A comprehensive guide to shipping from Singapore to Finland

With a growing trade relationship, Singapore and Finland have seen substantial increases in exports and imports over recent years. In 2022, Singapore exported approximately $333 million worth of goods to Finland, marking a steady annualized growth rate of 3.47% from $280 million in 2017¹. Key sectors driving this trade include refined petroleum ($148M), integrated circuits ($93.6M), and therapeutic appliances ($9.41M)², highlighting lucrative opportunities for Singaporean businesses seeking to expand into the Finnish market.

However, shipping to Finland also presents distinct challenges, particularly around customs regulations, potential transit times, and unexpected delays. Navigating these complexities requires an understanding of Finnish customs requirements and a reliable logistics partner, such as DHL Express, to ensure shipments arrive smoothly and efficiently.

1. Understanding Finnish customs regulations

Navigating Finnish customs regulations is essential for businesses shipping from Singapore to Finland. Complying with these rules not only ensures smoother transit but also minimizes the risk of costly delays or penalties. Below are key aspects of Finnish customs that every business should understand.

Key regulatory bodies

Finnish Customs operates as part of the broader European Union (EU) customs system, adhering to EU-wide regulations on the classification, valuation, and taxation of goods. This means goods shipped from Singapore to Finland must meet EU standards, with all customs declarations conforming to the EU’s strict requirements for accuracy and completeness.

Import duties and taxes

Finland recently raised its standard Value Added Tax (VAT) rate to 25.5% as of 1 September 2024³, which applies to most goods and services that lack a specific exemption or reduced VAT rate. This new VAT rate impacts the majority of imports, with exceptions outlined below:

• Reduced VAT Rate of 14%: This rate applies to most food products, catering and restaurant services, water, and pet food.
• Further Reduced VAT Rate of 10%: This applies to certain pharmaceutical products, books (both print and digital), newspapers, passenger transport, hotel accommodations, cinema, and sports services.
• VAT Exemptions: Certain services, such as health and social care, education, financial and insurance transactions, and real estate activities, are exempt from VAT.

Upcoming VAT reclassifications on 1 January and 1 June 2025 will likely increase rates for some categories⁴, making it essential for businesses to monitor these changes closely to remain compliant.

For accurate VAT calculation, each item in the shipment must be declared with precise descriptions and classifications. Import duties are based on product categories, and certain items may qualify for exemptions or preferential treatments. Completing these customs declarations with accuracy not only helps to avoid delays but also reduces the risk of additional taxes and penalties.

Prohibited and restricted items

Certain items are prohibited or restricted from entering Finland, so businesses must review these regulations carefully. By consulting the TARIC codes, shippers can identify products that are prohibited under the Convention on International Trade of Endangered Species (CITES) or face Import Suspension (PROHI) or Import Restriction (RSTR) classifications. Ensuring compliance with these restrictions protects shipments from potential holds, fines, or confiscation at customs, streamlining the process for compliant goods.

2. Preparing your shipment for Finland

Proper preparation is key to ensuring a smooth and efficient shipping process to Finland. By following the necessary documentation, packaging, and labeling requirements, businesses can reduce the risk of delays and ensure their shipments arrive securely and on time.

Documentation requirements

Comprehensive and precise documentation is essential when you send items overseas from Singapore. Shipments that are en route to Finland will require documents that typically include a commercial invoice, packing list, certificate of origin, and any specific permits or licenses for regulated items. These documents provide customs authorities with the information needed to assess and process shipments accurately.

As of March 2023, Finnish customs regulations now require that every item in a package be explicitly described in the customs declaration form⁵. This shift towards greater specificity was introduced to streamline customs processing and reduce inspection delays. Vague or generalized terms like “electronics” are no longer acceptable; instead, each product type must be detailed precisely, such as “computer” or “mobile phone.” This level of detail helps customs agents assess import duties, taxes, and compliance requirements more accurately, minimizing the risk of prolonged inspections.

Packaging and labeling

Proper packaging and labeling are essential for safe transit, especially for fragile or hazardous items. Ensure all items are securely packed to withstand handling and labeled with accurate product information, which minimizes risk during transit and facilitates smoother customs processing.

