3 essential steps for shipping from Sri Lanka to the European Union (EU)

The European Union (EU) represents a vast and diverse market with unified regulations for exports and imports. 

Countries in the EU include Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

These 27 countries form a single market that allows free movement of goods, capital, services and people between member states. This means that member states have:

• No customs duty barriers between themselves
• Legally imported goods that can be circulated throughout the EU with no further customs checks
• A common customs tariff for imported goods from outside the EU

The trade relationship between Sri Lanka and the EU has seen consistent growth even after Brexit, paving the way for ample shipping opportunities for many businesses. The EU is currently the second largest export market for Sri Lanka with a value of US$3 billion in 2022, according to Sri Lanka’s Department of Commerce. 

However, shipping products from Sri Lanka to the European market requires understanding specific import regulations and ensuring all paperwork is in order. Let’s delve into the three essential steps required to prepare your shipment to the EU.

Step #1: Take note of prohibited & restricted items

It’s best to familiarise what goods can or cannot be shipped to the European Union from Sri Lanka. 

Customs authorities enforce a set of requirements known as Prohibitions and Restrictions (P&R) at the borders. P&R may be imposed on goods when they are justified on the grounds of:

• Public morality, public policy or public security
• The protection of the health and life of humans, animals or plants
• The protection of industrial and commercial property
• The protection of the environment
• The protection of national treasures possessing artistic, historic or archaeological value and
• Including controls on drug precursors, goods infringing certain intellectual property rights and cash

Prohibited items are banned goods that cannot be shipped into the EU at all, including radioactive items and objects posing a radiation risk as well as narcotic drugs and their precursors.

Meanwhile, restricted items can be exported to the EU but must follow certain protocols. For instance, all medicinal products for human use must be authorised at Member State or at EU levels before they can be sold on the EU market. Similarly, only marine fishery products validated as legal by a catch certificate can be imported to or exported from the EU.

Visit the EU’s website for a full list of prohibited and restricted products. 

Step #2. Calculate duties, taxes & other fees

Wish to find out the cost of sending a package to Europe? Understanding the EU's duties, taxes, and fees is paramount for exporters to avoid unexpected expenses and ensure smooth trade. 

The Integrated Tariff of the European Union, known as TARIC, provides crucial information on duties, taxes, and other measures. Exporters can determine the exact rates and requirements by entering the code specific to their product.

Here’s a general overview of what fees to expect:

1. Customs duties

The EU has a standard customs duty rate for goods imported from countries outside the bloc. However, certain agreements and the nature of the goods can affect the final rate applied. 

For example, Sri Lanka benefits from the EU’s Generalized Scheme of Preferences (GSP+) system, which allows the export of more than 7000 products under zero duties to EU member countries for the next ten years. The wide array of products include textiles and fisheries, two of Sri Lanka’s top exports. 

2. Value Added Tax (VAT)

Each member state of the EU has its own standard VAT rate which usually ranges between 15% to 27%. This tax applies to the total sum of the product's value and the customs duty. The exact amount depends on which EU member state you export to.

3. Other fees

Some products might be subject to excise duties or additional fees, especially items like alcohol, tobacco, and certain energy products. Specific products, especially agricultural and live animal shipments, might also be inspected for quality, health, and safety reasons, which come with associated fees.

Step #3: Prepare essential export documentation

Lastly, the following export documents are required for smooth customs clearance from Sri Lanka to the European Union:

• Economic Operation Registration and Identification (EORI) number: A unique identification assigned to each importer and exporter to monitor the movement of goods between EU and non-EU countries. 
• Commercial invoice: This details the transaction between the exporter and the importer and includes information about the goods, their value, and the terms of sale.
• Bill of Lading or Air Waybill: This is evidence of the contract between the shipper and the carrier, detailing the source, destination, and terms of the shipment.
• Packing list: It describes the contents of each package, including the quantity, description, and weight of the goods.
• Certificate of Origin (CoO): The COO shows the origin of the goods. Some products benefit from reduced tariffs based on their origin, especially if there's a trade agreement between the EU and Sri Lanka.

Depending on the nature of the goods, other documentation such as Health Certificates or special permits might be needed.

Do also be aware of differences between certain EU countries. While additional documentation is not required when shipping to Europe in most instances, a few locations such as The Channel Islands, Andorra, San Marino, the Vatican, Gibraltar, and The Canary Islands are technically within the EU that require extra documentation.