Customs clearance Switzerland & UK: What you should consider when choosing your customs partner

Why German e-commerce retailers should rely on a customs partner for customs clearance to the UK and Switzerland.

E-commerce retailers who sell across borders to countries such as Switzerland or the UK should not underestimate customs clearance. But they don't need to be afraid of the complexity either - if they choose the right partner.

In this article, we look at the most important requirements for customs clearance and show how a reliable customs partner can facilitate cross-border shipping.

What is customs clearance? Definition

Goods have to pass the process of customs clearance when importing and exporting to non-EU countries. It includes all customs formalities and regulations of the respective destination country. Among other things, companies must submit customs documents, declare the goods correctly under customs law and pay import taxes and customs duties.

The majority of customs duties are paid by importers. Companies shift the costs to their customers by charging them into their prices. The same applies to VAT rates charged by customs in the country of destination.

For German e-commerce retailers, this means that cross-border imports and exports to Switzerland or the UK are subject to specific regulations.

Importance of customs clearance for cross-border e-commerce

Customs declarations, customs controls, customs administration and divergent customs regulations in individual countries require legally compliant handling of shipments in cross-border e-commerce. This usually involves a high level of effort for retailers.

A nationwide company survey conducted in 2022 by the University of Regensburg in collaboration with the German Chambers of Industry and Commerce (IHKs and DIHK) revealed that many small and medium-sized enterprises (SMEs) in Germany are avoiding international sales due to the high requirements. Two thirds of those surveyed see the main barriers as being high shipping costs and legal uncertainties resulting from customs clearance.

However, not doing so results in a significant loss of business opportunities. According to the ‘Mittelstand 4.0-Kompetenzzentrum Handel’, Switzerland and the UK are among the strongest sales markets for German online retailers.

What challenges do German retailers face when selling cross-border to Switzerland and the UK?

Even those German e-commerce retailers who already sell cross-border to the UK or Switzerland are experiencing problems with customs clearance. Changes to customs regulations, a lack of expertise or inefficient processes often lead to errors that then affect the entire supply chain.

Incorrect information, missing documents or manual processes for instance may slow down customs clearance. These delays then lead to longer transportation times, which in turn result in reduced customer satisfaction. Some of these errors can also be quite expensive for e-commerce retailers.

For example, providing an incorrect customs tariff number leads to incorrect calculations of customs tariffs and import duties. In case of doubt, retailers will not be refunded for any overpaid customs duties whereas underpaid customs duties mean high additional payments and, depending on the case, expensive fines.

Customs borders make tariff conditions even more difficult. Special regulations apply to non-EU countries such as Switzerland and the UK, for which the most important aspects are summarized below.

Special aspects of customs clearance to the UK

With Brexit, the United Kingdom left the EU internal market and the European customs union. Since then, the requirements for cross-border e-commerce to the UK have changed.

Although the Trade and Cooperation Agreement between the EU and the UK facilitates trading processes, imports and exports remain subject to customs duties.

In summary, the following points must be considered in the UK customs sector since Brexit:

From October 31, 2024, the submission of a Safety and Security Declaration will also be mandatory.

Special aspects of Swiss customs clearance

Specific customs regulations must also be observed in Swiss cross-border commerce. The basis for trading between Switzerland as a third country of the EU and Germany is the bilateral trade relationship.

This results in the following customs formalities for sales to Switzerland:

• The basis for the movement of goods is the free trade agreement between the EU and Switzerland.
• For the transportation of goods, an import declaration must be submitted to the Swiss customs authorities.
• A VAT declaration is required within the customs territory.
• The calculation of the customs duty is based on the weight of the goods.

The latest changes to the customs regulations for Switzerland now simplify customs clearance. Since January 1, 2024, industrial customs duties have been abolished for all goods belonging to chapters 25 to 97 in Tares. Products in chapters 35 and 38 are excluded. 

You can find detailed information on this in our article, which highlights the changes to Switzerland's customs regulations in 2024. 

Why do German retailers need a customs partner for cross-border trade?

All in all, customs clearance is complex and every non-EU country imposes specific conditions on customs processes. In terms of logistics itself, this is associated with increased effort. Working with different service providers and carriers per country means intransparent and complex supply chain structures and a high administrative burden. 

The solution is a central partner who takes care of all customs and shipping processes. You appoint a customs partner with the aim of handing over all customs-related issues. This way, you avoid potential problems and consequences and no longer have to deal with changes in customs law. This saves time and money.