Incoterms

Selecting the correct Incoterms is crucial, as they define the responsibilities and costs between buyers and sellers, impacting everything from shipping charges to risk management. For shipments to Finland, terms like Delivered Duty Paid (DDP) or Delivered at Place Unloaded (DPU) are often recommended. These terms help to avoid misunderstandings, clarify cost responsibilities, and provide a more transparent shipping process, particularly for cross-border shipments.

3. Choosing the right shipping method

Selecting the appropriate shipping method is crucial for balancing cost, speed, and reliability when shipping to Finland. Whether you're focused on optimizing delivery times or minimizing shipping costs, understanding the benefits of each method can help you make the best decision for your business. Below, we explore key options and how DHL Express can support a streamlined, efficient international shipping experience.

Air freight vs. sea freight

When shipping internationally, businesses often choose between air and sea freight, each offering distinct advantages. Air freight provides unmatched speed and reliability, making it ideal for time-sensitive or high-value shipments. With quicker transit times, air freight can reduce lead times significantly, ensuring your products reach Finland promptly and meet tight deadlines. On the other hand, sea freight is a cost-effective solution for larger or less time-sensitive shipments, offering lower rates for bulky or heavy goods. However, its longer transit times mean that delivery schedules may be impacted by delays at sea or port customs clearances.

For businesses needing the speed of air freight without compromising on reliability, DHL Express’ express services provide a dependable, fast option. By leveraging DHL Express’ extensive global network, businesses can ensure their products reach Finland on time, providing peace of mind and added efficiency.

DHL Express shipping solutions

DHL Express offers a range of shipping solutions tailored to suit diverse business needs. From express delivery options for urgent shipments to time-definite services, DHL ensures flexibility in delivery windows and reliable door-to-door service. With customizable services, DHL Express accommodates varying shipment sizes, delivery priorities, and schedules, helping businesses stay agile and responsive to customer expectations.

Shipment tracking and visibility

In today’s fast-paced e-commerce environment, transparency is essential for enhancing the customer experience. DHL Express’ advanced tracking tools provide real-time shipment visibility, allowing businesses and customers to monitor the journey of each parcel. This level of transparency reduces customer inquiries by delivering timely, accurate updates and fosters trust in the shipping process. Through DHL Express’ comprehensive tracking system, businesses can manage expectations, improve customer satisfaction, and maintain control over their international shipments.

4. Additional considerations for shipping to Finland

Beyond choosing the right shipping method, other factors can significantly impact the success of your shipments to Finland. From understanding transit times and insurance to respecting cultural norms, these considerations help ensure a smooth and efficient shipping experience.

Transit times and potential delays

Shipping from Singapore to Finland typically involves a transit time of several days for air freight, though customs inspections, weather, and logistical factors can occasionally cause delays. Planning for these contingencies helps businesses maintain smooth operations.

Insurance and risk mitigation

When shipping internationally, insurance is crucial to safeguard against potential loss, damage, or delays that could impact your shipments. DHL Express offers a comprehensive range of insurance options to protect valuable or sensitive goods, providing peace of mind throughout the shipping journey. By securing appropriate coverage, businesses can mitigate risks and avoid potential financial losses, ensuring that high-value shipments are well-protected.

Cultural considerations

Understanding Finnish business culture can go a long way in fostering positive relationships with Finnish partners and customers. Finnish business etiquette values punctuality, transparency, and direct communication. Meetings are often concise and to the point, with an emphasis on professionalism and mutual respect. By respecting these cultural norms, businesses can build trust, strengthen partnerships, and enhance collaboration in the Finnish market.

Partner with DHL Express for seamless shipping to Finland

To achieve successful shipping outcomes in Finland, a combination of compliance, preparation, and reliable logistics is essential. DHL Express provides unmatched expertise in international shipping, from customs clearance to efficient, end-to-end supply chain logistics solutions that cater to businesses aiming to expand their reach.

For businesses looking to streamline their shipping processes and unlock opportunities in the Finnish market, partnering with DHL Express can make a world of difference.