Customs Clearance
Table of Contents
The principle of customs clearance
There are numerous regulations from customs concerning import and export. These are very difficult for the layman to keep track of, as each customs tariff in turn depends on different contexts and logistical structures. Nevertheless, for the planning and optimisation of one's own processes, it cannot hurt to be informed about the basic details and principles of customs clearance and the associated import duty.
What exactly are Incoterms?
In this respect, Incoterms are the central terms of delivery as well as the associated trade clauses, which also have to be observed from the point of view of logistics companies and forwarding agents. Only with generally recognised and standardised clauses is it possible to promote uniform conditions in this respect. In this way, concrete specifications are available which make it possible for both traders and buyers to calculate the processes precisely.
The Incoterms deal more precisely with customs clearance, for example with the transfer of goods. The basis for such a transfer is first the customs declaration to check the value, the type of goods and the urgency. This is done in Germany via the IT system ATLAS, but is handled differently in other European countries. This makes it so important to implement international regulations in order to align the different systems.
The most important Incoterms in foreign trade
Some DDP Incoterms, i.e. the goods delivered duty paid, depend on the specific type of cargo, while others are universally valid. The aspects of universal validity are particularly worthy of special mention, as they clarify all import and export structures. According to Incoterms, it is therefore necessary to make one's own goods available, unloaded, at the pre-determined place of delivery. Aspects such as the risk of loss also lie with the seller before delivery, which only passes to the buyer after the goods have been delivered.
In addition to the practical contents, the other obligations regarding the completeness of the documents as well as the formally correct handling, which are collected within the list of Incoterms, must also be complied with. At the seller's request, the buyer must be able to provide certified copies or other documents. If these are available, there is nothing to prevent the trade from being carried out safely in terms of customs.
Customs formalities and import licences
For the payment of customs duties, the principle of cost sharing usually applies, whereby the seller bears the costs for the transport of the delivery, for unloading as well as possible customs duties or customs formalities. The buyer, on the other hand, is then responsible for the costs after the transfer of the goods, whereby there may also be taxes, customs duties or other payment bases around the import duty. A decisive criterion for the customs tariff is, for example, which routes the goods will take after the trade.
The provision, i.e. the provision of the necessary transport equipment, is then also initially taken over by the seller. When the goods are handed over, however, the responsibility is transferred to the buyer according to DDP Incoterms, who must ensure further transport. Therefore, the person who is also in possession of the goods to be transported is always responsible for the presentation of the goods.
When do fees arise for the customs declaration?
Fixed value thresholds are required for the customs declaration, which in turn determine the amount of payments to the customs office. Export declarations for goods with a value of less than 1,000 euros and a weight of less than 1,000 kilograms are not required separately, but can already be made free of charge by presenting the commercial invoices. From 1,000 euros, however, the separate declaration becomes necessary. For this purpose, the delivery terms are added proportionally to the invoice amount in order to contribute to the export system.
Another value threshold is 3,000 euros, whereby the two-stage export procedure is applied. Nevertheless, it is already sensible to rely on the two-step procedure even for consignments with a lower value and to clarify possible difficulties locally at the customs office. The export declaration is then made using ATLAS, which is ideal for business use. This makes it possible to have a compact overview of the entire obligations beforehand.
The innovations of Incoterms 2020
There will also be some adjustments to the Incoterms in 2020. New application instructions should make it easier to comply with the clauses in a targeted manner and to avoid operational risks. The explanations of the connection between the contract of sale and subsequent contracts have also been adapted to enable logistics companies to implement them in a much more user-friendly way. All around the Incoterms 2020 and the correct handling of the customs office, it is therefore possible to safely observe all formalities and to safely coordinate the entire process of logistics trade.