Benefits of the UK-New Zealand free trade agreement
Advantages and challenges of exporting to New Zealand
Be aware of the advantages and challenges of doing business in New Zealand.
There are advantages and also potential challenges for Northern Ireland companies doing business in New Zealand.
Advantages of exporting to New Zealand
New Zealand can offers numerous benefits to companies looking to do business in the region including:
- similar legal and financial systems to the UK
- excellent test market for niche and high-value products and services
- English speaking
- low corruption levels
- stable political system
- ranks first of 189 economies for ease of doing business
- geographic position allows for easy access to Pacific Island market
- opposite time zones allow for 24 hour working
- small but developed market
- strong Intellectual Property (IP) and regulatory systems
Challenges of exporting to New Zealand
Doing business in New Zealand is very similar to doing business in the UK. If your product or service is successful in the UK, there's a good chance you'll be successful in New Zealand. At present there are no major challenges to UK companies.
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Sectoral opportunities in New Zealand
There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.
There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies. Opportunities exist across a wide range of sectors, including infrastructure, technology, agri-technology and e-commerce.
New Zealand's small open market also makes it a sound choice for Northern Ireland SME companies new to exporting.
There are opportunities for UK companies across a broad range of industries.
Infrastructure
New Zealand is investing heavily to update and create new critical infrastructure to cope with increased demand. An estimated 129 billion New Zealand dollars is expected to be spent on capital projects between 2019 and 2029 (New Zealand Treasury, 2019) which will present opportunities for UK businesses. Cyclone Gabrielle (February 2023) has also presented new infrastructure challenges and opportunities.
Technology
Technology is New Zealand’s fastest growing industry (New Zealand Technology Investment Association, 2021), with the sector increasing 11% between 2019 and 2020. Telecommunications, computer and information services were the third largest UK service export to New Zealand in the 4 quarters to the end of Q1 2019 (ONS, 2019).
Fintech
New Zealand’s fintech sector is the fastest-growing component of the technology sector. The 5 year compound annual growth rate is 38% and 5 year revenue growth is 705 million New Zealand dollars. The profitability in the New Zealand financial sector provides opportunities for innovative UK fintech companies. It is a small, yet dynamic market with tech savvy consumers and a sophisticated, profitable financial services sector.
Agri-technology
Agriculture is New Zealand’s largest export sector. Both the UK and New Zealand share similar challenges of clean growth including enhancing productivity in human nutrition whilst protecting the environment.
E-commerce
There has been an exponential growth in online shopping in New Zealand with over half of all Kiwis regularly shopping on their devices. With no local presence of eBay or Amazon, domestic platforms such as Trade Me and The Market dominate the e-commerce sector creating opportunities for UK retail companies.
Food and drink
New Zealand is an excellent choice for UK food and drink producers looking for smaller markets to expand into. The food and drink sector are important to New Zealand’s economy both in terms of exports and its domestic market.
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Taxes, duty and legal considerations when exporting to New Zealand
Find out about the numerous things you need to consider before you start exporting to New Zealand.
There are a lot of things to consider before you start exporting to New Zealand.
It's essential to find out about local rules and regulations on tax and duty in your intended market.
VAT
Goods and Services Tax (GST) is a tax on most goods and services in New Zealand. The current GST rate is 15%. Learn more about GST.
Import duties
All goods imported into New Zealand for business or commercial purposes are liable for customs duty, GST and other applicable fees. Indicative rates can be found in the Working Tariff Document of New Zealand. Find out how the charges are calculated.
Standards and technical regulations
All products sold in New Zealand must be safe. The two key laws that deal with product safety are the:
- Consumer Guarantees Act, which gives minimum standards of quality for goods and services
- Fair Trading Act, which promotes product safety
Importers must ensure products meet the minimum standards for the products to be allowed to enter the country. You can check the required standards at Standards New Zealand.
Labelling requirements
Packaging must meet New Zealand consumer health and environmental legislation. There are specific labelling requirements for:
- chemical products
- cosmetics
- electronic goods
- foodstuffs
- most therapeutic products
All labelling must use the metric system.
You can read guidance on food labelling from Food Standards Australia New Zealand (FSANZ).
Payment terms
Payment terms and method should be set out in your contract and must be factored into prices. For business-to-business transactions these can range from immediate payments on receipt of goods (often with a negotiated small discount) to a negotiated 60-day payment.
Intellectual property
Intellectual property (IP) rights are territorial. Rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.
The Intellectual Property Office’s International IP Service provides practical information to help you protect, manage and enforce your IP abroad. Further support can be accessed through the service’s network of IP attachés. Based in key UK export markets, they provide guidance to British businesses on local IP matters.
Business culture
In general, business etiquette is very similar to the UK. Face-to-face meetings can be very important to develop business relationships and prompt replies to enquires are recommended. Visits should be planned in advance – ideally at least four weeks.
Punctuality is very important. New Zealanders tend to be informal in their business interactions. First-name terms tend to be the norm in most business situations. Directness and plain speaking are valued.
New Zealanders often take holidays during school holiday periods, especially over the New Zealand summer holiday period, which is January. As a result, visits during these times may not be productive.
Logistical challenges
New Zealand’s distance from the UK means you may face challenges in:
- travelling (at least 24 hours from the UK by plane)
- the time difference (12 to 13 hours ahead of the UK)
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Benefits of the UK-New Zealand free trade agreement
The UK has signed a Free Trade Agreement (FTA) with New Zealand which will make exporting to New Zealand cheaper, faster and more secure for UK businesses.
