Which of the following is not a reason for a company to export goods and services?

1

Find a market and a buyer

To export goods outside the EU, you should first identify a market and find a buyer for your product. The information offered under My Trade Assistantwill support you in identifying suitable markets for your product. It will also help you to determine the requirements for you buyer, such as registration or licencing requirements to deal in specific goods or participate in a certain sphere of the economy. As your buyer will usually be the importer and assume responsibility for the introduction of your product into the destination country and on its market, its qualification for this role is of crucial importance.

The following institutions or operators may be of help in the identification of export market opportunities and the finding of qualified buyers.

• Chambers of commerce can give you information about different markets and business partners, and direct you to relevant reports.
• Trade-specific news providers or trade promotion agencies in your country or in your selected export market that cover market analysis and assessment of business opportunities can be of help. These bodies often provide studies on key export sectors.
• Export consultants and relevant banks can also provide advice.

How to select your target markets?

Screen potential export markets to assess whether there is demand for your product and consider if your product would be competitive on the export market.

Check the trade statistics of your potential target market.

Import statistics can show if your target country is already importing your type of product, where the imports come from and if there is already a high supply in the market. Low figures may show an opportunity but also unveil market access obstacles or even barriers, which you may check with My Trade Assistant.

How to find potential buyers?

Once you have selected one or more target markets, the next step is to identify potential trade partners and business contacts.

You can find partners and contacts at:

• trade fairs specifically organised for buyers and sellers to meet. For example, the Enterprise Europe Network organises regular matchmaking events for specific sectors in which also companies from non-EU countries participate.
• events or help provided by chambers of commerce to establish contacts between potential business partners.

Such events are increasingly offered online and it maybe expedient to look into corresponding options.

In contrast to domestic transactions, the qualification of the buyer for the import transaction and the actual utilisation or marketing of your product in the country of destination needs to be carefully checked.

You may also check if you are allowed to sell to the government in your potential export market.

What is public procurement?

2

Check the export conditions in the EU and import requirements in your target market

To export your product outside of the EU you must fulfil certain basic requirements.

How can you export?

There are different ways in which you can export a product.

• For example, you can export directly to a buyer in your export market. This can be another company or a consumer.
• Alternatively, especially very small companies often export indirectly via e-commerce platforms.

What is e-commerce?

Who can export?

• You normally need to be established in the EU as a company or permanent business establishment. This includes getting registered for VAT purposes.
• Generally, you also need to register with the national commercial register. For more information, check with your local chamber of commerce.
• If you are a non-EU resident, you need to have a work permit to carry out an independent commercial activity; furthermore, you need to find a person established in the EU who is willing to act on your behalf as exporter (e.g. a logistics service provider or customs agent).

How to register as an exporter?

As an EU exporter you need to apply at the competent customs administration for a so-called Economic Operators Registration and Identification (EORI) number.

The EORI is an identification number that is valid throughout the EU, which you need for all customs export declarations.

Tip: This process can take some time so apply well ahead.

Preferential Trade Agreements:

If you want to export to a country the EU has a preferential trade agreement with and benefit from lower tariffs, you may also need to apply for the status of an Authorised Exporter (EA) or, depending on the agreement, to apply to become a Registered Exporter (REX). The EA is applied at and the REX through your national customs administration.

As an authorised you may make out ‘origin declarations’, as a registered exporter ‘statements on origin’ also beyond the value thresholds for shipments as defined in the relevant agreement. These declarations or statements state that the products to be exported comply with the rules of origin set out in a given trade agreement.

Potential simplifications

If you often export and have knowledgeable staff and a reliable organisation of the customs processes, you may apply for simplified customs declarations as foreseen in the Union Customs Code (UCC). In this connection, more experienced traders may also consider the status of an Authorised Economic Operator (AEO).

Is the export of your product restricted in the EU?

Export of specific goods or exports of a product to a certain country of destination may be prohibited or restricted. You might need a licence or authorisation.

• Check in the TARIC to see if you need an export licence for your product;
• Check export restrictions on the EU Sanctions Map.
• For certain products there may exceptionally be national restrictions of your Member State which you should check with its competent authorities.

