Import and export of chemical products
A customs inspection can quickly become very expensive. Anyone who disregards regulations is threatened with fines, criminal proceedings and the elimination of customs facilities. Thereby the devil is in the detail. We show you how to manage customs issues efficiently and in accordance with the rules.
Many EU and national customs regulations must be observed when importing and exporting goods. All new regulations must be observed by companies on their own responsibility, otherwise fines and criminal proceedings may be imposed. The import and export process should therefore be set up in accordance with the rules and be efficient. When assessing rarely occurring circumstances, it makes sense to call in external customs specialists. Small and medium-sized enterprises in particular often lack the necessary know-how.
Product and legal knowledge necessary
If infringements are detected, customs can not only impose fines but also remove the facilitation of customs clearance, resulting in significant delays and costs for exports. When chemicals and their precursors are exported, companies must carefully examine whether they can be used, for example as so-called dual-use chemicals, for the manufacture of chemical weapons. This requires expertise in both the chemical products and the legislation.
A further point is the optimization of clearance and customs costs, which arise primarily from the import of raw materials and intermediate products. But customs costs can also be optimized for customers. Correct pricing is crucial for legal compliance and cost efficiency.
Identify risks and optimizations
1. Identify risks and optimizations
To ensure that organizational structures as well as operational and strategic processes in customs and foreign trade are in place, you should first determine the current situation and the potential need for action with regard to legal risks and financial optimization opportunities. Very often, for example, shipment certificates are not recognized as relevant, pricing is simplified inadmissibly or export controls are underestimated.
2. Correctly price goods
The correct classification of incoming and outgoing goods is the basis for legally compliant customs clearance. This classification is a prerequisite for the determination of duties, the assessment of obligations from export controls and the correct determination of origin and preferences. For this, product as well as legal knowledge is necessary. Customs experts and product specialists should therefore work closely together for the classification.
3. Save import costs
People who import from non-EU countries can save taxes by using processing procedures or bonded warehouses. If, for example, a raw material is imported from China, further processed and the end product sold to the USA, taxes on the re-exported part of the raw material are not required if the license is granted. In the case of goods originating in Japan, for example, which are resold unchanged to Norway, no duties are levied on a bonded warehouse. Costs can also be saved in so-called “free circulation”. The decisive factors are:
- the correct determination of the customs value (freight shares, insurance and various other costs must be added, other shares may be deducted),
- the use of tariff advantages or tariff exemptions, as well as
- checking any existing import restrictions.
Check your forwarding agent(s) regularly if customs clearance is handled by the service provider.
4. Pay attention to export controls (trade compliance)
For products subject to approval (certain phosphorus compounds, special plastics, composites), embargoed countries, prohibited uses or sanctioned partners, exporting companies must carefully observe all export controls. In the case of sanction lists, deliveries within Germany or the EU may also be affected. Products are often not recognized because employees research wrong customs tariff numbers or the company’s knowledge of prohibited uses is not passed on to them. Customs documents such as export accompanying documents should generally only be created by trained employees who are familiar with the ATLAS systems, ideally integrated into the company’s own ERP system. An export control manual is also important. This explains to managers, employees and external auditors how processes and decision paths are designed and where information can be found.
5. Save customs costs for customers
Foreign customers can save five to ten percent of the value of goods in customs costs if they can import products duty-free. Anyone who uses such customs benefits for customers (preferences based on bilateral or multilateral agreements) must know exactly what the legal requirements are and comply with them. The origin is decisive. This is determined and verified for the customer via information from the upstream supplier and so-called preference calculations. Approvals can simplify the process. For this purpose, the customs authorities must have the relevant work and organizational instructions at their disposal.
6. Checking the Intrastat reporting obligation
Companies must report all intra-community acquisitions and shipments of goods to the German Federal Statistical Office on a monthly basis. There are different reporting thresholds for the reporting obligation. Problems often arise due to non-existent or incorrect master data (customs tariff numbers, weights).
7. Document export and movement documents
Anyone who exports goods is obliged to keep all export and transfer certificates for deliveries for which no value-added tax has been charged, complete and in conformity with the law. Especially in the case of intra-community deliveries, many companies do not take the proof of receipt very seriously. However, if these are missing during the audit by the tax authorities, VAT must be paid in later. To avoid being in need of evidence (the examination may take place up to ten years after the date of delivery), it is necessary to ensure the completeness and accuracy of all documents in a timely manner and to establish the necessary processes in conformity with the law.
Using the help desk
The legally compliant handling of customs issues is similarly complex to tax law. Companies also use external specialists to ensure that all regulations are met. Medium-sized companies in particular find it difficult to maintain complete in-house expertise. Even experienced employees are often confronted with questions for which it makes sense to consult a specialist or to assess a rare situation. Kloepfel 4PL Solutions therefore offers its own help desk for companies for all questions in the operative customs environment.
You can use these customs simplifications:
Companies can apply for permits and simplifications for customs clearance at customs offices, main customs offices or foreign trade organizations of industry and chambers of commerce. These include:
1. Authorized Economic Operator (AEO)
Comprehensive proof of legally compliant customs clearance
Advantage: lower guarantees for levies, less frequent customs inspections
2. Authorized exporter (AE)
Export simplification
Advantage: no waiting times during export
3. Authorized importer (AI)
Import simplification
Import simplification
4. Approved exporter (AE)
Simplification in the area of preferences
Advantage: Creation of proofs of preference without customs involvement, time saving
5. Processing traffic (PT)
Import permit
Advantage: Possibility to reduce customs duties
Contact
Kloepfel Group
Christopher Willson
rendite@kloepfel-consulting.com
Phone: +4921187545323