The UK has signed a Free Trade Agreement (FTA) with New Zealand which will make exporting to New Zealand cheaper, faster and more secure for UK businesses.
How to utilise the FTA
The UK-New Zealand FTA contains many new improvements and opportunities for UK businesses seeking to export to New Zealand.
From more flexible rules of origin and customs clearance, to specialised support for small traders.
- Find practical advice on how to utilise the agreement including guidance on proving rules of origin, accessing simpler customs, and benefiting from zero tariffs.
- Download detailed information for your sector with market opportunities and the steps you need to take to utilise the agreement.
Benefits of the UK-New Zealand FTA include:
- more flexible rules of origin when exporting goods that are better suited to modern supply chains
- equal treatment and improved business environment for UK businesses operating in New Zealand
- easier travel rules for UK businesspeople wishing to deliver services in New Zealand
Some of the provisions in the new FTA will apply automatically, whilst others may require you to take action first before you can benefit. The action(s) you will need to take also depends on the type of goods or services you are selling.
Read more about how to take advantage of the UK’s other free trade agreements
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Support available for exporting to New Zealand
There are a range of support options available to help you export to New Zealand.
Developing exports to New Zealand could be a key part of growing your business. But breaking into the market can be challenging. The right support and advice can significantly improve your prospects.
Invest NI offers a comprehensive range of advice, plus additional support services for businesses.
- The selling outside Northern Ireland schemes include support with market research and market visits.
- Invest NI sector specialists can help you assess the opportunities for your business and advise on the best way forward.
- Invest NI can advise on how to use technology to support your exports.
- Invest NI can advise on financing your export business and may be able to provide financial support directly to businesses.
As well as Invest NI, there are other sources of support.
- The Northern Ireland Chamber of Commerce (NICC) provides trade support services and networking opportunities.
- Department for Business and Trade (DBT) in-market support - eligible UK businesses can access trade expertise and knowledge on exporting to specific countries from the DBT global network of international market hubs.
- UK Tradeshow Programme - UK businesses exporting, or thinking about exporting, can apply for support to exhibit at, or attend, approved overseas trade shows and conferences; potentially receive grants to offset some costs.
- A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly.
- Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.
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Support available for exporting to Germany
Advantages and challenges of exporting to Germany
Be aware of the advantages and challenges of doing business in Germany.
There are advantages and also potential challenges for Northern Ireland companies doing business in Germany.
Germany is an attractive market for investors as well as new business owners. It is the largest economy in Europe and ranks as the fourth-largest global economy.
Advantages of exporting to Germany
Germany can offers numerous benefits to companies looking to do business in the region including:
- one of the world’s largest and most stable trading economies
- is among the top ten most innovative countries worldwide
- largest consumer market in the European Union
- offers a variety of incentive programs and public funding options
Challenges of exporting to Germany
You should also be aware of some challenges you could face when exporting to Germany including:
- it can be challenging to form a business due to complex bureaucratic requirements
- tax laws can be complicated
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/content/advantages-and-challenges-exporting-germany
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Sectoral opportunities in Germany
There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.
Opportunities exist for UK companies across a wide range of sectors, including technology, automotive, health and life sciences, food and drink and renewable energy.
There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.
Technology
The convergence of manufacturing and tech along with the Internet of things (IOT) evolution, are presenting significant new opportunities for ICT companies. COVID-19 has accelerated the demand for digital solutions. New growth areas are expected to be in Artificial Intelligence (AI), supply chain automation, IoT, cyber security, fintech and health tech.
Automotive
The automotive sector remains the strongest and most export-driven industry in Germany with a total turnover of €379.3 billion and an export volume of €243 billion in 2020. It’s transition towards connected and autonomous vehicles, and clean mobility creates excellent opportunities for UK companies providing solutions in vehicle connectivity, mobility management, sustainable mobility, and battery technology development.
Health and life sciences
Germany is at the forefront of healthcare innovation. In this sophisticated and demanding market, the opportunity for companies providing innovative products and services is substantial.
Germany offers one of Europe’s largest markets for healthcare and life sciences products. Health expenditure accounted for 11.9% of GDP in 2019 (German Federal Statistics Office, 2020). High market demand and Germany’s strategic location make it a preferred choice for many international healthcare and life sciences companies preparing to expand.
Food and drink
There are significant growth opportunities in spirits, including low and non-alcoholic spirits, confectionery, sweet and savoury snacks, vegan, organic, free from and international products produced in the UK.
The German food and drink industry is highly competitive, but until now has also been relatively conservative in its operating models. The introduction of new technology and digitalisation has helped to change this and resulted in the number of imports from the UK increasing.
Consumer goods
Germany is the largest consumer market in Europe, with a low unemployment rate and an affluent population. With an excellent logistics infrastructure both domestically and extending into neighbouring countries, Germany is well-located for distribution to Western, Central and Eastern Europe.
E-commerce is growing fast in Germany, especially among consumers aged 50 plus; a major group with strong purchasing power. Demand is also increasing in mobile commerce, social media shopping and innovative omnichannel sales solutions.
Renewable energy
Germany is the EU’s largest market contributing 21% to GDP. The new government will increase the target for renewables from 65% to 80% by 2030 with impressive growth trajectories for offshore wind, hydrogen and solar. This is fertile ground for UK exporters.
Offshore wind will increase from 20GW to 30GW by 2030, 40GW in 2035, and 70GW in 2045. Upcoming opportunities include marine geophysical, geotechnical and environmental survey services, design planning and engineering services, CTVs, SOVs, logistic and transport services. There will also be opportunities in remote and autonomous technological solutions enabling condition monitoring and maintenance and blade recycling.
