Checklist of export packaging considerations
In this guide:
What is export packaging?
Explaining the three main types of layered packaging to use when preparing your export goods for transport.
Export packaging enables your goods arrive intact and undamaged with your overseas buyer. Export packaging is also often referred to as transport packaging.
The three layers of export packaging
Export packaging is actually one of three different layers of packaging that are likely to be needed when exporting your goods.
- Sales packaging is the immediate layer of packaging around your goods. This is the packaging that remains when the goods reach their end-user, eg the bottles in which beverages are contained, or the boxes many electronics items are sold in. Sales packaging often also serves a marketing purpose by containing prominent branding images and information.
- Outer packaging is a middle layer of packaging, usually containing multiple sales packages. It often also serves a retail or promotion purpose, eg a box containing sales units that doubles as a retail display fixture and can be placed directly on a shop shelf.
- Transport or export packaging is the outermost layer of packaging and is designed to protect your goods during transit. Examples of export packaging include wooden crates or boxes, metal drums and plastic shrink-wrapping.
These three layers of packaging work like a Russian doll - each type of packaging is complete on its own terms, but is contained within a further layer of packaging.
This guide is concerned primarily with export or transport packaging, but it makes sense to consider all your packaging choices together at the outset. This includes considering how to save packaging waste from the outer packaging and exporting packaging layers.
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Your export packaging options
The ways you can choose to ship your goods, from loose and unpacked to palletised and containerised.
You have a wide variety of options when choosing how to package goods for export, with materials such as wood, paper, metal, plastic, glass and textiles commonly used.
Types of export packaging
The main types of export packaging include:
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Loose or unpacked - a common option for large items such as heavy vehicles. Making sure they're stowed securely is more important than adding a layer of protective packaging.
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Boxes or crates - one of the most prevalent options. They are often stacked on pallets and shrink-wrapped for stability. Less durability is required if goods are also containerised.
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Drums, usually made of metal or plastic - commonly used for transporting liquids and powders or goods that need to be kept dry.
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Wrapping - often used with goods stacked on pallets, wrapping - such as shrink-wrap or foil - both adds to stability and protects goods.
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Pallets - allow smaller packing units such as boxes and cartons to be grouped together. They allow easy mechanical transporting (eg forklift trucks), which eases the process of loading, unloading and warehousing.
These options are not mutually exclusive, so you may want or need to use more than one.
Containers and break-bulk
For logistical efficiency, containers are used to transport most export consignments. Containers are standardised metal boxes, often measuring 6 metres long and 2.4 metres deep/wide. The goods inside might still need packaging, but the container offers added protection, and increased security from theft.
The term 'break-bulk' refers to goods carried as general cargo, rather than in containers. This increases the risk of damage during transit, so make sure adequate dunnage is used. Dunnage is protective material placed around the goods to prevent damage from movement, moisture or other causes.
You must also comply with general export procedures.
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Checklist of export packaging considerations
Protecting your goods from damage and securing them from theft are key considerations in export packaging.
A good place to start is by asking people with experience in packaging, such as business contacts, your packaging supplier or trade association, or a freight forwarder if you're using one.
Factors that will influence packaging decisions are explained in this checklist:
- Protection - Avoiding damage to your goods is the main purpose of export packaging. One of the reasons that containers and pallets have become so standard is that they combine efficiency with excellent cargo protection.
- Security - You need to take steps to prevent goods being stolen or tampered with. 'Containerisation' helps with this, and using container seals makes tampering even less likely. Shrink-wrapping and secure straps also act as deterrents. Export packaging should be kept as plain as possible - providing details of the contents, eg brand names, encourages theft.
- Mode of transport - This may influence your packaging. For example, bulk ocean shipments of liquids, grain and ores don't need any packaging. And goods transported by air generally need less protective packaging than those sent by ship.
- Cost - It's a false economy to try to cut costs by using sub-standard packaging. The standard options (eg cartons grouped on pallets and then loaded into containers) have become the standard because they're reliable. Unless your goods require special care, you're unlikely to gain much by opting for above-standard packaging. You can buy, lease, or hire most types of packaging (eg shrink-wrap, pallets or containers), so it makes sense to shop around. You can also commission custom-made packaging, and hire a packing firm per consignment to make sure your goods are packaged correctly, which may work out less expensive.
- Waste legislation - Many markets abroad have waste regulations that favour packaging which can be easily recycled or has a minimal impact on the environment when disposed of. In many export markets, there are stricter rules on packaging waste and collection, eg the 'green dot system' in Germany.
- Wood packaging requirements - International regulations and wood packaging standards exist to control the spread of forest pests and timber diseases. You may also need an import licence from your destination country to import packaging that is made of, or contains wood. You may find it cost-effective to consider alternative packaging.
- Dangerous goods - Regulations for moving dangerous goods are very specific on acceptable inner and outer packaging.
- Food and perishable goods - Read about trading and labelling organic food and food labelling: country of origin.
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Checklist for getting your export packaging right
Issues your business should consider before packaging your goods, from packaging waste rules to insurance implications.
Once you have decided what kind of packaging you need, use this page to check if there are any further issues you should consider including:
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Information and labelling - certain information has to be clearly marked on your export packages.
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Rules in your export markets - check that your consignments comply with local regulations. Certain markings may be required and in some countries certain packaging materials, eg straw filling, are prohibited.
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Load securing - even adapted packaging has a limit to the vibrations it can withstand before it collapses. Make sure your packaging can be secured in its container and/or vehicle.
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Restrictions on wood packaging - certain countries require wood packaging to be marked and accompanied by a wood packaging certificate. In many cases it will be sufficient to check that your wood packaging is ISPM 15 compliant.
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Packaging waste - you have a legal duty to minimise the weight and volume of the packaging you use. Heavy users of packaging also have to register with the Northern Ireland Environment Agency (NIEA) and become accredited as exporters. In many export markets, there are stricter rules on packaging waste and collection, such as the 'green dot system' in Germany.
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Hazardous goods - any exports of dangerous goods will have to be safely packaged and clearly marked and labelled. The rules vary slightly depending on which mode of transport you're using.
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Insurance - your transport insurance cover may be adversely affected if it can be shown that your goods were damaged due to poor packaging.
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Contracts - to avoid disputes in case goods are damaged in transit, consider including packaging specifications in your contracts with buyers.
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What to mark on your package for export
How to ensure safe transportation of your goods by using visible, durable and standardised handling instructions.
Required information can be marked directly on packages or you can use adhesive labels, which are often more legible. Ensure markings or labels are durable and water-resistant.
Identification marks
Every package in your consignment should be clearly identifiable. Ensure the following details are provided:
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the country of origin - if necessary, also on the goods themselves
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destination - the port or other place of destination is sufficient, rather than a full address - check for places with the same name elsewhere in the world and make it clear where goods are destined for
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seller's name and order number
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sequential number of each package and the total packages in the consignment, eg 'Package 7 of 20'
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the size of the case if there are multiple boxes or containers
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weight and volume
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special handling instructions
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hazardous goods
Make sure your markings are clearly visible. Packages may have goods stacked around them so include handling instructions or labels on multiple faces. Packages containing hazardous goods must be clearly marked.
Handling instructions
A set of internationally recognised symbols is used to indicate how cargo handlers should handle packages, for example:
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a picture of a wine glass indicates fragile goods
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sets of cross-hairs on two sides indicate centre of gravity
These symbols are contained in the standard ISO 780. Find examples of handling symbols on the Transport Information Service website. Note that certain markings have to be correctly positioned to be of use, for example the crosshairs used to indicate centre of gravity must be placed on sides at a right angle to each other.
Other packaging information
Labels should provide details of package weight and dimensions. It's usually necessary to mark your packages' country of origin. Check regulations in the destination country. Different export markets can require the country of origin to be marked in different ways.
Packages should appear as anonymous as possible - don't mark them with brand names or any indication that there might be valuable goods inside. This will only increase the likelihood of tampering or theft during transportation.
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Where to buy export packaging and labels
How your business can find reliable suppliers of export packaging and sources of knowledge and expertise in the sector.
There are many suppliers you can use to purchase your export packaging and labels from. As with all supplier-selection processes, the best guarantee of quality is a recommendation from a trusted source.
The best source of help will be from people with experience of the area. These include:
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Your trade association, which is likely to deal with many exporting businesses in your sector and have a good knowledge of the kinds of trade-related service providers your business will need
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Other exporters - talk to any of your contacts in your sector with experience of exporting, as they will have knowledge about how to find packaging suppliers.
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Freight forwarders, shipping agents and transport operators.
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Packaging industry trade associations, such as the Packaging Federation and IoP: The Packaging Society.
If you're using a freight forwarder to manage the shipping process, they often offer packaging services.
The cost of your packaging will depend on a range of factors, including size and durability - every exporter's requirements will differ. Prices will increase if you need more sophisticated packaging for your goods, such as temperature-controlled containers.
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Penalties for late or inaccurate Supplementary Declarations
In this guide:
- Introduction to Intrastat
- Why is Intrastat important?
- What is Intrastat and who has to make returns?
- How and when do I submit my Intrastat return?
- Supplementary Declarations
- What information is required in a Supplementary Declaration?
- Keeping records and other Intrastat requirements
- Penalties for late or inaccurate Supplementary Declarations
- Changes to Intrastat from 1 January 2022
Why is Intrastat important?
How returning complete, accurate and timely Intrastat data can benefit your business.
The information collected by the Intrastat system covering Northern Ireland’s trade with the EU is an important component for Balance of Payments BOP) and National Accounts (NA) data, which is regarded as an important economic indicator of the UK’s performance.
The Office for National Statistics (ONS) uses the monthly trade in goods figures collected by HMRC together with the trade in services survey to produce the BOP and NA figures.
The Bank of England uses monthly trade data as part of its key indicators for gauging the state of the UK and world economic environment to set interest rates each month.
Government departments use the statistics to help set overall trade policy and generate initiatives on new trade areas.
Beyond the UK, trade statistics data are used to set trade policy and inform decisions made by such institutions as the European Central Bank, EU institutions, the United Nations and the International Monetary Fund.
The commercial world uses statistics to assess markets both within the UK (for example, to assess import opportunities) and externally (for example, to establish new markets for its goods).
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What is Intrastat and who has to make returns?
Work out whether you're required to complete an Intrastat return.
What is Intrastat?
Intrastat is the name given to the system for collecting statistics on the trade in goods between Northern Ireland and EU member states.
Northern Ireland and EU trade statistics are compiled from information provided by those businesses required to provide Intrastat declarations, customs declarations and estimations made using information on the VAT Return.
Be aware that:
- movements moving between Great Britain (England, Scotland and Wales) and EU member states are excluded from Intrastat (information is collected from customs declarations)
- the supply of services is excluded from Intrastat
- you must not include the supply of services in boxes 8 and 9 of the VAT Return
- you must not include information on the supply of goods between Great Britain and the EU in boxes 8 and 9 of the VAT Return
- only movements which represent physical trade in goods are covered by Intrastat, although there are some movements that are excluded
- the close link with the VAT system is an essential feature in complying with Intrastat and also provides a means of checking the information supplied
Businesses required to submit Intrastat declarations
If you are a business registered for VAT in the UK and dispatch goods from Northern Ireland to EU member states or receive arrivals of goods in Northern Ireland from EU member states with a value exceeding a legally set threshold, then you must submit information about the movement. To do this you use a form known as an Intrastat Supplementary Declaration (SD), which you need to submit electronically.
