Customs basics for goods leaving the EU

Goods moving between EU countries need no customs formalities. Goods leaving the EU do. Most small exporters use a customs broker or the carrier's broker for the declaration itself, but you have to give them the right facts. This guide explains those facts.

1. EORI number

Every company that exports needs an EORI number, the EU identification number for customs. Apply to your national customs authority once; it is free. In Lithuania it is issued by the Customs Department.

2. Commodity code

Every product has a commodity code: 6 digits of the international Harmonised System, extended to 8 digits in the EU Combined Nomenclature and further in national tariffs. The code decides import duty in the buyer's country, whether a licence is needed, and which origin rule applies. Find it in the EU TARIC database or ask your customs broker, and keep it in your product data. A wrong code is the most common cause of delays and wrong duties.

3. Export declaration

Before goods leave, an electronic export declaration is lodged with customs. It names the exporter, the buyer, the goods with their codes, value, weight and the Incoterm. When the goods leave the EU, customs confirms the exit. Keep that confirmation: it is your proof for invoicing without VAT.

4. Commercial invoice and packing list

The commercial invoice states seller and buyer with addresses, a clear description of each product, commodity code, quantity, unit price, total, currency, Incoterm with place, and country of origin. The packing list gives packages, weights and dimensions. Inconsistent figures between the two cause questions at the border.

5. Origin and lower duties

If the EU has a trade agreement with the buyer's country, your goods may enter with lower or no duty if they meet the agreement's origin rules. Usually you prove it with a statement on origin on the invoice. For consignments above 6,000 euro this requires registration as a registered exporter (REX) under many agreements. Origin rules depend on the product and the materials you used, so check them for each product before you promise a duty-free price.

6. Controlled goods

Some goods need an export licence or are not allowed to some countries because of sanctions or dual-use controls. Check the EU sanctions map and your customs authority before you agree to sell to a new country.

Checklist for the first shipment

• EORI number
• Commodity code for each product
• Incoterm and place agreed in writing
• Commercial invoice and packing list with the same figures
• Origin statement, if a trade agreement applies (and REX registration if needed)
• Customs broker or carrier who lodges the export declaration
• Proof of exit kept for VAT

This guide is general information, not customs advice. Your customs broker or the customs authority can confirm the rules for your goods.