Malaysian Electronics and Rubber into the EU: the Supplier Setup

Electronics: buffer stock

EU manufacturers plan in weeks, and shipping from Asia also takes weeks. The BV (besloten vennootschap, the Dutch private limited company) keeps a buffer stock in Europe. Customers can call off goods within days, and you can adjust quickly to engineering changes. The BV invoices within the EU at 0% VAT with documented proof. With Article 23, you declare and deduct the import VAT on high-value shipments in the same return. See the ASEAN cashflow article for the numbers.

Rubber products and compliance

Gloves and technical rubber products must meet EU product law. Depending on the product, the rules for medical devices or for personal protective equipment (PPE) apply. For natural rubber, you also need an EUDR due diligence statement at import. The BV keeps both files in one administration, in your own name.

Selling products in the EU? See which EU registrations and representatives your product needs in the Europe Ready Check.

Quality checks in the Netherlands

EU buyers of components check the quality of incoming goods. If you inspect the BV's stock in the Netherlands, you find problems before the goods go to the customer's production line. It costs less to fix a problem at that point than to settle a claim. See the import compliance article for how this works.

Is your group setting up a Dutch entity? See setting up a Dutch subsidiary for what you need, how long it takes and what the parent company must sign.

The entity

For the setup from Malaysia, see setting up the company from Malaysia.