Chemicals, Oil & Gas
On this page you can find information about which trade compliance obligations you should take into account when you are manufacturer in the Chemicals, Oil & Gas industry regarding Export documents, Environmental obligations, Customs obligations, VAT declarations & Intrastat declarations.
In the Chemicals, Oil & Gas industry, proper HS classification of products is of great importance as, based on this, your import duties will be determined. This HS classification can correlate with dual use classifications (dual-use goods). The latter may mean that you need permission from the competent authority to export the goods. This is increasingly being checked by Customs. Unauthorized export, which means exporting without a license, is severely sanctioned and can also result in damage to your reputation. By an extra check on the quality of your product classification, you will prevent these unwanted situations.
In addition, you must take into account the corresponding formalities per country of import and export. Pincvision can help to secure/improve the quality of your broker(s). For instance, through our Pincvision "Global Broker Window" (GBW) solution. Furthermore, Pincvision is specialized in the classification of goods at both HS and dual use levels.
With environmental obligations in the Chemicals, Oil & Gas industry, you must take the packaging directive into account. The packaging directive applies to primary, secondary and tertiary packaging. Below you can find a description of the three sorts of packaging when being an exporter of oil.
- Primary packaging contains the first packaging of the product. For example, the barrel or container that contains the oil or the spray can that contains lubricating oil.
- Secondary packaging contains the packaging that is used to group various pre-packaged (primary) products together. Lubricating oils are often combined in one multipack. The packaging that surrounds the multipack is seen as secondary packaging.
- Tertiary packaging contains transport packaging such as, for example, a big cardboard box which contains all the smaller boxes and the pallets carrying multiple oil drums.
For several countries, an environmental declaration obligation applies to disposable packaging, such as barrels, jerry cans, jars and bottles. Packaging materials that are reused, such as pallets, are sometimes excluded. However, this is not always the case. Our specialists know exactly when this applies and when it doesn’t. Every country has its own guideline and threshold values for the declaration of packaging. When you let Pincvision take care of this, you can be sure that you are always up-to-date with the latest legislation.
It is of extreme importance that your source data is correct when you want your environmental compliance process to be quick and faultless. This data is used to extract the required information for the declaration in the country of destination. The Pincvision Compliance Analysts can help you to enhance and enrich your data and subsequently submit your periodic declarations with the authorities. This will result in optimizing the speed and quality of your processes. Next to this, it ensures that you timely meet your declaration deadlines.
Depending on the country of destination it may be required to prove the origin of your goods in the form of a:
- Certificate of Origin (CO), possibly complemented by a legalized invoice. Both documents need to be digitally attested by the Chamber of Commerce. An additional requirement may be that the documents need legalization by an Embassy and Ministry of Foreign Affairs.
- EUR.1 certificate/EURMED or an invoice declaration may be possible where the country of destination has a free trade agreement with the European Union. You will pay less or no import duties.
- Certificate of Conformity (CoC). When exporting to countries in the Middle-East and/or Africa please keep in mind the applicable conformity programs, such as PSI and PCA. For this you will need a CoC which is used to prove that your products are pre-registered and tested to (for example) country specific technical specifications and consumer safety standards.
In the Chemistry, Oil & Gas industry, companies regularly experience challenges in determining the origin when it comes to chemical products. This, because often no constant origin can be determined as many chemical products are a mix of different substances.
Pincvision's specialists are happy to help you to make your export documentation process a controlled and worry-free process. You will avoid unpleasant surprises such as delays at the border, extra costs and unsatisfied customers by leaving your export documentation process to Pincvision!
From the flow of goods, agreements on transportation, and import & export duties may arise VAT obligations in other countries. This usually leads to:
- VAT registration(s)
- Invoice requirements
- Declaration obligation (with or without a payment obligation).
- Other local declaration requirements, like SII reporting in Spain, SAF-T in Poland and the VAT book in the Czech Republic.
Please look carefully at the 'place of supply rules' to be able to determine where the VAT is to be levied and by whom (mandatory deflections). Reduced rates may also be applicable. The use of a Customs or VAT warehouse is common in the Chemicals, Oil & Gas industry and also leads to other VAT consequences.
If you use the 0% VAT rate, please make sure that your "Proof of Origin (POD)" is in order. Fiscal authorities may ask for this during an audit. With the POD solution of Pincvision, you are assured of a guaranteed process.
Should you deliver goods within the European Union (EU) you will often also face Intrastat obligations. With the advent of free trade within the EU, Intrastat is being introduced. A statistical requirement by which organization's declare to the local statistical bureaus how much they are 'exporting & importing' within the EU. Every country knows its own thresholds and deadlines.
Please ensure your Intrastat declarations are well managed as errors in this process may cause authorities to perform an audit. Not just covering Intrastat but often combined with your VAT processes.
Our team of specialists will assist you in meeting your obligations and ensure that the laws and rules are no barrier to your global trade. Compliance in Control!
Chemicals, Oil & Gas
Chemicals, Oil & Gas References
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