Germany - IOR (2024)

Germany is valued around the world for its precision engineering, especially in the auto industry. At the same time, for many cultures, working in Germany can be challenging because of the direct communication style and high need for detailed information. Understanding German business protocol is the first step toward success in Germany.

German Worldview

Individual Orientation
Self-reliance; responsible for conduct of own life; independence

Balanced Competition
Brings out best in individual; challenges to produce best possible outcome, yet a strong sense of collaboration persists

Task Orientation
Scheduling, punctuality emphasized; time is a commodity not to be wasted

Equality
Democratic ideal; large middle class; long tradition of “Mitbestimmung” (employee co-determination), but respect for organizational hierarchy

Need for Certainty
Stability desired, less tolerance for risk. Managerial guidance appreciated and expected. Comfort with structure.

Universalism
Strict application of formal rules without much attention to context

Exact Time
Focus on accomplishing tasks “one at a time” and sequentially. Strong analytical orientation.

Cultural Assumptions

  • Desire for stability and caution toward change
  • Value of academic accomplishments and formal knowledge
  • Respect for authority and formality
  • Punctuality (reflects reliability and discipline)
  • Strong distinction between public space (formal at work) and private space (informal with family and friends)
  • Healthy balance between work and leisure time
  • Thoroughness in decision making (analytical, theoretical, deductive)
  • Strong sense of order
  • Detail orientation; tendency toward perfectionism
  • Emphasis on procedures
  • Honesty (may be perceived as overly critical and blunt)
  • Social responsibility

Values in Tension

  • Legacy of former communist East (GDR) and capitalist West Germany (FRG)
  • Germany (FRG)
  • Formality among older generation (use of “Sie”) vs. informality of the younger generation (use of “Du”)
  • Strong sense of order and discipline vs. crowding and pushing when standing in line
  • Lack of mobility vs. open employment market across the European Union (EU)
  • Sophisticated language indicative of social status vs. increasingly pervasive use of “D-English” (use of Anglicisms)
  • Traditional Christian culture vs. increase of religious diversity entering mainstream society, particularly Islam

German Communication Style

Low Context
Little attention is given to non-verbal cues & body language.

Restrained
Emotions are discredited as unprofessional; in a business context, trust and credibility are developed through suppression of emotions; tendency to be more emotionally expressive with family and friends, particularly in southern Germany.

Formal/Reserved
Comfort in knowing the rules; protocol important; sensitivity to position and age.

Guidelines for Communicating with the Germans

  • Germans tend to make a strict distinction between work and social life; therefore expect little “small talk” in a business context.
  • Greetings are formal and tend to include academic titles (“Guten Morgen, Frau Doktor Faust”).
  • Few hallway conversations; once you have greeted a person in the morning, there is no need to say “hello” when passing in the hallway.
  • Germans tend to say their last name when answering the phone; e.g., “Miller!”
  • There is a strong preference for a direct communication style. People may say, “you are wrong”.
  • In a business context, maintaining good relationships is second to getting the facts straight.
  • Business interactions tend to be unemotional and fact-driven. However, in conflict situations, Germans often defend their position strongly and loudly (independent of job level).
  • Germans tend to think and argue deductively, using theoretical knowledge to build an argument. “It has worked in the past” will not buy you much credibility.
  • Germans are very detail-oriented and tend to ask a lot of subject-related questions.
  • Based on their detail-orientation, they tend to talk at great length.
  • Based on their fact-orientation, they may appear confrontational and overly critical.
  • Criticism is viewed as a sign of forthrightness and honesty.
  • Praise is rarely given, and when it is given, it is understated, e.g. “gut” (good) rather than “fantastic.”

Non-Verbal Dynamics

  • Gestures
  • Touching
  • Space

A polite nod accompanied by a firm handshake is a common greeting, both in a business as well as social context; eye contact is made and held during a face-to-face conversation.

Hugs and embraces are common in a social context; the occasional pat on the back (from the older superior to the younger subordinate) may be seen in a work environment. In general, not a high touch culture.

In public, space is less of a physical concept: people bump into each other in the street and push others when queuing; it is more a concept of the mind. People tend not to smile in public with people they don’t know.

Business Practices

PROBLEM SOLVINGDirect; individualized; principled; fact-oriented; no face-saving concerns or need for harmony.
MOTIVATING PEOPLEMore responsibility; moving up in the company; time off (as monetary rewards are taxed at a very high rate)
APPRAISING PERFORMANCEPerformance and target-based; subject expertise important; in public/government institutions, length of service is one aspect of performance appraisal.
PERFORMANCE EXPECTATIONSFocus on individual; very task-oriented; “Hoechstleistung” (to give your best) is expected and nothing less; depending on the position and the nature of the organization, working overtime might be expected.
NEGOTIATING, PERSUADINGNo decisions are made until all parties involved are heard; negotiations are fact and subject matter based.
DECISION MAKING PROCESSConsensus-finding; thorough decision-making phase is followed by swift implementation phase.
PARTICIPATION IN MEETINGSMeetings are only scheduled when necessary; punctuality important; agenda is followed; lengthy discussions of agenda items possible (expression of need for thoroughness).
SUPERIOR / SUBORDINATE
RELATIONSHIPS
Respect for authority; yet open and even confrontational discussions between subordinate and superior are accepted if they are fact-based and related to the subject-expertise of the subordinate.
HIRINGJobs are changed infrequently (long-term thinking); labor laws support job stability and make it difficult to dismiss people. This, in turn, may make employers (particularly of smaller companies) very cautious and selective when hiring people.
CUSTOMER RELATIONSDevelopment of long-term relationships; trust is created based on high-quality and reliability of services and products; quality may override price considerations.
Germany - IOR (2024)