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Taxes, duty and legal considerations when exporting to Germany
Find out about the numerous things you need to consider before you start exporting to Germany.
There are a lot of things to consider before you start exporting to Germany. It's essential to find out about local rules and regulations on tax and duty in your intended market.
VAT
The standard rate of VAT in Germany is 19%. Convenience goods and day-to-day services are charged at 7%. Some services including banking, healthcare and non-profit work are VAT exempt.
Packaging and labelling
Packaging has a strong influence on German consumers and informs how they choose products. It is important to check that your packaging is to German tastes. Please also see the German Packaging Act for guidance.
EU standards apply to packaging. Check how to export goods.
Labelling should be translated into German. Certain products, such as food and textiles, have specific labelling requirements.
Payment terms
Standard payment terms for business-to-business transactions are 60 days and 30 days for public authorities. You can claim late payment interest when terms are not met.
Services regulations
If you’re a UK business offering services in Germany, you need to follow regulations about:
- getting an authorisation or a licence to provide a service
- complying with local business regulations
- EEA nationality requirements which could prevent you from providing services in some sectors
Information on rules for selling services and business travel to Germany.
Trade barriers
Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. You should check for any issues that may impact your business when exporting.
Check for any reported barriers to trading with Germany.
Report any trade barriers that are affecting your business.
Routes to market
In a stable and secure market, there's a wide range of routes to market.
Options which may work well for you are:
- agents and distributors - using local agents or distributors is an effective way to develop a presence in Germany due to the size of the market. German is the language of business and fluency is a major advantage for your company when using local partners.
- direct sales - due to the relative closeness of the market, direct sales are possible. However, the need for German language skills should be considered. Ensuring full coverage of the whole market could be a challenge.
- e-commerce - selling online or through e-marketplaces may be a good option for your company. It’s relatively cheap and easy to deliver products into Germany. The Department for Business and Trade (DBT) can suggest online marketplaces to help you get started. DBT’s E-Exporting Programme can also help. The British Chamber of Commerce in Germany is a useful source of further information on routes to market in Germany. You can find more useful information on the Germany Trade and Invest and German-British Chamber of Industry & Commerce websites.
Business culture
German firms are often family-owned and take a longer-term view. They value personal relationships highly.
Often businesses will not necessarily go for best price, but for long-term shared vision or relationship.
Business people will be well prepared for meetings, and will have carefully researched your products and services.
Intellectual property
Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.
The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for British businesses can be found through a network of IP attachés, based in key UK export markets.
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/content/taxes-duty-and-legal-considerations-when-exporting-germany
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Support available for exporting to Germany
There are a range of support options available to help you export to Germany.
Developing exports to Germany could be a part of growing your business. But breaking into the market can be challenging. The right support and advice can significantly improve your prospects.
Invest NI offers a range of advice, plus additional support services for businesses trading with Germany.
- The selling outside Northern Ireland schemes includes support with market research and market visits.
- Invest NI sector specialists can help you assess the opportunities for your business and advise on the best way forward.
- Invest NI can advise on how to use technology to support your exports.
- Invest NI can advise on financing your export business and may be able to provide financial support directly to businesses.
As well as Invest NI, there are other sources of support to assist with trading with Germany.
- The Northern Ireland Chamber of Commerce (NICC) provides trade support services and networking opportunities.
- Department for Business and Trade (DBT) in-market support - eligible UK businesses can access trade expertise and knowledge on exporting to specific countries from the DBT global network of international market hubs.
- UK Tradeshow Programme - UK businesses exporting, or thinking about exporting, can apply for support to exhibit at, or attend, approved overseas trade shows and conferences; potentially receive grants to offset some costs.
- A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly.
- Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.
Primary parentContent category
Source URL
/content/support-available-exporting-germany
Links
Taxes, duty and legal considerations when exporting to Germany
Advantages and challenges of exporting to Germany
Be aware of the advantages and challenges of doing business in Germany.
There are advantages and also potential challenges for Northern Ireland companies doing business in Germany.
Germany is an attractive market for investors as well as new business owners. It is the largest economy in Europe and ranks as the fourth-largest global economy.
Advantages of exporting to Germany
Germany can offers numerous benefits to companies looking to do business in the region including:
- one of the world’s largest and most stable trading economies
- is among the top ten most innovative countries worldwide
- largest consumer market in the European Union
- offers a variety of incentive programs and public funding options
Challenges of exporting to Germany
You should also be aware of some challenges you could face when exporting to Germany including:
- it can be challenging to form a business due to complex bureaucratic requirements
- tax laws can be complicated
Primary parentContent category
Source URL
/content/advantages-and-challenges-exporting-germany
Links
Sectoral opportunities in Germany
There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.
Opportunities exist for UK companies across a wide range of sectors, including technology, automotive, health and life sciences, food and drink and renewable energy.
There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.
Technology
The convergence of manufacturing and tech along with the Internet of things (IOT) evolution, are presenting significant new opportunities for ICT companies. COVID-19 has accelerated the demand for digital solutions. New growth areas are expected to be in Artificial Intelligence (AI), supply chain automation, IoT, cyber security, fintech and health tech.
Automotive
The automotive sector remains the strongest and most export-driven industry in Germany with a total turnover of €379.3 billion and an export volume of €243 billion in 2020. It’s transition towards connected and autonomous vehicles, and clean mobility creates excellent opportunities for UK companies providing solutions in vehicle connectivity, mobility management, sustainable mobility, and battery technology development.
