Are you a producer in the Fashion & lifestyle industry? Then the information on this page is interesting for you. We would like to tell you about what trade compliance obligations you should be taking into account being a producer in the Fashion & Lifestyle industry regarding Export documents, Environmental obligations, Customs obligations, VAT declarations & Intrastat declarations.
Specialism for classifying and checking the correctness of the HS classification for clothing is absolutely necessary for the Fashion & Lifestyle industry. HS classification for this sector can be very difficult. Particularly due to the combination with quotas and import licenses, the correctness of the classification becomes increasingly important.
Since the introduction of the Union Customs Code (UCC) since April 1, 2016, the Fashion & Lifestyle industry is often confronted with a higher customs value for their import processes. This is mainly due to the adjustments in the customs value in the UCC. Customs authorities will pay more attention to the correctness of customs value (enforcement).
Pincvision is specialized in the classification of goods (HS) and determining the customs value of transactions.
Regarding Environmental obligations, you must take the packaging directive into account. As a producer in the Fashion & Lifestyle industry, you can think hereby of clothing labels, plastic, foil and badges. When you export a pair of jeans for example, you must take into account the following three types of packaging with respect to the packaging directive:
- Primary packaging: think of the label on which the size of the jeans and washing instructions are written. In addition, the price tag attached to the jeans is also an example of primary packaging.
- Secondary packaging: you may think of the plastic packaging in which the jeans is wrapped when it enters the clothing store.
- Tertiary packaging: this includes all packaging material that is used to transport the clothing. For instance, big cardboard boxes and pallets on which the boxes are being transported.
Each country has its own guideline and threshold values for the declaration of packaging tax. For example, in some countries you must indicate separately all parts of your packaging.
With regard to the WEEE directive, you can think of pedometers and the battery directive is applicable to built-in batteries and subsequently delivered batteries. When you exceed the applicable threshold in a country, you are obliged to submit battery declarations on a periodic basis. For example, built-in batteries in sportswear or sports accessories. For the Fashion & Lifestyle industry, it is convenient to know that the new WEEE directive also applies to Christmas sweaters that light up or other clothing that involves little lights.
In order to make your environmental compliance process quickly and faultless, it is very important that your source data is in order. This data is used to extract the required information for the declaration in the country of destination. Our team of Compliance Analysts can assist you to enhance and enrich your data and then submit your periodic declarations with the authorities. This optimizes the speed and quality of your processes and makes sure 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.
With Pincvision's solution "Export Documents in Control" you are able to make your export documents process a controlled, care-free and global process within your supply chain. Avoid unpleasant surprises such as delays at the border, unnecessary costs and dissatisfied customers by handing your export documents process to the specialists of Pincvision!
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.
From the flow of goods, agreements on transportation, 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.
With respect to import, you should carefully consider the deductibility of the import VAT and whether any reverse charge or postponements schemes apply in the country of import. Keep in mind that, for the Fashion & Lifestyle industry, the VAT rate for clothing is different in various EU Member States and usually size-dependent: children or adults.
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.