Germany is known for being an export powerhouse, but there are also great opportunities for importing goods into Germany. As the largest national economy in Europe, Germany offers a lucrative consumer market and excellent infrastructure for doing international trade.
If you want to get into the import/export business in Germany, this guide will walk you through the key steps to launch your own trading company. We’ll cover business registration, importing regulations, finding suppliers and buyers, logistics, risks, and tips from industry experts. Let’s get started!
Registering Your Import/Export Company
The first thing you need to do is formally register your business in Germany. Here are the basics:
- Choose a Business Structure: You can operate as a sole proprietorship, partnership, limited liability company (GmbH) or public limited company (AG). GmbH is a popular choice as it offers personal liability protection.
- Obtain Necessary Permits: Depending on your imported goods, you may need special permits from customs offices or regulatory agencies. Make sure to check regulations.
- Register with Tax Office: Register your business with your local tax office to obtain a tax number. This is required for all official procedures.
- Open a Business Bank Account: You’ll need a German business bank account to facilitate payments, financing and basic operations. Major banks include Deutsche Bank, Commerzbank and UniCredit.
- Pick a Company Name: Your company name cannot already be trademarked in Germany. Check online or inquire with the Trade Registry.
- Register with Trade Office: File paperwork with the Trade Office (Gewerbeamt) in your city or district to formally register your trading company.
Following these key steps ensures everything is properly set up to start importing goods for resale in Germany.
Understanding Import Rules and Regulations
Germany, as an EU member state, applies common European Union import regulations. However, certain products have additional rules or restrictions. It’s critical that you understand the requirements for your imported goods.
Import Restrictions
Germany prohibits or limits the import of certain products like:
- Meat/dairy: Must meet EU sanitary standards; health certificates required
- Alcohol/tobacco: Import licenses needed; high excise duties
- Endangered species: Banned for conservation reasons
- Counterfeit goods: Imitations that violate trademarks/patents
- Hazardous chemicals: Stricter registration rules per REACH regulations
Additionally, Germany enforces:
- EU safety standards (CE marking)
- Product packaging/labeling requirements
- Certification rules on some electronics/machinery imports
Consult an import/export specialist on your target products to ensure compliance. Fines can be very costly for rule violations.
Import Duties and Taxes
Common import charges include:
- Customs Duties: Levied based on the type of product and country of origin according to the EU Common Customs Tariff
- Value-Added Tax (VAT): Standard rate of 19% levied on goods imported from non-EU countries
- Excise duties: Applied to imports of alcohol, energy, tobacco and other consumable products
Use an landed cost calculator to estimate total import costs including duties/taxes. These expenses factor into your product pricing and margins.
Finding Reliable Suppliers Abroad
Sourcing competitive, good quality suppliers is the linchpin for a profitable import business. You want suppliers that offer favorable Incoterms, communicate well, and consistently deliver orders on-time.
Here are tips for finding and vetting overseas suppliers:
Identifying Candidate Suppliers
- Import directories: Use databases like eWorldTrade and TradeWheel to find suppliers abroad. You can search by product/country.
- Online sourcing: Platforms like Alibaba have countless manufacturers, factories and trading companies to choose from.
- Trade shows: Attend foreign trade shows to connect in-person with suppliers abroad. These events are held annually around the world.
- Embassy resources: The commercial/economic section of foreign embassies can provide lists of vetted export companies open to working with foreign importers.
- Business networks: Join local World Trade Centers and international chambers of commerce to expand your global supply chain network.
Evaluating and Selecting Suppliers
- Capability check: Can they handle your requested order volumes? Do they have enough production capacity and human resources?
- Track record review: How long have they exported to Germany? Can they share recent buyer references? Google them for reviews.
- Quality inspection: Ask for samples to check if quality meets your standards and import requirements.
- Price negotiation: Bargain to ensure you’re receiving competitive pricing and favorable payment terms. Confirm Incoterms used.
- Onsite visits (if possible): Visiting a supplier’s production facilities first-hand gives you the best sense of their capabilities. If visiting in-person isn’t feasible, schedule a video tour.
By thoroughly vetting each supplier, you can narrow options down to a select few reliable vendors to order and import inventory from long-term.
Finding Customers and Distributors in Germany
With suppliers secured abroad, the next key step is finding commercial buyers and/or distributors for your imported goods within Germany. Sales channels include:
Direct B2B Sales
- Industry directories: Use resources like Kompass Germany to find potential business buyers for your niche imported products.
- Trade shows: Attend large wholesale shows like ANUGA (food/bev) and Heimtextil (home goods) to meet German buyers in-person. Have samples, sales literature, and ordering forms on hand.