The thresholds are reviewed annually, with any change normally announced towards the end of the preceding year. Changes will only apply from the beginning of a calendar year and you must make sure that you operate according to the threshold level currently set.
Businesses not registered for VAT and private individuals who move goods between Northern Ireland and the EU have no obligations under the Intrastat system.
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How and when do I submit my Intrastat return?
Guidance on completing the Intrastat return.
How you complete your intrastat return depends on whether your Arrivals (purchases or imports) or Dispatches (sales or exports) with other European Union (EU) member states are above or below the thresholds for the calendar year.
Below the intrastat thresholds
If your Arrivals or Dispatches are below the thresholds, all you need to do is fill in boxes 8 and 9 of your VAT return:
- in box 8 record the value of any goods dispatched to destinations in other EU member states
- in box 9 record the value of any goods arriving from other EU member states
The values should exclude any tax or duty but include any freight or insurance charges where they form part of the invoice or contract price of the goods.
Above the intrastat thresholds
If you exceed the thresholds, in addition to filling in boxes 8 and 9 of your VAT return, you must also submit a Supplementary Declaration (SD).
What is the intrastat deadline?
Intrastat declarations must be submitted on a monthly basis.
Complete and accurate declarations must be received by the 21st day of the month following the reference period to which they relate.
For example, declarations for the March period must be received by the 21st of April. The reference period is normally a calendar month. If you use non-standard VAT periods, the time limit operates from the end of the special period.
Declarations must be made for all goods covered by the reference period, even if no invoice has been received.
It’s important that you comply with this time limit. Failure to do so could make you liable to legal proceedings.
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Supplementary Declarations
An overview of Supplementary Declarations used in accounting for European Union trade.
The exemption threshold for:
- arrivals is currently £500,000
- dispatches is currently £250,000
The rules for submitting Supplementary Declarations (SDs)
The threshold applies on a calendar year basis, that is, January to December. Once you’ve exceeded the threshold you must continue to submit SDs until the end of the calendar year.
These provisions apply separately to arrivals and dispatches. If your business exceeds the threshold for arrivals of goods, but not for dispatches, you only have to complete SDs for arrivals. If your dispatches (and not your arrivals) exceed the threshold, you only have to include dispatches on your SDs. If both arrivals and dispatches exceed the threshold, SDs must be submitted for both.
Once you’ve established that you’ve exceeded the threshold for arrivals or dispatches you must contact the Intrastat Enquiries Team, you can email them at: intrastatenquiries@hmrc.gov.uk, stating the month in which you exceeded the threshold and whether it was for arrivals, dispatches, or both. HMRC will confirm the start date and advise you of any special arrangements.
At the end of each year your obligation can change. This will depend on whether or not your EU trade for the calendar year just ending has exceeded the threshold set for the following year. If it has exceeded this threshold you must supply SDs throughout the following calendar year.
It’s your responsibility to monitor your EU trade to determine when you have to submit Supplementary Declarations. HMRC will also be monitoring the value of your EU trade and will write to you from time to time to check that your records are correct.
In assessing the value of your trade you must not include any excise duty payable.
When calculating if you’ve exceeded the Intrastat threshold, remember that the value of goods involved in processing, moving between the UK and EU member states, and the value of goods supplied to or received from private individuals, is included in EU trade totals.
When a VAT registered business is sold to a new owner the obligation to submit an SD might change, (typically where a company changes ownership), unless the person running the business remains the same after the sale as before. This is because the obligation to provide information is oriented around the particular person who concluded a relevant contract for the delivery or dispatch of goods. The SD requirement cuts in where the value of such contracts in a given 12 month period exceeds the threshold for the time being in force. So, where businesses are sold and a new owner takes on the running of the business, they’ll only have an obligation to submit an SD if they’ve exceeded the threshold in their own right.
If you have no EU trade during a particular period the law does not require you to submit a ‘nil’ return. However, HMRC encourage you to submit ‘nil’ returns because this prevents unnecessary queries.
Delivery terms information
If your trade (either arrivals or dispatches) exceeds the delivery terms threshold you must provide additional delivery terms information on your SDs.
The delivery terms threshold for both arrivals and dispatches is currently £24 million.
If you exceed the threshold for arrivals (of goods), but not for dispatches, delivery terms must be provided for arrivals only.
If you exceed the threshold for the dispatch (of goods), but not for arrivals, delivery terms must be provided for dispatches only.
Unlike the exemption threshold, if you reach this second threshold during the calendar year, you do not have to start submitting delivery terms data until 1 January of the next calendar year and only then if your arrivals and, or dispatches remain above the new threshold set for the following year.
If you fail to submit SDs or they’re inaccurate
You could be liable to penalties if your SDs are persistently late, missing, inaccurate, incomplete or where only part of a month’s EU trade is declared. HMRC can provide help on the completion of the Intrastat forms if you’re experiencing difficulties.
The penalty regime is a criminal one and could result in proceedings in a magistrate’s court. This could lead to a maximum fine of £2,500 being imposed for each offence.
However, there could be the opportunity to ‘compound’ any proceedings which involves the offer of an administrative fine in lieu of any Court proceedings.
You must pay any administrative fines electronically by Bacs or CHAPs, using
Bank Account No: 12000903
Sort Code: 08 32 00
Use IP followed by your VAT number as the reference (for example, IP 123 4567 89). If this method poses any difficulty, email: intrastatenquiries@hmrc.gov.ukPayment of a compound penalty does not absolve you from your legal obligation to submit the SDs for the periods covered by the penalty.
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What information is required in a Supplementary Declaration?
An overview of the information you'll need to provide in a Supplementary Declaration.
Wherever possible, Intrastat requirements align with VAT requirements. For example, the value to be declared for Intrastat is normally the invoice or contract price (exclusive of VAT), as used for VAT purposes. This allows the integration of Intrastat records with normal business VAT records, thus minimising the overall burden.
However, although Excise Duty is included on the VAT Return values, it’s not included in the value declared on the SD. Intrastat requires that you declare the value of the goods only. Therefore, if the total value of your arrivals or dispatches trade, excluding Excise Duty, is below the Intrastat threshold, you’re not required to submit Intrastat supplementary declarations.
The person who is responsible for declaring a movement of goods
The legal entity responsible for declaring the goods movement in the UK is usually the one who concluded the contract (with the exception of the freight contract) giving rise to the movement of the goods in or out of Northern Ireland.
However, in cases when a business which concluded a contract giving rise to the movement of the goods is unable to provide the data required, because of the way the goods are traded, the business which actually transfers the goods across the frontier will be responsible for making the declaration.
In certain circumstances the business who physically receives the goods (rather than the business that concluded the contract) will be in a better position to provide the declarations.
An example of this is a delivery of excise goods such as fuel oils where the excise warehouse keeper might be in a better position to provide the declaration. Even though the business that concluded the contract is legally responsible, it’s acceptable for the warehouse keeper to provide the declaration provided both parties are aware and in agreement of who will provide the declaration.
In these circumstances both parties must inform HMRC of who will be providing the declaration by emailing: intrastatenquiries@hmrc.gov.uk.
If the legal entity which concluded the contract is not required to be registered for VAT in the UK (for example, the goods are within the fiscal warehousing regime), then responsibility rests with the entity which arranged for the physical dispatch of the goods, or takes physical possession of goods which have arrived in the UK (for example, a warehouse keeper).
Goods that are included
You must report goods which have moved between Northern Ireland and an EU member state by way of trade.
This includes goods:
- bought and sold
- transferred within the same legal entity
- sent for or returned after processing
- supplied as part of a contract for services
- to be installed or used in construction
- supplied free of charge
- on long term hire, loan or operational lease
- lost or destroyed, if goods dispatched from Northern Ireland are lost or destroyed in transit they must be recorded on the supplementary declarations (this does not apply to arrivals)
Goods that are excluded
There are certain circumstances where movements of goods are excluded from Intrastat and must not be included on your Intrastat declaration.
These mainly concern:
- movements not by way of trade (for example personal goods such as travel luggage, items involved in moving house or ballast)
- goods in transit
- certain purely temporary movements where the goods are to be returned to Northern Ireland or to an original EU member state within 2 years and there is to be no change of ownership
- monetary gold
- means of payment which are legal tender and securities, including means which are payments for services such as postage, taxes, user fees
- goods moving between Northern Ireland and the UK’s territorial enclaves (for example embassies, armed forces bases) in an EU member state or moving within Northern Ireland to an enclave of an EU member state
- goods used as carriers of customised information, including software
- software downloaded from the internet
- commercial samples and advertising material provided free of charge
- goods supplied using the Margin Schemes for second hand goods
- goods sent for or returned after repair
- means of transport travelling in the course of their work, including spacecraft launchers at the time of launching
- newspapers and periodicals supplied under direct subscription
- the supply of machine tools that remain in the UK and are used to manufacture goods that are dispatched from Northern Ireland to the EU
5.5 Reference period
Goods must be included on the SD in either:
- the calendar month during which they arrive in, or are dispatched from Northern Ireland
- the calendar month of the VAT tax point
- you can choose which method will best allow you to meet the accuracy and timeliness requirements of the Intrastat system, but you must use the same method each month
5.6 Exchange rates
You must declare the value of goods on your SD in sterling. The exchange rate used for VAT purposes is acceptable and can be the UK selling rate published in national newspapers, banks, the period rate published by HMRC in the exchange rates monthly guide or from the VAT helpline.
The exchange rate on the date of settling a supplier’s invoice, forward rates, or rates derived from forward rates are not acceptable as they do not represent an actual verifiable exchange rate and are purely speculative.
Further information on acceptable exchange rates is available in VAT Notice 700: the VAT Guide and VAT Notice 725: the single market.
Goods of unknown value
Due to the way certain goods are traded, a value sometimes cannot be established at the time you need to submit your Intrastat declaration. In these cases, you can email: uktradeinfo@hmrc.gov.uk and HMRC might be able to authorise you to use a ‘best estimate’ of value. However, you must not use such a procedure without prior written approval.
Once you know the true value you’ll need to amend the original SD, unless the amount involved is less than the thresholds for providing amendments.
Any delay caused by processing and reconciliation of invoices within your own organisation is not a valid reason for using a ‘best estimate’.
Classify your goods
Commodity codes are used to classify goods.
HMRC produces a comprehensive list of commodity codes on the Northern Ireland Online Tariff.
Help on classifying your goods can be found in Notice 600: classifying your Imports and Exports.
If, after studying the Northern Ireland Tariff and seeking help from other sources such as a Trade Association or a Chamber of Commerce, you remain unsure of the classification of goods, you can request additional support by sending a request by email.
