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International shipping plays a pivotal role in the vibrant economic relationship between Vietnam and Germany, a relationship that has seen exponential growth in recent years. In fact, Germany stands as Vietnam's most important trading partner in the European Union (EU), with a bilateral trade volume reaching €18 billion, as reported by the Federal Foreign Office.
The EU-Vietnam Free Trade Agreement (EVFTA) further amplifies these strong ties by eliminating trade barriers, offering Vietnamese businesses a significant opportunity to maximize profits. The rapidly evolving trade landscape, powered by policies like the EVFTA, opens up new avenues for prosperity. With trade barriers coming down, the focus shifts to logistics and express shipping – key factors that contribute to the overall trade efficiency.
This article aims to equip enterprises with essential tips and strategies for a smooth and successful express shipping experience from Vietnam to Germany.
In the world of international shipping, the mode you choose can significantly impact your business operations, from customer satisfaction to inventory management. When exporting goods from Vietnam to Germany, companies often find themselves weighing the pros and cons of different shipping options like express air shipping, air freight and sea freight. Here's a breakdown of the common methods to post your parcel and how they compare in terms of price and delivery lead times:
Besides working with the right logistics partner, choosing the right shipping mode is also a critical decision when exporting from Vietnam to Germany, given that delivery lead times can affect customer satisfaction. Research by McKinsey & Company supports this, highlighting that customers are expecting to receive deliveries faster year-on-year, and companies that successfully balance delivery speed and costs are better positioned to expand their customer base. In this regard, express air shipping emerges as the clear front runner for businesses prioritizing speed, reliability, and efficiency, as express air shipping can deliver parcels in just a few days, unlike other methods that may typically take weeks.
Beyond meeting customer expectations for swift delivery, the rapid transit times also offer businesses greater flexibility in inventory management by reducing the need for excessive stock and its associated storage costs.
After deciding on the shipping method, the next step is navigating the maze of required shipping documentation. This can be daunting, especially when exporting to a country like Germany, which is known for its rigorous customs procedures. The importance of documentation cannot be overstated: it serves as a legal record of the transaction, ensures that your shipment is handled appropriately at every stage, and guarantees compliance with international laws and regulations. Failing to provide correct and complete paperwork can result in costly delays, fines, or even confiscation of goods. To help you out, we’ve summarized some of the common shipping documents. Depending on the type of goods, some required documents include - but are not limited to:
With extensive expertise in customs procedures, DHL Express Vietnam can also assist businesses that intend to import goods into Germany, ensuring a hassle-free international shipping process.
Understanding Germany's customs regulations is vital for any Vietnamese business looking to expand its market there. The Value Added Tax (VAT) is applicable to most goods and services entering Germany. The standard VAT rate in Germany is 19%, although there are reduced rates for certain categories of goods.
Also significant are the import duties that may apply to your goods, and generally range between 0% to 15% – depending on their classification under the Harmonized System (HS) code.
When calculating international express shipping costs, you will want to familiarize yourself with the De Minimis threshold – the minimum value of goods below which no import duties or taxes are levied.
In Germany, the De Minimis value is €150. Goods valued below this threshold can generally enter Germany duty-free and tax-free, which could be a strategic advantage for Vietnamese businesses shipping low-value goods.
Another important aspect to consider is the role of free trade agreements (FTAs) and preferential trade schemes between Vietnam and Germany or the EU. The EU-Vietnam Free Trade Agreement (EVFTA), effective since August 1, 2020, significantly eases trade between Vietnam and EU member states, including Germany.
About 84% of EU imports from Vietnam are duty-free under the EVFTA, positively impacting sectors such as pharmaceuticals and most petrochemicals. This agreement opens doors for Vietnamese businesses in the European market and vice versa.
Knowing what items are prohibited or restricted for import into Germany is not just advisable – it's essential. Failure to adhere to these regulations can lead to confiscation of goods, significant fines, and even legal repercussions.
Prohibited items are those that cannot be shipped under any circumstances. On the other hand, restricted items may be shipped but come with specific conditions or restrictions. These items often require a special permit, extra documentation, or adherence to quantity limitations.
For instance, Germany has strict laws concerning the import of products made from endangered flora and fauna, often governed by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), as stipulated by the European Commission.
If you're a Vietnamese business shipping wood-based products to Germany, securing a phytosanitary certificate is a non-negotiable step. This certificate is especially crucial for wood species that are not native to the EU. It serves as a formal declaration that the wood has been inspected and found to be free of harmful pests and diseases. Obtaining this certificate is not just a formality; it's essential for smooth customs clearance and adherence to German and EU import regulations.
Proper packaging and labeling are essential not only for the safe transit of your goods but also as a requirement under German regulations. Ensuring your packages meet these standards can go a long way in expediting the shipping process.
In the dynamic and often complex landscape of international shipping, especially in the crucial trade lane between Vietnam and Germany, it's paramount to choose a logistics partner you can trust. DHL Express Vietnam emerges as the unrivalled leader in this space, offering a host of benefits that make it the premium option for express international shipping to Germany, including:
For businesses unfamiliar with German customs, partnering with DHL Express Vietnam can be a game-changer. Our assistance can be particularly invaluable for new or smaller businesses still getting to grips with international shipping protocols.
So why wait? Open a DHL Express business account today and take your Vietnam-based business to new international heights.