FAQs

Germany - IOR? ›

Furthermore, the IOR pays all import fees, duties, and taxes. Taxes, fees, and customs you'll have to pay on a specific product, like customs, VAT, and excise tax. Staying up to date with laws and regulations is key for IORs to make sure they're complying.

What is import of record in Germany? ›

What is an Importer of Record? The party responsible for ensuring that imported goods comply with all customs and legal requirements of the country of import.

What is the import duty rate in Germany? ›

Germany is party to the European Union's Common Customs Tariff, therefore preferential rates apply to imports from countries which the EU has signed agreements with. Duties range from 0-17%, with the general tariff averaging 4.2%.

What is the import VAT rate in Germany? ›

The customs value calculation:

The tax rate for import VAT in Germany is 19% or 7% (reduced).

Do I need a certificate of origin to ship to Germany? ›

If you're shipping internationally, you may need to get a certificate of origin (COO) for the goods you're sending. A COO is often required when the country of origin needs to be known for economic, political or environmental reasons, like if there are import quotas, a boycott or anti-dumping measures in place.

What is an Importer of record in the EU? ›

Importer of Records (IOR)

For many commercial and/or logistical reasons, companies based in third countries may need to import into the EU. They do so on their own behalf, and are fully responsible for the administrative, fiscal and customs consequences.

What are 3 major imports of Germany? ›

Germany Imports By CategoryValueYear
Machinery, nuclear reactors, boilers$176.74B2023
Vehicles other than railway, tramway$159.23B2023
Mineral fuels, oils, distillation products$133.26B2023
Pharmaceutical products$74.72B2023
93 more rows

How to check import duty in Germany? ›

Germany Import Tax & Custom Fees

Germany calculates using the CIF method, which means the import duty and taxes are calculated based on the value of the imported goods as well as shipping costs. Click here or use our calculator to see fees.

What is the customs limit for Germany? ›

The duty-free limit per each traveller is 300 euros as they are entering by land, not by sea or air.

Do I have to pay import tax from Germany to the USA? ›

Currently, the United States has imposed a 100 percent rate of duty on certain products of Austria, Belgium, Denmark, Finland, France, The Federal Republic of Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the Ukraine.

Is VAT in Germany 19%? ›

In Germany the amount paid for merchandise includes 19 % value added tax (VAT). The VAT can be refunded if the merchandise is purchased and exported by a customer whose residence is outside the European Union.

What is the tariff on German goods? ›

Tariff and Trade Barriers

Tariffs imposed by Germany in 2021 are below. The maximum rate of tariff in percentage on any product is 275.48. The simple average tariff across all products is 2.15. The trade weighted average tariff is 1.38.

What is exempt from VAT in Germany? ›

The following are exempt from German VAT: export deliveries, the intra-community supply of goods, services provided by professional groups, financial services, cultural services, voluntary services. Businesses are required to register for VAT in Germany when the annual turnover exceeds a certain value.

How to ship to Germany from the USA? ›

UPS. With a worldwide presence, UPS is a great option for shipping to Germany. They can pick up packages in the US and deliver them to addresses in Germany in as little as three days. UPS can also be a more expensive carrier if you're sending heavier items that weigh more than 10 pounds.

Can I order something from Amazon and have it shipped to Germany? ›

We ship products internationally with AmazonGlobal. Available product lines, shipping rates, and fees may vary depending on the delivery address for your order.

What is prohibited to ship to Germany? ›

Coins; banknotes; currency notes, including paper money; securities of any kind payable to bearer; traveler's checks; platinum, gold, and silver; precious stones; jewelry; watches; and other valuable articles are prohibited in Priority Mail Express International shipments to Germany. See Observation 1 above.

What is Importer of record for? ›

By definition, an importer of record (IOR) refers to an importer (an entity or an individual) who is responsible for ensuring that legal goods are imported following the laws and regulations of the importing country.

What is the employer of record in Germany? ›

An EOR is a third-party service that operates as an employer on a company's behalf—meaning you don't need to set up your own entity. As well as allowing you to hire full-time German employees, EORs handle all the legal requirements for complying with German laws for payroll, contracts, and benefits.

What is the import record number? ›

What is an Importer of Record Number? An IOR number is a unique number given to the Importer of Record by the destination country's government.

Can DHL act as Importer of record? ›

If the entry is made with DHL as the Importer of Record, then DHL's Customs Bond will satisfy the requirements and there is no need for the customer to post their own bond. However, if the customer is the Importer of Record, then the IOR is required to have a Customs Bond.

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