Health and life sciences
Germany is at the forefront of healthcare innovation. In this sophisticated and demanding market, the opportunity for companies providing innovative products and services is substantial.
Germany offers one of Europe’s largest markets for healthcare and life sciences products. Health expenditure accounted for 11.9% of GDP in 2019 (German Federal Statistics Office, 2020). High market demand and Germany’s strategic location make it a preferred choice for many international healthcare and life sciences companies preparing to expand.
Food and drink
There are significant growth opportunities in spirits, including low and non-alcoholic spirits, confectionery, sweet and savoury snacks, vegan, organic, free from and international products produced in the UK.
The German food and drink industry is highly competitive, but until now has also been relatively conservative in its operating models. The introduction of new technology and digitalisation has helped to change this and resulted in the number of imports from the UK increasing.
Consumer goods
Germany is the largest consumer market in Europe, with a low unemployment rate and an affluent population. With an excellent logistics infrastructure both domestically and extending into neighbouring countries, Germany is well-located for distribution to Western, Central and Eastern Europe.
E-commerce is growing fast in Germany, especially among consumers aged 50 plus; a major group with strong purchasing power. Demand is also increasing in mobile commerce, social media shopping and innovative omnichannel sales solutions.
Renewable energy
Germany is the EU’s largest market contributing 21% to GDP. The new government will increase the target for renewables from 65% to 80% by 2030 with impressive growth trajectories for offshore wind, hydrogen and solar. This is fertile ground for UK exporters.
Offshore wind will increase from 20GW to 30GW by 2030, 40GW in 2035, and 70GW in 2045. Upcoming opportunities include marine geophysical, geotechnical and environmental survey services, design planning and engineering services, CTVs, SOVs, logistic and transport services. There will also be opportunities in remote and autonomous technological solutions enabling condition monitoring and maintenance and blade recycling.
Primary parentContent category
Source URL
/content/sectoral-opportunities-germany
Links
Taxes, duty and legal considerations when exporting to Germany
Find out about the numerous things you need to consider before you start exporting to Germany.
There are a lot of things to consider before you start exporting to Germany. It's essential to find out about local rules and regulations on tax and duty in your intended market.
VAT
The standard rate of VAT in Germany is 19%. Convenience goods and day-to-day services are charged at 7%. Some services including banking, healthcare and non-profit work are VAT exempt.
Packaging and labelling
Packaging has a strong influence on German consumers and informs how they choose products. It is important to check that your packaging is to German tastes. Please also see the German Packaging Act for guidance.
EU standards apply to packaging. Check how to export goods.
Labelling should be translated into German. Certain products, such as food and textiles, have specific labelling requirements.
Payment terms
Standard payment terms for business-to-business transactions are 60 days and 30 days for public authorities. You can claim late payment interest when terms are not met.
Services regulations
If you’re a UK business offering services in Germany, you need to follow regulations about:
- getting an authorisation or a licence to provide a service
- complying with local business regulations
- EEA nationality requirements which could prevent you from providing services in some sectors
Information on rules for selling services and business travel to Germany.
Trade barriers
Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. You should check for any issues that may impact your business when exporting.
Check for any reported barriers to trading with Germany.
Report any trade barriers that are affecting your business.
Routes to market
In a stable and secure market, there's a wide range of routes to market.
Options which may work well for you are:
- agents and distributors - using local agents or distributors is an effective way to develop a presence in Germany due to the size of the market. German is the language of business and fluency is a major advantage for your company when using local partners.
- direct sales - due to the relative closeness of the market, direct sales are possible. However, the need for German language skills should be considered. Ensuring full coverage of the whole market could be a challenge.
- e-commerce - selling online or through e-marketplaces may be a good option for your company. It’s relatively cheap and easy to deliver products into Germany. The Department for Business and Trade (DBT) can suggest online marketplaces to help you get started. DBT’s E-Exporting Programme can also help. The British Chamber of Commerce in Germany is a useful source of further information on routes to market in Germany. You can find more useful information on the Germany Trade and Invest and German-British Chamber of Industry & Commerce websites.
Business culture
German firms are often family-owned and take a longer-term view. They value personal relationships highly.
Often businesses will not necessarily go for best price, but for long-term shared vision or relationship.
Business people will be well prepared for meetings, and will have carefully researched your products and services.
Intellectual property
Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.
The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for British businesses can be found through a network of IP attachés, based in key UK export markets.
Primary parentContent category
Source URL
/content/taxes-duty-and-legal-considerations-when-exporting-germany
Links
Support available for exporting to Germany
There are a range of support options available to help you export to Germany.
Developing exports to Germany could be a part of growing your business. But breaking into the market can be challenging. The right support and advice can significantly improve your prospects.
Invest NI offers a range of advice, plus additional support services for businesses trading with Germany.
- The selling outside Northern Ireland schemes includes support with market research and market visits.
- Invest NI sector specialists can help you assess the opportunities for your business and advise on the best way forward.
- Invest NI can advise on how to use technology to support your exports.
- Invest NI can advise on financing your export business and may be able to provide financial support directly to businesses.
As well as Invest NI, there are other sources of support to assist with trading with Germany.
- The Northern Ireland Chamber of Commerce (NICC) provides trade support services and networking opportunities.
- Department for Business and Trade (DBT) in-market support - eligible UK businesses can access trade expertise and knowledge on exporting to specific countries from the DBT global network of international market hubs.
- UK Tradeshow Programme - UK businesses exporting, or thinking about exporting, can apply for support to exhibit at, or attend, approved overseas trade shows and conferences; potentially receive grants to offset some costs.
