Business Across Borders – Understanding International Trade

International trade is a complex process, but also an exciting business opportunity. DHL can help not only with global customs requirements and trade terminology but also with local import and export support and resources.

Learning the Incoterms® Language

Incoterms® - an acronym for International Commercial Terms – are managed by the International Chamber of Commerce. They are recognized and accepted as the standard for international trading and are regularly updated as commercial conditions change.

Familiarity with Incoterms® will ensure you purchase goods from manufacturers abroad in accordance with applicable regulations, documentation and procedures.

Their main objective is to define criteria for the distribution of expenses and the assignment of risk between parties involved in international transactions.

Incoterms® serve to standardize the process of shipping and receiving merchandise. In addition, they determine the cost allocation of international commercial transactions and establish agreed responsibilities for exporters and importers.

Incoterms® 2010 are classified into two categories according to the mode of transport.

Incoterm and Definition

EXW	Ex Works	The seller's only obligation is to make the goods available at its premises or at another named place (works, factory, warehouse, etc.). The buyer bears all costs and risks involved in taking the goods from the seller’s premises to the desired destination. This term represents the minimum obligation for the seller.
FCA	Free Carrier	The seller’s obligation is to hand over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. The parties are advised to specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.
CPT	Carriage Paid To	The seller pays the freight for the delivery of goods to the carrier or to another person nominated by the seller at the named destination. Once delivered, the risk of loss or damage to the goods is transferred from the seller to the buyer. This term requires the seller to clear the goods for export.
CIP	Carriage and Insurance Paid To	The seller has the same obligations as under CPT but has the responsibility of obtaining insurance against the buyer’s risk of loss or damage to goods during carriage. Insurance only needs to be obtained at minimum coverage and the seller is required to clear the goods for export.
DAT	Delivered At Terminal	The seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. “Terminal” includes quay, warehouse, container yard or road, rail or air terminal. The seller is responsible for the export clearance procedures and the importer is responsible for clearing the goods for import, arranging import customs formalities, and paying import duty.
DAP	Delivered At Place	The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller is required to clear the goods for export and the importer is responsible for effecting customs clearance, and paying any customs duties.
DDP	Delivered Duty Paid	The seller is responsible for delivering the goods to the named place in the country of importation, including all costs and risks in bringing the goods to import destination. This includes all export and import duties, taxes and customs formalities.

There are four Incoterms® in this category:
FAS (Free Alongside Ship),
FOB (Free On Board),
CFR (Cost and Freight)
CIF (Cost, Insurance and Freight)

These Incoterms® are listed for your information only as they are not needed when sending shipments with DHL Express.

The Incoterms® Chart of Responsibility provides an overview of the exporter’s and importer’s obligations within each category.
View Chart of Responsibility

Use of Incoterms® is not a legal requirement, however using them is always recommended to simplify transactions, reduce misunderstandings with those you do business with.

You can read more about global Incoterms® by visiting the International Chamber of Commerce website, which includes an FAQ and an explanation of Incoterms rules.
Access the International Chamber of Commerce website

Learning about Customs with DHL

DHL Express has been a global expert in international trade for well over 40 years and now processes several million customs entries every day. As one of the world's largest customs brokers, we use local expertise to understand diverse customs regulations.

That’s why, with DHL as a partner for your small business, its in-house experts are well positioned to help you navigate the complexities of customs compliance and all of the related terminology and guidelines. Understanding the processes and terminology involved will help you enter markets and build a long-term foundation for successful international trade.

The importance of understanding the Customs requirements of each country that you trade with cannot be overstated. National regulatory bodies will use your customs documentation to verify the contents of your shipment, its value, country of origin and other factors to determine the amount of duties and taxes that are due on the goods. You therefore need to ensure that your documents are as detailed as possible.

Failure to complete proper documentation or adhere to the rules regarding shipping to another country can cause considerable delays, so it is important to pay close attention to this aspect of international trade. Inadvertently trying to import controlled or restricted goods can cause long-term problems for your business.