The main types of products that are restricted or prohibited are:

• some live animals, meat and plants.
• endangered species
• certain food products
• dangerous chemicals
• drugs and medicines
• weapons
• dual-use goods
• waste
• cultural goods (valuable antiques and works of art)
• counterfeit or pirated goods
• indecent articles, publications and video recordings

For such products check which rules apply.

Are there any restrictions in your export market?

You also need to ensure that the country you wish to export to does not apply any prohibitions or restrictions on your product that prohibit it from entering the country or being put on its market. Although your buyer will usually assume responsibility for the import as well as the utilisation or marketing of your product, for successful and sustainable transactions you should be aware of import prohibitions as well as import restrictions in the import country.

For a comprehensive description of restrictions in various countries of destination, visit My Trade Assistant.

Further, you may find general explanations of different types of restrictions in the Goods section.

Which tariffs apply to your product?

Tariffsmay need to be paid for your product when it is put on the export market. You will find the applied tariffs of various destination countries in My Trade Assistant

It depends on your agreement and contract with the buyer, but in most cases it is advisable to leave the import clearance to the buyer who then pays the customs duties as well as the taxes and additional duties that become due at importation. Bear in mind that the latter will add to the price of your product on your export market. This so-called landed cost should still be competitive.

What is an import tariff?

Can my company benefit from a preferential Trade Agreement between the EU and the country of destination?

If the EU has a preferential trade agreement with the country of destination tariffs your product may be reduced or even completely eliminated. These customs duties are called preferential tariff rates.

In My Trade Assistantyou will the preferential tariff rates applicable for products originating in the EU in various destination countries.

However, these preferential tariff rates are conditional on your product being produced in the territory of the preferential trade agreement partners and in line with the rules of origin of this agreement.

Therefore you should first check if there is a preferential duty rate and a so-called preferential margin between the regular MFN tariff rate and the EU preferential rate.

If this is the case and you would like to present a proof a preferential origin to allow for the application of the preferential rate you will have to comply with the rules of origin.

To this end, you will need appropriate proofs for the originating status of materials sourced from third parties. Within the EU this is effected by so-called supplier declarations you will need to collect for this purpose.

To find out about the specific rules in place for your product and the country of destination you may consult My Trade Assistant.

EU Trade Agreements:

• provide a more stable and predictable set of rules for you when you trade with foreign markets.
• ensure that the non-EU country’s laws do not discriminate against EU products.
• create new and better export opportunities for your company and make it easier to invest abroad.

Do any trade defence measures apply to your product?

Trade defence measures could be applied to your product by the country of import. Such measures may represent a significant cost to be taken into consideration in planning your export. The most relevant are antidumping measures, but there may be also countervailing or safeguard measures. Although your buyer as per the contractual agreement will usually act as the importer and bear such additional costs, these can be an obstacle for successful and sustainable transactions.

Related measures, as the case may be, applied by a specific country of import, are reflected in My Trade Assistant.

What are the relevant taxes and additional duties in your export market?

Also check which taxes and, as the case may be, additional duties must be paid upon importation of your product. The taxes and additional duties becoming due at importation in various destination countries may also be consulted in My Trade Assistant.

These will usually be borne by the buyer in its role at the importer, but will add to the landed cost and thus the competiveness of your product on the export market. Concerning the latter, consider alignment with your importer.

When selling directly to consumers, investigate whether you need register with the tax authorities of your export market.

What are the health, safety and technical requirements for your product?

The requirements will depend on your export market. Compliance with them usually falls into the responsibility of your buyer as the importer, who however will need your assistance to prove this compliance. As this is determined by the contractual agreement, you should be careful to only assume responsibility for requirements you may fulfil in your role of the exporter. Alignment with the importer is not only advisable but usually necessary. The information in My Trade Assistantwill help you to differentiate objective requirements from individual interests of your buyer.

The requirements will depend on your export market.

For Example:

You may have to present certificates proving that your product complies with the country’s health and safety requirements. These may be different from those in the EU.

Most products have to comply with technical or health and hygiene requirements (often referred to as sanitary and phytosanitary requirements) in your export market. These may require different types of testing and certification.

This is often the case for technical requirements for industrial products, as well as for health and hygiene requirements for food and agricultural products.