- A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly.
- Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.
Primary parentContent category
Source URL
/content/support-available-exporting-germany
Links
Advantages and challenges of exporting to Germany
Advantages and challenges of exporting to Germany
Be aware of the advantages and challenges of doing business in Germany.
There are advantages and also potential challenges for Northern Ireland companies doing business in Germany.
Germany is an attractive market for investors as well as new business owners. It is the largest economy in Europe and ranks as the fourth-largest global economy.
Advantages of exporting to Germany
Germany can offers numerous benefits to companies looking to do business in the region including:
- one of the world’s largest and most stable trading economies
- is among the top ten most innovative countries worldwide
- largest consumer market in the European Union
- offers a variety of incentive programs and public funding options
Challenges of exporting to Germany
You should also be aware of some challenges you could face when exporting to Germany including:
- it can be challenging to form a business due to complex bureaucratic requirements
- tax laws can be complicated
Primary parentContent category
Source URL
/content/advantages-and-challenges-exporting-germany
Links
Sectoral opportunities in Germany
There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.
Opportunities exist for UK companies across a wide range of sectors, including technology, automotive, health and life sciences, food and drink and renewable energy.
There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.
Technology
The convergence of manufacturing and tech along with the Internet of things (IOT) evolution, are presenting significant new opportunities for ICT companies. COVID-19 has accelerated the demand for digital solutions. New growth areas are expected to be in Artificial Intelligence (AI), supply chain automation, IoT, cyber security, fintech and health tech.
Automotive
The automotive sector remains the strongest and most export-driven industry in Germany with a total turnover of €379.3 billion and an export volume of €243 billion in 2020. It’s transition towards connected and autonomous vehicles, and clean mobility creates excellent opportunities for UK companies providing solutions in vehicle connectivity, mobility management, sustainable mobility, and battery technology development.
Health and life sciences
Germany is at the forefront of healthcare innovation. In this sophisticated and demanding market, the opportunity for companies providing innovative products and services is substantial.
Germany offers one of Europe’s largest markets for healthcare and life sciences products. Health expenditure accounted for 11.9% of GDP in 2019 (German Federal Statistics Office, 2020). High market demand and Germany’s strategic location make it a preferred choice for many international healthcare and life sciences companies preparing to expand.
Food and drink
There are significant growth opportunities in spirits, including low and non-alcoholic spirits, confectionery, sweet and savoury snacks, vegan, organic, free from and international products produced in the UK.
The German food and drink industry is highly competitive, but until now has also been relatively conservative in its operating models. The introduction of new technology and digitalisation has helped to change this and resulted in the number of imports from the UK increasing.
Consumer goods
Germany is the largest consumer market in Europe, with a low unemployment rate and an affluent population. With an excellent logistics infrastructure both domestically and extending into neighbouring countries, Germany is well-located for distribution to Western, Central and Eastern Europe.
E-commerce is growing fast in Germany, especially among consumers aged 50 plus; a major group with strong purchasing power. Demand is also increasing in mobile commerce, social media shopping and innovative omnichannel sales solutions.
Renewable energy
Germany is the EU’s largest market contributing 21% to GDP. The new government will increase the target for renewables from 65% to 80% by 2030 with impressive growth trajectories for offshore wind, hydrogen and solar. This is fertile ground for UK exporters.
Offshore wind will increase from 20GW to 30GW by 2030, 40GW in 2035, and 70GW in 2045. Upcoming opportunities include marine geophysical, geotechnical and environmental survey services, design planning and engineering services, CTVs, SOVs, logistic and transport services. There will also be opportunities in remote and autonomous technological solutions enabling condition monitoring and maintenance and blade recycling.
Primary parentContent category
Source URL
/content/sectoral-opportunities-germany
Links
Taxes, duty and legal considerations when exporting to Germany
Find out about the numerous things you need to consider before you start exporting to Germany.
There are a lot of things to consider before you start exporting to Germany. It's essential to find out about local rules and regulations on tax and duty in your intended market.
VAT
The standard rate of VAT in Germany is 19%. Convenience goods and day-to-day services are charged at 7%. Some services including banking, healthcare and non-profit work are VAT exempt.
Packaging and labelling
Packaging has a strong influence on German consumers and informs how they choose products. It is important to check that your packaging is to German tastes. Please also see the German Packaging Act for guidance.
EU standards apply to packaging. Check how to export goods.
Labelling should be translated into German. Certain products, such as food and textiles, have specific labelling requirements.
Payment terms
Standard payment terms for business-to-business transactions are 60 days and 30 days for public authorities. You can claim late payment interest when terms are not met.
Services regulations
If you’re a UK business offering services in Germany, you need to follow regulations about:
- getting an authorisation or a licence to provide a service
- complying with local business regulations
- EEA nationality requirements which could prevent you from providing services in some sectors
Information on rules for selling services and business travel to Germany.
Trade barriers
Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. You should check for any issues that may impact your business when exporting.
Check for any reported barriers to trading with Germany.
Report any trade barriers that are affecting your business.
Routes to market
In a stable and secure market, there's a wide range of routes to market.
Options which may work well for you are:
- agents and distributors - using local agents or distributors is an effective way to develop a presence in Germany due to the size of the market. German is the language of business and fluency is a major advantage for your company when using local partners.
- direct sales - due to the relative closeness of the market, direct sales are possible. However, the need for German language skills should be considered. Ensuring full coverage of the whole market could be a challenge.
