Imports
Nowadays trade, and to some extent production, is closely linked to imports, i.e. the import of goods from another country, often not a Member State of the European Union. Most traded goods are produced outside our country and other EU countries, usually due to lower prices of labour and raw materials necessary for their production. Unfortunately, importation is also associated with the payment of a correspondingly high tax, whose value is regulated quite strictly by the Act of 11.03.2004 on tax on goods and services. Import is a rather time-consuming process, mainly due to the necessary customs clearance and the obligation to provide many documents required by it. In practice, import is equal to placing goods on the market.
Import of goods is a basic form of activity for most companies
Import is a term well known to most entrepreneurs, who import goods, raw materials or semi-finished and manufactured products from countries outside the European Union. Polish companies mainly reach for goods imported from China and the United States for several basic reasons.
China is an urbanized country focused on manufacturing, whose main advantage is a large population and financial resources that enable fast production process on modern production lines. China produces everything from mechanical components for industry to cosmetics and everyday products. Low labour costs mean that the price of producing a product is much lower than producing the same device in our own country - and this despite the rather heavy tax burden and costs associated with transport to the destination country.
It is quite different in the USA. Entrepreneurs often reach for goods from the United States despite higher production costs than in our country, but for a different reason than trying to increase the profitability of their own business as in the case of the People's Republic of China. As a rule, products and technological solutions unavailable in other countries can be found in the USA, and the great boom in emigration has resulted in many Poles now having their further or closer families in this country.
Customs clearance - essential procedures
Customs clearance is the official process for the release of imported products. The process involves a number of steps that are to be taken in order to market the goods. For many businesses, this involves the laborious process of providing further necessary documents.
In the case of importation, it is always necessary to have an invoice issued by a foreign contractor, which serves as a basic document enabling valuation. If an invoice has not been issued - a provisional or pro-forma invoice is sufficient, supplemented with details on the goods to be imported, e.g. their specification and intended use. Import to Poland also requires the provision of company documents.
Many traders forget about security, which means they do not adequately prepare documents in advance for customs officials to assess the risk. Goods imported from China should always be covered by a certificate issued by the manufacturer itself or an external company/laboratory. This document must always include the composition of the product and its possible impact on health and life. It is also advisable to inquire about the need for other documents before clearing customs. The import of goods from outside the EU and the customs procedure differ depending on the type of import, so it is advisable to determine its scope in advance and prepare accordingly.
Import costs and exemptions
Obviously, import also entails costs, which may be very high depending on the type of specific goods. All legal persons and organizational units without legal personality and natural persons are obliged to pay tax on import to Poland. They must pay customs duty in an appropriate amount, the amount depending, inter alia, on the type of imported goods, as well as value added tax - VAT. The tax base is the customs value (together with the duty payable and excise duty, if any).
Of course, importing goods from outside the EU does not always equal costs. In practice, many entrepreneurs can benefit from exemptions. For example, the National Bank of Poland does not have to pay import costs when importing gold from outside the EU, the costs will also not be obligatory in the case of transporting organs, blood and cells, as well as currency, banknotes and coins used as means of payment. Interestingly, collector banknotes and coins are already taxed based on their numismatic value. We will also not pay tax on the import of inheritance items and personal use or fixed assets and equipment that are part of a business activity. The lack of tax obligation also covers goods with a total value of less than EUR 22. However, there are many more exemptions and it is worth learning about them before the customs clearance procedure.
Other import-related costs
We already know what an import is, it is also worth learning about the additional pitfalls that await unaware and inexperienced entrepreneurs. One of the main costs associated with importing from the UK and other countries is the price of their transport. As a rule, the cost of importing goods from countries which are not members of the European Union is quite high, therefore it is the basic factor influencing the final price of the product. The high price of shipping services is influenced, among other things, by the very long distance. It involves huge financial outlays for the transport company, which is forced to include them directly in the price of the shipment. Many companies use parcel services, others order pallets, and still others use their own internally organised transport. Imports into Poland from Ukraine and the UK after Brexit, or from China and the USA, are quite difficult and require a lot of knowledge, so very often the best choice is to use an external company that will take on most of the work related to the customs procedure directly. However, this representation costs money and can therefore have a significant impact on the final price of the product.