under customs legislation, payment of the EU tariff converts non-Community goods into Community goods, which can then be traded within the EU without the payment of any further customs duty in accordance with the principle of free movement. It should, however, be noted that import sales tax and, in the case of certain goods, possibly also special excise duties may be payable. Although these taxes are harmonized to a very large extent in the EU, there are variations in the amount charged.
Auch in New York gibt es eine Auslandshandelskammer der IHKn

Commodity Code or Customs Tariff Number

The commodity code, also known as the customs tariff number, is specific to the particular commodity and provides basic information required for all import or export transactions. The commodity code has to be known in order to find out about the specific import requirements and customs tariffs associated with the goods, as well as the preconditions for subsequent trade in the goods (marketability). Accordingly, it must be quoted in any customs declarations. It is determined by the Harmonized Commodity Description and Coding System of the World Customs Organization (WCO), which is currently recognized by some 160 countries and territories. The Harmonized System uses six-digit codes for goods, although more sub-divisions may also be added at national level. The Member States of the European Union have agreed to use an eight-digit numerical system for statistical purposes, the so-called Combined Nomenclature. In the Federal Republic of Germany, this is better known as “Warenverzeichnis für die Aussenhandelsstatistik” (catalogue of goods for foreign trade statistics). Because of the considerable differentiation which exists, however, ten digits are required when applying the Integrated Tariff of the European Union (TARIC), and an eleventh digit has to be added when declarations are submitted in the Federal Republic of Germany.
Non-binding information about customs tariffs can be obtained from the customs authorities (tel.: +49 (0) 351-44834-520, Email: enquiries.english@zoll.de).
Binding tariff information can also be obtained before importing the goods. This is especially advisable if the classification of the goods concerned is unclear and the tariff rate, import sales tax and import requirements differ, depending on the commodity code. The commodity code which is issued is binding for all customs offices within the European Union.

Economic Operators Registration and Identification Number (EORI Number)

Anyone engaged in importing or exporting goods must be registered with the customs authorities and have been issued with an EORI number. Companies which are unsure whether or not they are registered should check as a matter of urgency. Since the March 2012 release of ATLAS, it is no longer possible to submit a customs declaration without a valid EORI number. An economic operators number does not have to be quoted, if the party concerned only submits customs declarations occasionally (no more than three times a year), if the customs declaration is submitted by the postal service or by an express/courier service for a client (unless the latter is entitled to deduct VAT), or in the case of written customs declarations in passenger traffic (unless the party concerned is entitled to deduct VAT).

Points to be Clarified in Advance


The following points should be clarified at the offer stage, i.e. before contract negotiations begin:
  1. What is the commodity code or customs tariff number of the goods to be imported?
  2. Is there a ban on the importation of the goods in question into the EU?
  3. Are the goods being imported subject to quantitative restrictions (quotas), and if so, are there still unused quotas?
  4. Is an import licence or permit required, and if so, what is important to remember when filing the application?
  5. What rate of customs duty is normally levied on the imported goods?
  6. Are there any EU anti-dumping measures in place for the imported goods and/or their manufacturer, and if so, how extensive are they?
  7. What customs procedure is required for clearance?
  8. Can tariff preferences be claimed for the imported goods? What proof of preferential origin is required?
  9. Is proof of non-preferential origin to be submitted upon importation, and if so, in what form (certificate / declaration of origin)?
  10. Are the imported goods subject to a separate excise duty, and if so, what is the rate of this duty?
  11. Do you have all the information you need to make a reliable costing of your import deal? If not, what information do you still require?

Points to be Clarified during the Contract Negotiations


During the contract negotiations, the following points should also be clarified:
  1. How (verbally/in written form) should/can the sales contract be concluded?
  2. Which law should/can govern the sales contract (that of the buyer's/seller's country, that of a neutral country, the Vienna Convention on the International Sale of Goods)?
  3. Which court should/can handle any judicial disputes?
  4. Should/can an arbitration agreement be reached in order to settle disputes out of court?
  5. What should/can be agreed as regards warranty claims?
  6. What need is there for clarification/regulation on questions relating to product liability?
  7. What need is there for clarification/regulation on matters relating to intellectual property (trademarks, the protection of patents, utility models and registered designs, etc.)?
  8. Has there been a reasonable allocation of rights/duties, risks and costs reasonable for the transportation of the goods (insurance; delivery clauses; INCOTERMS®)?
  9. How should/can payment be made (documentary/non-documentary)?
  10. What costs are associated with payment processing?
  11. Does the foreign trading partner require you to supply documents prior to the delivery (e.g. an International Import Certificate)?