However, with DHL to support and reassure you every step of the way, this type of drama can be avoided. Therefore, feel free to call on our close relationships and historical ties with customs organizations around the world to help your international business succeed. Our local DHL Express Customs experts will always be there for you.

Every country has a variety of requirements, agreements, regulations and laws regarding importing and exporting. Because all countries depend on international trade as an important element of their economic growth, most publish helpful web-based information to guide importers or exporters doing business with that country. Therefore, it is still always highly recommended to contact destination country border authorities or consult their websites.

These are the reasons why DHL is the best partner for all Customs-related issues:

More than 40 years direct experience in managing customs clearance
More than 1,200,000 formal import customs declarations processed each month
More than 4,350,000 import shipments processed each month
First-hand experience in handling complex customs clearance
Electronic declaration capabilities (EDI)

Dutch Customs policy is aligned with the European Union (EU)’s major trade goals: to increase safety on the EU’s outer borders and to increase the EU’s competitive position in the global marketplace. To reach these goals, Dutch Customs legislation has been undergoing changes to simplify, go paperless, and further exchange information about movement of goods. Some changes have already been implemented, and others are in the pipeline.

The business section of the Dutch Customs website includes a variety of resources for importers and exporters and covers other topics associated with international trade.
Customs for Business (Zakelijk) Users

Designed especially for the novice trader, this user-friendly interactive audio-visual explanation of Customs procedures covers import and export and transport processes within and outside the EU.
Customs Video

Many of your Customs questions are addressed here.
Customs FAQ

Under the eCustoms program, all EU member states are developing new automating systems for streamlined and safe international trade.
eCustoms

Answers to your questions about changes already implemented as well as planned changes and how they will affect business can be found here.
Customs Procedures FAQ

The official Dutch Customs Handbook reviews all customs regulations. Very comprehensive and detailed, it is intended chiefly for Customs officials.
Customs Regulations Handbook

Resources in the handbook that exporters and importers will find useful include:
Dutch Customs Glossary

Global Trade Abbreviations and Terms

This digital newsletter has the latest news and developments in international markets.
Digital Customs Newsletter

The Dutch Chamber of Commerce created this overview of the documents used in international trade, including those that must be submitted electronically.
Customs Documents

Here is an explanation of the ‘Enig’ document—the electronic Customs form now used in the traffic of goods among EU member states and countries outside the EU.
Enig Document Guide

A succinct overview of current regulations, strategies for the future, trade agreements with third countries, and international agreements is found here.
EU Customs Legislation

Learn More about Customs Learn More about Customs

Read Key Country Facts Read Key Country Facts

What You Need to Know about Exporting

The most important thing to know about exporting is that no business is too small to develop a base of international customers. Because export trade is extremely important to Dutch national prosperity, there are many resources available to the beginning exporter. Information covers such topics as how to get started and subsidies and financial incentives for which small or medium-sized businesses can qualify. The following guides offer the information you need to join other business owners like you who are earning money in the global marketplace.

Exports play a key role in every country’s strategy for sustainable economic stability and growth. Businesses of any size can take advantage of the revenue-generating potential that export activity offers. The following resources support your company’s participation in this profitable area of the global economy.

The Dutch Ministry of Economic Affairs, Agriculture and Innovation actively promotes Dutch international trade and provides much information and advice for the beginning exporter.
Step-by-Step Guide for Beginning Exporters

Beginning Exporter FAQ

Index of International Trade Support

The Dutch Chamber of Commerce created this guide to what you need to start an export business.
Starting an export business

Get to know the publications, including those created by government agencies and private organizations, created to inform and support the beginning exporter.
Export Publications Library

The public-private Dutch Trade Board was established to bolster the Dutch position in international trade and business. Its online resources cover various initiatives and activities.
Dutch Trade Board

Fenedex, the independent federation of Dutch exporters, was founded in 1954 by ten exporters and has grown to more than 1,200 members. Its mission is to provide information and support to its members through counseling, events, and workshops. (One of the many member benefits is a 20% to 55% discount on DHL products.)
Fenedex

