Import or export in Germany

Importing or exporting is one of the most successful ways to start your business in Germany. However, as with any other company, it is necessary to obtain comprehensive information regarding the relevant regulations and laws. Only then can you confidently start your business. In this article from Wise Business Group, we will talk about the ups and downs of self-employment through import or export in Germany.

Self-employment through import or export in Germany

Through import, you can bring new goods into Germany; on the other hand, through export, you can enter foreign markets and find new customers to sell your products or services.

There are various challenges in establishing an import or export business. Therefore, it is necessary to be familiar with the relevant laws and regulations and comply with them. In this regard, you can also get help from chambers of commerce outside Germany. In the following, we will briefly overview the import or export of goods in Germany.

A brief look at importing or exporting in Germany

Importing and exporting of goods and services in Germany are so popular that it has become one of the strongest exporting countries in the world. Germany has the worldwide champion title in the export of goods and services in its record. For example, in 2021, the import value of goods to Germany is 1.2022 billion euros, and the value of goods exported to other countries is about 1.3755 billion euros.

Factors affecting imports or exports in Germany

When importing, the following factors are of particular importance:

• Importing raw materials: This refers to purchasing and processing raw materials unavailable in Germany.
• Importing new products: In this way, you can offer new products that do not yet exist in the German domestic market.
• Price/ performance: In the sense of achieving a competitive advantage, through import, you can get some goods at a lower price or better quality from outside Germany.

The following points are decisive in terms of exports:

• Exporting to new markets: This means finding a way to enter new markets for companies to sell products or services outside of Germany.
• Potential for further growth through exports: Presence in new sales markets increases growth potential.
• Risk diversification: You can reduce your business risk through market diversification.

Business plan for an import or export company in Germany

Before starting your business in the field of import/export, it is necessary to prepare a proper business plan. A business plan helps you develop a business idea and is essential in the meeting with the bank advisor for financing.

You can get help from our consultants to prepare a suitable business plan for your import or export business in Germany. We are by your side by preparing a business plan that fits your business idea and providing the necessary solutions for business establishment or development in Germany.

Self-employment through imports in Germany

Things you should know before starting to work in the import field:

Electrical machines and devices, chemical products, motor vehicles, and parts are generally among the imported goods into Germany. However, the range of imported goods in Germany is too expansive and not limited to the listed items. You can rarely find a product not imported into this country. At first, importing new, cheaper, and better goods may seem tempting, but you should not ignore the import risk.

Before you start your work in the import field in Germany, you should check the following items:

• Import from abroad: What are the right markets for you? From which countries do you want to import goods?
• The quality of imported goods: Where will you have access to the goods you want that are of good quality or reasonably priced?
• Import costs: How much is the shipping cost for importing your goods?
• Export restrictions: Is exporting goods from the desired country to Germany possible, or is the export subject to certain conditions?
• Import regulations: Do the imported goods comply with the local standards and regulations? Are you sufficiently familiar with the import regulations in Germany? Are there any import restrictions? How much are the import duties?
• Having a native partner for import: How can you find a good and reliable local business partner in the country?
• Market knowledge: Do you have enough knowledge to enter the market? This knowledge includes familiarity with your desired country’s language, culture, economic, political, and legal conditions.

The start of imports in Germany; Helpful hints and tips

In this section, we discuss tips that can help you answer the above questions to start an import business in Germany:

Country information

You can obtain detailed information about the various countries, their conditions, and markets from the German Association for Foreign Trade and Location-Based Marketing – Trade and Investment and the foreign chambers of commerce.

Finding business partners for import Germany

Again, the German Trade and Investment and Foreign Chambers of Commerce in the target country can be good options to help you connect with local companies. Of course, you can also connect with local companies by searching industry directories or via the Internet. Another option that we recommend is visiting trade fairs.

EU regulations for imports

The movement of goods is greatly unrestricted within the EU, but you must apply for a value-added tax (VAT) identification number in Germany.

Import from countries outside the EU

Some goods have bans or restrictions on imports. Your contact for checking these restrictions for commercial goods is the German Federal Office of Economics and Export Control (BAFA). The Federal Agriculture and Food Agency (BLE) is also responsible for reviewing restrictions on agricultural products. You can find all the information you need about customs in the Atlas electronic system. The purpose of this system is to facilitate matters related to customs declaration and clearance of goods from customs.

Another issue to consider when importing is the risk associated with failed delivery, long delivery times, or exchange rate changes.

You can contact us for more information about import or export regulations in Germany and to set up your import business in the country.

