Thanks @millyandpip . I wish I could post to the EU but it just sounds like such a minefield. So hopefully everywhere else will be ok and I’ll get away without the invoice on the outside.
I have been selling to the EU for a number of years and although, once you have the necessary in place, it is fairly straight forward you do need to be aware of recent legislation regarding extra VAT rules for France over a certain value and if selling to Germany, you MUST register with the German service (LUCID). Failure to comply with the latter will not only result in your parcels being returned but can result in a €2000 fine. It has happened to a number of people on the other marketplace, so please don’t take the risk.
It is easy to register and your LUCID id will have to be displayed on your postal label. Automatic and electronic with Royal Mail Click and Drop.
Your CN22 must be fully displayed on the package with a copy of the invoice in a documents enclosed wallet on the front. 2 copies also must be enclosed inside the parcel to comply with customs regs. This is not negotiable as far as they are concerned so even gifts are not exempt from this.
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It’s the PPWR regulations that put me off EU posting more than anything else @MaireCurtis. Maybe I’m just being dense but it seems insanely complicated, and far too expensive for a tiny handmade business to comply with. You have to (as far as I can gather) pay to register with each individual country, and appoint a representative in each country. How do you get on with that, if you don’t mind me asking?
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Yes, you are right, you will need to register with each country…so much for the EU. Germany is a must and France is not far behind.
A lot depends on who the marketplace provider is also. Etsy has these registration numbers logged centrally on your account so the transaction is seamless. Folksy needs to be following suit or it will be impossible fro smaller makers to stay ahead of the game.
If you are going to trade with the EU, I strongly suggest becoming a member of a business organisation which offers legal advice. ( Iam with the Federation of small businesses). France is very quickly becoming protectionist and is requiring any trader offering sales to France of more than £150…ish. to be registered for VAT in their own country. This is something most small traders are not.
It is not straight forward and it is not a Brexit issue. Even if we were still in the the EU, many countries are now creating their own rules within the framework.
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Yes, that’s what I thought, that it applies to trade trade between member states too. It seems crazy that it’s not centralised with a single registration and fee. It must be killing trade for some small businesses. I’d need to grow a lot (a lot!) before I could consider sending there.
Hi everyone,
I’m not sure I fully understand, so I apologize if I’m confused. Recently, I shipped one of my items to Italy (a gift box for my cousin) as a test to see if I could expand my products there. I paid the usual Royal Mail shipping fees, but when my cousin went to collect the package, she was charged 40 euros. When she asked why, the Italian postal service simply said it was customs fees.
Reading through your posts, I’m wondering if there are any alternatives to avoid these customs fees or manage them better. Has anyone had similar experiences and can offer any advice?
Thank you in advance for any help!
If the sale is processed through a site like Folksy and is under 150 euro then the recipient will pay the customs charges (VAT) at the point of purchase so shouldn’t have to pay again (provided you’ve done the electronic presubmission of IOSS correctly). If the sale is done privately or the item is a gift then the recipient will have to pay the customs charges on receipt which often includes a handling charge as well.
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thank you, comprehensive answer. very kind
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I always send overseas orders via RM, which I purchase online - it comes complete with the CN22 label and when I purchase the postage I add in the tariff code for the item. However, no matter where I send, I always print off 3 copies of a commercial invoice which I also attach in a sticky wallet on the back of the package. I do this with all my overseas orders, some of which occur on Folksy, but most of them happen through my own website. I just do it as a matter of course now and I do it on all overseas orders wherever they’re going. I’m sure I’m doing a bit of overkill, but I’d much rather that than upset a customer with their order being delayed. (I have a note on my website that states customers may be charged additional VAT/fees, and that this is the customer’s responsibility.) Touch wood, I’ve not had any orders delayed due to customs problems.
I have a note both on here and on my site explaining that I am unable to send to all EU countries, and as far as Folksy goes, I basically just say if you’re in Europe and your country isn’t listed under the Europe shipping destination, then I can’t send to you. Technically they can in theory chose ‘rest of the world’ if they want to try and get around it, but that would just result in their order being refunded so it won’t help them or give them a loophole.
This is the commercial invoice I use: https://www.tnt.com/dam/tnt_express_media/global_media_library/images/customs-clearance/commercial-invoice-template-jan-18.pdf
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Very helpful Sarah, thank you for sharing the invoice you use!
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You don’t need to put an invoice on the outside for non EU orders if you use RM. I only put an invoice on the outside for EU orders. Sending to the EU is pretty easy via marketplaces who have signed up to the IOSS scheme
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I no longer ship to EU as no matter how many times I read what I need to do to comply it just doesn’t seem to go in, there has been so much help from other sellers on the forum about it but I can’t seem to get my head around it. Also the extra fee doesn’t seem worth it for a few potential sales to me. I am sure if I was shown and once did it I would be fine but it seems like so much work so I now have a note on my shop page saying I no longer ship to the EU, it is a shame as I had some lovely customers in France, they certainly don’t make it easy for small businesses like ours.
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