Exports are essential for the German mechanical engineering industry; a large proportion of the machines and machine parts produced in Germany are destined for sale abroad. Here we provide a brief overview of the key factors that need to be taken into account when exporting these goods.
ECONOMIC FACTOR MACHINERY EXPORT
The German mechanical engineering industry enjoyed a record year in 2022: according to the VDMA (based on data from Eurostat, the EU Commission, the Federal Statistical Office and the ifo Institute), almost EUR 194 billion in machinery exports were achieved – around EUR 13 billion more than in 2021. The share of German mechanical engineering products in the EU market volume was 34%.
The importance of exports for mechanical engineering companies from Germany is easily illustrated by the export ratio. This amounted to just under 82% in 2022.
The USA and China remain the most important trading partners. In Europe, German machinery was mainly exported to France, Italy, the Netherlands, the United Kingdom, Poland, Austria, Switzerland and the Czech Republic in 2022. In an international comparison, Germany continues to rank second in global machinery exports.
BEFORE EXPORT: THE GERMAN EXPORT REGULATIONS
Exports from Germany to foreign countries are now declared exclusively electronically via the ATLAS system of German customs. The Automated Tariff and Local Customs Clearance System is mandatory throughout the EU and must be used regardless of the transport route.
The ATLAS export IT procedure comprises three areas:
- the transfer to the export procedure,
- the monitoring of the export procedure,
- the completion of the export procedure.
The electronic export declaration is required from a goods value of 1,000 euros and a weight of 1,000 kg. From a goods value of 3,000 euros, the export declaration must also be carried out by the locally responsible inland customs office. This then issues an export accompanying document (ABD).
Necessary requirements for the export declaration
Exporters must provide a range of information and documents when making an export declaration. These include:
- the goods tariff number for the precise classification of goods according to the “List of goods in foreign trade statistics”,
- the address of the recipient,
- the commercial invoice with the value of the shipment and the agreed terms of delivery,
- the gross and net weights,
- the type of export and
- Information on possible export restrictions.
These restrictions are determined as part of export control.
EXPORT PROCEDURES FOR EXPORTS TO NON-EU COUNTRIES
The export procedure is a customs procedure within the meaning of the Union Customs Code (UCC) that is used when exporting to a non-EU country. It is used to monitor the movement of goods with third countries and also includes various types of duties.
This applies, for example, to export duties that may be levied when machinery is exported from the customs territory of the EU. As a rule, this does not happen, as the EU generates revenue through foreign trade with third countries.
However, the situation is different if prices on the world market for a good that is in short supply in the EU are higher than on the EU market. Under these circumstances, export duties are intended to make exports less attractive in order to keep such a scarce good on the EU market.
Export control – what is it?
Export control is about clarifying whether the export of certain goods is subject to authorization. This applies to goods as well as technology or software. Whether a license is required at all depends on various factors. The most important questions in this context are
- What is delivered?
- Which country do you deliver to?
- To whom do you want to deliver?
- For what purposes are the delivered goods to be used?
Under certain circumstances, answering these questions can lead to an export being completely prohibited – for example due to an existing embargo. For exports to some embargoed countries, exporters require a license just to conclude a contract.
The export control provisions primarily cover military equipment for military purposes and so-called “dual-use goods”, which can be used in both a civilian and military context.
- Military equipment is always subject to authorization and the goods concerned are included in the export list.
- Dual-use goods are listed in a corresponding list of goods.
Checking the lists of goods or export lists requires technical understanding; the common index to Part I of the Export List and Annex I of the EU Dual-Use Regulation only finds the specific keyword used for the search. It is therefore no substitute for checking the lists of goods carefully, as exporters cannot use the index to find synonyms or paraphrases with the same meaning.
Even the goods tariff number for the export declaration may not offer complete certainty in terms of classification. This is because while the lists of goods list and differentiate goods based on their technical characteristics, goods with different technical criteria can also be grouped together under one goods tariff number.
In principle, naming the goods to be exported in one of the lists mentioned initially means that the export is stopped. This can only be continued once the necessary export license has been obtained.
CONVERSION DIRECTORY AND ELECTRONIC TARIFF
In principle, the BAFA’s recoding directory and the electronic customs tariff (EZT) are also ways of checking whether goods are on an export restriction list. However, this also only applies with restrictions.
For example, in the recoding index there are only references to goods that are explicitly named and specified in the goods lists. However, the goods lists also contain goods without a precise description, which are therefore not assigned a goods tariff number – they cannot be found via this number, but may still be subject to restrictions.
The situation is similar with the EZT. Like the associated customs tariff numbers, this is primarily used by the customs administration for the import of goods. If the customs tariff number is also relevant for exports, it is usually identical to the goods tariff number.
MACHINE TESTING AND EVALUATION
Machines intended for export must first undergo an inspection to determine the necessary safety requirements. Within the EU, the Machinery Regulation sets the relevant standards with regard to machinery safety; from 2027, it will replace the previous EU Machinery Directive 2006/42/EC.