- e-commerce - selling online or through e-marketplaces may be a good option for your company. It’s relatively cheap and easy to deliver products into Germany. The Department for Business and Trade (DBT) can suggest online marketplaces to help you get started. DBT’s E-Exporting Programme can also help. The British Chamber of Commerce in Germany is a useful source of further information on routes to market in Germany. You can find more useful information on the Germany Trade and Invest and German-British Chamber of Industry & Commerce websites.
Business culture
German firms are often family-owned and take a longer-term view. They value personal relationships highly.
Often businesses will not necessarily go for best price, but for long-term shared vision or relationship.
Business people will be well prepared for meetings, and will have carefully researched your products and services.
Intellectual property
Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.
The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for British businesses can be found through a network of IP attachés, based in key UK export markets.
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Support available for exporting to Germany
There are a range of support options available to help you export to Germany.
Developing exports to Germany could be a part of growing your business. But breaking into the market can be challenging. The right support and advice can significantly improve your prospects.
Invest NI offers a range of advice, plus additional support services for businesses trading with Germany.
- The selling outside Northern Ireland schemes includes support with market research and market visits.
- Invest NI sector specialists can help you assess the opportunities for your business and advise on the best way forward.
- Invest NI can advise on how to use technology to support your exports.
- Invest NI can advise on financing your export business and may be able to provide financial support directly to businesses.
As well as Invest NI, there are other sources of support to assist with trading with Germany.
- The Northern Ireland Chamber of Commerce (NICC) provides trade support services and networking opportunities.
- Department for Business and Trade (DBT) in-market support - eligible UK businesses can access trade expertise and knowledge on exporting to specific countries from the DBT global network of international market hubs.
- UK Tradeshow Programme - UK businesses exporting, or thinking about exporting, can apply for support to exhibit at, or attend, approved overseas trade shows and conferences; potentially receive grants to offset some costs.
- A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly.
- Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.
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Benefits of the UK-Australia free trade agreement
Advantages and challenges of exporting to Australia
Be aware of the advantages and challenges of doing business in Australia.
There are advantages and also potential challenges for Northern Ireland companies doing business in Australia.
Advantages of exporting to Australia
Australia can offers numerous benefits to companies looking to do business in the region including:
- Free Trade Agreement (FTA) with the UK
- the strong Australian dollar makes British products very affordable
- proximity to Asia Pacific economies
- familiar products and service providers
- common language and similar culture
- similar business and legal practices
- similar technical standards
- an extended period of strong economic growth
- strong business and consumer base
- strong technology sector
- similar language, culture and business practices
- high personal wealth
- strong intellectual property (IP) protection
Disadvantages of exporting to Australia
You should also be aware of some challenges you could face when exporting to Australia. It is a large market to do business in which can lead to some unique challenges including:
- Australia is approximately 24 hours away from the UK by plane
- Australia covers three time zones and is as big as the USA
- distances between capital cities are vast, eg Perth is nearly 3,300 kilometres from Sydney
- Australia is between eight and 11 hours ahead of UK time
- weather extremes in winter and summer can have an impact on businesses
- doing business in Australia can be expensive due to the current exchange rate between the two countries
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Sectoral opportunities in Australia
There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.
Opportunities exist for UK companies across a wide range of sectors, including financial services and fintech, technology, cyber security and infrastructure.
There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.
Financial services and Fintech
Australia has a 9.5 trillion Australian dollars financial sector which equates to almost five times Australia’s GDP (Australian government). Australia is ranked in the top 10 nations for fintechs according to Global Fintech Index City Rankings 2020, with strong fintech adoption. This presents opportunities for UK fintech companies as Australian financial institutions look to evolve their businesses.
Technology
Australia is a great strategic location for UK tech companies looking to expand, because of its significant research infrastructure, its highly-skilled workforce and the strong reputation of British technology.
Infrastructure and smart cities
By 2029, Australia’s State and Federal governments are expected to have invested over 100 billion Australian dollars in transport infrastructure, through its rolling infrastructure plan. Projects include a new inland railway, a new Western Sydney Airport and metros for Sydney and Melbourne.
E-commerce
Australia’s e-commerce market is large and expected to continue to grow over the coming years. There are considerable opportunities for UK businesses to sell online to Australian consumers.
Cyber security
Australia is emerging as an advanced cybernation with the sector worth 2 billion Australian dollars and projected to triple to 6 billion dollars by 2026 (Australian Cyber Security Growth Network, 2021). As a result of increased government prioritisation and a rising threat environment, Australia is providing funding and support to promote market growth and improve national cyber resilience.
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Taxes, duty and legal considerations when exporting to Australia
Find out about the numerous things you need to consider before you start exporting to Australia.
There are a lot of things to consider before you start exporting to Australia. It's essential to find out about local rules and regulations on tax and duty in your intended market.
VAT
You can zero-rate the sale of goods exported to Australia. You must get evidence that the goods were exported and keep it as part of your records. There’s also a 10% tax on the sale of most goods and services.
Find more information on VAT in non-EU markets.
Corporate tax
The corporate tax rate in Australia is 30% for income after July 2015, or 28.5% if you are a small to medium size business.
Read more about corporate tax in Australia.
Import regulations
The Australian Border Force regulates all goods imported into Australia. You’ll need to provide import declarations and documents and pay all relevant duties and taxes.
You should check you’ve paid excise duty on any alcohol, fuel, tobacco or other excise equivalent products you send to Australia.
Quarantine regulations
Australia’s biosecurity measures aim to prevent disease and pests entering the country through a strict inspection or treatment regime. There’s little you can do if your shipment encounters quarantine issues at Australian customs.
