Cross-border road haulage, also known as cross-border logistics, affects all companies that transport goods beyond their own national borders. But to do it, logistics companies need licences.
If you decide to transport goods across borders, various aspects must be taken into account, such as customs regulations, sales tax (VAT) certificates, as well as optimal supply chain management in order to streamline transport processes.
On this page we will explain what cross-border freight transport and logistics means, which documents you need to prepare and how you can save costs by choosing a suitable logistics company.
What does cross-border freight shipping mean?
Cross-border freight transport describes the movement of goods across national borders, i.e. the loading and unloading of cargo happens in different countries.
Example: An Amazon FBA business has its warehouse in Poland, but ships goods mainly to Germany, France and the Netherlands. This involves cross-border transport of goods subject to customs duties.
To do this, the logistics company that transports the cross-border freight goods needs either bilateral approvals, an EU licence or a CEMT approval. The EU licence is the most important licence for cross-border transport within Europe.
EU licence for cross-border logistics
The EU licence, also known as a community licence, authorises the transport of goods within the EU, as well as cabotage transport (transport of goods from A to B in another country by a non-local shipping company) without additional bilateral licences. This is particularly important for cross-border e-commerce logistics.
If the goods are to be transported via export-import logistics to neighbouring countries that do not belong to the EU or the EEA states, the forwarding company must also provide bilateral approval. However, this excludes Norway, Iceland, Liechtenstein and Switzerland, which can also be supplied with the EU licence.
A CEMT approval for freight management is required for transport between EU and EEA countries and other countries that are neither part of the EU or EEA. Forwarding companies that carry out international trade logistics must be able to demonstrate this.
Cross-border freight transport: What to consider
Numerous formalities are required for international freight transport. This includes shipping documents, compliance with border formalities, customs clearance and import duties.
Controller
As an entrepreneur, you have rights and obligations regarding customs. This includes not only the payment of customs duties between EU and non-EU countries, but also safety aspects such as the protection of human, animal and plant health. There are separate regulations to be observed for this, for which evidence must be provided. Pay attention as well to any prohibited or restricted goods in the EU.
If a customs inspection occurs, the entrepreneur or his representative through a logistics company has the right to attend the customs inspection. The obligations include the obligation to tolerate, the obligation to present information and the obligation to provide information and evidence.
VAT on exports
When transporting goods across borders, sales tax, also known as import sales tax, must be paid when goods are transported from abroad into the EU. It is usually 7% or 19%.
If you sell goods to customers outside the EU, you do not have to charge VAT. However, you can deduct the VAT charged on the goods you purchase as input tax specifically for this purpose.
If you sell goods to other companies within the EU, you do not have to charge VAT as long as your customer has a VAT ID or sales tax ID. If he doesn’t have this, charge the VAT rate regulated by law in your country.
When selling goods to end consumers, there are special regulations that you should familiarise yourself with.
What are the legal requirements for cross-border shipping?
Logistics licences & certificates
When transporting goods across borders, a logistics company must provide evidence that it is authorised to transport goods across national borders. In addition to the licences already mentioned, this also includes:
- Requirements for a branch;
- Proof of professional suitability;
- Proof of financial ability; and
- Reliability
VAT certificates
A company that carries out international deliveries, such as in e-commerce shipping, must be able to provide proof of the VAT shown to the tax office. This means that for goods on which sales tax is due, this must be visible on the invoice.
Customs documents
If goods are sent to countries outside the EU or imported into the EU from non-EU countries, a completed customs document must be enclosed with the packages. This describes the number of goods, the value, the freight costs and freight insurance, the total weight and other details such as the invoice number.
How to track cross-border freight traffic
Cross-border logistics tracking gives you updates on the movement of goods throughout their journey. Amazon Freight lets you keep an overview of your cargo at all times via GPS tracking and real-time data in the dashboard.
If problems arise due to traffic jams or accidents on the route, effective route planning can be used to quickly select a new transport route in order to stick to the schedule.
How to reduce costs in European freight transport
In order to reduce costs in European freight transport, the be-all and end-all is choosing a suitable cross-border logistics company, i.e. an international freight forwarder.
The more extensive the provider’s logistics network, the more safely you can transport your goods from A to B and avoid losses and errors in deliveries, reduce costs and can also contribute to greater sustainability in the supply chain.
When it comes to choosing:
- Pay attention to the reputation of your transport company
- Have the carrier show you licences and certificates
- Check whether your partner can react quickly in the event of route changes
- Check whether the shipping company has GPS-tracking of the goods, optimal route management, as well a transport management system (TMS)
- Get an accurate list of costs
- Ask about transport insurance
Amazon Freight supports you as a reliable partner in cross-border freight transport
Amazon Freight has a comprehensive logistics network of freight forwarders and, as a strong partner, handles all matters relating to cross-border freight transport at your side. This includes not only legal proof and insurance, but also GPS tracking of your goods.
In addition to digital route planning, we also offer intermodal freight shipping across national borders.
Book your delivery via today freight-eu-interest@amazon.com or create your free shipper account to get a quote from us.