Home » Machinery & Equipment » Is it possible to export composting equipment to the Port of Hamburg and simultaneously obtain CE certification and tax rebates?
Introduction
Composting equipment is an environmentally friendly device used for the treatment of organic waste, which converts organic waste into fertilizer through the process of biodegradation. This type of equipment typically includes components such as fermentation tanks, mixing systems, temperature control systems, and ventilation systems, and is widely used in urban waste management, agricultural waste treatment, and other fields.
As the third-largest port in Europe, the Port of Hamburg, located in northern Germany, serves as an important hub for trade between China and Europe. The port boasts a dense network of container shipping routes, which are particularly well-suited for transporting large-scale environmental protection machinery and exhaust gas treatment equipment.Import and exportTrade.
In terms of customs classification, composting equipment is relatively complex, mainly involvingChapter 84 – Machinery(such as machines and mechanical appliances not listed under item 847989), some electrical control components may be classified intoChapter 85 Electrical EquipmentHowever, the relevant detection instruments might fall into the wrong hands.Chapter 90: Optical, Measuring, and Analytical InstrumentsThe correct classification has a significant impact on tariff rates and regulatory requirements.
Environmental Protection?Equipment Export?It involves complex certification requirements, differences in technical standards, disputes over customs classification, and cross-border fund settlements, which pose significant challenges for enterprises lacking professional qualifications and experience.Zhong Shen International Trade Co., Ltd.As a professional import and export trade service provider, we not only offer logistics and customs declaration services, but also focus on solving problems faced by our clients in the process of import and export.Trading QualificationAndCross-border capital flowsThe fundamental issues in this aspect.
Market Status and Trends
As an important environmental protection hub in Europe, the Port of HamburgEquipment importThe hub, whose market demand characteristics are as follows:
- The demand for environmental protection technologies and equipment in Germany and the European Union continues to grow, especially in the fields of organic waste treatment and circular economy
- The European Union has strict technical standards and certification requirements for environmental protection equipment, such as CE certification, WEEE directives, etc.
- The German market has extremely high requirements for product quality, energy efficiency, and environmental performance, but its price sensitivity is relatively low.
- The EU's Green Deal and carbon neutrality goals are driving the expansion of the environmental protection equipment market, and composting equipment, as a key device for organic waste treatment, is gaining popularity
Common pain points and precautions that enterprises encounter when entering the Hamburg port market:
- Technical compliance challengesThe European Union has strict regulations on the technical standards, safety requirements, and environmental indicators of environmental protection equipment. Products that do not meet these standards will be refused entry into the EU market.
- Certification BarriersFor mandatory certifications such as CE certification and ISO standards, professional guidance and time investment are essential.
- Customs Classification DisputesEnvironmental protection equipment may involve multiple tariff codes, and improper classification may lead to increased tariff costs or delays in customs clearance.
- The document requirements are very complicated: Preparation of documents such as commercial invoices, packing lists,Origin CertificateThe documents such as drawings and technical specifications need to be accurate and error-free.
- After-sales service networkGerman customers expect excellent after-sales service and technical support, which poses a challenge for new companies entering the market.
Main Process/Steps
The main process steps of exporting composting equipment to the Port of Hamburg:
- Supplier Screening and Qualification Review
- Evaluate the supplier's production capacity, technical level, and quality management system.
- Verify whether the supplier has the relevant product certification and export qualifications.
- Conduct on-site audits of suppliers to ensure that the production process meets international standards.
- Sign the procurement contract, and clarify the technical specifications, delivery conditions, and quality requirements.
- Quality Control and Product Certification
- Implement quality control during the production process and conduct final product inspections.
- Ensure that the product meets the requirements of the EU CE certification and other relevant technical standards.
- Prepare product technical documents, test reports, and declarations of conformity
- Obtain a Form A or Form E certificate of origin to enjoy tariff preferences
- International Logisticsand transportation arrangements
- Select the appropriate transportation method (container, bulk cargo, or special transportation) based on the size and weight of the equipment.
- Arrange inland transportation to the Chinese export ports
- ProcessExport ClearanceProcedures to ensure accurate customs classification (e.g., under item 847989)
- Book a cabin and make the necessary arrangements.Maritime transportInsurance, providing full-process cargo tracking
- Export?Forex Settlement?with tax refund processing
- Receive dollar payments from overseas buyers(through the qualifications and accounts of Zhong Shen International Trade Co., Ltd.)
- Handle the export customs declaration and foreign exchange verification procedures
- ApplicationTax RebatesPrepare the relevant tax refund documents
- Return the tax rebate to the actual manufacturers/traders
- Customs clearance and delivery at the Port of Hamburg
- PrepareImport Customs ClearanceThe documents include commercial invoices, packing lists, bills of lading, and certificates of origin.
