Exporting machinery, the rules outside the European Union

Machinery is one of the main types of products exported from Italy both within the European Union and outside those borders.

The export process involves adherence to certain rules and regulations, which in turn must be understood within a broader strategy that assesses the company's potential and achievable goals in the medium to long term.

Beyond the business model adopted, (direct sale, through distributor, joint venture, etc.), the goods will have to meet specific technical regulations, which will condition the actual possibility of penetrating the foreign market. 

The requirements needed to sell outside the EU

When we talk about the movement of goods across national borders, it is of particular importance to be sure that you have the right qualifications provided by the country to which you wish to import.

It turns out that it is necessary to make a specific application at the customs administration to obtain the EORI (essential to be able to sell abroad), which is the registration and identification number of economic operators, which can be obtained by submitting the application at the competent customs administration.

This number is recognized throughout the European Union and is functional for carrying out all those customs operations necessary for the export procedure. 

Then there are countries with which the EU has established agreements that provide for lower tariffs. In these cases, one can apply for EA (certifying authorized exporter status) or REX (registered exporter) status.

The choice of getting one or the other acronym, depends on the type of agreement concluded between The EU and the country in question. 

The EA requires that “statements of origin” can be filled in for the goods you wish to export, while registered exporter status (REX) implies that “statements of origin” can be entered.

Both markings demonstrate compliance with the standards stipulated in the agreements made between the EU and the country of destination. 

Customs declarations then, can be simplified according to the provisions of the Customs Code of the European Union (CCC). 

This is especially useful when exports are frequent and you can rely on people who are experienced in customs practices, such as a Temporary Export Manager.

Documents for exporting to a non-EU market 

It is critical to ascertain whether there are any restrictions on trade in the product in the destination nation.

As specified earlier, these tariffs may even be reduced to a minimum or be cancelled if there is a specific trade agreement with the EU.

Other requirements will be closely related to the export market.

In particular, certain compliance certifications may be required for machinery, especially with regard to safety.

For example, certain products may have to be packaged and labeled according to certain rules set by the destination nation. 

To determine the responsibilities of the international seller and buyer, such as customs clearance procedures, you can refer to the rules established by Incoterms®, or the globally recognized standard whose terms are incorporated into domestic and international contracts, providing a reliable reference point for importers, exporters, lawyers, carriers and insurers working in the world of international trade.”.

Net of these specifications, the following statements must be produced for customs:

• origin of goods
• country of destination
• commodity codes
• customs procedures codes
• value of goods
• export certificates and/or licenses

The export declaration must be submitted before the goods leave, so that the export customs office can make all necessary supervision.

This is a subject that can be complicated to deal with if one does not have the necessary skills and experience. In this, as in all other aspects related to the’ internationalization of business, Octagona can help you in a decisive way by helping you obtain the necessary documentaries to sell products, even machinery.

Exporting machinery to the United States: an example to know

As we have seen, each nation may have different export rules.

If we take the United States as a practical case: machinery is the first type of product exported from Italy to the United States (18.2% of the total). To make the sale in the United States of such products, there are two main avenues to choose from in order to initiate this procedure:

• Obtaining a specific label from the relevant NRTL (Nationally Recognized Testing Laboratory) institution;
• Export without such certification )subject to certain control tests confirming compliance with certain safety standards required in the U.S.).

In the United States there are multiple marks to indicate the safety of machinery, the most common being the UL mark.

The latter is issued, like the others, by NRTLs, which are places where recognized tests can be taken throughout the United States.

In the absence of a UL mark or other certification, the manufacturing company is obliged to ensure that its equipment still meets the requirements of the tests conducted in NRTL laboratories. 

Another possible way to sell machinery in the United States is to opt for The so-called “field evaluation.”.

In this case the machinery is directly controlled, but it is generally possible to follow this mode only when the last stage of making the machinery takes place on U.S. soil. 

If you wish to export machinery or any other type of goods outside the EU, please contact us. We will thoroughly answer all your questions, explaining what we can do to make your business strong and established in an international context.