5 Mistakes Indian Exporters Make on Their First EU Shipment

Every year, hundreds of Indian companies attempt their first EU export shipment and encounter avoidable problems. These five account for approximately 80% of first-shipment difficulties.

Mistake 1: Wrong Incoterm. Most common failure: using FOB when the buyer expects CIF. Under FOB, the Indian seller' responsibility ends when goods are on the vessel. If the EU buyer has not arranged freight and insurance, goods arrive at EU port with neither. Fix: agree Incoterm explicitly in every contract and confirm the buyer understands their obligations.

Mistake 2: Certificate of Origin from the wrong issuing body. EU buyers requesting GSP preference need Form A or REX self-certification — not a general chamber COO. Fix: check which COO type your EU buyer needs and obtain it from the correct authorised body (EEPC for engineering, PHARMEXCIL for pharma, APEDA for agro-food).

Mistake 3: No CE marking for products that require it. Machinery, electrical equipment, medical devices, and toys all require CE marking. Goods without CE marking are seized at EU border. Fix: check EU TARIC and the EU Blue Guide for your product before first shipment.

Mistake 4: EU VAT not addressed. Under DDP Incoterm, the Indian seller pays EU VAT. Without EU VAT registration, DDP shipments become impossible. Fix: clarify VAT responsibility in your contract; if using DDP, arrange EU VAT registration via fiscal representative.

Mistake 5: Open account with a new EU buyer. First-time EU buyers are unknown credit risks. Fix: request D/P (Documents against Payment) or 30% advance for first 2-3 shipments with any new EU buyer. Get ECGC Standard Policy in place before shipment.