Check whether your goods are subject to biosecurity import conditions in Australia and its external territories.
Product standards
Though Australia has adopted international standards where possible, there are Australian standards with no international equivalent which may require your product to be modified, or impact how your product enters the market.
Check Australia’s voluntary standards, mandatory standards and codes of practice to make sure you’re meeting legal requirements for products.
Packaging and labelling
Packaging must meet Australian consumer health and environmental legislation. There are specific labelling requirements for:
- chemical products
- cosmetics
- electronic goods
- foodstuffs
- most therapeutic products
All labelling must use the metric system.
You can read guidance on food labelling from Food Standards Australia New Zealand (FSANZ).
Trade barriers
Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. You should check for any issues that may impact your business when exporting.
Check for any reported barriers to trading with Australia.
Report any trade barriers that are affecting your business so you can get help fixing them.
Intellectual property
Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.
The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for British businesses can be found through a network of IP attachés, based in key UK export markets.
Read more about IP in Australia.
Payment terms
Payment conditions should be set out in your contract and must be factored into prices. For business-to-business transactions, these can range from immediate payments on receipt of goods (often with a negotiated small discount) to a negotiated 60-day payment. You need to use secure terms of payment in Australia through a letter of credit, cash, or partial payment in advance.
Logistical challenges
Australia’s sheer size and distance from the UK means you may face challenges around:
- travelling (24 hours from the UK by plane)
- the time and money needed to ship or send goods
- the time difference (7 to 11 hours ahead of the UK)
- vast distances between states and cities within the country
Business culture
It’s important to note that Australians are informal in their business interactions. First-name terms tend to be the norm in most business situations. Directness and plain speaking are valued.
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Benefits of the UK-Australia free trade agreement
The UK has signed a Free Trade Agreement (FTA) with Australia which will make exporting to Australia cheaper, faster and more secure for UK businesses.
The UK has signed a Free Trade Agreement (FTA) with Australia which will make exporting to Australia cheaper, faster and more secure for UK businesses.
How to utilise the FTA
The UK-Australia FTA contains many new improvements and opportunities for UK businesses seeking to export to Australia.
From more flexible rules of origin and customs clearance, to specialised support for small traders.
- Find practical advice on how to utilise the agreement including guidance on proving rules of origin, accessing simpler customs, and benefiting from zero tariffs.
- Download detailed information for your sector with market opportunities and the steps you need to take to utilise the agreement.
Benefits of the UK-Australia FTA include:
- more flexible rules of origin when exporting goods that are better suited to modern supply chains
- equal treatment and improved business environment for UK businesses operating in Australia
- easier travel rules for UK businesspeople wishing to deliver services in Australia
Some of the provisions in the new FTA will apply automatically, whilst others may require you to take action first before you can benefit. The action(s) you will need to take also depends on the type of goods or services you are selling.
Read more about how to take advantage of the UK’s other free trade agreements.
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Support available for exporting to Australia
There are a range of support options available to help you export to Australia.
Developing exports to Australia could be a key part of growing your business. But breaking into the market can be challenging. The right support and advice can significantly improve your prospects.
Invest NI offers a comprehensive range of advice, plus additional support services for businesses.
- The selling outside Northern Ireland schemes include support with market research and market visits.
- Invest NI sector specialists can help you assess the opportunities for your business and advise on the best way forward.
- Invest NI can advise on how to use technology to support your exports.
- Invest NI can advise on financing your export business and may be able to provide financial support directly to businesses.
As well as Invest NI, there are other sources of support.
- The Northern Ireland Chamber of Commerce (NICC) provides trade support services and networking opportunities.
- Department for Business and Trade (DBT) in-market support - eligible UK businesses can access trade expertise and knowledge on exporting to specific countries from the DBT global network of international market hubs.
- UK Tradeshow Programme - UK businesses exporting, or thinking about exporting, can apply for support to exhibit at, or attend, approved overseas trade shows and conferences; potentially receive grants to offset some costs.
- A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly.
- Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.
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Sectoral opportunities in Germany
Advantages and challenges of exporting to Germany
Be aware of the advantages and challenges of doing business in Germany.
There are advantages and also potential challenges for Northern Ireland companies doing business in Germany.
Germany is an attractive market for investors as well as new business owners. It is the largest economy in Europe and ranks as the fourth-largest global economy.
Advantages of exporting to Germany
Germany can offers numerous benefits to companies looking to do business in the region including:
- one of the world’s largest and most stable trading economies
- is among the top ten most innovative countries worldwide
- largest consumer market in the European Union
- offers a variety of incentive programs and public funding options
Challenges of exporting to Germany
You should also be aware of some challenges you could face when exporting to Germany including:
- it can be challenging to form a business due to complex bureaucratic requirements
- tax laws can be complicated
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Sectoral opportunities in Germany
There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.
Opportunities exist for UK companies across a wide range of sectors, including technology, automotive, health and life sciences, food and drink and renewable energy.
There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.
Technology
The convergence of manufacturing and tech along with the Internet of things (IOT) evolution, are presenting significant new opportunities for ICT companies. COVID-19 has accelerated the demand for digital solutions. New growth areas are expected to be in Artificial Intelligence (AI), supply chain automation, IoT, cyber security, fintech and health tech.
Automotive
The automotive sector remains the strongest and most export-driven industry in Germany with a total turnover of €379.3 billion and an export volume of €243 billion in 2020. It’s transition towards connected and autonomous vehicles, and clean mobility creates excellent opportunities for UK companies providing solutions in vehicle connectivity, mobility management, sustainable mobility, and battery technology development.