Email: classification.enquiries@hmrc.gov.uk
To enable HMRC to deal with your enquiry, ensure that:
- only one item is shown per email
- the request includes the following information:
- what the product is
- what it’s made of, if made of more than one material please explain the breakdown
- what it’s used for
- how the product works or functions
- how it’s presented or packaged
Some additional information is required on certain products:
- footwear: include the type (for example shoe, boot or slipper), upper material detail, outer sole material detail, heel height and the purpose for men or women
- food: include precise composition details by percentage weight of all the ingredients to 100% and the method of manufacture or process undergone (for example fresh, frozen, dried, further prepared or preserved)
- chemicals: include the CAS Number, whether the product is a liquid, powder or solid and include the percentage ingredients
- textiles: include the material composition, how it is constructed (knitted or woven) and the name of fabric
- vehicles: include the age, engine type (petrol or diesel), engine size, whether the vehicle is new or used, whether the vehicle is over 30 years old, whether it’s in its original condition, is the vehicle going to be for everyday use
A classification officer will reply by email, giving you non-legally binding classification advice based on the information you’ve supplied.
Ancillary Cost Survey
The value declared on the SD is normally that used for VAT. This value will not be on a consistent basis as the delivery terms of contracts vary greatly, ranging from ex-works to fully delivered. Factors are programmed into the HMRC system to adjust individually declared values to the standard bases of value required by EU legislation for statistical purposes.
In order to produce and update these adjustment factors, HMRC need to seek information on freight, transport and insurance costs.
To help HMRC in this, you could occasionally be asked to provide details of costs incurred for a limited number of transactions, usually for no more than 6 lines of trade.
Response to the Ancillary Cost Survey is voluntary. However, your assistance in this area will enhance the integrity of the UK intra-EU trade statistics.
Once you’ve satisfactorily completed an Ancillary Costs Survey sample form, you’ll not be asked to take part again for at least 12 months.
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Keeping records and other Intrastat requirements
When you must complete Supplementary Declarations, how to submit and your legal responsibilities
If you’re legally required to submit SDs you must:
- keep a copy of every SD you make or which is made on your behalf
- keep copies of all papers and documents which have been used for the purpose of compiling SDs
- produce any of the above records to a HMRC visiting officer when required to do so
- permit the officer to make copies or extracts or remove records for a reasonable period
You must keep your records for 6 years. This is in line with VAT requirements, and applies equally to information stored by electronic means.
HMRC’s visiting officers have the right to enter the premises of such businesses, or the premises of anyone compiling SDs on their behalf, at any reasonable time in order to carry out checks.
Computer records
You can keep your records on a computer provided they can be readily converted into a satisfactory legible form and made available to HMRC on request. If you do keep your records on a computer, you must make sure that HMRC can have access to it and can check its operation and the information stored.
HMRC can ask for help from you or anyone else having charge of, or otherwise concerned with the operation of the computer or its software.
If a computer bureau is employed, you’re responsible for arranging for the bureau to make your records available when HMRC wish to see them. Normally this will be at your principal place of business.
However you decide to keep your records, you must be able to make them readily available to HMRC’s officers when they ask to see them.
The Intrastat visit
Periodic visits will be made to assure systems used to complete SDs and check the accuracy of your Intrastat declarations. The visit will be made to your premises, not to your agent. You’ll need to make sure that your agent sends you copies of declarations for your files.
With the agreement of the Intrastat officer, a visit can exceptionally be made to an agent’s premises where this is considered appropriate. These arrangements are entirely at the discretion of the officer and do not relieve the business of any of the responsibilities of the Intrastat system.
During the visit the officer will:
- want to talk with you or the person who is in charge of your intra-EU trade, to get a complete picture of your activities and to have your system of record keeping explained
- want to inspect your records of the SD information sent to HMRC, this will apply whether you’ve supplied the declarations yourself or have employed an agent to send the information on your behalf
- ask you to explain any differences between the total of the values shown on your SD and the EU-trade totals shown on your VAT Return
- need to be satisfied that declarations are complete and accurate
- want to know what steps you take to make sure that your declarations are correct, and that they’re submitted on time
- check the build-up of declarations, and ask you to produce the documentation to support selected items within declarations, such documentation might include orders, delivery notes, goods invoices, freight invoices or payment advices
- select from documents and check that they’ve been correctly included in declarations
- make cross-checks between the 2 sets of records, if your Intrastat and normal purchase or sales records are separate
- want to examine your computer systems and computer data in order to perform checks
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Penalties for late or inaccurate Supplementary Declarations
Penalties incurred for failing to return complete, accurate and timely Intrastat Supplementary Declarations.
You could be liable to penalties if your SDs are persistently late, missing, inaccurate, incomplete or where only part of a month’s EU trade is declared. HMRC can provide help on the completion of the Intrastat forms if you’re experiencing difficulties.
The penalty regime is a criminal one and could result in proceedings in a magistrate’s court. This could lead to a maximum fine of £2,500 being imposed for each offence.
However, there could be the opportunity to ‘compound’ any proceedings which involves the offer of an administrative fine in lieu of any Court proceedings.
You must pay any administrative fines electronically by Bacs or CHAPs, using:
Bank Account No: 12000903
Sort Code: 08 32 00
Use IP followed by your VAT number as the reference (for example, IP 123 4567 89). If this method poses any difficulty, email: intrastatenquiries@hmrc.gov.ukPayment of a compound penalty does not absolve you from your legal obligation to submit the SDs for the periods covered by the penalty.
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Changes to Intrastat from 1 January 2022
Intrastat threshold notification and new requirements for dispatches.
As of 1 January 2022, Intrastat now only applies for movements of goods between Northern Ireland and the European Union (EU). Movements between Great Britain (England, Scotland and Wales) and the EU are no longer covered by Intrastat.
The Intrastat exemption thresholds are:
- £500,000 for arrivals (NI imports from EU)
- £250,000 for dispatches (NI exports to EU)
The delivery terms threshold remain at £24,000,000.
New requirements for Dispatches
In June 2021, it was announced that two additional pieces of information would be required on your Intrastat Dispatches declaration:
- Partner VAT ID
- Country of Origin
Partner VAT ID
This is a combination of the country code and the VAT number of the partner operator (buyer / receiver of goods).
This will be the VAT number of the customer to whom the goods are dispatched. The format you need to provide, is the two-digit alpha country code of the EU member state where your customer belongs, followed by their VAT number. For example, FR12345678901, NL123456789B01, CY12345678X, EL123456789.
Note: The Partner VAT ID for Greece is always prefixed with the code ‘EL’, and not ‘GR’.
You should have the EU VAT number of your customer as part of your VAT records.
A list of EU country codes is provided in Section 6 of Notice 60. EU VAT registration numbers can be verified using the Europa website VIES VAT number validation or by contacting the VAT helpline.
Check the format of EU VAT numbers.
For triangular transactions, where the invoiced customer is in a different member state to that where the goods are dispatched, the VAT number of the person who receives the goods should be used. If you do not know this, then the VAT number of the invoiced customer should be used.
If you dispatch goods to private individuals or non-VAT registered businesses, you should use the code QV999999999999. However, this is the only time that you can use this code.
Country of Origin
This will be the two-digit alpha code for the country where the goods are deemed to originate from that you have now subsequently dispatched onwards from Northern Ireland.
Country of Origin (CoO) refers to the country where they were originally wholly manufactured or produced.
For goods produced in more than one country, the CoO will be the country where the last substantial economic transformation took place. This means the country where the goods last underwent processing which resulted in a change in the goods’ Harmonised System level 4 (HS4) commodity code. For example, if car components and parts (HS4 8708) started off in France but were assembled into a finished car (HS4 8703) in Germany then for the purposes of your declaration you would enter the code for Germany (DE).
Work which does not result in a change in the goods’ HS4 commodity code, such as splitting consignments or repackaging goods, will not be enough to affect the goods’ CoO.
The EU Commission provides further information regarding substantial transformation for different types of goods. If still undecided on the CoO of your goods you can contact the Customs Helpline.
Please note, CoO information is required purely for statistical purposes rather than part of your Customs requirements.
You will still need to provide CoO information if the goods originate in the UK. You must use code XI if the goods originated in Northern Ireland, and XU if the goods originated in Great Britain (England, Scotland and Wales).
Where the goods originate from outside of the UK, the appropriate country code for the country must be used. Details of EU country codes can be found in Notice 60. Details of country codes for the rest of the world can be found in Annex I of Commission Implementing Regulation (EU) 2020/1470.
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Researching customers and markets abroad
In this guide:
- Researching export markets
- Advantages and disadvantages of researching export markets
- Researching export markets online
- Researching customers and markets abroad
- Conducting in-market export research
- Research product and packaging changes for export
- Top tips for conducting export market research
- Carrying out and commissioning research on overseas markets
- Researching export markets – Genie Insights
Advantages and disadvantages of researching export markets
The benefits and potential drawbacks of researching export markets before selling to them.
Researching potential export markets before you commit to entering them is a logical step but there are things to consider before you start.
Advantages of export market research
There are a number of benefits to undertaking market research before you enter new overseas markets, these include:
- spotting trends
- minimising risk
- identifying threats and opportunities
Disadvantages of export market research
There can be potential drawbacks to conducting market research, these may include:
- the expense of accessing expert information
- outdated information leading to bad decision-making
- it can be time-consuming
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Researching export markets online
Ways of conducting online research on export markets.
Conducting thorough online research can help you pull together valuable information which can be crucial to your export planning. It will help inform your decision making in a timely and cost-effective way.
Researching potential overseas markets online can help you:
- assess market potential
- find customers
- analyse your competition
- assess market barriers and risks
- find the best routes to market
Read more about the things you should consider when trading with the EU and when trading with GB and countries outside the EU.
Business risk reports
Read the Overseas Business Risk reports for information on political instability, terrorism, crime, corruption, human rights issues and intellectual property risks.
EU Market Access Database
You can check the EU Market Access Database to research a country's duty rates and licensing rules.
Check whether EU wide technical rules or national rules apply if you're sending goods within the EU. If technical rules or national rules apply, you can get advice from the product contact point for that country.
Invest NI Business Information Centre
The Invest NI Business Information Centre provides free access to market research, company databases, and other business information to help local companies develop their markets, identify export opportunities and find new customers.
The Centre is located at Invest NI's office in Belfast. The wide range of business information includes:
- trade and business journal collection
- details of trade fairs
- worldwide country profiles
- tenders information
- guidance on import/export procedures and business agreements
To access this information, call the Invest NI helpline on Tel 0800 181 4422.
Tenders Alert Service
The Invest NI Tenders Alert Service allows you to identify local, UK and European contract opportunities from a wide range of public sector organisations via a daily email alert service. It also has information about selling to the government - it has compiled a NI Councils Procurement fact sheet giving contacts for buyers and brief data on how they buy goods and services.
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Researching customers and markets abroad
Research overseas markets, consumers and countries to make informed decisions about your business.
When researching overseas markets, you will need to identify your potential customers and their needs, by considering the following factors:
- Who will buy from you? Each marketplace is different. For example, you may find that your overseas customers are in the public sector, while those in your home market are small businesses.
