Do customers order from your e-commerce shop who are located outside of Germany? Then you need to prepare shipments for customs. This can be time-consuming and comes with associated costs. For simplified customs clearance, there are CN 22 and CN 23 forms. In this article, you'll learn how these forms can help you avoid post-customs clearance by your customers, and save money on shipping. Or, find out here directly, how merchants can benefit from CN 22 and CN 23.
Shipping Goods Abroad for Online Merchants
It's common for online shops to receive orders from customers abroad. Export duties are not imposed in the European Union, and there are no duties on the value of goods for package shipments within the EU. However, in third countries, an import value-added tax is usually applicable to the goods.
In non-EU countries, different rules apply. This includes countries within Europe like Switzerland, the United Kingdom, or Norway. Additionally, countries like the USA and other markets fall into this category. Generally, for goods imported here, you need to go through customs procedures for shipments above a certain value. If customs inspects the shipment, there might also be a customs fee incurred. If online merchants haven't made different arrangements, the ordering customer bears these costs.
A Growth Inhibitor: Customs Clearance Costs Can Deter Customers from Making a Purchase
Perhaps you've experienced it yourself: you've ordered an item at a low price from an online shop, and you receive a notification from the courier or local customs that you need to pick up the package and go through customs clearance.
Depending on the value of the goods, customs fees can be quite high. Sometimes, the seller covers the costs of customs clearance, but usually, the burden falls on the customer. The additional costs that arise from an initially budget-friendly purchase often lead to nullifying the price advantage.
The standpoint of many providers is: "We have no influence over customs clearance regulations – and they are generally well-known."
CN 22 and CN 23 – Use Customs Forms for Simplified Customs Clearance
The cumbersome customs clearance process can be an unpleasant surprise for customers. However, in many cases, it can be easily avoided: with the customs forms CN 22 and CN 23. Are you aiming to expand beyond Germany? Then the following alternatives to package shipping could be important.
The CN 22 customs form:
- For parcels and merchandise shipments valued up to €350 and weighing up to 2 kilograms.
The CN 23 customs form:
- For parcels with a value of over €350. The maximum value varies from country to country and can be up to €600.
- For packages
Tip: For letters containing printed matter and other documents, you can optionally use the CN 22 form.
The form contains all the essential information for customs
The CN 22 or CN 23 form makes customs clearance simpler and relieves customs officers. The forms are prepared and completed by the sender. All details regarding the customs tariff number, content, value, and weight of the shipment are directly on the form, and customs clearance has been verified by the sender in advance.
With CN 22 or CN 23, it's immediately evident whether customs duties apply or not – and no customs processing fee is incurred. The fulfillment service provider can generate the CN 22 form and affix it to the shipment. Your benefit: You don't have to use the cost-intensive parcel channel.
Why It's Worth Checking the Tariff Number Before Shipping
Determine the tariff number for the goods you intend to ship. This way, you can communicate with the customs authorities of the destination country to inquire about the applicable value-added tax rate. You will also find out whether the import value-added tax tariff rate is duty-free or if additional customs costs apply.
- Tariff numbers provide customs with information about the nature of the product in the shipment. When sending goods to countries outside the EU, the tariff number is required in the customs declaration of contents.
- The tariff number must also be provided for returns.
- You can find the respective tariff number at https://www.tariffnumber.com/.
Attention: If the Value of the Shipment Is Not Stated, Customs Might Estimate – Possibly "Creatively"
If the item's value is not declared, customs may make an estimation in individual cases. Customs officers research online for this purpose, even using platforms like eBay. In some instances, this could lead to customs using the price found on eBay as the declared value. This can result in a significant discrepancy from the actual price, especially for rarely traded goods. These "fantasy prices" can then be used for customs clearance. Therefore, it's crucial to always provide the accurate value of the goods on your shipments.
The Advantages of CN 22 and CN 23 and How You Can Benefit
The CN 22 and CN 23 forms can be easily printed – they don't need to be created on special green paper. The advantage of sending your shipments with a CN 22 sticker: You don't need to declare them at customs, and you don't have to pay customs fees. A shipping service provider completes the customs declaration directly in the online postage system of your e-commerce platform. The label is affixed directly to the package, and a separate invoice doesn't need to be included.
Another benefit: Traditional parcel labels allow for a maximum of seven entries in the customs declaration. This limitation doesn't apply to online parcel labels.
Filling out the CN 22 Form – Step by Step
To ensure customs officials can read and understand your customs declaration, you should fill out the declaration in either the official language of the Universal Postal Union (UPU), which is French, or in English.
Provide the following details:
- Purpose of the shipment
- Accurate description of the goods
- Quantity of goods
- Weight in kilograms
- Value of the goods
- Customs tariff number
A Good Shipping Service Provider Offers Pre-shipment Consultation
If you're a start-up looking to grow and ship, it's essential to establish a professional fulfillment process right from the beginning. This way, your customers will be satisfied from the first package, and you'll benefit from significant cost-saving potential.
Whether your shipping has been running for years or you're starting it anew, a good fulfillment service provider carefully assesses the potential your shipping offers for you. Offering sound advice – even proactively – is one of the benefits that companies enjoy from a professional partner. Unsure about how to handle your customs processing? Feel free to reach out. We provide pre-shipment consultations to ensure smooth shipping and customer satisfaction. With CN 22 or CN 23, everything runs smoothly.