Strategic planning is the key to export success. Rabo Bank devised a five-minute test to help your company create an export business plan.
Export Plan Quiz

ABN-AMRO provides this overview of trading in the international marketplace.
Introduction to International Trade

The Export Control System (ECS) is being introduced to standardize the European electronic export process throughout the EU member states. Exporters need to learn how this will streamline their export transactions.
eCustoms Changes in the Export Process

As a beginning entrepreneur, you may qualify for business credit and subsidies in relation to your export activity.
MKB (SME) International Business Financing

Export Subsidies

Financing and Support Instruments

Financing International Activity

Dutch and European Subsidies

Prepare2Start is for exporters with little or no experience. It created this test to determine if you qualify for subsidies as well as a list of conditions for qualification.
Do You Qualify for Subsidies?

Knowing your market(s) is essential for your business to thrive. The Dutch Ministry of Economic Affairs, Agriculture, and Innovation lists up-to-date information about important export countries.
Export Market Intelligence

Finding the right and reliable business partners abroad is essential for the health of your export business. Several resources are available to support your search.
International Business Partner Index

Find Your Business Partner Abroad

Making Reliable Connections

The Economic Information Service, International (NL EVD) was authorized by the Ministry of Economic Affairs, Agriculture, and Innovation to create a global network of Netherlands Business Support Offices (NBSOs). They have no diplomatic status, but perform the same services as the economic departments at embassies and consulates-general.
Netherlands Business Support Offices

This booklet provides information on embassies, consulates-general, and NBSOs around the world that can assist you.
Loop Eens Binnen in het Buitenland (Drop in when abroad)

When exporting to countries outside the EU, you may have to deal with import regulations, duties, value-added tax (VAT) and other taxes in those countries, as well as other administrative procedures.
Foreign Import Regulations for Exporters

Export Regulations Overview

When you can demonstrate via documentation that goods are truly exported out of the EU, the Value Added Tax is zero.
Determining Taxes on non-EU Exports

International Trade and Taxes—VAT

Export opportunities, procedures, regulations, and requirements can vary by industry. This section provides resources to help understand exporting as it relates to your industry and products.

Here, you can explore twenty-seven export sectors and current information regarding developments, events, and financial support for your specific sector in countries around the world.
Export Sector Intelligence

Fulfilling all Customs requirements and correctly completing all procedures can be especially difficult for small business owners or those who are exporting for the first time. If you find the process too difficult to manage on your own, contract a Customs broker who can guide you through the export process. This will help to ensure that you realise your foreign commerce transactions in the simplest and most correct manner.

DHL recommends that you do not seek a Customs broker on your own. Our personal advisors can analyse your shipping needs with you and put you in touch with a trustworthy broker who knows your industry and can provide the specific experience and services your business needs. With our extensive network of accredited, trustworthy brokers, we are in a position to find the broker best equipped to meet your company’s export needs. It is our pleasure to offer this service to our clients.

Please note: In some countries, the law requires you to contract a Customs broker to complete your export transactions. In others, the Customs service recommends that you contract a broker.

To succeed as an exporter, you must know how to complete the documentation and paperwork required in all international trade transactions. Here, you’ll find information about your country’s documentation requirements as well as links to forms that can be downloaded or completed online.

The Chamber of Commerce offers online access to information about transport documents, Certificates of Origin, and licenses. You can see examples of the various documents and download some of them.
Export Documentation Resources

Incoterms provide internationally accepted definitions and rules for most common commercial terms and are the standard for the interpretation of most common terms in foreign trade. A checklist can be downloaded from this page.
Incoterms

What You Need to Know about Importing

More than half of the Dutch national income is based on international trade, and imports play an important role in this activity, with import volume estimated at $408.4 billion in 2010. As a member of the EU, the Netherlands receives most of its imports from other EU member countries, in particular Germany, Belgium, the UK, and France. Other important sources of imported goods at China, the U.S., and Russia.

