Importing and Exporting

There are rules, paperwork and costs involved when importing and exporting goods. It is important to be aware of all, to avoid unnecessary fines and delays when delivering or receiving goods.

IMPORTS

Goods imported into the UK are subject to import duties and VAT. All goods arriving into the UK by post from beyond the European Union (EU) must be declared to HM Revenue & Customs. The sender must attach a completed declaration form CN22 or CN23. Goods worth more than £2,000 need a full Single Administrative Document (SAD) declaration.

When you receive goods from overseas, you become liable for any Customs charges (excise duty, Customs duty and/or VAT), which must be paid before you can take delivery. Transporting goods from one country to another inevitably involves a degree of risk. You can minimise this if you take certain steps to protect your interests.

If you’re importing directly rather than through a third-party company that handles the process for you, you should always agree with the overseas supplier at the outset the language in which you want to communicate. This should help to avoid any costly misunderstandings.

You should consider ways in which you can minimise the financial risks of importing. Costs can escalate once you include the price of insurance, packaging, transport and storage. You could also be affected by fluctuations in currency. You should also take advice on product liability. For example, you may be liable for any damages that might be caused by the items that you’re bringing into the country. Lastly, always make sure you inspect goods on receipt. If not, you might find that you have lost the chance to remedy any problems.

EXPORTS

Selling and distribution in overseas markets, there are a number of elements you need to consider in order to sell successfully overseas. How you organise your sales presence in export markets is one of the key decisions. Depending on your product, you may be able to sell directly. For example, you might be able to sell over the internet or by exhibiting at local trade shows.

Many businesses look for a partner who already understands the local market.

For example:
– You can sell to a distributor who then sells your products locally.
– You can use a sales agent who sells products on your behalf, or puts you into contact with potential customers on a commission basis.
– You can enter into a joint venture with a local business. This gives you a share of the management and profits of the joint venture, but is a more complicated and expensive option.

– If you want complete control over sales, you can set up your own local office. This is the most expensive option. When arranging a sales contract with an agent or distributor, you need to ensure that responsibility for delivery and payment is clearly defined. It’s also important to remember that intellectual property (IP) protection becomes more complicated if you sell goods overseas. Patents and trade marks are only recognised and protected in the country of origin, so you will need to secure IP protection in each country you intend to sell into.

Note: As soon as your goods enter another country they become subject to that country’s laws.

Tip: The UK Trade & Investment Accessing International Markets programme can provide support and help in planning your entry into new overseas markets. 

For more information: http://www.hmrc.gov.uk/index.htm