Key Takeaways
- The chosen Incoterms® rule determines who bears transport, insurance, customs clearance and risk – one of the most important decisions when importing.
- Importing into the EU requires an EORI number; duties and import VAT depend on the correct tariff classification.
- Many electronic components are duty-free, but import VAT applies: 19 % in Germany, 20 % in Austria and 8.1 % VAT in Switzerland.
A large share of global electronics manufacturing takes place in Asia. For companies in Germany, Austria and Switzerland this means that circuit boards, assemblies and components often arrive by air, sea or rail freight. Besides price and quality, delivery terms, customs clearance and transit time therefore decide the success of a procurement project. In the fifth part of our series we explain the key basics of importing electronic components.
Note: this article provides a general overview and does not replace customs, tax or legal advice. The current regulations are authoritative.
Incoterms® 2020: who bears cost and risk?
The Incoterms® rules of the International Chamber of Commerce (ICC) are standardised delivery terms. They define at which point cost and risk pass from seller to buyer and who handles export and import formalities. Incoterms® 2020 comprise eleven rules. For electronics procurement, these are the most relevant:
| Rule | Seller handles | Buyer handles |
|---|---|---|
| EXW – Ex Works | Making goods available at its own premises | Loading, export clearance, transport, import, all risk |
| FCA – Free Carrier | Export clearance and handover to the buyer’s carrier | Main carriage, insurance, import clearance |
| FOB – Free On Board | Export clearance, goods on board the vessel at the port of shipment | Sea freight from on board, insurance, import |
| CIF – Cost, Insurance and Freight | Sea freight and minimum insurance to the port of destination | Risk from loading at the port of shipment, import |
| DAP – Delivered At Place | Transport to the agreed place | Unloading, import clearance, duties and import VAT |
| DDP – Delivered Duty Paid | Transport, import clearance, duties and import VAT | Unloading |
Practical tips for choosing delivery terms
- FOB and CIF are intended for sea and inland waterway transport only. For containerised and air freight, the ICC recommends FCA, CPT or CIP, because the transfer of risk matches the actual handover.
- EXW looks cheap but is demanding: the buyer has to organise export clearance in the country of origin.
- DDP is convenient but not always ideal: who owes the import VAT affects input tax deduction. Clarify this with your tax adviser in advance.
- Name the place precisely: an Incoterms rule is only unambiguous with a precise location, e.g. “FCA Shenzhen, seller’s warehouse”.
Customs clearance: what you need for importing
EORI number
Companies importing goods into the EU need an EORI number (Economic Operators Registration and Identification). In Germany it is applied for at German Customs, in Austria at Customs Austria. Switzerland is not part of the EU customs union and has its own procedure.
Tariff classification
Every product is assigned a tariff code for customs clearance. The first six digits correspond to the internationally harmonised system (HS); the EU extends them in the Combined Nomenclature and in TARIC. The tariff code determines the duty rate and any restrictions. Incorrect classification can lead to back payments – if in doubt, you can apply to customs for a Binding Tariff Information (BTI) decision.
Duties on electronic components
Many electronic components, such as integrated circuits, are duty-free in the EU under the WTO Information Technology Agreement (ITA). Other goods, for example certain cables, connectors or complete devices, may be subject to duties. In addition, anti-dumping or countervailing duties may apply to certain product groups from certain countries. The assessment is always made per tariff code and country of origin.
Import VAT
Import VAT is charged on importation regardless of customs duty. The taxable amount is essentially the customs value (including freight and insurance to the EU border) plus duty and further transport costs to the first destination:
- Germany: 19 %
- Austria: 20 %
- Switzerland: 8.1 % VAT on importation
Businesses entitled to deduct input tax can usually reclaim import VAT – provided they are the debtor themselves and the documents are correct.
Export control
Some high-performance components, such as certain FPGAs, RF parts or encryption technology, may be subject to export control rules as dual-use items – both in the country of origin and under the EU Dual-Use Regulation (EU) 2021/821. US technology may additionally be subject to US re-export rules. Have such parts checked before ordering.
Transport modes and transit times compared
| Transport mode | Typical transit time | Suitable for |
|---|---|---|
| Courier / express | a few working days | Prototypes, samples, urgent demand |
| Air freight | approx. 1 week door to door | High-value, compact goods, short-notice series |
| Rail freight | approx. 2–4 weeks | Medium volumes under time pressure |
| Sea freight | approx. 4–6 weeks plus pre- and on-carriage | Large volumes, plannable series |
These figures are guidelines and vary with route, season and capacity. Also plan for holidays in the country of origin: around Chinese New Year in January or February, production at many manufacturers pauses for several weeks.
Packaging and transport protection
Electronic components need special protection. Make sure ESD-safe packaging is used for electrostatically sensitive parts and dry packing with desiccant and humidity indicator for moisture-sensitive components according to their MSL rating. Assembled boards should be packed so that they are not damaged by vibration and shocks.
Checklist for importing electronic components
- Agree an Incoterms rule with a precisely named place
- Have your EORI number ready
- Clarify tariff code and country of origin per item
- Check commercial invoice, packing list and transport documents for completeness
- Clarify export control for critical parts
- Choose the transport mode to match deadline and volume
- Agree ESD- and MSL-compliant packaging
- Include holidays in the country of origin in your schedule
International sourcing with one point of contact in the DACH region
With our global sourcing service, we handle communication with manufacturers in Asia, quality inspection and coordination with our logistics partners. We agree the appropriate delivery terms with you in advance and state concrete lead times in our quote – for circuit boards, assembled boards and electronic components. Which substance compliance documents belong with the delivery is covered in part 4 of the series on RoHS, REACH and SCIP.
Frequently Asked Questions About Importing Electronics
Which Incoterms are suitable for imports from Asia?
FCA, FOB, CIF, DAP and DDP are commonly used. For containerised and air freight, the ICC recommends FCA, CPT or CIP rather than FOB and CIF, which are intended for sea transport only. The best choice depends on who should organise transport and customs clearance.
Are electronic components subject to customs duty?
Many electronic components such as integrated circuits are duty-free in the EU under the Information Technology Agreement. Other goods such as certain cables or devices may be subject to duties. The tariff code is decisive.
How high is import VAT?
It is 19 percent in Germany and 20 percent in Austria. Switzerland charges 8.1 percent VAT on importation. The taxable amount is essentially the customs value including transport costs to the border plus any duty.
Do I need an EORI number?
Yes, companies importing goods into the EU need an EORI number. In Germany it is applied for at German Customs, in Austria at Customs Austria.
Planning a sourcing project in Asia? Contact us – we support you from supplier selection to delivery.