- What influences customers' purchasing decisions? This could include culture, age, gender and many other factors.
- Why do customers buy from you? Consider what you need to know about your customers' needs.
- What price can the product profitably sell for? This will influence your pricing and marketing decisions.
Read more about how to create customer personas.
You need to establish:
- Size of your potential market - this could be limited by population, cultural or economic factors.
- Politics and economics - an unstable political climate or unfavourable trading conditions can make exporting risky.
- Culture - this may affect your selling proposition. Investigate any barriers to your product's success. Will your product be valued the same as at home? Will your customers have the same reasons to buy it?
- Language and etiquette - can you market your product effectively in the local language? Will you have access to professional translators and marketing agencies? It is important to communicate effectively and understand cultural differences.
- Safety and security - the risks presented by local terrorist activities as well as the global risk of indiscriminate terrorist attacks. Also, the level of crime in the target market. Read more about overseas business risk.
- You can also find travel and security information in your target market.
Support for researching other countries
When researching potential countries to sell to, you can find information from the following:
- Invest NI support for selling outside Northern Ireland
- The Department for Business and Trade support for planning entry into new overseas markets
- Search for commercially available research from Market Research World
- Trade visits provide valuable first-hand experience
Invest NI Graduate to Export programme
The Graduate to Export programme from Invest NI aims to help Northern Ireland companies with their growth plans by providing them with support to employ a graduate for up to eighteen months to take forward a market research project that targets a specific overseas market. Read more about the Graduate to Export programme and its eligibility criteria.
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Conducting in-market export research
Ways of conducting in-market research on export markets.
Once you have gathered enough information through online research to help you choose appropriate markets for your product or service, you should then conduct some in-market research.
Visiting your target market will allow you to gather specific information on the market for your product or service. You could also visit a trade show or conference, or participate in a trade mission. The data you gather in-market should be accurate and up-to-date.
Overseas Market Introduction Service
The Overseas Market Introduction Services (OMIS) is a chargeable service offered by the Department for International Trade through its network of staff in overseas embassies and consulates. It can be commissioned and managed online. OMIS offers:
- bespoke market research, sector advice and market entry strategies
- support during overseas visits
- identification of possible business partners
- help to prepare for exhibitions, events and trade fairs
Contact an International Trade Adviser (ITA) to find out about OMIS. Your ITA can help with advice on all aspects of exporting.
Trade Advisory Scheme
The Trade Advisory Service provides businesses with tailored export consultancy from Invest Northern Ireland advisors based in overseas markets. For information on the Trade Advisory Scheme call the Invest NI Business Support helpline on Tel 0800 181 4422.
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Research product and packaging changes for export
Adjusting your product to comply with law overseas.
You may need to adjust your product or its packaging to comply with local laws and regulations. For example, there may be specific health and safety standards in your target country that differ from those in the UK. It is your responsibility to make sure you comply - and errors can be costly.
You may need to adjust your product or operational set-up to comply with local laws.
You should investigate:
- local export legislation and technical regulations
- certification and testing requirements
- local standards affecting your existing and future products
- product liability
- quantities and units
- patents and trade marks
- staff qualifications
Find out about the Invest NI support available for exporters.
You may need detailed information on international aspects of standards, accreditation and measurement infrastructure, including more specific facts and figures for a number of countries. You should also be aware that your product may need an export licence, or be subject to import duty and sales tax outside the European Economic Area.
The British Standards Institute (BSI) international projects department can help you deal with technical barriers to trade including any regulatory issues you might face.
Read more about how to make your product packaging effective and how to package food for export or import.
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Top tips for conducting export market research
Five top tips to help you conduct your export market research.
Researching your potential customers, competitors and the trading environment in your target overseas markets, you will increase your chance of success.
The following tips will help you successfully research your export markets before committing to entering them.
- Use online databases to investigate the demand for your products in new markets as well as if the market share is there - read more about researching export markets online.
- Consider visiting the markets. Visit your target market to gather specific information on the opportunities for your product or service - read more about conducting in-market export research.
- Get help - Before you make your first move into an overseas market, you should seek expert advice and support. Find out about the available support for exporting.
- Confirm the reliability of your data with multiple sources.
- Research the laws, legislations, taxes and trading standards in the countries you're hoping to trade in - view a range of exporting country guides.
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Carrying out and commissioning research on overseas markets
Undertaking market research in overseas export markets.
Market research is available from government agencies and commercial organisations.
Conduct your own market research
You can conduct research using media sources, such as newspapers, trade journals and the internet, and get information by networking with experienced exporters. Your trade associations may be able to help you with contacts. For many small businesses, the best approach is to visit the market and spend some time interviewing a range of people. Read more about how to develop an exporting marketing plan.
GOV.UK produces 'sector in-country' reports for many markets.
Commission market research
You can commission a market research agency to investigate your overseas market on your behalf.
Decide whether you want to use a UK-based agency or a local one. A local agency may understand your potential customers better and will be able to access the necessary information more easily. You should select your agency carefully, and check that their proposal shows that they understand your needs.
State what you expect to find out from your research in a clear brief. This should specify your aims in commissioning the research, and the timescales and presentation you want. Describe your business and product, state the information required and the geographical scope.
Access published market reports
You can also buy reports on some overseas markets.
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Researching export markets
Researching export markets – Genie Insights
Matt Reeve, Director of Genie Insights, explains how the business researches export markets.
Genie Insights provides complementary products and services to the transport and logistics industry. Their two primary divisions are fleet management software and solar solutions for commercial vehicles.
Matt Reeve, Director of Genie Insights, explains how the business researches export markets.
Export markets
"Until recently, our main customer base was within the island of Ireland, when we were solely supplying our fleet management software and offering other related consultancy services. However, in 2020, we moved into the supply of physical products (solar panels), which have a much broader scope for export."
"Our primary export market for our solar solutions is currently Great Britain, but we have started to move into some of Europe, specifically the Republic of Ireland, the Netherlands, Poland and Scandinavia."
Conducting market research
"When we first added solar panels to our business, we were a small team competing against businesses with larger sales teams. So, we had to devise a different approach that would allow us to punch above our weight. Instead of selling directly to the market, we built strategic distribution partnerships with original equipment manufacturers (OEMs) to supply our product. Although we had less control over the direct-to-market sales, we could leverage the OEM’s larger sales teams to get our product into the market."
"For our software product, we have used industry-specific databases that have given us the ability to prioritise potential customers based initially on fleet size. From there, we can then complete online research to find out more. As well as company websites and social media profiles, we’ve found it useful to search for companies in the news or industry trade journals, as you can often find quotes in articles from the relevant decision-maker."
"For our solar division, most of our relationships have been built via personal connections. As we roll out a new product for a specific application, we have sought to align ourselves with the market leader in the industry sector."
Advice and support
"We are very grateful to have received support from Invest NI to assist us with some of the costs of the in-market research. This has been via the Growth Accelerator Programme (GAP) and the ‘Going Dutch’ programme."
"The GAP has provided financial assistance to support the cost of travel to export markets to meet with potential partners. We launched our solar division during COVID so most of our sales activity was established via remote online meetings. Once travel restrictions were lifted, it was invaluable meeting people face-to-face to better build the relationships."
"The GAP has also supported attendance at various trade shows – there’s no better way to get face-to-face with potential distributors and customers."
"The Going Dutch programme went even further – Invest NI’s team conducted research and set up appointments for us before our market visit. Following the initial market visit, we now have a sales agent in the Netherlands."
"But perhaps the most significant impact Invest NI has had on our business has been the Key Worker Salary Grant. A contribution towards an employee's salary has helped us to bring on additional much-needed resources."
"Our export growth has been steady over the past few years. Between 2019 and 2023, our sales outside NI grew from 42% to 94%. This activity is still heavily focused on GB as our largest export market, but sales to the EU are increasing year-on-year. By the end of 2024, we anticipate EU sales will exceed 10% and may see sales into further new markets."
Business challenges and successes
"The only way to be effective going into a new market is to understand what you are getting yourself into. Insights from market research can guide product development, assess competitor activity and identify appropriate target customers. This approach helps you go into a market with a clear understanding of how you should be positioning your offering and who you want to sell to."
"Having a more strategic approach to market development has been a lesson for us. In the earlier days, we were guilty of trying to design products to suit all market applications simultaneously, but we quickly realised that we didn’t have the resources to do that. When we re-focused and concentrated on researching and launching one product application to one market segment at a time, everything became more manageable. Because we put most of our time and energy into researching and delivering for one market initially, we could more quickly dominate that market before moving on to the next application and the next to replicate the model.
"Having to ship a physical product abroad is still challenging today, particularly when despatching it to a new market for the first time. We have sought advice from a company specialising in customs arrangements when we’ve needed it."
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Receiving items from abroad
In this guide:
- Importing and exporting by post
- How to declare goods when importing by post
- Calculating Customs charges when importing by post
- Examination of postal packages entering the UK
- Pay outstanding charges on goods imported by post
- Sending a package abroad
- Trade imports by post - how to complete customs documents
- Receiving items from abroad
How to declare goods when importing by post
Why goods imported by post must be declared and what may happen if they aren't.
Last updated: 20 September 2024
Temporary arrangements for moving goods from Great Britain to Northern Ireland
Until the Windsor Framework arrangements come into effect, HMRC has adopted a temporary approach to applying declaration requirements for the movement of goods in parcels (including by the Royal Mail Group and express carriers).
The temporary approach recognises the unique circumstances of Northern Ireland, the impacts of any disruption to parcel movements in the context of the COVID-19 pandemic, and specific challenges for operators moving parcels. This guidance explains the detail of this approach.
In almost all cases, goods sent to consumers will not need a customs declaration.
Declarations will only usually be needed where the goods are either:
- prohibited or restricted — this is explained in the section ‘Goods with restrictions in place’
- being sent from a business to another business, where the value of the goods is more than £135
The controls and requirements that apply during the temporary approach period are:
Northern Ireland residents receiving goods from Great Britain
If you are a Northern Ireland resident consumer, you can continue to receive goods from Great Britain with no new requirements.
Individuals in Great Britain sending goods to Northern Ireland residents and businesses
You can continue to send goods in parcels to Northern Ireland residents and businesses in the same way you did before 1 January 2021. For example by using a Post Office, express service point or returning goods to businesses.
You can continue to send goods in parcels to businesses (such as returned goods) as you usually do with no new requirements.
Northern Ireland businesses receiving goods from a business in Great Britain valued over £135
If you are a Northern Ireland based business receiving goods valued over £135 through the Royal Mail Group or an express carrier you will have to submit a declaration. However, you can delay when you do this and you will be able to use the free Trader Support Service (TSS) to do so.
You should speak to the TSS on when and how to make this declaration, and further details on how you will be able to submit this delayed declaration will be issued in due course.