Most countries require health certificates for:

• plants
• live animals
• animal products
• genetic materials

Medical devices, for instance, also usually have to be accompanied by a certificate.

How to certify your product?

You should check in the Procedures and Formalities section of My Trade Assistant and, as the case may be, subsequently clarify with your customer the following:

• Which are the certification requirements in your export market.
• Which certificates are accepted by the competent authorities.
• Whether the testing can be carried out by an accredited laboratory or institution in the EU
• or whether the certification must be carried out in the country of destination.

What are the packaging and labelling requirements for your product?

Countries often have detailed requirements for the packaging and labelling of products.

These requirements can be mandatory or voluntary.

• Mandatory marks and labels on consumer products and their packaging are usually related to public safety, health and/or environmental concerns. They can provide information such as the ingredients or the ‘use by’ date.

Usually there are different agencies responsible for different industries, e.g. the medical, electrical, food, and chemical industry, which all have very different requirements.

For an overview of the related requirements applied by a specific country of import, have a look into the Procedures and Formalities section of My Trade Assistant.

Does your product need protection of intellectual property?

It is important you check how your product’s intellectual property is protected in the country you want to export to.

• Check if you need to apply for new patents or how your design, copyright or geographical indication is protected in your export market

If the EU has a trade agreement with the country you want to export to, the agreement may give extra protection.

4

Prepare the documents for export clearance in the EU

The documents prepared for export at least partly also serve for import in the country of destination. Thus, their preparation should take into account corresponding requirements and, as the case may be, should be aligned with your buyer as the importer.

Which documents to prepare for customs?

You must first submit an electronic export declaration at your national customs authority.

Each EU country has its own electronic processing system. For small consignments of a value below 1,000 EUR an oral declaration supported by a transport document or an invoice may suffice.

The export declaration provides the necessary information about the goods themselves and the transport. It includes:

• origin of the goods,
• destination country,
• commodity codes,
• customs procedure codes, and
• value of the goods.

Documents you need to prepare include:

• Invoice and transport documents and a packing list: You must keep all documents for at least three years in case of any checks after export clearance (national commercial and fiscal legislation often provides for longer periods).
• VAT and export records: When you export outside of the EU, your product is exempted from value-added tax (VAT) in the EU, independently of whether you are selling to a business or an individual consumer, providing that you keep records of the export and the proof of export issued by the customs authority.
• Certificates or licences: such as phytosanitary certificates or export licences for export purposes may be needed as well.

Who files the customs declaration?

You can file the customs declaration yourself or it can be done by a service supplier who is your customs representative. If you employ a forwarding company or customs broker they can act on your behalf.

How to present the export declaration and the goods for export?

The export procedure has two stages:

• the lodging of the export declaration and the the presentation of the goods at the customs office of export, and
• the presentation of the goods and the indication of the Master Reference Number (MRN) of the export declaration at the customs office of exit, followed by a release for exit.

The export declaration is presented using the electronic system of your customs authority.

In general, you need to lodge your export declaration at the customs office responsible for the place where your company is established or, as the case may be, the customs office where your goods are packed or loaded for export shipment out of the EU.

If the value of the goods in one export consignment does not exceed EUR 3,000 and the goods are not subject to prohibitions or restrictions, the export declaration may be lodged with the customs office at the place of exit.

Keep in mind that an export declaration needs to be lodged in advance of the actual moment when the goods will be leaving the EU. Allow enough time for the customs office of export to carry out necessary risk analyses before they grant the release of thegoods.

What happens after the submission of your export declaration?

There are three possible cases:

• Your goods may be released for export based on your submitted export declaration, or
• Your goods may be selected for a document check and you may be asked to submit further documents before your goods can be cleared, or
• Your export might be selected for a document as well as physical check.

For more regular exports simplified customs declarations as foreseen in the Union Customs Code (UCC) should be considered.

For further details, please see:

https://ec.europa.eu/taxation_customs/sites/taxation/files/resource/documents/customs/customs_code/guidance_export_en.pdf

What is one reason companies choose not to export?

Which of the following is not an export?

What are reasons for businesses to export?

Why is it important to export goods and services?