Importing products what do you pay attention to?

November 2, 2020
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Sellevate

As a seller on bol.com, chances are that you buy or will buy your products from China. This is of course a strategic choice: you can buy these products cheaply and often resell them at high margins. It seems like an easy job; importing from abroad and selling at high margins. Also don't forget to pay taxes in the Netherlands. However, there are a number of things you need to consider as a seller on bol.com when offering these products. What are the regulations regarding importing goods? And selling on bol.com and how does it work with suppliers?

Importing goods from abroad

China is one of the largest suppliers to Europe, and the Netherlands also imports all kinds of products from the Oriental country. Popular goods bought from Chinese suppliers are electrical appliances, clothing and telecommunications devices. This is often done at low prices in order to then be able to sell them again domestically with high margins as a supplier through, for example, bol.com. However, different rules often apply to the sale of goods in China than in the Netherlands. There are also a number of things you, as a Dutch entrepreneur, must take into account when doing business with foreign suppliers.

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Reliability of suppliers

You can't just go into business with anyone, and to find out if a supplier is trustworthy, the commercial register is a handhold. In most countries, this is where all companies must be registered. Which means the registered company has a right to exist under the law. In China, this registry is managed by the "National Enterprise Credit Information Publicity System." This lists the company information, such as its activities and registration number. And this should be able to give a picture of the reliability of the company. 

Customs

When importing goods from abroad, you also face customs fees. You must file an import declaration in order to import goods into the European Union. This electronic declaration is prepared by the customs broker and submitted to customs. For these actions, you need an EORI number (Economic Operators Registration and Identification) to exchange data with Dutch Customs.

Import duties

When importing goods, you often pay import duties. Where the amount depends on the commodity code or "TARIC code" of the product in question. Determining the correct commodity code yourself can be difficult. For this you can always contact the Dutch customs who can help with classifying goods into codes. They can also help with the import documents required when importing foreign products. 

Product requirements and liability

When you import a product from a non-European country, such as China, you must consider the European and national requirements that apply to the product. For example, the product must be usable and safe. In addition, as an importer, you are liable for any damage caused by a faulty product. With riskier products, it is advisable to take out product liability insurance. 

CE mark

Do you have all matters concerning importing goods from non-European countries well arranged for your company? Then of course you want to start selling goods via online services such as bol.com. However, first you will need to have a CE mark to indicate that your product is safe and complies with European laws.

What is a CE mark?

CE stands for "Conformité European," and a mark of this is an important indication that a particular product achieves European regulations. Literally, the mark means conformity with European regulations.

A CE mark has two purposes. First, it promotes free trade in goods within the EEA (European Economic Area). Second, the mark ensures harmonization of European countries' legislation on product safety and health. On top of this, national governments are not allowed to impose additional requirements.

When a product is recognized with a CE mark, it receives a mark. This must always be visibly indicated on that product by applying a sticker, for example. If this is not possible due to technical reasons, you can also have the marking placed only on the product packaging. That is sufficient.

Why a CE mark?

A CE mark allows free movement of goods within Europe, regardless of which country or territory they were produced in. European Union member states may not impose restrictions on the trade of products bearing such a mark. Unless it is demonstrated that a product does not comply with European laws.

The label only indicates that a product complies with the requirements of European laws, not that the product was actually produced in the European Union. It is therefore not a marketing tool. But only serves as relevant information for the authorities of various countries within the EU and for other interested parties.

A CE mark is required by law for distributors, manufacturers and importers of goods within the European Union. However, this concerns only products for which CE directives have been issued. Trading such goods without the marking violates the directives and is therefore considered an economic crime. On the other hand, it is also an offence to affix a marking to a product for which no CE directives have been developed.

How can you get a CE mark?

To get a CE mark, the manufacturer or you as the importer must have its goods tested by what is called a "notified body." This is an independent testing body appointed by the government. They conduct tests for which the manufacturer must pay, such as tests on the health, environment and safety of the product. They also look at the manufacturing of the product and whether it meets certain requirements.

The manufacturer can charge you for the tests. If it is a "private label" product, you can have the testing done in the manufacturer's country. This is only possible if it goes through the official, international organizations. Performing these tests is a lot cheaper in China, for example, than in Europe. With this, make sure that the correct test results from official organizations are sent to you. If it is not a private label, after getting a CE mark the manufacturer can also work with other companies on the costs you have incurred.

If you want to know for sure what your products have to comply with in testing, you can contact the Dutch Food and Consumer Product Safety Authority (NVWA) or the Netherlands Enterprise Agency (RVO). These bodies oversee CE markings in the Netherlands.

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What about imports and the CE mark?

If you bring goods into the Netherlands from outside the EU, you should check carefully whether the supplier applies the CE mark correctly. Make sure that you, as a seller on bol.com, get the documents about the CE mark of the product first. The Dutch mark authority may ask for these documents.

Not all products require the mark and it is important to check whether your product falls within this group. The following product groups fall within this group:

  • Construction products.
  • Electrical, electronic and energy-related products.
  • Explosives for civilian use.
  • Machinery and related products.
  • Medical devices.
  • Measuring and weighing equipment.
  • Personal Protective Equipment.
  • Pyrotechnic articles.
  • Toys.
  • Transportation equipment.

Conclusion

CE markings must always be confirmed by the supplier and it does not matter whether they are located inside or outside the EEA. As an importer, however, you are responsible for ensuring that all certificates and documents for your products are in order, since importers guarantee products brought into Europe. Therefore, if a manufacturer does not use a marking, as an importer you have to find out for yourself.

Also check carefully whether the products you import are of high enough quality to be resold in the Netherlands. A more expensive manufacturer that has its affairs in order is more profitable in the long run than a cheaper one that provides incorrect documents. Being able to offer a manufacturer's warranty to customers is also important. Make sure you know what you are selling and all your affairs are in order before you start importing goods to make people happy in your own country on bol.com.

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