Depending on the type of goods, further guidelines may need to be taken into account. These include
- the EMC Directive on electromagnetic compatibility (2014/30/EU),
- the RED Radio Equipment Directive (2014/53/EU),
- the WEEE Directive for waste electrical and electronic equipment (2012/19/EU),
- the explosion protection regulations (EX-RL, DGUV regulation 113-001) or
- the Pressure Equipment Directive (2014/68/EU).
However, the inspection in accordance with the Machinery Directive and the Machinery Ordinance is always required for all machines. It is the basis for the declaration of conformity and the issuing of a CE marking.
EMBARGO MEASURES FOR EXPORTS
Economic trade with certain countries is subject to certain restrictions for foreign or security policy reasons. Depending on the destination country, these can also affect exports. If embargo measures apply to the country of destination, the restrictions can range from additional licensing requirements to an export ban.
Customs provides a brief overview – without legal force – of existing country embargoes on the corresponding subject page.
Special requirements for the international export of machinery
In some target countries, the export of machinery requires the consideration of additional standards when it comes to the requirements for the product or the technical documentation. There are differences compared to the EU procedure in accordance with the Machinery Directive/Machinery Regulation for exports to the following markets:
Great Britain and Northern Ireland
As a result of Brexit, the requirements for placing machinery on the market in the UK and Ireland have changed, and a transition period for the new regulations will end on December 31, 2024.
This means that all exported machines must comply with the regulations and standards of the new UKCA marking. However, there are differences on the British market:
- UKCA certification is used in the United Kingdom, Scotland and Wales.
- In Northern Ireland, however, the CE procedure continues to apply, with one special feature: If a British body is commissioned to carry out the conformity assessment, the machine receives an additional UKNI marking. However, this is only ever affixed together with the CE marking.
Goods with both markings may not be placed on the market in the EU.
Saudi Arabia
Before 1 April 2018, it was still sufficient to enclose a shipping certificate with an exported machine, but since then the so-called SALEEM program has applied to machine exports to Saudi Arabia. For a market launch, proof must be provided by means of a certificate that the machines meet the requirements of the Saudi Standards, Metrology and Quality Organization (SASO). Exporters must be able to provide this proof at the time of import.
USA and Canada
Exports to the US and Canadian markets are also subject to their own national requirements. This means that machines for commercial or industrial use must be assessed by an approved testing organization in accordance with the respective standards before being imported.
Different guidelines and standards must be observed, for example for customer-specific individual machines or series machines. Partners such as TÜV are also available for these machine assessments in order to obtain the necessary certification.
Brazil
Directive NR 12 is decisive for the conformity assessment for the Brazilian market. This “Norma Regulamentadora” comprises the applicable regulations for placing machinery on the market and making it available in Brazil.
NR 12 is used to consider possible hazards when operating a machine. The directive also specifies what information must be available in order to avoid such hazards. In principle, NR 12 serves to ensure compliance with minimum requirements for the prevention of accidents and occupational illnesses during the design, manufacture, import, marketing, display and transfer of machinery.
TÜV also tests the machines in accordance with IEC 60204-1 in order to meet the electrical requirements set out in Brazilian Directive NR 10.
South Korea
When exporting machines to South Korea, the requirements of the Korea Occupational Safety and Health Agency (KOSHA) must be met. This means that only machines that have received a certificate in accordance with KC or KCs-Mark standards may be imported.
Electrical and mechanical safety as well as electromagnetic compatibility are tested. To make certification easier for manufacturers and exporters, they can obtain the appropriate test mark directly from the relevant bodies in South Korea (such as KOSHA or, in some cases, the Korea Industrial Safety Association KISA), which also cooperate with international testing bodies in the country of origin.
Australia and New Zealand
Standards also exist in Australia and New Zealand (in this case the AS/NSZ 4024 series of standards), which must be used to check the safety-relevant aspects with regard to the health and safety of machine users. While manufacturers are obliged to comply with the associated requirements due to the applicable occupational health and safety laws, there is no such general obligation for exports.
Nevertheless, the Australian and New Zealand markets and the industries concerned do expect that proof of prior testing of the standards can be presented when importing machinery. In this respect, it is highly recommended to have a conformity assessment carried out in accordance with Australian or New Zealand standards.
CONCLUSION
While the legal framework within the EU – for example in the form of the new Machinery Regulation – further facilitates the trade of machinery between EU member states, manufacturers and exporters often have to pay attention to additional requirements when exporting to non-EU countries. This applies to compliance with embargo measures as well as technical norms and standards that deviate from the usual EU requirements.
In order to make the export and international transport of machinery as uncomplicated as possible, the associated procedures are increasingly being digitalized. In addition, contact persons and competent bodies are available both in Germany and in the destination countries to provide support with questions relating to export restrictions, conformity assessments, etc. offer support.
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