Step-by-step guide to importing products from outside the EU

Whether you want to import clothes from China or shoes from Vietnam, there are 7 steps to follow when importing products from outside the EU into the Netherlands:

1. Do market research

Before you start importing, you need to know if there is a demand for your product. Market research can help you identify who your customers are and what is important to them.

What makes your product different from those of your competitors? Think about things like price, quality, design, service, or delivery time. This information will help you decide whether importing is a viable option for your business.

2. Look up the commodity code and check the regulations

Before you place an order, it is important to know which regulations and product requirements apply to your product. You can find this out using your product’s commodity code.

Look up the commodity code for your product

Every product has a commodity code. The Customs Administration of the Netherlands uses this code to classify products. When importing, this commodity code is referred to as the TARIC code. You can find this code for your product in the Customs Administration's Tariff database or in the EU's Access2Markets tool.

Which rules apply to my import product?

Using the commodity code, you can check the import rules, product requirements, documents, and import duties for your product in Access2Markets. The commodity code is the basis for almost all import rules.

For some products, you will need an import licence or other document. There are also import bans on certain products, for example due to international sanctions. You may not import counterfeit products.

What am I responsible for as an importer?

As an importer of products from outside the EU, you are responsible for product safety. If a product does not comply with the regulations, you may be held liable. So you should check which product requirements apply to your product before placing an order. This will help you avoid problems at Customs or when selling your product. 

What requirements must my product meet?

There are European and Dutch product requirements. Every product placed on the market must be safe. For example, there is a European law on general product safety, the General Product Safety Regulation (GPSR).

The GPSR applies to non-food consumer products placed on the European market. Often there are also extra requirements. For instance, many technical and consumer products require a CE marking. For foodstuffs, there are food safety regulations.

Do you want to be sure that your product meets all the requirements? Then consult a specialist in product safety or food safety.

Check the packaging regulations

Packaging is subject to the European Packaging and Packaging Waste Regulation (PPWR). This sets out rules for packaging designed to reduce packaging waste. So check that your packaging complies with these rules. Ask your supplier for the necessary information and documents. In some cases, you may also be responsible for the waste management of the products you import. This is known as Extended Producer Responsibility (EPR).

As well as the PPWR, there may sometimes be other packaging requirements. This depends on the product and the use of the packaging. For example, there are special rules for food packaging and wooden packaging

3. Find a supplier

Have you checked the regulations? Then you now need to find a supplier who can deliver a product that meets the requirements. Provide your supplier with clear information about the product requirements. Compare several suppliers. You can find suppliers, for example, at trade fairs and through Dutch embassies.

Think about IRBC

As an importer, you must follow the laws and regulations for International Responsible Business Conduct (IRBC). This means you must research the risks to the environment, people, and society in your supply chain. More and more people, governments, and companies want sustainable and fair products. So start taking the first steps towards IRBC now. 

Ask for price quotations and samples

A price quotation has various elements. You can negotiate these elements. Ask for price quotations from several suppliers. This will allow you to compare prices, delivery times, minimum order quantities, and payment terms.

Also ask for free samples before you place an order to make sure the products meet your quality requirements. 

Negotiate Incoterms®, price, and payment

You can use Incoterms® for the transport of goods. With Incoterms®, you agree who arranges the transport and who is liable in the event of damage during transport. There are various Incoterms® rules. Suppliers often specify an Incoterms® rule in their price quotation. Would you rather use a different Incoterms® rule? If so, discuss this with your supplier.

You can also negotiate other aspects of the price quotation if necessary. For example, the price or payment terms. There are various payment methods. Ask your bank which payment method best suits your situation.

4. Calculate the expected import costs

Calculate the total import costs of your product in advance. Use your supplier’s price quotation as a basis. Ask a forwarding agent or other logistics service provider for an estimate of the transport costs, import duties, and customs clearance costs. When doing so, provide the details from the price quotation and the agreed Incoterms® rule.

Consider costs such as:

• purchase costs
• transport and insurance costs
• import duties
• customs clearance costs

With your product’s commodity code (TARIC code), you can determine how much import duty you will pay. Are you importing products from a country with which the EU has a trade agreement? Then you usually pay lower or no import duties. You must have certificates of origin from your supplier. You can find the current import duty rates in Access2Markets or the Customs Administration's Tarrif Database.

For some products, you will pay extra levies such as anti-dumping duties. Clearance costs include, for example, the costs of the import declaration and storage or unloading of goods at the port or airport.

You also pay VAT on imports. As a business owner, you can usually deduct the VAT in your VAT return. Are you importing alcoholic products, tobacco products, or fuels? In that case, you will also pay excise duty. For drinks with little or no alcohol, you must pay consumption tax.

5. Record your agreements in writing

Have you chosen a supplier? If so, set out all the agreements in writing. This could be, for example, in a purchase contract, a purchase order confirmed by the supplier, or an accepted price quotation. Before agreeing to the terms, check that all the agreements have been clearly set out. You may want to seek legal advice on this.

Set out agreements about, at least:

• price and quantity
• terms of delivery
• payment
• warranties
• delays and disputes

Keep all the emails you exchange with your supplier. Always confirm important telephone agreements by email. This way, you will have evidence should any problems arise later.

6. Arrange transport, insurance, and customs formalities

Once you have set out all the arrangements with your supplier, you arrange the transport and the customs formalities. The chosen Incoterms® rule determines which part of the transport you arrange and which part the supplier arranges. Transport can be by road, rail, sea, or air. Each mode of transport has its advantages and disadvantages.

For small shipments needing fast delivery, transport is often carried out by a courier service. This is known as express delivery. For larger shipments or transport involving different modes of transport, you can hire a forwarding agent. A forwarding agent arranges the transport and customs formalities.

Take out insurance

Check whether you are at risk of damage or loss during transport. Carriers are not always liable for this. You can insure against this risk with cargo insurance. The part of the journey for which you bear the risk depends on the agreed Incoterms® 2020 rule. As well as insurers, forwarding agents also often offer cargo insurance.

Also think about other insurance policies. As an importer, you may be liable for damage caused by an unsafe product. Discuss product liability with your insurer.

What documents do I need when importing?

Which documents you need depends on the products and the country they are coming from. As well as an invoice, packing list, and transport document, you may sometimes need extra documents. For example, a certificate of origin, a health certificate, or an import licence.

Check Access2Markets to find out which import documents are needed for your product. To do this, use your product’s commodity code (TARIC code). A forwarding agent will also know which documents are needed.

Submit an import declaration

When importing from outside the EU, you must submit a digital import declaration to the Customs Administration. This contains details of your shipment, such as the commodity code, value, and origin of the products. You need special software and knowledge of customs procedures to submit an import declaration. Many importers have the import declaration handled by a logistics service provider, such as a forwarding agent.

When do I pay import duties?

After submitting the declaration, you pay import duties, import VAT, and clearance charges. Many forwarding agents pay the import duties and import VAT in advance and then pass these costs on to you. Sometimes there are extra costs, such as for storage, inspections, or the degassing of a container. Compare the costs with your previous calculation. This will allow you to quickly see if there are any unexpected import costs.

7. Check the goods on arrival

Check the goods immediately when you receive them. Look for any damage to the goods or packaging. Compare the delivery with your order and packing list. Report any damage or discrepancies to your supplier or carrier straight away. Also take photographs as evidence.

Keep your records

Keep your import documents for your business records. These include price quotations, invoices, contracts, transport documents, and customs documents. Also keep documents relating to product safety, such as declarations, test reports, and certificates. You will need these documents if the Customs Administration or another supervising authority asks for them.