Specifically, with a customs partner you benefit from the following advantages:

• Operational relief: All necessary data is automatically transmitted to your customs partner via API. This makes manual preparation or provision of data obsolete and enables customs declarations within a few seconds.
• Reliably short delivery times: Customs clearance using the individual customs clearance procedure guarantees your customers the fastest possible delivery at all times, in contrast to the customs clearance in bulk. The reason: In the event of an inspection for a parcel, all goods are affected in the bulk customs clearance procedure and transportation only continues when the inspection ends. In the individual customs clearance procedure, only the parcel affected by the inspection remains at customs.
• Lean processes: By working with a single partner for all processes, there is no need to coordinate different service providers. This guarantees maximum efficiency for your cross-border sales.
• Reliable shipping: The customs partner is the first and single point of contact for customs and clarifies arising questions and problems quickly and directly.

When choosing your customs partner, you should pay attention to the following criteria:

1. Has a high level of expertise in the area of customs formalities

A customs partner supports you in compliance with customs regulations. The services range from import and export declarations at customs to services relating to the entire cross-border movement of goods.

When working with exporto, for example, this also means maintaining relationships with local carriers in each country or taking care of reclaiming customs duties paid and duty-free re-import in the event of returns.

2. Guarantees efficient and secure processes for customs clearance

Thanks to a customs partner, you no longer have to manage time-consuming customs processes internally. Instead, the customs partner takes care of customs clearance for you, including all processes. This saves you time and minimizes the risks that can arise from incorrect customs clearance. At exporto, for instance, we rely on the individual customs clearance procedure instead of the delay-prone customs clearance in bulk.

3. Focuses on automation

A manual customs declaration takes around 15 to 20 minutes - with exporto, it only takes a few seconds thanks to automation. All the data required for the customs declaration is automatically transmitted to exporto thanks to the API connection. This means that retailers do not notice this 'hurdle' in their daily operations.

4. Enables cost-efficient movement of goods

The systems of customs partners are customized to the target country, which makes the entire process cost-efficient. For cross-border supply chains, you no longer have to contact and organize numerous service providers, but instead - in the case of exporto - only work with one single partner who coordinates all processes.

There are also potential savings on customs import duties. For example, in the individual customs clearance procedure, imports to the UK are free of customs duty and import VAT up to 135 GBP. This rule does not apply to several parcels of this type within the customs clearance in bulk. In this case, the customs and VAT duties are calculated according to the cumulative value.

5. Is in direct contact with customs authorities

The service of a customs partner should be as comprehensive as possible, ideally - as with exporto - from end-to-end. This means that it covers the entire cross-border shipping process, from collection and delivery to the return of parcels. The customs partner is always the first point of contact for both the customs authorities and for you. To ensure reliable transport routes and fast solutions, your partner is in close contact with customs and supports you in establishing international trade relations.

The distribution of roles is therefore clearly defined: You take care of selling the goods and your customs partner takes care of the cross-border transportation of goods. If you choose exporto as your customs partner, your cross-border processes will not differ from domestic processes.

How does exporto support companies with customs clearance to the UK and Switzerland?

exporto focuses on the fastest delivery times, maximum customer satisfaction and maximally automated customs and shipping processes to non-EU countries. We take care of the customs clearance of goods as well as import and export for you. We are your partner in all aspects of customs, tax, logistics and returns.

To achieve this, we rely on a fully automated customs solution - starting with the technology. API interfaces and our plug-and-play solution enable an intelligent exchange of information:

1. As soon as new order data is available in the system, customs clearance starts.
2. The customs declaration is fully automated.
3. Within a very short time, exporto sends you the finished customs documents.

Of course, the exchange of information does not end digitally. exporto is always in contact with customs quickly and reliably. This allows you to concentrate on your main business while our experts clarify your customs matters.

Conclusion: Tackle customs procedures fully automatically and securely with exporto

Failure to comply with customs formalities can have financial and legal consequences for companies. Manual customs clearance processes are particularly prone to errors in this regard. 

exporto sets up automated customs processes for you. This makes customs clearance secure and fast - simply efficient. With exporto, you are choosing a partner who, in addition to customs clearance, will take care of the entire end-to-end cross-border shipping process for you.

FAQ: Customs clearance Switzerland & UK

What do I need to consider for customs clearance?

For customs clearance, all necessary documents must be complete, goods must be correctly valued and, if required, proof of origin must be available. Retailers are advised to find out about the specific regulations of the target country.

Why is a customs partner important?

A customs partner takes care of the entire customs clearance process for you and sets it up legally compliant and resource-efficiently. This way, you minimize potential risks and benefit from optimized customs processes.

Which customs regulations apply in Switzerland in 2024?

As of 1. January 2024, Switzerland has abolished customs duties on industrial goods as part of the import facilitation measures. A customs exemption applies to all goods affected by the measure. The simplification also changed Switzerland's customs tariff structure.