Road transport from or to non-EU countries

Approximately 5% of international road transport involves trade between the European Union (EU) and non-EU countries. While this percentage is relatively small, it comes with complex regulations. Transport between EU member states and third countries requires additional formalities and documentation and may be subject to import duties, taxes, and excise duties.

This article outlines the key considerations and potential obstacles for your transport. With proper preparation, delays and extra costs can be avoided.

1. Import duties, taxes and levies

Import duties

Many countries impose import duties to protect their domestic industries or limit foreign competition. However, within the EU, no import duties apply to trade between member states. When transporting goods to or from a non-EU country, specific import duties apply, depending on the product's tariff classification.

Agreements on who pays the import duties are specified in delivery terms, such as the internationally recognized Incoterms. Common Incoterms include:

• EXW (Ex Works) – The buyer assumes all costs and risks from the seller’s premises.
• FOB (Free on Board) – The seller is responsible until the goods are loaded onto the ship.
• CIF (Cost, Insurance & Freight) – The seller covers transport and insurance costs to the port of destination.
• DDP (Delivered Duty Paid) – The seller bears all costs, including import duties.

Certain goods are exempt from import duties if they meet rules of origin. This means the goods must be either entirely produced in a specific country or sufficiently processed there. Proof of origin can be provided with an origin declaration on the invoice (for invoice values up to €6,000) or a EUR.1 certificate (for higher values).

Turkey has a separate arrangement under the customs union with the EU. Goods that are in free circulation within this union can be imported both to and from Turkey without import duties using an ATR certificate. However, this certificate does not prove that the goods originate from the EU or Turkey. For certain products, such as agricultural goods, steel, and textiles, the customs union does not fully apply, and a EUR.1 certificate may be required to obtain duty reductions or exemptions

Taxes

Most countries impose VAT or a similar import tax upon importation. In the EU, the importer pays VAT at the time of import, though some countries allow a deferred VAT arrangement, postponing payment until the regular VAT return.

Excise duties

Certain products, such as alcohol, tobacco, and fuels, are subject to excise duties. EU member states may also impose additional consumption taxes. For example, the Netherlands levies a tax on soft drinks and fruit juices, while Germany has a coffee tax.

2. Customs formalities

Custom transit declarations

Goods not yet in free circulation within the EU must be declared to customs when crossing borders. This is done using an MRN document (Movement Reference Number), part of the NCTS system (New Computerised Transit System).

Upon arrival at the final destination, the declaration must be properly cleared. Loss, errors, or negligence may lead customs authorities to consider the goods as imported into the EU, making import duties and taxes payable. In some cases, alternative evidence can be provided to avoid unjustified charges.

TIR Carnet

For transport outside the EU, a TIR Carnet can be used. This customs document facilitates cross-border transportation and minimizes customs inspections en route. The TIR system is particularly useful for transport to countries in Eastern Europe, Asia, and the Middle East.

Dual-use goods

Some products can be used for both civilian and military purposes and fall under dual-use regulations. Exporting such goods to non-EU countries requires a license. This includes certain chemicals, electronics, or materials that can be used in weapons systems. Additionally, military goods, weapons, and ammunition require a license.

For uncertain cases, a binding ruling can be requested from the Central Import and Export Office in the Netherlands.

3. Using a freight forwarder

A freight forwarder has the expertise to determine which formalities and documents are required for your transport. This can help prevent delays and additional costs. Especially for transport to non-EU countries, hiring a freight forwarder is often an efficient and cost-effective choice.

In summary

Transport between the EU and non-EU countries involves additional regulations and formalities. To avoid complications, it is important to answer the following questions beforehand:

• Which country are you transporting goods to, and is it an EU member state?
• What Incoterms have you agreed upon with your trading partner?
• In which country were the goods produced?
• Are your goods subject to specific customs regulations, such as excise duties or dual-use restrictions?
• Are all details on your transport documents correct and complete?
• Would it be advisable to hire a freight forwarder?

By addressing these aspects in advance, you can ensure a smoother and more efficient transport process, avoiding unnecessary delays.