Health and life sciences
Germany is at the forefront of healthcare innovation. In this sophisticated and demanding market, the opportunity for companies providing innovative products and services is substantial.
Germany offers one of Europe’s largest markets for healthcare and life sciences products. Health expenditure accounted for 11.9% of GDP in 2019 (German Federal Statistics Office, 2020). High market demand and Germany’s strategic location make it a preferred choice for many international healthcare and life sciences companies preparing to expand.
Food and drink
There are significant growth opportunities in spirits, including low and non-alcoholic spirits, confectionery, sweet and savoury snacks, vegan, organic, free from and international products produced in the UK.
The German food and drink industry is highly competitive, but until now has also been relatively conservative in its operating models. The introduction of new technology and digitalisation has helped to change this and resulted in the number of imports from the UK increasing.
Consumer goods
Germany is the largest consumer market in Europe, with a low unemployment rate and an affluent population. With an excellent logistics infrastructure both domestically and extending into neighbouring countries, Germany is well-located for distribution to Western, Central and Eastern Europe.
E-commerce is growing fast in Germany, especially among consumers aged 50 plus; a major group with strong purchasing power. Demand is also increasing in mobile commerce, social media shopping and innovative omnichannel sales solutions.
Renewable energy
Germany is the EU’s largest market contributing 21% to GDP. The new government will increase the target for renewables from 65% to 80% by 2030 with impressive growth trajectories for offshore wind, hydrogen and solar. This is fertile ground for UK exporters.
Offshore wind will increase from 20GW to 30GW by 2030, 40GW in 2035, and 70GW in 2045. Upcoming opportunities include marine geophysical, geotechnical and environmental survey services, design planning and engineering services, CTVs, SOVs, logistic and transport services. There will also be opportunities in remote and autonomous technological solutions enabling condition monitoring and maintenance and blade recycling.
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Taxes, duty and legal considerations when exporting to Germany
Find out about the numerous things you need to consider before you start exporting to Germany.
There are a lot of things to consider before you start exporting to Germany. It's essential to find out about local rules and regulations on tax and duty in your intended market.
VAT
The standard rate of VAT in Germany is 19%. Convenience goods and day-to-day services are charged at 7%. Some services including banking, healthcare and non-profit work are VAT exempt.
Packaging and labelling
Packaging has a strong influence on German consumers and informs how they choose products. It is important to check that your packaging is to German tastes. Please also see the German Packaging Act for guidance.
EU standards apply to packaging. Check how to export goods.
Labelling should be translated into German. Certain products, such as food and textiles, have specific labelling requirements.
Payment terms
Standard payment terms for business-to-business transactions are 60 days and 30 days for public authorities. You can claim late payment interest when terms are not met.
Services regulations
If you’re a UK business offering services in Germany, you need to follow regulations about:
- getting an authorisation or a licence to provide a service
- complying with local business regulations
- EEA nationality requirements which could prevent you from providing services in some sectors
Information on rules for selling services and business travel to Germany.
Trade barriers
Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. You should check for any issues that may impact your business when exporting.
Check for any reported barriers to trading with Germany.
Report any trade barriers that are affecting your business.
Routes to market
In a stable and secure market, there's a wide range of routes to market.
Options which may work well for you are:
- agents and distributors - using local agents or distributors is an effective way to develop a presence in Germany due to the size of the market. German is the language of business and fluency is a major advantage for your company when using local partners.
- direct sales - due to the relative closeness of the market, direct sales are possible. However, the need for German language skills should be considered. Ensuring full coverage of the whole market could be a challenge.
- e-commerce - selling online or through e-marketplaces may be a good option for your company. It’s relatively cheap and easy to deliver products into Germany. The Department for Business and Trade (DBT) can suggest online marketplaces to help you get started. DBT’s E-Exporting Programme can also help. The British Chamber of Commerce in Germany is a useful source of further information on routes to market in Germany. You can find more useful information on the Germany Trade and Invest and German-British Chamber of Industry & Commerce websites.
Business culture
German firms are often family-owned and take a longer-term view. They value personal relationships highly.
Often businesses will not necessarily go for best price, but for long-term shared vision or relationship.
Business people will be well prepared for meetings, and will have carefully researched your products and services.
Intellectual property
Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.
The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for British businesses can be found through a network of IP attachés, based in key UK export markets.
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/content/taxes-duty-and-legal-considerations-when-exporting-germany
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Support available for exporting to Germany
There are a range of support options available to help you export to Germany.
Developing exports to Germany could be a part of growing your business. But breaking into the market can be challenging. The right support and advice can significantly improve your prospects.
Invest NI offers a range of advice, plus additional support services for businesses trading with Germany.
- The selling outside Northern Ireland schemes includes support with market research and market visits.
- Invest NI sector specialists can help you assess the opportunities for your business and advise on the best way forward.
- Invest NI can advise on how to use technology to support your exports.
- Invest NI can advise on financing your export business and may be able to provide financial support directly to businesses.
As well as Invest NI, there are other sources of support to assist with trading with Germany.
- The Northern Ireland Chamber of Commerce (NICC) provides trade support services and networking opportunities.
- Department for Business and Trade (DBT) in-market support - eligible UK businesses can access trade expertise and knowledge on exporting to specific countries from the DBT global network of international market hubs.
- UK Tradeshow Programme - UK businesses exporting, or thinking about exporting, can apply for support to exhibit at, or attend, approved overseas trade shows and conferences; potentially receive grants to offset some costs.
- A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly.
- Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.
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