Home » today » News » Don’t be afraid of exporting to third countries!

Don’t be afraid of exporting to third countries!

If the chaos and excitement in the logistics sector about the Brexit deal, which has now come into force, has shown one thing, it is that a large part of the industry still shies away from trading outside the EU borders. The customs union with its many freedoms and without real borders is too convenient, so that many German companies have limited themselves to importing and exporting within this legal eldorado. For the first time in ten years, the development of German foreign trade declined again – from a peak of 1,328 billion euros in the previous year to 1,205 billion in exports. This downward trend can of course be explained by the emergence of the corona pandemic, which first paralyzed imports and exports from and to China and then largely in the rest of the non-EU countries. But despite all warnings, the economic situation calmed down almost as quickly as it had previously deteriorated, which now holds great opportunities for logistics companies – if they dare.

When the last far-reaching pandemic hit the world, years of euphoria followed. The eradication of the Spanish flu heralded a decade of economic and innovative upswing in the Roaring Twenties and history is obviously repeating itself again: The Kiel Institute for the World Economy predicts economic growth of 3.1 percent for Germany in 2021 and 4.5 percent Percent ahead in 2022. On the other hand, in southern Euro states that are particularly badly damaged by the corona, such as Spain and Italy, which also have a less resilient industry, a recovery as quickly as possible cannot be expected. In a globalized world, however, economic upswing is always tied to strong trading partners. If they can no longer be found in the immediate vicinity, Germans have to go (and also Austrian) Look around companies in the distance – even if this leads out of the logistical comfort zone called the customs union. Naturally, the first glance always falls on the growth market of Asia, where, for example, China, according to its own statements, has recorded the largest economic growth in 30 years with an increase of 18 percent – but the USA also wants to slide after a decline, not least because of the political tensions with the aforementioned opponent reconnect to the top.

© Lightboxx – stock.adobe.com

The new EU external border with the United Kingdom can serve as a test run for imports and exports to other third countries

When a long-standing business partner finally left the customs union at the beginning of 2021 and thus created an unfamiliar third country right on their own doorstep, the logistics industry had to prove its adaptive abilities. Companies developed creative solutions in no time at all, adapted their supply chains to the new circumstances, avoided long customs controls through more efficient loading and even adjusted to the oncoming flood of bureaucracy. Brexit was largely mastered and, as a result, completely new infrastructures were created for more complex operational processes – so why not continue using them? Why surrender to other European external borders when the specially developed solutions for import and export with Great Britain are already working? Trade with the British can definitely be seen as a dress rehearsal for such an expansion venture – with the existing trade agreement as a safety net. Logisticians who have already overcome this hurdle might be ready to look beyond the boundaries of commercial technology.

In order to ensure smooth execution at customs borders, as is so often the case with foreign trade, good preparation is the be-all and end-all. Logisticians must ensure that their drivers receive all the necessary documents and permits from their business partners – whose goods they are transporting. This includes a statistical goods number for all goods transported and an EORI number for imports into the EU. In addition, the loading should be checked for critical stocks that are subject to approval. Export declarations must be submitted to customs in advance and the export accompanying document (ABD) issued must accompany the goods to the customs office of exit where the final clearance takes place. Once the goods have finally left the EU customs area, the goods issue is confirmed by an electronic exit note. Logistics companies must archive the customs documents in compliance with the statutory retention periods. At first glance a long list, with the prospect of a lot of additional work, on the second one a great opportunity for expansion into growing markets. Of course, every logistician has to weigh for himself whether it is worth taking the risk, but one thing is clear: There is no reason to be afraid of exporting to third countries.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.