Harish Kothari
Team Leads - Operations
"We can't make it more enjoyable, but we can make it easier." This slogan will forever be associated with the Dutch Tax and Customs Administration, just like their always feared infamous blue envelopes. The same applies to customs matters. Fun? Not exactly. Easy? That’s our job as a freight forwarder. In this blog, we hope to explain and enlighten the various Customs regulations when importing or exporting.
As a freight forwarder, Berkman Forwarding is a key player in the logistics network. In addition to arranging the transport of your products with all parties involved, Berkman also coordinates and handles the necessary customs formalities for import and export. Behind the scenes, we are daily working hard to ensure that these customs matters proceed as smoothly as possible and without further delays. This is quite a challenging task, as terms like AEO, Direct Representation, HS codes and VGEM are part of our daily routine, but not common in everyone’s vocabulary.
So let’s have a closer look at these terms.
- AEO
Berkman was one of the first Dutch freight forwarders to obtain an AEO certificate. As an Authorized Economic Operator, we are specialized and recognized in handling customs formalities as a reliable partner. - Direct Representation
When you use a freight forwarder, Direct Representation comes around the corner. This means that we, as Berkman, are authorized to act in the name and on behalf of you as the importer/exporter for all customs procedures. However, you, as the importer/exporter, remain responsible for the customs and fiscal consequences of the actions we take on your behalf. This is why working with a reliable freight forwarder is crucial for your business.
- HS-codes
HS codes classify products worldwide. HS stands for Harmonized System and this classification is crucial for the streamlined and efficient processing of international shipments. Customs duties are ultimately determined based on HS codes with the appropriate taxes on the import or export of goods to or from countries outside the European Union. Additionally, HS codes determine which other measures apply to imports and exports, such as permits or certificates. Providing the correct HS codes is the responsibility of the importer/exporter, but as a freight forwarder and your representative, we can certainly offer advice in this area.
- VGEM
Perhaps the least known sibling in the large customs family, VGEM operates more in the background, but is also an essential part of the entire chain. VGEM stands (in Dutch) for Safety, Health, Economy and Environment. Upon importing or exporting, Customs also check compliance with rules in these areas, such as for certified goods and public health, when the Dutch Food and Consumer Product Safety Authority (called NVWA) comes into play. Some examples include the import of veterinary products (animal products) or the import of phytosanitary goods (plants, flowers, vegetables and fruits). Veterinary checks are carried out by the NVWA, while the Plant Health Service is responsible for inspecting phytosanitary products. Customs, therefore, plays a crucial role in both fiscal and VGEM measures and ensure compliance in both areas.
Where Customs has an obligation to inspect, you as an importer/exporter have an obligation to provide information. This can be quite challenging with so many regulations set by both Dutch and European governments. New requirements are added annually, making it hard to see light at the end of the tunnel in the ever expanding customs landscape.
In this blog, we have only been able to explain a small part of all customs matters, but hopefully, we have made it more understandable. Berkman Forwarding has a large number of customs declarants: our own people who have expertise and vast knowledge in customs matters, regularly receive training and therefore know what they are talking about. A great relief in the complex logistics world we live in.
If you have never dealt with exporting or importing before, and believe us, even if you have been doing it for a long time, customs matters can be very tricky. Fortunately, this is our specialty, and we have experts on hand to advise you on all customs matters.
