Exporting to Germany

With the increasing consumer demand in e-commerce, shopping is more global than ever before. Businesses want to meet this demand and take advantage of the situation by evaluating export opportunities. If you want to learn how to export to Germany, one of the largest countries in Europe by export volume, and how to carry out the necessary procedures, let’s take a closer look at what needs to be done.

How to Export to Germany?

Shopping channels have changed significantly over time from the recent past to today. As identifying rapidly changing trends and consumer behaviors becomes increasingly challenging, making strategic decisions in the e-commerce site has become more crucial than ever before. Since businesses have begun to grow their local sales areas and focus on international operations, the concept of export has been one of the most curious topics. Germany, being one of the strongest countries in Europe both in terms of population and economic standing, is one of the best options for export due to its dynamic relationships with Turkey over the years.

Before entering into foreign exports, one of the important factors to be aware of is to accurately implement financial management during this process and to thoroughly understand the trade service rules of the country to which you will be exporting. It is necessary to improve the financial and time issues that producers currently face even within the country throughout the product delivery process. When the right digital marketing strategies are used, these improvements will quickly become apparent. Being knowledgeable about the target market has become significantly easier with the Internet today and provides great assistance to companies in project management. As ODS Consultancy Group, we support your business in your project management process and assist you with our analyses related to your target market for a smooth export process.

What Companies Export to Germany?

Germany, being Turkey’s largest market for exports, receives product exports from many sectors in Turkey. According to the increasingly rising figures in the last two years, the two countries continue to be trade partners in exports.

In recent years, the sectors that stand out in exports to Germany include automotive, food, textiles, and machinery production. According to statistics, the largest demand for most of the products that Turkey exports comes from Germany. According to TÜİK data, one of the sectors with the highest exports among these sectors is textiles and clothing, which stands out at $2.8 billion.

What Documents Are Required to Export to Germany?

• First of all, you need to prove your business for exporting to Germany. Therefore, you must document that you legally have a company. Since keeping the necessary export procedures documented is a requirement, being able to show a company that complies with both German and Turkish laws is an important matter.
• After establishing your company, you should open an e-export site where you can carry out e-commerce transactions. Conducting product research tailored to your target market and closely monitoring the market will help you find the best marketing technique for your product.
• By tracking fluctuating exchange rates and reflecting the prices for your product that may receive the highest demand and be the most profitable, you will be prepared for economic ups and downs and be able to turn the situation in your favor.
• There is an easy way to export for your products weighing up to 300 kg and not exceeding €15,000 through authorized shipping companies. In order for your products that meet these conditions not to experience issues during customs processes, you need to have a cargo regulation document called Micro Export Registration. This document, which you need to submit to Germany, is processed electronically. You can carry out your procedures for products with the values specified in the ETGB certificate, officially known as Electronic Commerce Customs Declaration.

What Are the Export Taxes to Germany?

Like every country, Germany has a number of legal requirements and financial obligations for companies exporting to its country. In terms of export, there are taxes that every company must pay for the products they wish to enter Germany. Companies that will be engaged in e-export are required to pay a certain amount of export tax and VAT. According to the rules, companies need to pay taxes ranging from 18% to 20% for sales exceeding €22 in their exports to Germany. While the standard VAT rate in Germany is 19%, for finished products and daily services, a reduced tax rate of 7% is applied.

What Products Are Exported to Germany?

When examining the supply-demand statistics of customers in the market, it can be seen which products will yield the most profit for your business in exports. While selecting the most compatible export product according to your company's vision, expanding your export list will always be in your favor. According to the latest data, exports worth a total of $17.5 billion have been made to Germany from various sectors. In the year 2020, the most exported products from Turkey to Germany are as follows:
• Automotive Sector: $4,372,846 in 2019, $3,571,44 in 2020
• Ready-to-Wear and Apparel: $3,069,057 in 2019, $3,140,531 in 2020
• Electrical Electronics: $1,040,152 in 2019, $1,077,341 in 2020
• Iron and Non-Ferrous Metals: $970,712 in 2019, $964,388 in 2020
• Chemical Substances and Products: $879,090 in 2019, $926,776 in 2020
• Machinery and Equipment: $680,053 in 2019, $700,637 in 2020
• Air Conditioning Industry: $523,431 in 2019, $540,214 in 2020
• Hazelnuts and Products: $433,622 in 2019, $441,402 in 2020
(Data from TİM for 2020, values should be calculated as x1000$.)

As seen, the automotive industry hosts a large part of the export volume, while Turkey, which meets 70% of the world's hazelnut need, has its hazelnut exports ranking among the most exported food products to Germany. When considering the diversity of products in our country and the high export potential of products to Germany, it can be said that the export of machinery and motor vehicles is one of the best options. We can also say that Turkey's ready-to-wear export potential is high, with great success in the textile sector. Additionally, according to the 2020 TİM data, the textile industry has been shown to be the sector with the highest potential for success with a 70% export potential.

What Is the Comparison of Trade Volume Between Turkey and Germany?

Although Germany is similar to Turkey with its 83 million population, it is significantly ahead of Turkey in terms of export power and income per capita. While the factors influencing the economies of both countries are similar, the figures that emerge in comparison are quite distant from each other. Since World War II, Germany has focused on rapid growth and has operated based on conducting financial developments. Turkey and Germany, which became commercially close with the labor migration of the 1960s, maintain a close relationship today with export unity. According to the results revealed by June 2017 data, Germany is currently the country to which Turkey exports the most.

According to November 2021 data, Germany's export volume reached a value of €1,258.1 billion, while this value was $192.6 billion in Turkey. Germany remains one of the leading countries in exports, covering 10% of Turkey's total exports. As ODS Consultancy Group, we are ready to provide the best service to your company in your exports to Germany.