- Direct emails: Build a prospect list using LinkedIn or industry association directories. Email potential customers to generate interest in your imported product lines.
- Sales reps: Hire German sales reps (Handelsvertreter) with existing business networks to help secure wholesale accounts for your imports. Many specialize by industry and regions.
Distributors and Resellers
- Wholesalers: Pitch to wholesalers (Großhändler) that supply import products to retailers in your targeted distribution regions of Germany.
- Retail buying groups: Larger retail consortiums source products centrally. EDEKA and Rewe are top German grocery buying groups worth approaching.
- Importers/distributors: Partner with existing German trading houses specializing in your imported product types. They already have established sales channels nationwide.
- Online marketing: Use Google and Amazon ads to market your imported goods directly to German consumers. Dropshipping can minimize inventory and fulfilment costs.
Cast a wide net when reaching out to potential B2B clients and retail partners. Attend industry events to network in-person.
Arranging Logistics and Documentation
When importing goods for resale in Germany, you must coordinate international transportation and customs clearance:
International Shipping
Choose a freight forwarder or customs broker to handle shipping logistics from your overseas suppliers to Germany’s ports. Main options include:
- Ocean freight: Best for large, non-perishable imports in terms of affordability. Transit times range from 30-45 days from Asia.
- Air freight: Fast 2-4 day transit times but very expensive. Best for small, high-value or urgent shipments.
Compare rates/transit times of major carriers like Maersk, MSC, DB Schenker. Hire an overseas shipping agent if your suppliers can’t handle booking cargo space directly.
Customs Clearance
Provide your freight forwarder or customs agent with all necessary documentation to clear your import shipments through German customs when they arrive at Hamburg, Bremerhaven or other ports.
- Commercial invoice
- Bill of lading/air waybill
- Packing List
- Product certification documents
- Other specialty documents (depending on products)
Submitting complete, accurate paperwork ensures your imports get customs cleared and released from port quickly so orders reach buyers promptly.
Key Risks and Challenges
While importing goods certainly opens up business opportunities in Germany, there are notable risks including:
Financial Risks
- Large upfront investments into overseas imports
- Currency exchange fluctuations
- Cashflow difficulties from delayed client payments
- Unexpected customs penalties or import restriction changes
Supply Chain Risks
- Shipping delays or port congestion
- Overseas supplier quality/reliability issues
- Inventory getting lost or damaged in transit
Commercial Risks
- Failing to accurately gauge German buyer demand
- Difficulty securing domestic B2B clients or retailers
- Competing importers offering lower prices or superior products
Careful due diligence across sourcing, financing and marketing activities helps mitigate such hazards. Consider starting out slowly with small import volumes to test viability before committing to large-scale imports or contracts.
Expert Tips for Launching an Import Business in Germany
German trade experts emphasize several best practices for successfully getting into and operating an imports business:
Conduct Thorough Market Research Upfront
- Analyze consumer trends and pricing dynamics around specific products you’re considering importing. This helps you realistically gauge if viable B2B or retail demand exists in Germany.
- Research the competitive landscape. How saturated is the import market for certain goods? Can you offer better procurement prices or unique product varieties vs. rivals?
Get Help Navigating Foreign Business Cultures
- Recognize that German business norms, etiquette and communication styles often differ vastly from overseas trade partners in Asia/Latin America. Don’t assume similarities.
- If lacking experience with a target export country, hire a cultural liaison or translator early on. They can help avoid misunderstandings with foreign suppliers that undermine trust-building.
Understand Your Working Capital Needs
- Account for sizeable costs around inventory, shipping, duties and business set-up in your startup budgeting before pursuing imports. Cash reserves are key with long payment cycles.
- Explore industry specific trade credit, guaranties and export financing facilities through Euler Hermes and other German public trade promotion programs.
Next Steps to Get Started
I hope this beginner’s guide has given you a good baseline overview of key steps for launching an import/export company in Germany.
Here’s a quick summary checklist as you prepare to get started:
- Research viable import product ideas with proven demand among German buyers
- Select an appropriate German business structure and register company
- Apply for necessary import permits and customs documentation
- Vet overseas suppliers abroad that offer competitive pricing & quality
- Secure B2B distribution partners or retail channels in Germany
- Coordinate international shipping routes/carriers into German ports
- Budget adequate working capital to fund operations
- Review incident-specific export financing programs
Are you feeling pumped to tap into booming German consumer markets with niche imported products? What remaining questions do you have? Sound off in the comments section!