You should prepare by:
- signing up for the Trader Support Service
- registering to get an EORI number
- storing an invoice for the goods you received, including the date you received them
You should also take steps to avoid the risk of needing to pay tariffs unnecessarily on these goods. You’ll need to keep additional records, dependent on the tariff removal route appropriate:
- You could consider applying to join the UK Internal Market Scheme to become authorised to declare goods ‘not at risk’. You’ll need to meet certain criteria to do this, including being able to demonstrate the end use of the goods.
- Proof that the goods meet rules of origin to benefit from zero tariffs under the EU-UK Trade and Cooperation Agreement; or
- Evidence that you’re within your de minimis state aid allowance, if you want to claim a Customs Duty Waiver.
Northern Ireland businesses receiving goods from a business in Great Britain valued at £135 or less
If the goods you are receiving in a parcel have a value of £135 or less, then you can continue to receive these goods from Great Britain as usual with no new requirements. A declaration is not required for these goods.
Businesses in Great Britain sending excise goods to Northern Ireland residents and businesses
The temporary approach to declaration requirements now also includes excise goods that are already UK duty paid. This means that for as long as the temporary arrangements are in place, businesses sending excise duty paid goods from Great Britain to Northern Ireland by RMG or an express carrier, do not need to make a customs declaration.
There is still a liability to excise duty on arrival in Northern Ireland but you can offset this against the duty already paid in Great Britain. In the limited circumstances where the duty already paid is less than the liability, you’ll have to account for the duty.
However, when the temporary arrangements for post and parcels are in place you can either:
- Defer payment of any additional excise duty until the end of the temporary arrangements. If you do this, you should keep records to be able to account for any excise duty at the end of the temporary arrangements, covered in Excise Notice 206.
- Choose to use excise periodic accounting to account for and pay any additional duty, in which case you can read more information about periodic accounting in Excise Notice 197.
Read more information about periodic accounting in Excise Notice 197.
Find more information about moving excise goods from Great Britain to Northern Ireland by parcel.
Further guidance on what businesses need to do to account for additional excise duty that has been deferred before the end of the temporary arrangements will be published in due course.
Northern Ireland businesses receiving excise goods from a business in Great Britain valued over £135
If you are a business based in Northern Ireland receiving excise goods valued over £135 from a business in Great Britain, you will have to submit a declaration in line with the arrangements for other goods set out above
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Calculating Customs charges when importing by post
How Customs charges apply to gifts, consignments of multiple gifts and used goods.
There will be future changes to the current arrangements for sending parcels from Great Britain to Northern Ireland. Find out what you need to do when moving parcels from Great Britain to Northern Ireland under the Windsor Framework from 30 September 2024.
The limits for Customs Duty and Import VAT are detailed below along with any changes that apply now that the UK has left the EU.
For imports of goods from outside the UK in consignments not exceeding £135 in value (which aligns with the threshold for customs duty liability), the point at which VAT is collected has been moved from the point of importation to the point of sale. This will mean that UK supply VAT, rather than import VAT, will be due on these consignments.
The £135 limit applies to the value of a total consignment that is imported, not the separate value of individual items that are in a consignment.
This does not include alcohol, tobacco products, perfume or toilet waters, these items are excluded from the relief of customs duty and VAT. Charges at import will be payable.
Low value consignment relief (LVCR), which is an import VAT exemption for goods valued at £15 or less, has been removed in:
- Great Britain for goods imported from outside the UK
-
Northern Ireland for goods ordered remotely that are imported from outside the UK and EU Consignments of goods with a value of £135 or less that are outside:
- the UK and sold directly to customers (not through an online marketplace) in Great Britain (England, Scotland and Wales) will have UK supply VAT charged at the point of sale
- the UK and EU and sold directly to customers (not through an online marketplace) in Northern Ireland will have import VAT charged
- if you’re sent a gift with a value of £39 or less, which complies with the rules, it will be free from Customs Duty and Import VAT (gifts of alcohol and tobacco are subject to limits and gifts of perfumes and toilet waters are subject to different limits)
- Customs Duty becomes payable if the value of the goods is over £135
In summary:
Goods value Customs charges applicable £0.00 to £135 No Customs Duty
No Import VAT£135.01 and greater Customs Duty due,
Import VAT dueExcluding the following: alcohol, tobacco products, perfumes and toilet waters. These items do not benefit from the relief of Customs Duty or VAT at import, and alcohol and tobacco products will also be liable to Excise Duty.
There are several other circumstances where relief from some or all customs charges may be available. If you think your goods may be eligible for a relief, you can contact Imports and exports: general enquiries.
Gifts
The Gift allowance is £39 in value, gifts above this amount are liable to Import VAT. Customs Duty also becomes payable if the value of the goods is over £135.
To qualify as a gift:
- the customs declaration must be completed correctly
- the gift must be sent from a private person outside the UK to a private person(s) in the UK
- there is no commercial or trade element and the gift has not been paid for either directly or indirectly by anyone in the UK
- the gift is of an occasional nature only, for example, for a birthday or anniversary
If you purchase something from outside of the UK to give as a gift to a relative or friend, whether or not it is addressed to that person, it will be treated as a ‘commercial consignment’, for which the Import VAT relief threshold applies.
Gifts of alcohol and tobacco products
Gifts of alcohol and tobacco products, with a value not exceeding £39, qualify for relief from import duties and Import VAT, subject to the following limits against each of the goods described below:
Tobacco products Quantity cigarettes 50 or cigarillos (cigars with a maximum weight each of 3 grammes) 25 or cigars 10 or smoking tobacco 50 grammes
Alcohol and alcoholic beverages distilled beverages and spirits of an alcoholic strength exceeding 22% by volume, undenatured ethyl alcohol of 80% by volume and over 1 litre or distilled beverages and spirits, and aperitifs with a wine or alcohol base, tafia, saké or similar beverages of an alcoholic strength of 22% by volume or less, sparkling wines and fortified wines 1 litre or still wines 2 litres If gifts of alcohol and tobacco are sent in excess of the quantities shown in the above table, relief from Import Duty will only apply up to the limits shown above, and the consignment will not benefit from any relief of Import VAT.
Relief to the limits in the table above only apply to gifts and do not apply to commercial consignments.
In addition, Excise Duty is payable on all alcohol and tobacco products, even if they are a gift.
Undenatured ethyl alcohol and alcoholic beverages containing more than 24% alcohol by volume (abv) are prohibited in international mail. If you’re in doubt, you can check with the Royal Mail Group before sending.
Gifts of perfumes and toilet waters
Customs Duty and Excise Duty are not chargeable on gifts of perfumes and toilet waters. However, Import VAT is chargeable if the allowances detailed below are exceeded, or the goods’ value exceeds £39.
Item Quantity Perfumes 50 grammes of perfume Toilet waters 0.25 litres of toilet water Relief to the limits in the table above only apply to gifts and do not apply to commercial consignments.
Perfumes with a flashpoint of less than 60°C is prohibited in international mail. If you’re in doubt, you can check with the Royal Mail Group before sending.
Multi-gift packages
Multi-gift packages containing more than one gift and clearly intended for several people, the £39 VAT relief applies to each individual person, provided the goods are:
- individually wrapped
- specifically addressed to them
- declared separately on the customs declaration
- within the allowances specified
- marked with the price for each individual item on the declaration
If more than one individual package is addressed to a particular person, the value of the goods will be added together. If the total value then exceeds £39, Import VAT will be charged. If the value exceeds £135, Customs Duty may also be due.
If a package contains several different types of goods intended for more than one person, these should be separately described and given a value on the customs declaration. For Import VAT, only as many items that add up to the value of the Import VAT threshold of £39 will be granted relief. For example, if a package contains 5 items each with a value of £8, 4 of the 5 items will be entitled to relief (4 × £8 = £32). Charges will be payable on the fifth item.
When one item is sent to 2 people and its value exceeds £39, it’s not possible to aggregate each person’s gift relief. The value of an individual item itself cannot be divided - for example, one item with a value of £50 sent to 2 individuals cannot benefit from the gift relief.
Goods sent as gifts Relief given One item valued at £39 or below Free of Customs Duty and Import VAT. One item valued at £39.01 Import VAT is chargeable on the full value. Five of the same items valued at £8 each Four items are relieved of Import VAT leaving Import VAT chargeable on the remaining one item. Five different items valued at £120 each Import VAT is chargeable on the full value. One item valued at £300 Customs Duty is charged. Import VAT is chargeable on the full value. Find out about Import VAT and Customs Duty when you send gifts into the UK.
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Examination of postal packages entering the UK
How and why Customs check postal packages entering the UK.
Border Force examine postal packages arriving in the UK for prohibited or restricted goods, such as:
- drugs
- indecent or obscene material
- weapons
- endangered species
- counterfeit goods
They examine packages to confirm the description and value stated on the declaration are correct and check the customs declaration to determine if Customs Duty, Excise Duty and Import VAT is chargeable.
Border Force will sometimes need to examine the contents of a package, particularly when the sender has not completed the declaration correctly. In such cases, the opening, repacking and resealing of the package is carried out, under Border Force instruction, by Royal Mail staff.
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Pay outstanding charges on goods imported by post
How to pay charges on goods imported by post and appealing against Customs decisions.
Charges are calculated at the postal depots, where the packages are received. In some cases, special arrangements are in place for goods purchased on the internet or by mail order.
Customs Duty becomes payable if the goods are more than £135 in value.
The amount of Customs Duty charged will depend on the type of goods imported and the value stated on the customs declaration CN22/CN23 which is converted to pound sterling using the rates of exchange for the month of importation as shown on the HMRC website.
The percentage varies depending on the type of goods and their country of origin. Duty is charged on:
- the price paid for the goods
- any local sales taxes
- postage, packing and insurance
The cost of postage is excluded from the calculation for Customs Duty on gifts except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service.
Where the value of gifts is below £630 per consignment, a flat rate of duty of 2.5% will be applied, but only if it is to your advantage.
Excise duty
Excise Duty is charged on alcohol and tobacco products, and is additional to Customs Duty. The Excise Duty on alcohol products (such as wines and spirits) depends on the alcohol content and volume. For wine and cider, it depends on if they’re sparkling or still. Duty on cigarettes is based on a percentage of the recommended retail selling price, plus a flat rate amount per 1,000 cigarettes. On other tobacco products (such as cigars or hand rolling tobacco) Excise Duty is charged at a flat rate per kilogram.
Import VAT
Import VAT is charged at the same rate that applies to similar goods sold in the UK and applies to commercial goods over £135 in value, and on gifts that are over £39 in value. The value of the goods for Import VAT is based on the:
- basic value of goods
- postage, packing and insurance
- any import (Customs or Excise) duties charged
As with Customs Duty, the cost of postage is excluded from the calculation for VAT on gifts, except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service.
Duty charged on used goods
Used goods are liable to the same duty and VAT charges as new goods. The value on which the charges are calculated may take into account the age and condition of the goods.
Paying customs charges
Royal Mail provides several options for payment and they’ll inform you of the options and the amounts payable when they contact you. A postcard or letter is usually delivered to your address, detailing the amount due and the options available for payment. Once payment has been made, the package may be collected from the post office, or (if you’ve paid online or by phone) you can arrange for it to be delivered. Details of the charges, including the Royal Mail or Parcelforce Worldwide handling fee, will be shown separately on a label affixed to the package.
