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Exporting to the EU — import VAT, CE marking, EUDR and CBAM

Last reviewed 2026-10 · 4 sections

The EU is a single customs territory with a common external tariff, but it is administered by 27 national authorities. Clearance is only part of the story: the EU's product and sustainability rules are increasingly what determines whether an Indian shipment is viable at all.

One customs territory, many authorities

  • The Common Customs Tariff applies at the point of entry, and once cleared, goods are in free circulation across the union.
  • The importer of record is usually EU-established and needs an EORI number.
  • Valuation, origin and product rules are EU-wide, but practical interpretation and documentation can differ by member state.

Import VAT — the line that decides your price

Import VAT is charged by the member state of entry, and the rates differ between member states. A VAT-registered importer normally recovers it; a small overseas exporter quoting DDP typically cannot, and ends up absorbing it.

This is the most common costing error on EU quotes: the duty is often the smaller number. If you are quoting DDP, model import VAT explicitly — and confirm the rate and recovery position for the specific member state of entry, not 'the EU'.

Regulation that now actually bites Indian exporters

  • CE marking — mandatory for a defined set of product categories (machinery, toys, electrical equipment, medical devices and others). It is a conformity obligation on the manufacturer, not a customs form.
  • REACH — chemical substances and articles containing them.
  • EUDR (deforestation regulation) — covers cattle, cocoa, coffee, oil palm, rubber, soya and timber and many derived products. For exporters of rubber goods, leather, coffee and furniture this is a genuine compliance project, with due-diligence and geolocation expectations on the supply chain.
  • CBAM (carbon border adjustment) — covers iron and steel, aluminium, cement, fertiliser, hydrogen and electricity, with reporting and payment obligations phasing in. Indian steel and aluminium exporters are directly in scope.

EUDR and CBAM are both phasing in, and the timetable and scope have been adjusted more than once. Check the current official dates and definitions for your product before you contract — do not rely on a summary, including this one.

Food: residue limits are the recurring rejection

For agricultural and food products, the most frequent cause of rejection is pesticide residue against EU maximum residue levels (MRLs), which are set per active substance and per commodity and are often far below the levels used in the country of origin. Alerts are published in RASFF, the EU's food and feed safety alert system — it is a free public window into exactly what is being stopped at the border, by commodity and origin.

Use the tools

Sources & further reading

EU Access2Markets EUR-Lex (EU law) EU RASFF — food safety alerts

These guides summarise public material from the bodies named above. They are general information, not advice on a specific shipment, and they are not a substitute for a ruling from your customs authority or a qualified customs broker / consultant.

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