India to Germany Import Duty 2026: EU MFN, GSP+ Removal, and CBAM
India to Germany imports pay EU Common External Tariff MFN. India lost EU GSP+ benefits effective 2024. Plus 19 percent German VAT. CBAM applies on steel and aluminum. Here is the full landed cost stack with worked examples for pharma APIs, textiles, machinery, and steel.
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Open calculatorIndia to Germany Import Duty 2026: EU MFN, GSP+ Removal, and CBAM
India to Germany is one of the fastest-growing trade lanes in 2026, driven by EU diversification away from China and Russia. India is now Germany's seventh-largest non-EU import source. Without an India-EU FTA in force, the duty stack is full EU MFN plus active EU trade remedies plus CBAM for covered goods plus 19 percent German VAT.
This guide covers the EU Common External Tariff treatment of Indian-origin goods, the GSP+ removal impact, the CBAM layer for steel and aluminum, and worked examples for the top import categories.
The duty stack
| Layer | Rate | Notes |
|---|---|---|
| EU Common External Tariff (MFN) | Per HTS, 0 to 38 percent | GSP+ removed for most India lines in 2024 |
| EU AD/CVD | Active orders on specific Indian commodities | TDI database |
| EU Steel Safeguard | TRQ system, in-quota 0, over-quota 25 percent | |
| CBAM (steel, aluminum, cement, fertilizer, hydrogen) | Per ETS reference price on embedded emissions | India CCTS credit applicable |
| German VAT (Mehrwertsteuer) | 19 percent standard | Postponed VAT accounting available |
| Customs handling | Nominal | Per German Zoll |
Worked example: Indian pharma API into Germany
200,000 EUR of HTS 2924.29 metformin API from a Hyderabad producer.
| Charge | Rate | Base | Amount (EUR) |
|---|---|---|---|
| EU MFN | 6.5 percent | 200,000 | 13,000 |
| AD/CVD | N/A on metformin from India | 0 | 0 |
| German VAT | 19 percent | 213,000 | 40,470 |
| Total | 53,470.00 |
Effective rate 26.7 percent. The VAT is recoverable for VAT-registered importers; effective duty cost is ~6.5 percent.
India is the largest non-Chinese API source globally. Germany has been the largest EU pharma destination for Indian API.
Worked example: Indian textile into Germany
100,000 EUR of HTS 5208.32 (cotton woven fabric) from a Tamil Nadu mill.
| Charge | Rate | Base | Amount (EUR) |
|---|---|---|---|
| EU MFN | 8 percent | 100,000 | 8,000 |
| AD/CVD | N/A on this line | 0 | 0 |
| German VAT | 19 percent | 108,000 | 20,520 |
| Total | 28,520.00 |
Effective rate 28.5 percent. Indian cotton fabric is competitive with Pakistani, Vietnamese, and Bangladeshi alternatives. Vietnam under EVFTA zeros the MFN; Bangladesh under EU EBA (Everything But Arms) also zeros it. India pays the full 8 percent MFN.
Worked example: Indian steel into Germany (CBAM applies)
500,000 EUR of HTS 7208.39 hot-rolled steel coil from JSW Steel India. 2,500 tonnes shipment, supplier-verified emissions 2.18 tCO2e per tonne, Indian CCTS at 2.10 EUR per tCO2e.
| Charge | Rate | Base | Amount (EUR) |
|---|---|---|---|
| EU MFN | 0 percent | 500,000 | 0 |
| EU Steel Safeguard | 25 percent over quota | 500,000 | 125,000 |
| AD/CVD (India steel pipe yes, hot-rolled coil no as of June 2026) | 0 | 0 | 0 |
| CBAM (verified 2.18 tCO2e per tonne, 88 EUR per tCO2e, less India credit) | computed | per tonne | 467,000 |
| German VAT | 19 percent | computed | computed |
| Total before VAT | 592,000.00 | ||
| German VAT 19 percent | 19 percent | 1,092,000 | 207,480 |
| Total | 799,480 |
Effective rate 160 percent of original invoice value. The combination of steel safeguard over quota plus CBAM is brutal on Indian steel into Germany.