Self-employment through export in Germany

Golden tips that you need to know before starting an export-oriented business in Germany:

Do new markets bring you new opportunities? All countries try to provide new opportunities for selling their products through exports, but the export strategy means significant challenges, especially for small companies. A large part of Germany’s exports belong to the European Union. China and the United States of America are also important export markets for selling German goods and services.

Before establishing your export business in Germany, pay attention to the following points:

• Export market: Which is your product’s best export target market? To identify the target market, you must analyze the market in detail. You can refer to the target group and market segmentation sections in your business plan. Analyzing foreign markets for exports is often challenging due to cultural differences.
• Market knowledge for export: Do you have enough information and knowledge about the export market you are considering? In other words, how much do you know about your target market culture and language, or have you even studied the economic, political, and legal conditions governing it?
• Exportable products: Have you chosen a suitable product for export? For this purpose, you must pay attention to the product’s transportability, import and export restrictions, laws about standards, and required customs tariffs.
• Foreign sales: How do you organize sales? How do you find a business partner for export?
• Local technical knowledge for export: What should you consider for your product’s marketing? How much is your estimate of the total cost of entering a new market?

Helpful information and tips for exporting in Germany

From the following methods, you can get the information you need to start your export business in Germany:

Country information

With the help of the Association of Foreign Trade and Location-based Marketing – German Trade and Investment, as well as foreign chambers of commerce, you can get the information you need about different countries, markets, and their conditions.

Finding business partners for export in Germany

You can get help from German trade and investment and foreign chambers of commerce to connect with companies in your target country. You can also network with local companies through Internet searches and industry directories or attend trade shows.

EU import regulations

In the EU, the movement of goods is generally unhindered, provided you have applied for a VAT identification number in Germany.

Import to countries outside the EU

For this purpose, you should carefully check the destination country’s regulations. Foreign trade chambers can play a crucial role in this sector.

In exporting, you must consider the risks related to currency fluctuations or payment defaults. It is possible to insure yourself against possible financial risks in an export business in Germany by choosing one of the following options:

• Export Insurance: Federal Republic of Germany insurance includes many options to secure a foreign business.
• Export factoring: In this way, you can transfer the claims received from your foreign customers to other people in exchange for giving a discount. In this case, they will incur the possible risk. Factoring is a current method for export companies, and many companies in Germany offer it.
• Classic prepayment for exports: In this way, you oblige the buyer to pay before receiving the goods.

A substantial information portal for import or export in Germany

iXPOS is a portal containing helpful information about all aspects of export and import. Through it, you can access information about different countries and their markets. Also, it provides you with a database to search for business partners. In addition, you can use this portal to analyze the market or prepare a business plan related to your business idea. Our team can also help you in this matter.

German trade and investment – a partner for foreign trade

German Trade and Investment combines the ability to analyze foreign markets with industry expertise in Germany as a location for investment and technology. The Economic Development Agency of the Federal Republic of Germany, relying on the knowledge of 60 foreign employees and close cooperation with the Chambers of Commerce and Industry, provides the needs of foreign trade to obtain comprehensive, coherent, and market-specific information.

German trade and investment create jobs in Germany and guarantee business security by taking advantage of the country’s deep knowledge and providing a wide range of consultations and competitive services for foreign investors at the international level. The company specifically focuses on the economic development of the new federal states and Berlin.

Since you may face various challenges when setting up your import or export business in Germany, we advise you to consult with experts before setting up your business. With years of successful experience in business setup and company formation in Germany, our team can accompany you in this direction.

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 A summary of the crucial points for self-employment through import or export in Germany

To answer your questions regarding export or import in Germany, you can get help from the following institutions and authorities:

Rules and regulations:

• German Federal Office of Economics and Export Control (BAFA): It is possible to see the regulations related to import or export restriction of commercial goods here.
• German Federal Agriculture and Food Agency (BLE): This department is responsible for checking export or import restrictions of agricultural products.
• Customs: You should get complete information about customs rules and regulations. You can access this information through the Atlas electronic system and handle your customs affairs online.

Information on countries, markets, and a database for searching business partners

• Foreign chambers of commerce, as your contacts in the target country, can provide information in this field.
• German trade and investment also provide great information and support international businesses.
• You can also search for information and business partners on the iXPOS portal.

Export insurance

• Click here to enter the federal information portal related to export insurance in Germany.

Foreign trade statistics and data

• The Federal Bureau of Statistics provides foreign trade data.
• These data are presented graphically in the Foreign Trade Statistical Atlas.

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