By Eric Huang    Photo：CANVA

Shipping goods from the Netherlands to both EU and non-EU nations involves a detailed and complex process that requires careful attention to regulatory compliance, accurate documentation, and strategic logistics planning.

Shipping goods from the Netherlands to EU and non-EU countries is a task fraught with complex regulations and logistical operations. As logistics experts specializing in European warehouse operations, Hendra International shares key steps and considerations for successfully managing shipments from Dutch warehouses to destinations within and outside the EU.

Selecting the right warehouse in the Netherlands is crucial. Each warehouse is tailored to specific types of goods and based on the nature of the goods (hazardous/non-hazardous), we determine the most suitable warehouse to meet your needs. Consideration of average inventory turnover is also vital—whether your goods require medium to long-term storage or are meant for cross-docking directly impacts the choice of warehouse, as some prefer to handle cross-docking goods. Therefore, confirming the inventory turnover rate before choosing a warehouse is essential to avoid exorbitant storage fees.

Once you decide to ship goods from the warehouse to the buyer, tax issues come into play. Besides making a T1 customs warehousing declaration, as the EU functions as a single market and customs union, your goods can move freely between member states without customs checks or tariffs. However, VAT and excise rules still apply. We previously discussed the tax advantages of setting up a warehouse in the Netherlands over several weeks, which we will not reiterate here.

Foreign companies operating warehouses in the Netherlands must appoint a so-called fiscal representative for necessary tax declarations. Even if you have a registered company within the EU and possess a European VAT/EORI number, the Dutch government still requires VAT declarations through a fiscal representative. This is particularly crucial as a European importer with an Asian postal address might appear as a shell company from a customs perspective, posing several risks. Thus, while the Dutch government encourages foreign companies to establish warehouses, it also enforces fiscal representation.

Choosing between a limited fiscal representative and a general one largely depends on your trade terms and the identity of the final recipient. For instance, under DDP terms and a B2B business model, a limited fiscal representative may be appropriate, allowing for a 21% VAT deferment. On the other hand, under DAP terms and a B2C model, if aiming for long-term establishment and significant imports, you could seek to register as a legal entity importer in the Netherlands, obtaining a Dutch VAT number/EORI under Article 23. This allows for VAT deferment through a general fiscal representative and legally issuing VAT invoices to end consumers.

When shipping goods to EU countries, your shipments are usually VAT-exempt, but you must report these transactions in your monthly VAT declarations. Moreover, if you ship controlled substances like alcohol, tobacco, or fuel, you must comply with excise regulations, which may include paying additional excise taxes in the destination country. Depending on the quantity and size of the goods, shipments within the EU are typically handled by full truckload or less-than-truckload transportation. For bulky or heavy items, trucks with tail lifts are often necessary to prevent damage during delivery. Most EU internal transportations can be completed within one to two days, although less-than-truckload shipments may have less predictable waiting times.

This type of cross-border road transport usually utilizes the Convention on the Contract for International Carriage of Goods by Road (CMR) document, also known as the CMR Note. Typically, the CMR note consists of four copies: the first for the trader, the second for the carrier, the third accompanies the goods to their final destination, and the fourth is kept by the management institution. However, a CMR Note is not transferable (not a bill of lading), so the carrier does not need an original copy to deliver the goods to the recipient.

When your goods are destined for non-EU countries (e.g., the UK, Russia), you must submit a customs declaration to Dutch customs before the goods leave the Netherlands. This can be done through the customs' automated export system with a T1 declaration. Certain goods might be subject to export controls, requiring EU permits before shipment. These include dual-use items, military goods, and certain high-tech products. Goods entering non-EU countries may be subject to tariffs based on the HS code and the destination country's tariff rules. Subsequent processes follow standard import regulations, complying with the destination country's laws.

Shipping goods from the Netherlands to EU and non-EU countries involves a detailed and complex process that necessitates careful attention to regulatory compliance, accurate documentation, and strategic logistics planning. While EU transport benefits from simplified processes in the single market, VAT and excise tax issues must still be handled carefully. Non-EU transport presents additional challenges, including customs declarations, tariffs, and possibly export permits. However, understanding these complex issues and seeking professional services when necessary, can help you navigate these challenges successfully and expand your international trade operations smoothly.
 

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