If the value of the package is over £900 (for Great Britain) and £873 (for Northern Ireland), or it is for a specific customs regime (including all special procedures), you’ll need to complete a customs declaration. You’ll be sent a customs declaration form (C88 or C160) which you must complete and return to Border Force at the Postal Depot, before your package can be delivered. You should not send any payment with this form unless asked to do so. If there are any charges due, you’ll be required to pay them to Border Force before your goods can be released.
Prepayment of Import VAT on goods purchased over the internet or by mail order
HMRC has special arrangements that allow some overseas traders to charge, collect and pay to HMRC the Import VAT for goods purchased by mail order. This would normally be chargeable at the time the goods are imported. These arrangements operate under Memoranda of Understanding (MoU) signed with certain overseas customs and postal authorities. Currently only Jersey and Guernsey has an MoU with HMRC.
Existing arrangements for imports from Jersey and Guernsey will continue after the end of the transition period.
Consignments of goods from Jersey and Guernsey, where VAT is collected and paid to HMRC under the Import VAT Accounting Scheme, will be outside the scope of the new measures.
Overseas traders wanting to use this procedure must be authorised to do so by their authorities.
Once authorised, foreign businesses are issued with a unique authorisation number, which they must show on the customs declaration or packaging. They’ll include the statement ‘Import VAT Prepaid’.
Where these arrangements are used you will not be charged a Royal Mail handling fee when you receive your package.
If you’re a VAT registered business and purchase goods for use in your business, you should keep the outer wrapper and invoice from the supplier to support your claim to input tax.
Paying a handling fee to Royal Mail
If customs charges are payable upon importation, Royal Mail will charge a handling fee to cover the costs for carrying out customs procedures, which includes paying any Customs Duty or VAT due and collecting it from you. If customs examination is required, or if information is missing from the declaration, Royal Mail will open, repack and reseal the package. All international courier and postal operators charge fees for their services. HMRC and Border Force do not have any authority over the level of charges applied for these services.
If there is no duty or tax to pay, you will not be charged a handling fee.
The customs charges and handling fee will be itemised individually on the charge label. Royal Mail will tell you how much you need to pay and the available payment methods. Once payment is received, you can request delivery of your package or pick it up from your local delivery office or depot. You can read more about how to pay charges on either the Royal Mail or Parcelforce Worldwide websites.
As the handling fee is separate from customs charges, queries about the handling fee should be raised with Royal Mail or Parcelforce Worldwide, as appropriate. Royal Mail do not answer queries about customs charges. If you have any queries about the charges raised on your parcel you should contact Border Force. General queries on customs charges should be made to the HMRC Customs International Trade and Excise enquiries service.
Where can I ask about or query a customs charge?
If you have any questions about a particular customs charge you should contact Border Force as soon as possible using form BOR286.
When you write to Border Force, you should include as much detail as you can, including the customs charge label, the customs declaration and the part of the wrapper with your address on it. If your claim is about overcharged tax because the declared value of the goods was incorrect, you will be required to supply evidence, for example, an invoice, receipt of purchase to support your claim.
Border Force deal with thousands of packages every day and without this information they may not be able to trace your package in their records. In the event of a claim, you should retain copies of all wrappings and documents until your claim is settled.
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Sending a package abroad
How to complete a Single Administrative Document when items require a full declaration.
When sending items from Northern Ireland to the EU, no customs declarations are required for sending gifts or goods.
When you send a package to any country outside the EU you must complete and affix a customs declaration, either (CN22, CN23 or a Parcelforce Worldwide Despatch Pack (incorporating the CN23)), which can be obtained from the Post Office.
Any necessary preference certificate or licence should be attached to the outside of the package and clearly identified before handing it over for post.
For commercial items that require an export licence or are being exported under or following a customs special procedure, a commercial invoice should accompany the package. A sticky label C and E83A named ‘Exported by post under HMRC Control’ should be attached which directs post office staff to present the parcel to Border Force at the Office of Exchange for checks to be made prior to export.
Evidence of posting
For private persons, there’s no legal requirement to obtain evidence of posting. However, if you’re in business and registered for VAT, you’ll need to obtain and retain a certificate of posting (C&E132) to support the VAT zero-rating of your supply, and to discharge your liability to customs charges on goods temporarily imported into the UK.
In addition, if you’re a business exporting UK duty paid excise goods, you’ll need a certificate of posting on form C&E132 to support a claim for reimbursement of the UK Excise Duty.
Customs controls on goods exported from the UK
Border Force carry out selective examinations to make sure no prohibited or restricted goods, or items relating to the proceeds of crime are being improperly exported.
Other restrictions on what goods can be sent abroad
Customs and postal administrations throughout the world set certain restrictions on what type of goods can be sent by post. If you have any concerns about sending your goods by post, contact Royal Mail to discuss them.
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Trade imports by post - how to complete customs documents
How to make declarations when posting goods from the UK.
All goods arriving in the United Kingdom by post from any country outside the EU must be declared to HMRC. In most cases this means the sender making a Customs declaration on a form which is attached to the package. However certain goods must be declared on a Single Administrative Document (SAD).
What is a SAD?
A SAD is a Single Administrative Document (SAD). This is a UK and EU form used to legally declare imported goods to Customs also known as an import entry.
In the UK the SAD is also known as Form C88. The specific version for postal imports is Form C88A.
When is a declaration on a SAD required?
A full import declaration on a SAD is required for all postal imports exceeding £900 declared to home use and free circulation. For imports declared to one of the special procedures (that is, temporary admission, customs warehousing, inward processing and end use) a full customs declaration (SAD) is required to be submitted to CHIEF (Customs Handling of Import and Export Freight) in some cases (including where an “authorisation by declaration” (formerly known as a “simplified” authorisation) is used. The submission of the declaration to CHIEF allows for the guarantee to be taken where necessary. A SAD is also required for returned goods relief over £600.
What form do I use to declare (enter) trade imports by post?
The SAD for postal imports is form C88A. You must use this when declaring your goods to HMRC. HMRC will send you a copy to complete and return. Another form, C87 Notice of Arrival of Goods by Post also accompanies the SAD. This advises you that the goods have arrived in the UK but cannot be delivered until you complete and return the SAD form. It also gives a Customs reference number associated with your package. Please quote this number if you need to speak to HMRC about your package.
Use one SAD for goods covered by each Commodity code. Additional forms can be obtained by contacting HMRC at the postal depot where your package is being held.
What do I do when I receive the form?
Each form consists of four pages and are as follows:
Page number Description 1 Original entry 2 Statistical Office copy 3 Consignee copy 4 Other purposes, for example, VAT, or warehousing Complete and return all four copies to the Customs postal depot.
Completion of the SAD
Which boxes do I need to complete for postal entries?
You need only complete the boxes whose numbers are shown in the table linked below. The box numbers appear in the top left hand corner of each box on both form C88A and continuation sheets (if required).
Read more about which boxes you need to complete for postal entries.
What documents do I have to send with the completed SAD?
Enclose any of the following documents with your completed entry:
(a) the commercial invoice and any other documents in support of the declared value of the goods
(b) any work sheets used to calculate VAT
(c) an import licence (for goods subject to licensing)
(d) documentary proof of origin (where required)
(e) a preference certificate, where applicable, for goods from countries that has a preferential trade arrangement with the UK and EU
(f) any other certificate required for particular kinds of goods
(g) packing slips for multi-package consignments, giving details of the contents of each package
(h) evidence of export such as an invoice or approval note for returned goods relief, and
(i) any other documents in support of the importation and/or required by HMRC.
Returning the form
What do I do when I have completed the SAD?
Completed forms should be returned to HMRC at the address shown on the top right hand corner of the Notice of Arrival together with any supporting documentation.
You must return the form promptly as any undue delay will result in additional storage charges being incurred and could lead to Royal Mail Group disposing of the package(s).
Do not send a remittance with your entry unless asked to do so. If charges are due, HMRC will send you a payment request with the details of how to submit your payment. Please note that goods cannot be cleared until a payment is cleared and if you choose to make a payment by cheque this may take at least four weeks to fully clear. If deferment of customs charges is requested, the appropriate deferment number should be quoted in box 48.
Customs declarations when sending packages outside the European Union
Customs forms are now mandatory for all gifts and goods sent to a country outside the UK, except when sending items from Northern Ireland to the EU.
What is a customs form for?
When you send items internationally, you must make sure those items abide by the shipping rules of the destination country. Customs forms allow local customs authorities to make sure the goods are allowed and to calculate if there are any duties or taxes to be paid.
Customs forms need to be attached to the outside of your item with all relevant fields completed. You are responsible for ensuring a fully complete Customs Form is attached to your item. Any items with incomplete or absent customs forms are likely be returned to the sender so it's important you get it right.
Do I need a customs form?
It is mandatory to complete a customs form if:
- you are sending goods or gifts from England, Wales or Scotland to anywhere outside of the UK
- you are sending goods or gifts from Northern Ireland to any non-EU destinations (except UK)
You don’t need to complete a customs form if:
- you are sending goods within the UK
- you are sending from Northern Ireland to EU destinations
- you are sending letter or large letters only containing correspondence, commercial invoices or shipping documents
Information you will need for completing the customs form
If you don't complete the relevant fields below, it's likely your item will be returned or delayed. Customs forms require full attention, be careful when filling them out and include all mandatory information relevant to you and your item. You can always ask a member of staff in branch if you have any questions
- Sender's name and address - mandatory
- Type of Contents and accurate content description - mandatory
- Value, quantity and weight of each item - mandatory
- Total value, quantity and weight - mandatory
- Business customers only - HS Tariff number (you can find these here) and GB EORI number or VAT registered number - mandatory for businesses only
- If using a CN23: recipients name and address – mandatory
CN22 customs form
The CN22 is a customs form used when sending gifts and goods abroad worth less than £270 with Royal Mail.
They are mandatory for all gifts and goods being sent internationally from England, Scotland or Wales anywhere outside the UK, if posting from Northern Ireland they are only needed for posting to non-EU destinations.
How to complete a CN22 customs form.
CN23 customs form
The CN23 is a customs form used when sending gifts and goods abroad worth more than £270 with Royal Mail.
They are mandatory for all gifts and goods being sent internationally from England, Scotland or Wales anywhere outside the UK, if posting from Northern Ireland they are only needed for posting to non-EU destinations.
How to complete a CN23 customs form.
CP72 Customs Despatch Pack
Posting from Northern Ireland: a CP72 Customs Despatch Pack (PFU509) is mandatory for non-EU destinations, unless using global express which requires a CP72 Customs Despatch Pack for ALL destinations regardless of value of the item
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Receiving items from abroad
The rules about receiving goods from abroad.
When receiving goods from abroad, recipients may have to pay VAT and duties. The VAT and duties will be applied depending on the type and value of the goods. For gifts over £39 and goods over £135, Royal Mail may collect the VAT and customs duties on behalf of HM Revenue & Customs (HMRC) from the recipient prior to delivery. Letters, postcards and documents are usually exempt.
