Sri Lanka and Germany enjoy a robust trade relationship, with Germany being a significant importer of Sri Lankan goods. According to Sri Lanka export data by the Observatory of Economic Complexity (OEC), the amount of Sri Lankan goods entering Germany increased by 30.1% from 2023 to 20241. These statistics highlight the mounting demand for Sri Lankan goods, such as textiles, apparel, and articles of rubber, in the German market.
This growth in demand presents lucrative opportunities if you’re looking to tap into the German market. On top of that, you can leverage the European Union’s (EU) Generalised Scheme of Preferences Plus (GSP+), which makes breaking into the market more accessible. The preferential trade program grants duty-free access for numerous Sri Lankan products entering the EU, of which Germany is a member, giving you a further trade advantage.
However, with complex customs regulations and extensive documentation requirements, entering a new market can seem daunting. To help you in your export journey, this guide will break down what you need to know to export to Germany so that you can ensure smooth transactions and expand your business horizons.
Key steps in exporting from Sri Lanka to Germany
Research the German market
Your first step is identifying and selecting products suitable for the German market. Thorough market research is vital to help you understand consumer preferences, identify potential buyers or distributors, and tailor your products to meet specific market demands. You should consider several market factors during your research:
- Identify your niche: Identify what makes your products unique or competitive in the German market.
- Research German consumer preferences: Find the popular trends and brands in your product category to determine where the demand and competition lie.
- Consider cultural sensitivities: Account for cultural factors or preferences that might influence how you market your products.
- Ensure regulatory compliance: Abide by any specific rules that might apply to your goods, such as product safety, labeling, and environmental standards.
Resources like the EU’s Access2Markets portal can provide additional insights on market access, regulations, trends, and trade agreements. With thorough research and careful product curation, you can increase your chances of success in German market entry.
Package and label your shipment
Proper packaging is essential to ensure the safety and protection of your goods during international delivery. Use sturdy materials that can withstand the rigors of transportation, such as high-quality cardboard boxes, bubble wrap, and cushioning materials. Ensure that your products are securely packed to prevent damage during transit.
Accurate labeling is equally essential for smooth customs clearance in Germany. Labels should be affixed securely to each package and include the following information:
- The sender's and recipient's addresses
- Country of origin
- Product description and quantity
- Weight and dimensions of the package
- Any necessary customs declarations or import licenses
Ensure your labels are visible, legible, and written in German to comply with the EU’s standards2. You can also consider using barcodes or QR codes to facilitate automated handling and shipment tracking.
Prepare export documentation
Accurate export documentation is crucial for hassle-free customs clearance in Germany. However, the specific documents required often arise among common questions on international shipping. Here’s what you will typically need to prepare:
- Commercial Invoice: This is a vital part of the documentation required when shipping internationally. It acts as a customs declaration for the goods and contains information such as product descriptions, quantities, value, terms of sale, and country of origin. Customs authorities will use this document to calculate the taxes and duties due and determine who needs to pay them.
- Packing list: This is a comprehensive list of the contents of each package, including weight and dimensions, that various parties along the supply chain will need to know as they handle, store, and transport your goods. Unlike the Commercial Invoice, this list fulfils more operational functions.
- Certificate of Origin: This document verifies the origin of your goods, which is important for determining applicable duties and taxes. If your destination country has a free trade agreement (FTA) with Sri Lanka, such as the GSP+, this certificate can verify your eligibility for preferential taxes and duties.
- Other permits or licenses: Depending on the nature of your products, you may need specific permits or licenses. For example, food products may require health certificates, while certain electronics may require compliance certifications. Do check the rules for your product category to ascertain if any extra licenses are required.
By having the necessary documentation ready, you can ensure compliance with German customs clearance regulations to avoid delays, penalties, or the seizure of goods.
Familiarize with customs clearance and duties
Upon arrival in Germany, customs officials will inspect your goods to ensure they comply with import regulations. Duties and taxes may be levied depending on the product type and value. The customs authorities will also check your shipping documents to verify any FTAs for which you are eligible.
For example, if you’re shipping from Sri Lanka, your products may qualify for reduced or zero-duty entry under the GSP+, making them more competitive in the German market.
To ensure smooth clearance, familiarize yourself with the German customs procedures and prepare your export documentation accurately and in advance. If you need additional assistance, you can consider using a customs broker to help you navigate the process.
Leverage the EU GSP+
The EU GSP+ was designed to facilitate trade between the EU and developing countries3. This FTA gives you an edge when shipping to Germany from Sri Lanka, as it significantly reduces your export costs through reduced duties.
To qualify for preferential treatment, your product must satisfy the rules of origin under the GSP+. You can use the EU’s Access2Market self-assessment tool to assess whether your product meets the requirements and how to prepare the correct documents. You will need a valid Certificate of Origin to claim the benefits.
Utilizing the GSP+ effectively can be a game-changer for your export business, enhancing your competitiveness when shipping to the European Union.
Select your shipping method
Choosing a suitable shipping method is crucial for timely and cost-effective international delivery. You have several options for freight shipping to Germany:
- Air freight: This is the fastest option, ideal for time-sensitive or high-value goods. It offers quick transit times, especially for long distances. However, it's generally the most expensive option due to the higher fuel costs and handling fees.
- Sea freight: This is the most economical option for larger shipments, but transit times can be longer, especially for intercontinental routes. It’s ideal for bulk goods that are not time-sensitive.
- Express delivery: This option offers a balance between speed and cost, making it suitable for smaller, urgent shipments. Typically, your shipment can be delivered within 72 hours4 at an extra fee.
The best option depends on your needs, including product type, budget, and delivery timeframes.
Choosing the right export partner: DHL Express
While shipping goods from Sri Lanka to Germany requires careful planning and logistical expertise, the process can be smooth and rewarding. With a reliable global logistics partner like DHL Express, you can ship your products securely and efficiently while ensuring business continuity.
DHL Express is a leading international logistics provider with extensive experience in handling shipments to Europe. Our tailored services, international network, customs clearance support, and shipment tracking capabilities make it more manageable to deliver overseas.
Regardless of your industry and product type, DHL Express ensures you can focus on your core business operations, knowing that your shipments are in expert hands.
Additional tips for successful exporting
Aside from shipping preparations, there are other tactics you can adopt to increase your chances of success when exporting to Germany:
- Build strong relationships: Establish trust and open communication with German buyers and distributors to set the foundation for long-lasting business relationships.
- Consider cultural nuances: Localize your marketing and communication strategies to resonate with German consumers.
- Stay updated on regulations and market trends: Be informed about changes in legislation or consumer preferences, especially concerning the GSP+ Sri Lanka program, which might demand changes to your processes.
- Leverage digital platforms: Utilize online marketing principles and tools to reach a wider audience and connect with potential consumers in Germany.
Expand your business horizons: Export to Germany today
With the advantages of the EU GSP+ and its mounting demand for Sri Lankan products, Germany offers significant export opportunities. By adhering to customs regulations and leveraging the right resources, you can successfully expand your business reach in the country.
To simplify your international delivery process and ensure your goods reach Germany efficiently and reliably, consider partnering with DHL Express to benefit from its extensive resources and expertise. Open a business account with DHL Express and begin your export journey today!