- Apply for a visa to GermanyImport customs declarationProcedures, payment of customs duties and value-added tax
- Arrange for unloading, inspection, and temporary storage at the port
- Coordinate the final delivery to the customer's designated location and complete the delivery
Cost breakdown
The main cost items of exporting composting equipment to the Port of Hamburg:
| Cost items | Budget proportion | Optimization Plan for Zhongshen International Trade |
|---|---|---|
| Product cost (FOB) | 60-70% | By leveraging our extensive supplier network and bulk purchasing advantages, we are able to secure the most favorable pricing terms |
| Certification/Testing Fees | 5-8% | By leveraging a network of professional certification partners, we can simplify the process and reduce the cost of redundant inspections. |
| International Freight & Insurance | 8-12% | We have long-term cooperation with multiple shipping companies, which enables us to enjoy preferential freight rates. By optimizing our insurance solutions, we can reduce our insurance premiums |
| Tariffs and Taxes | 10-15% | By obtaining a 100% compliant FORM E certificate, the customs duty can be reduced to the preferential tax rate; and by properly classifying the goods, the tax base can be reduced |
| Port charges | 3-5% | Be familiar with the operating procedures of the Port of Hamburg, optimize port operations, and reduce demurrage and surcharges |
| Agent service fee | 2-4% | Provide one-stop services to avoid duplicate charges and communication costs caused by multiple agents |
Risks/Difficulties and Sinosure International Trade's Solutions
- Customs Classification and the Risk of Clearance Delays
Potential causes:Composting equipment may involve multiple tariff codes (Chapter 84, 85, or 90), and incorrect classification can lead to disputes and delays.
Zhongshen International Trade Solutions:Having a professional classification team, we conduct advance product classification predictions; prepare comprehensive technical documents and classification justifications; and maintain good communication with customs to promptly resolve classification disputes.
- The risk of non-compliance with technical standards and certifications
Potential causes:Not understanding the EU's latest technical standards and certification requirements, the product fails to meet the market access conditions.
Zhongshen International Trade Solutions:Provide EU regulatory update services; guide clients in completing necessary product improvements; assist with mandatory certifications such as CE certification; and ensure that product technical documents are complete and effective.
- Cross-border Payments and Funding Risks
Potential causes:Companies without import and export qualifications cannot directly receive payments in US dollars, and they face risks of exchange rate fluctuations and fund security.
Zhongshen International Trade Solutions:As an agent, we use our qualifications to collect US dollar paymentsProvide secure cross-border fund settlement services; assist clients in locking in exchange rates and reducing exchange rate risks; and ensure the safe and compliant transfer of funds.
- Cargo Damage and Transportation Risk
Potential causes:Composting equipment is large in size and complex in structure, and it is prone to damage during long-distance transportation.
Zhongshen International Trade Solutions:Provide professional packaging and reinforcement solutions; arrange suitable transportation methods and routes; purchase comprehensive transportation insurance; implement full-process cargo tracking, and promptly detect and handle abnormal situations.
Suitable types of enterprises
The composting equipment export services of Zhong Shen International Trade are particularly suitable for the following types of enterprises:
- Composting equipment manufacturer: Manufacturing enterprises that possess production capacity but lack international trade experience and export qualifications.
- Environmental Equipment Trading CompanyThere are supplier resources and market channels, but we are unable to handle complex export processes and fund settlements
- startup environmental companyWe focus on product R&D and market expansion, and we need to outsource professional import and export services.
- Trader without import and export qualificationsHaving customer resources but being unable to directly handle export tax rebates and foreign exchange settlements
- Companies that wish to focus on their core businessOutsource the non-core import and export processes to professional service providers to improve operational efficiency.
Conclusion
As an important gateway for environmental protection equipment in Europe, the Port of Hamburg offers vast market opportunities for Chinese composting equipment manufacturers. However, complex certification requirements, differences in technical standards, and cross-border capital flow issues make professional guidance crucial.
Zhongshen International Trade not only provides traditional process-execution services such as logistics and customs declaration, but also focuses on solving clients’Trading QualificationAndCross-border capital flowsWe address the fundamental issues in these areas. We assist enterprises without import and export qualifications in collecting US dollar payments and handling export tax rebates, and we make payments for US dollar purchases on behalf of enterprises without import qualifications, truly creating core value for our clients.
Choosing Shenzhen Shengyin International Trade Co., Ltd. means selecting a professional partner that can comprehensively solve your import and export challenges. Our profound industry experience, extensive supplier network, and professional service team will ensure the smooth export of your composting equipment to the Port of Hamburg, helping you achieve business growth.
Contact us now for a free initial consultation and quote for your business, and kick-start your journey into exporting eco-friendly equipment!