Before launching an import business, it is essential that you find out what is involved and what is required of you as an importer. Information from the government, the Chamber of Commerce, and other sources can get you started.

The Ministry of Economic Affairs, Agriculture, and Innovation provides access to a variety of information and advice, such as a step-by-step plan, market orientation, import regulations, publications, and seminars.
Import Plans and Advice

Download this guide to importing for step-by-step information on starting an import business.
Starting an Import Business

Chamber of Commerce information for beginning importers includes sound advice on doing market research, making an import plan, and learning what Customs requires of you.
Beginning to Import

The Chamber of Commerce also hosts seminars for beginning importers.
Import Seminars

Rabo Bank developed tips on how to launch an import business and a five-minute test for setting up a business plan to see whether you are ready to start importing.
Import Plan Quiz

ABN-AMRO Bank also created a guide for new importers.
Introduction to Import

The Import Control System (ICS) is being introduced to standardize the European electronic import process throughout the EU member states. Importers need to learn how this will streamline their export transactions.
eCustoms Changes in the Export Process

This resource contains an overview of information and sources for small and medium-sized business financing.
MKB (SME) International Trade Financing

Find Your Business Partner Abroad

Making Reliable Connections

This booklet provides information on embassies, consulates-general, and NBSOs around the world that can assist you.
Loop Eens Binnen in het Buitenland (Drop in when abroad)

When trading with countries outside the EU, you need to be aware of the various import duties and VAT regulations that apply to your imported goods.
Customs, Import Duties, and Taxes

The Revenue Service provides additional information regarding imports from non-EU countries.
Doing Business Outside the EU

A short overview of Customs regulations related to import.
Customs Import Regulations

Participation in bilateral and multilateral Chambers of Commerce can help you to connect with prospective trade partners in your targeted provider markets. The Netherlands maintains an extensive network of these business organizations.

Ghana Netherlands Chamber of Commerce

Southern African Netherlands Chamber of Commerce

American Chamber of Commerce in the Netherlands

Dutch Brazilian Chamber of Commerce

Netherlands-Canadian Chamber of Commerce

Netherlands Trade Commissioner for Curaçao and Bonaire – Curaçao Chamber of Commerce

Indonesian Benelux Chamber of Commerce

Netherlands-India Chamber of Commerce and Trade

Dutch Chamber of Commerce in Hong Kong

Netherlands Chamber of Commerce in Japan

Netherlands Chamber of Commerce in Thailand

Netherlands Chamber of Commerce in Australia

Philippines-Netherlands Business Council

Netherlands Chamber of Commerce for Austria

Netherlands British Chamber of Commerce

Netherlands-Czech Chamber of Commerce

Hellenic-Dutch Association of Trade and Industry

Netherlands-Hungarian Chamber of Commerce

Netherlands-Latvian Chamber of Commerce

Netherlands Chamber of Commerce Macedonia

Netherlands-Polish Chamber of Commerce

Dutch-Portuguese Chamber of Commerce

Netherlands-Romanian Chamber of Commerce

Netherlands Chamber of Commerce for Slovakia

Netherlands Chamber of Commerce in Sweden

For small and medium enterprises, it can be burdensome to sort through import regulations. The good news is that you don’t need the internal resources of a big company to be able to complete these import requirements. A Customs agent can guide you through the entire import process.

DHL recommends that you do not seek a Customs agent on your own. Our personal advisors can analyse your shipping needs with you and put you in touch with a trustworthy Customs broker who knows your industry and can provide the specific experience and services your business needs. With our years of experience with respect to Customs transactions, you can count on us to realise your transactions with your Customs broker. It is our pleasure to offer this service to our clients.

Please note: In some countries, the law requires you to contract a Customs broker to complete your import transactions. In others, the Customs service recommends that you contract a broker.

This overview covers the most common documents needed in international trading, including a few downloadable documents.
Import Documentation

Get to Know Key Countries Get to Know Key Countries

Know Your Target Countries

Find facts about key countries and understand requirements for working with international customers.