Read more about customs and receiving items from abroad.
Read more about changes to VAT treatment of overseas goods sold to customers.
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Calculating Customs charges when importing by post
In this guide:
- Importing and exporting by post
- How to declare goods when importing by post
- Calculating Customs charges when importing by post
- Examination of postal packages entering the UK
- Pay outstanding charges on goods imported by post
- Sending a package abroad
- Trade imports by post - how to complete customs documents
- Receiving items from abroad
How to declare goods when importing by post
Why goods imported by post must be declared and what may happen if they aren't.
Last updated: 20 September 2024
Temporary arrangements for moving goods from Great Britain to Northern Ireland
Until the Windsor Framework arrangements come into effect, HMRC has adopted a temporary approach to applying declaration requirements for the movement of goods in parcels (including by the Royal Mail Group and express carriers).
The temporary approach recognises the unique circumstances of Northern Ireland, the impacts of any disruption to parcel movements in the context of the COVID-19 pandemic, and specific challenges for operators moving parcels. This guidance explains the detail of this approach.
In almost all cases, goods sent to consumers will not need a customs declaration.
Declarations will only usually be needed where the goods are either:
- prohibited or restricted — this is explained in the section ‘Goods with restrictions in place’
- being sent from a business to another business, where the value of the goods is more than £135
The controls and requirements that apply during the temporary approach period are:
Northern Ireland residents receiving goods from Great Britain
If you are a Northern Ireland resident consumer, you can continue to receive goods from Great Britain with no new requirements.
Individuals in Great Britain sending goods to Northern Ireland residents and businesses
You can continue to send goods in parcels to Northern Ireland residents and businesses in the same way you did before 1 January 2021. For example by using a Post Office, express service point or returning goods to businesses.
You can continue to send goods in parcels to businesses (such as returned goods) as you usually do with no new requirements.
Northern Ireland businesses receiving goods from a business in Great Britain valued over £135
If you are a Northern Ireland based business receiving goods valued over £135 through the Royal Mail Group or an express carrier you will have to submit a declaration. However, you can delay when you do this and you will be able to use the free Trader Support Service (TSS) to do so.
You should speak to the TSS on when and how to make this declaration, and further details on how you will be able to submit this delayed declaration will be issued in due course.
You should prepare by:
- signing up for the Trader Support Service
- registering to get an EORI number
- storing an invoice for the goods you received, including the date you received them
You should also take steps to avoid the risk of needing to pay tariffs unnecessarily on these goods. You’ll need to keep additional records, dependent on the tariff removal route appropriate:
- You could consider applying to join the UK Internal Market Scheme to become authorised to declare goods ‘not at risk’. You’ll need to meet certain criteria to do this, including being able to demonstrate the end use of the goods.
- Proof that the goods meet rules of origin to benefit from zero tariffs under the EU-UK Trade and Cooperation Agreement; or
- Evidence that you’re within your de minimis state aid allowance, if you want to claim a Customs Duty Waiver.
Northern Ireland businesses receiving goods from a business in Great Britain valued at £135 or less
If the goods you are receiving in a parcel have a value of £135 or less, then you can continue to receive these goods from Great Britain as usual with no new requirements. A declaration is not required for these goods.
Businesses in Great Britain sending excise goods to Northern Ireland residents and businesses
The temporary approach to declaration requirements now also includes excise goods that are already UK duty paid. This means that for as long as the temporary arrangements are in place, businesses sending excise duty paid goods from Great Britain to Northern Ireland by RMG or an express carrier, do not need to make a customs declaration.
There is still a liability to excise duty on arrival in Northern Ireland but you can offset this against the duty already paid in Great Britain. In the limited circumstances where the duty already paid is less than the liability, you’ll have to account for the duty.
However, when the temporary arrangements for post and parcels are in place you can either:
- Defer payment of any additional excise duty until the end of the temporary arrangements. If you do this, you should keep records to be able to account for any excise duty at the end of the temporary arrangements, covered in Excise Notice 206.
- Choose to use excise periodic accounting to account for and pay any additional duty, in which case you can read more information about periodic accounting in Excise Notice 197.
Read more information about periodic accounting in Excise Notice 197.
Find more information about moving excise goods from Great Britain to Northern Ireland by parcel.
Further guidance on what businesses need to do to account for additional excise duty that has been deferred before the end of the temporary arrangements will be published in due course.
Northern Ireland businesses receiving excise goods from a business in Great Britain valued over £135
If you are a business based in Northern Ireland receiving excise goods valued over £135 from a business in Great Britain, you will have to submit a declaration in line with the arrangements for other goods set out above
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Calculating Customs charges when importing by post
How Customs charges apply to gifts, consignments of multiple gifts and used goods.
There will be future changes to the current arrangements for sending parcels from Great Britain to Northern Ireland. Find out what you need to do when moving parcels from Great Britain to Northern Ireland under the Windsor Framework from 30 September 2024.
The limits for Customs Duty and Import VAT are detailed below along with any changes that apply now that the UK has left the EU.
For imports of goods from outside the UK in consignments not exceeding £135 in value (which aligns with the threshold for customs duty liability), the point at which VAT is collected has been moved from the point of importation to the point of sale. This will mean that UK supply VAT, rather than import VAT, will be due on these consignments.
The £135 limit applies to the value of a total consignment that is imported, not the separate value of individual items that are in a consignment.
This does not include alcohol, tobacco products, perfume or toilet waters, these items are excluded from the relief of customs duty and VAT. Charges at import will be payable.
Low value consignment relief (LVCR), which is an import VAT exemption for goods valued at £15 or less, has been removed in:
- Great Britain for goods imported from outside the UK
-
Northern Ireland for goods ordered remotely that are imported from outside the UK and EU Consignments of goods with a value of £135 or less that are outside:
- the UK and sold directly to customers (not through an online marketplace) in Great Britain (England, Scotland and Wales) will have UK supply VAT charged at the point of sale
- the UK and EU and sold directly to customers (not through an online marketplace) in Northern Ireland will have import VAT charged
- if you’re sent a gift with a value of £39 or less, which complies with the rules, it will be free from Customs Duty and Import VAT (gifts of alcohol and tobacco are subject to limits and gifts of perfumes and toilet waters are subject to different limits)
- Customs Duty becomes payable if the value of the goods is over £135
In summary:
Goods value Customs charges applicable £0.00 to £135 No Customs Duty
No Import VAT£135.01 and greater Customs Duty due,
Import VAT dueExcluding the following: alcohol, tobacco products, perfumes and toilet waters. These items do not benefit from the relief of Customs Duty or VAT at import, and alcohol and tobacco products will also be liable to Excise Duty.
There are several other circumstances where relief from some or all customs charges may be available. If you think your goods may be eligible for a relief, you can contact Imports and exports: general enquiries.
Gifts
The Gift allowance is £39 in value, gifts above this amount are liable to Import VAT. Customs Duty also becomes payable if the value of the goods is over £135.
To qualify as a gift:
- the customs declaration must be completed correctly
- the gift must be sent from a private person outside the UK to a private person(s) in the UK
- there is no commercial or trade element and the gift has not been paid for either directly or indirectly by anyone in the UK
- the gift is of an occasional nature only, for example, for a birthday or anniversary
If you purchase something from outside of the UK to give as a gift to a relative or friend, whether or not it is addressed to that person, it will be treated as a ‘commercial consignment’, for which the Import VAT relief threshold applies.
Gifts of alcohol and tobacco products
Gifts of alcohol and tobacco products, with a value not exceeding £39, qualify for relief from import duties and Import VAT, subject to the following limits against each of the goods described below:
Tobacco products Quantity cigarettes 50 or cigarillos (cigars with a maximum weight each of 3 grammes) 25 or cigars 10 or smoking tobacco 50 grammes
Alcohol and alcoholic beverages distilled beverages and spirits of an alcoholic strength exceeding 22% by volume, undenatured ethyl alcohol of 80% by volume and over 1 litre or distilled beverages and spirits, and aperitifs with a wine or alcohol base, tafia, saké or similar beverages of an alcoholic strength of 22% by volume or less, sparkling wines and fortified wines 1 litre or still wines 2 litres If gifts of alcohol and tobacco are sent in excess of the quantities shown in the above table, relief from Import Duty will only apply up to the limits shown above, and the consignment will not benefit from any relief of Import VAT.
Relief to the limits in the table above only apply to gifts and do not apply to commercial consignments.
In addition, Excise Duty is payable on all alcohol and tobacco products, even if they are a gift.
Undenatured ethyl alcohol and alcoholic beverages containing more than 24% alcohol by volume (abv) are prohibited in international mail. If you’re in doubt, you can check with the Royal Mail Group before sending.
Gifts of perfumes and toilet waters
Customs Duty and Excise Duty are not chargeable on gifts of perfumes and toilet waters. However, Import VAT is chargeable if the allowances detailed below are exceeded, or the goods’ value exceeds £39.
Item Quantity Perfumes 50 grammes of perfume Toilet waters 0.25 litres of toilet water Relief to the limits in the table above only apply to gifts and do not apply to commercial consignments.
Perfumes with a flashpoint of less than 60°C is prohibited in international mail. If you’re in doubt, you can check with the Royal Mail Group before sending.
Multi-gift packages
Multi-gift packages containing more than one gift and clearly intended for several people, the £39 VAT relief applies to each individual person, provided the goods are:
- individually wrapped
- specifically addressed to them
- declared separately on the customs declaration
- within the allowances specified
- marked with the price for each individual item on the declaration
If more than one individual package is addressed to a particular person, the value of the goods will be added together. If the total value then exceeds £39, Import VAT will be charged. If the value exceeds £135, Customs Duty may also be due.
If a package contains several different types of goods intended for more than one person, these should be separately described and given a value on the customs declaration. For Import VAT, only as many items that add up to the value of the Import VAT threshold of £39 will be granted relief. For example, if a package contains 5 items each with a value of £8, 4 of the 5 items will be entitled to relief (4 × £8 = £32). Charges will be payable on the fifth item.
When one item is sent to 2 people and its value exceeds £39, it’s not possible to aggregate each person’s gift relief. The value of an individual item itself cannot be divided - for example, one item with a value of £50 sent to 2 individuals cannot benefit from the gift relief.
Goods sent as gifts Relief given One item valued at £39 or below Free of Customs Duty and Import VAT. One item valued at £39.01 Import VAT is chargeable on the full value. Five of the same items valued at £8 each Four items are relieved of Import VAT leaving Import VAT chargeable on the remaining one item. Five different items valued at £120 each Import VAT is chargeable on the full value. One item valued at £300 Customs Duty is charged. Import VAT is chargeable on the full value. Find out about Import VAT and Customs Duty when you send gifts into the UK.
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Examination of postal packages entering the UK
How and why Customs check postal packages entering the UK.
Border Force examine postal packages arriving in the UK for prohibited or restricted goods, such as:
- drugs
- indecent or obscene material
- weapons
- endangered species
- counterfeit goods
They examine packages to confirm the description and value stated on the declaration are correct and check the customs declaration to determine if Customs Duty, Excise Duty and Import VAT is chargeable.
