Key Factors to Consider While Exporting from India to Germany

The major trading partner of India in Europe is Germany. It has constantly been among India’s top ten foreign trading partners, ranking seventh in FY 2020–21 in terms of trade volume regarding exports to Germany. Between April 2000 and September 2021, Germany made FDI commitments to India, totalling more than US$ 13 billion. German FDI was US$ 667 million in FY 2020–21 in India. German FDI in the period 2021–22 was $431 million. There are more than 1,700 German businesses in India, according to the Indo-German Chamber of Commerce. German investments have primarily been made in India’s transportation, electrical equipment, metallurgical, services, chemical, building, trading, and automobile industries. 

Key stakeholders involved in the process of export to Germany 

The main stakeholders for export to Germany are given below, divided into categories. The role that actors perform in a business transaction or their principal line of work can also be used to classify actors. The following are these groups: 

  • Involved in the purchase and/or selling of products are manufacturers, retailers, and wholesalers.
  • Businesses that coordinate and control the physical movement of goods, or, in the case of goods forwarders and logistics companies, orchestrate commercial transportation. 
  • In addition to port and airport employees, terminal handlers, stevedores, and warehouse managers, there are other transport intermediaries who are involved in the actual movement of goods. 
  • Commercial banks and insurance firms are used by traders to pay for commodities, cover customs and taxes, insure goods during transportation, deposit guarantees and securities, and insure objects during car insurance. 
  • Customs brokers, Single Window operators, and service providers—companies that offer services to one or more parties in a supply chain—are additional intermediaries that help with the completion of procedures. Typically, this assistance takes the form of data processing and information exchange. 
  • Executive agencies, departments, or ministries at the state and federal (regional) levels are examples of government or public bodies. Maintaining domestic legislation while authorising and controlling the transnational movement of goods is their responsibility. 

Guide on export to Germany through a step-by-step process 

Germany’s consumers often receive Indian items via air or sea freight. The majority of shippers chose sea freight for bulky or heavy items. Air freight is more appropriate for little packages with a high value. The process for shipping goods from India to Germany is described in general below. 

  1. Shipping through export to Germany only process 

Shipping products from the supplier’s location to the export port is what this step of the procedure entails. Usually, this is done via road, although it can also be done by rail or speciality carriers on occasion.

  1. Clearance of customs for export to Germany 

In this step, the provider follows all legal requirements and provides the papers required by the local government. 

  1. Indian handling 

This phase of the process, which begins at the supplier’s location, involves handling, transporting, loading, emptying, and reloading, as well as inspection. Usually, this part of the process is handled by goods forwarders. 

  1. Air and ocean freight 

Once loading and transit procedures have been established, commodities are prepared for delivery to the closest port or airport. A ship or aircraft gets loaded with the cargo thanks to the goods broker. 

  1. Import customs clearance 

When the goods arrive, the consignee engages house brokers to manage customs clearance. Typically, this process starts before the delivery of the items. 

  1. Germany Processing 

It is necessary to clear and unload cargo before transferring it to a warehouse or storage location in Germany. 

  1. Import shipping 

Once sorting has been done, the products are then supplied for customer delivery. 

As you have acquainted yourself with the step-by-step process of exporting to Germany, you must know about the products that can and cannot be exported to Germany. 

List of goods that can be exported to Germany 

A variety of Indian products are in huge demand in Germany. Some of the popular Indian products exported to Germany are sports and outdoor goods, handmade

products, cosmetics and beauty products, toys, apparel, and many other household and kitchen products. 

List of goods that cannot be exported to Germany 

Lithium batteries, in particular, might be viewed as dangerous goods, and shipping regulations must be followed in order to transport these. A particular declaration must be submitted in addition to any shipping restrictions. Additionally, forbidden items include fragrances, hairspray, gas pressure cans, lighters, nail polish remover, cream liqueurs, etc. They might be categorised as dangerous goods if you ship them via air. The IATA Dangerous Goods Regulations Manual defines dangerous goods as items or substances that can endanger people’s health, safety, property, or the environment and are listed on the list of dangerous goods in the IATA Dangerous Goods Regulations or are otherwise categorised in accordance with those regulations. 

Tax laws applicable during export to Germany 

Whether by a private person or a corporate entity, commodities imported into Germany from outside the European Union are subject to import duty and taxes. Since Germany is a signatory to the Common Customs Tariff, preferential rates are applied to imports from nations with whom the EU has signed agreements. Duties range from 0 to 17 per cent, with the average tariff being 4.2%. Foodstuffs, textiles, and apparel, however, continue to be subject to various protectionist policies (quotas, increased tariffs, etc.). Anti-dumping taxes are imposed on some imports. 

Ship from India to Germany with Amazon Global Selling 

The development and growth of India’s economy have been significantly influenced by its trade links and exports to Germany. Germany is one of India’s biggest trading partners in Europe and the rest of the globe, with a more than 500-year history of trade. Without having to put up a real store or warehouse, you may easily sell in Germany using e-commerce exports. More than any other country in the world, India produces and exports a wide range of necessities, including jewels, electronics, textiles, and pharmaceuticals. While you concentrate on operating your business, let

Amazon manage the international distribution and logistics. With Amazon FBA, it’s easy to export items to Germany from India.