Within-quota Indian steel pays:
- 0 percent EU MFN
- 0 percent safeguard
- CBAM ~93 EUR per tonne = ~232,500 EUR
- VAT on customs value plus CBAM
Even within quota the CBAM is the binding cost layer. CBAM has structurally shifted Indian steel competitiveness in the EU market.
Worked example: Indian machinery into Germany
500,000 EUR of HTS 8457.10 CNC machining center from an Indian machine tool builder.
| Charge | Rate | Base | Amount (EUR) |
|---|---|---|---|
| EU MFN | 0 percent | 500,000 | 0 |
| AD/CVD | N/A | 0 | 0 |
| German VAT | 19 percent | 500,000 | 95,000 |
| Total | 95,000.00 |
Effective rate 19 percent (recoverable VAT). Indian machine tools are competitive on landed cost with Korean (under EU-Korea FTA, also 0 MFN), Taiwanese, and German domestic supply.
The GSP+ removal impact
India was a GSP+ beneficiary (Generalized Scheme of Preferences with additional incentives for sustainable development and good governance) until December 2023. Graduation effective January 2024 based on per-capita GNI thresholds and the size of the Indian economy.
The removal increased duties on roughly 7,000 product lines from preferential rate (often 0 percent or reduced) to full MFN. Categories most affected: textiles (8 percent rate restored), leather products (4 to 7 percent), specific chemicals, processed food.
For mid-market Indian exporters to the EU, the post-GSP rate increase has been the single biggest policy cost since the 2020s. The pending India-EU FTA, if concluded, would restore preferential access plus additional benefits.
CBAM for Indian steel
India is the largest CBAM-affected exporter of steel to the EU (along with Turkey, Russia, China). The Indian default value (2.62 tCO2e per tonne) is higher than European (~1.5 tCO2e) reflecting older blast furnace technology. Supplier-verified values from modernized Indian producers (Tata Steel, JSW, SAIL, ArcelorMittal Nippon Steel India) are typically 2.0 to 2.4 tCO2e.
The Indian Carbon Credit Trading Scheme launched 2024 at low prices (~2 EUR per tCO2e). Credited against CBAM. Marginal cost reduction.
Documentation German Zoll wants
- Commercial invoice (EU 18 fields plus EORI, TARIC).
- Packing list.
- Bill of lading or airway bill.
- Indian Certificate of Origin for any preferential claim (mostly not applicable since GSP+ removed).
- CBAM certificate for steel, aluminum if applicable.
- For ADC-covered Indian commodities: producer non-circumvention declaration.
Run your India to Germany shipment now
The LandedFees calculator handles EU MFN, the EU steel safeguard quota position, the active EU AD/CVD orders, the CBAM stack with India CCTS credit, and the German VAT calculation.
Calculate an India to Germany shipment
Citations
- EU TARIC database: https://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp
- EU GSP+ graduation 2024: European Commission DG Trade
- EU Trade Defence Investigations: https://trade.ec.europa.eu/access-to-markets/en/content/eu-trade-defence-investigations
- EU CBAM regulation (EU) 2023/956
- India Carbon Credit Trading Scheme: Ministry of Power 2024
- German Zoll customs portal: https://www.zoll.de
Frequently asked questions
Does India have an FTA with the EU?
Not yet. India and EU are negotiating a comprehensive trade agreement (target 2026 to 2027 conclusion). Until that agreement enters into force, India to EU imports pay full EU MFN under the Common External Tariff.
Did India lose GSP benefits with the EU?
Effective January 2024, India was graduated out of EU GSP+ for most sectors based on per-capita GNI thresholds. Some narrower GSP coverage may still apply on specific lines but the broad preferences are gone.
What is German VAT on imports?
19 percent Mehrwertsteuer applied to customs value (CIF) plus duty. Postponed VAT accounting available to VAT-registered importers.
Is CBAM applicable on India to Germany shipments?
Yes for CBAM-scope goods (steel, aluminum, cement, fertilizer, hydrogen). Indian steel and aluminum imports pay CBAM certificates on embedded emissions. India has its own carbon credit system (CCTS 2024) which is partially credited against CBAM.
What about EU trade remedies on Indian product?
Active EU AD/CVD against Indian-origin: certain steel pipes and tubes, certain stainless steel, certain chemicals, certain pharmaceutical products. Check the EU Trade Defence Investigations database.
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