How to Export from Africa to Europe: A Step-by-Step Guide for African Businesses.

Exporting from Africa to Europe requires careful planning and compliance with various regulations, especially under trade agreements such as the Economic Partnership Agreements (EPAs). This guide explains the complete export process in a basic but illustrative way, including essential documents, estimated timeframes, costs, taxes, and tariffs. By using a practical example of a Ugandan coffee exporter, we outline each stage of the export journey, from market research to final distribution in Europe.

Exporting from Africa to Europe involves a series of well-defined steps, especially when taking advantage of trade agreements like the Economic Partnership Agreements (EPAs) between African nations and the European Union (EU). Below is a comprehensive guide that outlines the process, from required documentation to estimated timeframes and costs, using a practical export example (Information and costs can vary significantly).

1. Trade Agreements between Africa and Europe

The European Union has signed Economic Partnership Agreements (EPAs) with various African regions. These agreements allow African exports to benefit from reduced or zero tariffs, provided they meet specific rules of origin.

Key Documentation under EPAs:

EUR.1 Certificate: This certificate is crucial for proving that products exported from Africa are originating from a beneficiary country under the EPAs, allowing for tariff exemptions or reductions.
- Detailed information on the EUR.1 Certificate can be found on the European Commission’s official page.

2. Export Process from Africa to Europe

Here is a detailed step-by-step example of how an African business can export to Europe, including timeframes, costs, and required documents.

Example: Fictitious Company – Organic Coffee from Uganda S.A.

Product: Organic Arabica Coffee
Country of Origin: Uganda
Destination: Hamburg, Germany

Step 1: Market Research and Regulatory Compliance

Estimated cost: $500 – $1,000 (for basic market research and compliance analysis)
Estimated time: 7-14 days
The company needs to assess the European market to identify opportunities and ensure their product complies with EU regulations. For coffee, this includes meeting phytosanitary and labeling requirements.

Key Regulatory Requirements:

EU Phytosanitary Regulations: Information on plant health controls for importing agricultural products here.
Organic Certification Regulations: If the coffee is certified organic, it must comply with Regulation (EU) 2018/848. More details here.

Step 2: Obtaining the Certificate of Origin (EUR.1)

Estimated cost: $100 – $200
Estimated time: 2-3 days
The EUR.1 Certificate is essential for claiming preferential tariff rates under the EPA. It is issued by the Ugandan customs authorities and proves the coffee’s origin.

Step 3: Logistics Preparation and Shipping

Shipping cost (maritime): $1,500 – $2,000 (for a 20-foot container)
Estimated maritime transit time: 21-30 days (from Mombasa, Kenya, to Hamburg, Germany)
The coffee is shipped from Mombasa port, with an estimated transit time of 3-4 weeks. The shipment must comply with EU packaging and labeling standards.

Step 4: Cargo Insurance and Financing

Insurance cost: $100 – $500
Estimated time: 1-3 days
The company arranges insurance to protect the cargo during transit. Additionally, a letter of credit is used to ensure payment from the buyer once conditions are met.

Step 5: Phytosanitary Inspection

Estimated cost: $200 – $300
Estimated time: 5-7 days
Before export, Ugandan authorities issue a phytosanitary certificate, confirming that the coffee complies with EU health standards.

Step 6: Customs Clearance in Europe

Customs broker cost: $200 – $400
Estimated time for customs clearance: 3-7 days
Once the coffee reaches Hamburg, a customs broker submits the necessary documentation (EUR.1 Certificate, phytosanitary certificate, commercial invoice, etc.) to German customs authorities.

EU Taxes and Duties:

VAT (Value Added Tax): In Germany, the VAT on imports is 19%, calculated on the CIF (Cost, Insurance, and Freight) value, meaning the value of the goods plus shipping and insurance costs.
Tariffs: Without the EUR.1 Certificate, tariffs for products like coffee range from 5% to 9%. With the EPA and EUR.1, tariffs are 0%.

Step 7: Distribution in Europe

Storage and distribution cost: $1,000 – $2,000
Estimated time: 7-14 days
Once the goods are cleared, the coffee is delivered to a distributor in Germany for storage and distribution to retailers and coffee shops.

End-to-End Process Overview

Market research and regulatory compliance: 7-14 days
Origin certification (EUR.1): 2-3 days
Maritime shipping: 21-30 days
Phytosanitary inspection: 5-7 days
Customs clearance in Europe: 3-7 days
Distribution: 7-14 days

Total estimated time from start to finish: 45-65 days

Cost and Fees Overview

Market research and compliance: $500 – $1,000
Origin certification (EUR.1): $100 – $200
Maritime shipping: $1,500 – $2,000
Cargo insurance: $100 – $500
Phytosanitary certification: $200 – $300
Customs broker in Europe: $200 – $400
Storage and distribution: $1,000 – $2,000

Total estimated cost: $3,600 – $6,400

Additional European Taxes and Fees:

VAT in Germany: 19% of CIF value (the value of the goods plus shipping and insurance).
Tariffs: 0% with the EUR.1 Certificate. Without it, tariffs may range from 5-9% depending on the product.

Then…

Exporting from Africa to Europe typically takes between 45 and 65 days, from market research to the distribution of products in Europe. Using trade agreements like EPAs allows African businesses to benefit from reduced or eliminated tariffs, as long as the EUR.1 Certificate is presented. Compliance with EU phytosanitary and customs regulations, along with managing VAT and logistics costs, is crucial for success in the European market.

While costs vary based on the volume of goods and shipping routes, this example provides a clear guide for African businesses looking to enter the European market effectively.

Contact with ProdAfrica, team@prodafrica.com

How to Export from Africa to Europe: A Step-by-Step Guide for African Businesses 2

Team Prodafrica

team@prodafrica.com