Transportation & Automotive
In the last few years there have been many developments in this industry with the rise of e-vehicles, such as e-bikes and electric cars. This also affects trade compliance obligations. Being a producer it is important to be aware of these legal requirements, since it often involves expensive products, which brings significant (financial) risks.
On this page we would like to tell you about what trade compliance obligations you should be taking into account being a producer in the transport and automotive industry.
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 as well.
- 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 can make your export documents process a controlled, care-free and global process within your supply chain. You will avoid unpleasant surprises and delays at the border, additional costs and customer dissatisfaction, by leaving your export documentation process to the specialist, Pincvision.
From an environmental perspective, in the Transportation & Automotive industry you should consider:
- Packaging declarations: transport packaging that protects your goods during transport.
- Battery declarations: Accumulators and batteries in e-vehicles.
Every country of destination has its own directives for this environmental compliance declaration. If you exceed the threshold you are required to submit your packaging declaration periodically (monthly, quarterly) to the relevant environmental authority. The thresholds differ per country and are subjected to change.
Avoid financial risks and brand damage. Leave your environmental compliance obligations up to our team of specialists. They know which obligations your organization need to meet, and take care of the declaration process completely for you. You are assured that your declarations are always submitted within the deadline.
Sustainability is becoming increasingly more important for organizations, especially when being a producer. But, do you know that this also impacts on your import duties? Think about:
- Product classification. More and more transport vehicles are electrically driven, which leads to changes in sections/categories of HTS classification. It requires a detailed description of your products and components and broadened knowledge of HTS classification in order to classify your products correctly. Let our specialists support you and avoid risks on fines and audits because of using incorrect import duty rates.
In your industry, generally, significant amounts of import duties and other taxes are levied. Therefore, a worldwide overview of costs per country would be of great value to your organization. Pincvision's solution "Global Broker Window" provides an insightful dashboard with management information per country that you are exporting to. This allows you to better manage your business processes.
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.
For import, you need to look carefully at the deductibility of the import VAT and if a reverse charge mechanism or VAT deferment scheme is applicable in the relevant countries of importation.
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 Intrastat 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.
We will gladly assist you!
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.
Transportation & Automotive
- Transportation & Automotive References