Import legislation and regulations

A clear explanation and practical tips

As an entrepreneur you already have to take into account numerous laws and rules. When you do business internationally, additional obligations are added. It becomes even more complex because the regulations can differ considerably per country, especially if you do business outside the European Union. To make this process run more easily, we at The Freight Hero will help you with this.

Customs

The Netherlands is known as an important distribution country; every day millions of goods are imported, transited and exported. To ensure that the products transported in the Netherlands and the European Union comply with the applicable laws and rules, there is a customs department. This customs department takes into account both European legislation (Community Customs Code - CCC) and Dutch legislation (General Customs Act).

Customs actually has three main tasks:

1. Surveillance function on the import and export of goods
2. Levying and collecting taxes
3. Stopping function

Surveillance function

For goods that are imported, transited or exported, it applies that they must comply with the relevant Dutch and European legislation in the field of Safety, Health, Economy and the Environment (VGEM). Within the European Union, goods are in principle exempt from customs inspections. However, when importing goods from countries outside the EU, it is necessary to make an import declaration. At that moment the goods are brought into free circulation and they become intra-community goods.

Customs also plays an important role in the export of goods. Customs must, for example, check whether the goods comply with the applicable rules, submit an export declaration and check whether the goods actually leave the European Union.

Levying and collecting taxes

On the import of goods from outside the European Union, levies and taxes apply, such as import duties. The amount of import duties to be paid depends on the customs value of the goods, the type of goods and the country of origin. The customs value is determined by adding together the purchase price, shipping costs and insurance premium up to the Dutch border. In addition to import duties, customs is also responsible for collecting and levying excise duties and consumption taxes.

Stopping function

Specific products, such as certain types of plants and grass, may not enter the European Union or the Netherlands if the required certificates or permits are missing. Customs plays an important role in stopping these products at the border. In addition, the export of certain goods, such as weapons and ammunition, is only permitted with the correct permits. Customs carries out inspections and can check or halt the export of such goods to ensure that the rules are observed.

Outsourcing the customs declaration

About 90 percent of entrepreneurs outsource the paperwork and the customs declarations to a forwarder. This does not, however, mean that as an entrepreneur you are not responsible for your products. Outsourcing saves you a lot of administrative work. You must, however, still submit a commercial invoice to the forwarder and provide a clear description of the goods you want to import or export, including the correct HS code. As an importer you remain responsible for the correct payment of the import duties.

Importing within the EU

Goods that are traded within the European Union are called intra-community goods. These goods are exempt from customs inspection, but must still comply with the required permits and product requirements. For example, if you export meat to Germany, you will have to deal with health certificates and quality marks. Compliance with laws and rules is therefore not directly applicable, but depends on various factors. It is essential that you study this thoroughly, because otherwise serious problems can arise. For questions concerning the laws and rules that depend on various factors, you can of course get in contact with us.

Dutch import legislation

When importing into the Netherlands it is important to take into account Dutch legislation. The rules concerning most consumer products, foodstuffs and foods are laid down in the Commodities legislation. Compliance with these rules is monitored by the new Food and Consumer Product Safety Authority.

Certificates and quality marks

Both inside and outside the European Union, products often have to comply with specific (quality) marks. Which quality marks apply depends on the type of product you want to sell. An important quality mark within the EU is, for example, the CE marking. It is essential to identify the relevant quality marks and to ensure that your product meets the requirements in order to comply with the applicable standards and regulations.

CE marking

For many technical products a CE marking is required. CE marking stands for Conformité Européenne marking. The CE marking is not a guarantee or quality mark, but indicates that the product complies with the minimum requirements in the field of environment, health and safety. As an entrepreneur you are responsible for applying a CE marking to products that fall under the NAR (New Approach Directives). There are now more than twenty product groups for which New Approach Directives have been established. This includes, among other things, products such as electromagnetic products, cosmetics, machinery, medical devices, play equipment, telecommunications (peripheral) equipment and packaging.

Taric code

When importing goods from countries outside the European Union, you must state the correct goods code in the customs declaration, also known as the TARIC code. This TARIC code, together with the country of origin of your goods, is used by customs to calculate the percentage of import duties.

Import duties

Import duties are calculated on the customs value of the product. This is a sum of:

• The purchase price
• The shipping costs
• The insurance premium up to the Dutch border

Form A

For countries with which the European Union has concluded trade agreements, a Form A Document can be used. This Form A Document offers the possibility of discounts or even exemption from import duties. Some example countries to which Form A may apply are Bangladesh, Kenya, Ghana, Myanmar (Burma), Ukraine, Peru and Vietnam.

No import duties

You do not have to pay import duties if:

• Your product comes from another EU country
• Your product is made in a country with which the EU has a trade agreement (Form A needed)
• Your product is a raw material or semi-finished product of which there is a shortage within the EU

Countries of the EU and EEA

The European Union (EU) consists of the following countries: Belgium, Bulgaria, Cyprus, Denmark, Germany, Estonia, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Spain, the Czech Republic, the United Kingdom and Sweden.

The European Economic Area (EEA) includes all countries of the EU, as well as Liechtenstein, Norway and Iceland. Note: Although Switzerland is not a member of the EU, many EU rules apply to this country.

Customs inspection

In most cases the data inspection by customs runs via the computer. Only in one percent of cases does customs consider it necessary to carry out a physical inspection of a shipment of goods.

Samples

Before you place a large order for a product, it is often desirable to first view a sample. A sample is intended for reference and not for sale. It is important to be able to demonstrate to customs that the sample has no economic value. Otherwise import duties may apply. Therefore make sure that it is clearly stated on the packaging that it is a sample, or make the sample unsaleable by, for example, perforating it.

With the right knowledge of import legislation and regulations you prevent delays and unnecessary costs. Let The Freight Hero guide you towards a worry-free import process!