Border Force will sometimes need to examine the contents of a package, particularly when the sender has not completed the declaration correctly. In such cases, the opening, repacking and resealing of the package is carried out, under Border Force instruction, by Royal Mail staff.
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Pay outstanding charges on goods imported by post
How to pay charges on goods imported by post and appealing against Customs decisions.
Charges are calculated at the postal depots, where the packages are received. In some cases, special arrangements are in place for goods purchased on the internet or by mail order.
Customs Duty becomes payable if the goods are more than £135 in value.
The amount of Customs Duty charged will depend on the type of goods imported and the value stated on the customs declaration CN22/CN23 which is converted to pound sterling using the rates of exchange for the month of importation as shown on the HMRC website.
The percentage varies depending on the type of goods and their country of origin. Duty is charged on:
- the price paid for the goods
- any local sales taxes
- postage, packing and insurance
The cost of postage is excluded from the calculation for Customs Duty on gifts except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service.
Where the value of gifts is below £630 per consignment, a flat rate of duty of 2.5% will be applied, but only if it is to your advantage.
Excise duty
Excise Duty is charged on alcohol and tobacco products, and is additional to Customs Duty. The Excise Duty on alcohol products (such as wines and spirits) depends on the alcohol content and volume. For wine and cider, it depends on if they’re sparkling or still. Duty on cigarettes is based on a percentage of the recommended retail selling price, plus a flat rate amount per 1,000 cigarettes. On other tobacco products (such as cigars or hand rolling tobacco) Excise Duty is charged at a flat rate per kilogram.
Import VAT
Import VAT is charged at the same rate that applies to similar goods sold in the UK and applies to commercial goods over £135 in value, and on gifts that are over £39 in value. The value of the goods for Import VAT is based on the:
- basic value of goods
- postage, packing and insurance
- any import (Customs or Excise) duties charged
As with Customs Duty, the cost of postage is excluded from the calculation for VAT on gifts, except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service.
Duty charged on used goods
Used goods are liable to the same duty and VAT charges as new goods. The value on which the charges are calculated may take into account the age and condition of the goods.
Paying customs charges
Royal Mail provides several options for payment and they’ll inform you of the options and the amounts payable when they contact you. A postcard or letter is usually delivered to your address, detailing the amount due and the options available for payment. Once payment has been made, the package may be collected from the post office, or (if you’ve paid online or by phone) you can arrange for it to be delivered. Details of the charges, including the Royal Mail or Parcelforce Worldwide handling fee, will be shown separately on a label affixed to the package.
If the value of the package is over £900 (for Great Britain) and £873 (for Northern Ireland), or it is for a specific customs regime (including all special procedures), you’ll need to complete a customs declaration. You’ll be sent a customs declaration form (C88 or C160) which you must complete and return to Border Force at the Postal Depot, before your package can be delivered. You should not send any payment with this form unless asked to do so. If there are any charges due, you’ll be required to pay them to Border Force before your goods can be released.
Prepayment of Import VAT on goods purchased over the internet or by mail order
HMRC has special arrangements that allow some overseas traders to charge, collect and pay to HMRC the Import VAT for goods purchased by mail order. This would normally be chargeable at the time the goods are imported. These arrangements operate under Memoranda of Understanding (MoU) signed with certain overseas customs and postal authorities. Currently only Jersey and Guernsey has an MoU with HMRC.
Existing arrangements for imports from Jersey and Guernsey will continue after the end of the transition period.
Consignments of goods from Jersey and Guernsey, where VAT is collected and paid to HMRC under the Import VAT Accounting Scheme, will be outside the scope of the new measures.
Overseas traders wanting to use this procedure must be authorised to do so by their authorities.
Once authorised, foreign businesses are issued with a unique authorisation number, which they must show on the customs declaration or packaging. They’ll include the statement ‘Import VAT Prepaid’.
Where these arrangements are used you will not be charged a Royal Mail handling fee when you receive your package.
If you’re a VAT registered business and purchase goods for use in your business, you should keep the outer wrapper and invoice from the supplier to support your claim to input tax.
Paying a handling fee to Royal Mail
If customs charges are payable upon importation, Royal Mail will charge a handling fee to cover the costs for carrying out customs procedures, which includes paying any Customs Duty or VAT due and collecting it from you. If customs examination is required, or if information is missing from the declaration, Royal Mail will open, repack and reseal the package. All international courier and postal operators charge fees for their services. HMRC and Border Force do not have any authority over the level of charges applied for these services.
If there is no duty or tax to pay, you will not be charged a handling fee.
The customs charges and handling fee will be itemised individually on the charge label. Royal Mail will tell you how much you need to pay and the available payment methods. Once payment is received, you can request delivery of your package or pick it up from your local delivery office or depot. You can read more about how to pay charges on either the Royal Mail or Parcelforce Worldwide websites.
As the handling fee is separate from customs charges, queries about the handling fee should be raised with Royal Mail or Parcelforce Worldwide, as appropriate. Royal Mail do not answer queries about customs charges. If you have any queries about the charges raised on your parcel you should contact Border Force. General queries on customs charges should be made to the HMRC Customs International Trade and Excise enquiries service.
Where can I ask about or query a customs charge?
If you have any questions about a particular customs charge you should contact Border Force as soon as possible using form BOR286.
When you write to Border Force, you should include as much detail as you can, including the customs charge label, the customs declaration and the part of the wrapper with your address on it. If your claim is about overcharged tax because the declared value of the goods was incorrect, you will be required to supply evidence, for example, an invoice, receipt of purchase to support your claim.
Border Force deal with thousands of packages every day and without this information they may not be able to trace your package in their records. In the event of a claim, you should retain copies of all wrappings and documents until your claim is settled.
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Sending a package abroad
How to complete a Single Administrative Document when items require a full declaration.
When sending items from Northern Ireland to the EU, no customs declarations are required for sending gifts or goods.
When you send a package to any country outside the EU you must complete and affix a customs declaration, either (CN22, CN23 or a Parcelforce Worldwide Despatch Pack (incorporating the CN23)), which can be obtained from the Post Office.
Any necessary preference certificate or licence should be attached to the outside of the package and clearly identified before handing it over for post.
For commercial items that require an export licence or are being exported under or following a customs special procedure, a commercial invoice should accompany the package. A sticky label C and E83A named ‘Exported by post under HMRC Control’ should be attached which directs post office staff to present the parcel to Border Force at the Office of Exchange for checks to be made prior to export.
Evidence of posting
For private persons, there’s no legal requirement to obtain evidence of posting. However, if you’re in business and registered for VAT, you’ll need to obtain and retain a certificate of posting (C&E132) to support the VAT zero-rating of your supply, and to discharge your liability to customs charges on goods temporarily imported into the UK.
In addition, if you’re a business exporting UK duty paid excise goods, you’ll need a certificate of posting on form C&E132 to support a claim for reimbursement of the UK Excise Duty.
Customs controls on goods exported from the UK
Border Force carry out selective examinations to make sure no prohibited or restricted goods, or items relating to the proceeds of crime are being improperly exported.
Other restrictions on what goods can be sent abroad
Customs and postal administrations throughout the world set certain restrictions on what type of goods can be sent by post. If you have any concerns about sending your goods by post, contact Royal Mail to discuss them.
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Trade imports by post - how to complete customs documents
How to make declarations when posting goods from the UK.
All goods arriving in the United Kingdom by post from any country outside the EU must be declared to HMRC. In most cases this means the sender making a Customs declaration on a form which is attached to the package. However certain goods must be declared on a Single Administrative Document (SAD).
What is a SAD?
A SAD is a Single Administrative Document (SAD). This is a UK and EU form used to legally declare imported goods to Customs also known as an import entry.
In the UK the SAD is also known as Form C88. The specific version for postal imports is Form C88A.
When is a declaration on a SAD required?
A full import declaration on a SAD is required for all postal imports exceeding £900 declared to home use and free circulation. For imports declared to one of the special procedures (that is, temporary admission, customs warehousing, inward processing and end use) a full customs declaration (SAD) is required to be submitted to CHIEF (Customs Handling of Import and Export Freight) in some cases (including where an “authorisation by declaration” (formerly known as a “simplified” authorisation) is used. The submission of the declaration to CHIEF allows for the guarantee to be taken where necessary. A SAD is also required for returned goods relief over £600.
What form do I use to declare (enter) trade imports by post?
The SAD for postal imports is form C88A. You must use this when declaring your goods to HMRC. HMRC will send you a copy to complete and return. Another form, C87 Notice of Arrival of Goods by Post also accompanies the SAD. This advises you that the goods have arrived in the UK but cannot be delivered until you complete and return the SAD form. It also gives a Customs reference number associated with your package. Please quote this number if you need to speak to HMRC about your package.
Use one SAD for goods covered by each Commodity code. Additional forms can be obtained by contacting HMRC at the postal depot where your package is being held.
What do I do when I receive the form?
Each form consists of four pages and are as follows:
Page number Description 1 Original entry 2 Statistical Office copy 3 Consignee copy 4 Other purposes, for example, VAT, or warehousing Complete and return all four copies to the Customs postal depot.
Completion of the SAD
Which boxes do I need to complete for postal entries?
You need only complete the boxes whose numbers are shown in the table linked below. The box numbers appear in the top left hand corner of each box on both form C88A and continuation sheets (if required).
Read more about which boxes you need to complete for postal entries.
What documents do I have to send with the completed SAD?
Enclose any of the following documents with your completed entry:
(a) the commercial invoice and any other documents in support of the declared value of the goods
(b) any work sheets used to calculate VAT
(c) an import licence (for goods subject to licensing)
(d) documentary proof of origin (where required)
(e) a preference certificate, where applicable, for goods from countries that has a preferential trade arrangement with the UK and EU
(f) any other certificate required for particular kinds of goods
(g) packing slips for multi-package consignments, giving details of the contents of each package
(h) evidence of export such as an invoice or approval note for returned goods relief, and
(i) any other documents in support of the importation and/or required by HMRC.
Returning the form
What do I do when I have completed the SAD?
Completed forms should be returned to HMRC at the address shown on the top right hand corner of the Notice of Arrival together with any supporting documentation.
You must return the form promptly as any undue delay will result in additional storage charges being incurred and could lead to Royal Mail Group disposing of the package(s).
Do not send a remittance with your entry unless asked to do so. If charges are due, HMRC will send you a payment request with the details of how to submit your payment. Please note that goods cannot be cleared until a payment is cleared and if you choose to make a payment by cheque this may take at least four weeks to fully clear. If deferment of customs charges is requested, the appropriate deferment number should be quoted in box 48.
Customs declarations when sending packages outside the European Union
Customs forms are now mandatory for all gifts and goods sent to a country outside the UK, except when sending items from Northern Ireland to the EU.
What is a customs form for?
When you send items internationally, you must make sure those items abide by the shipping rules of the destination country. Customs forms allow local customs authorities to make sure the goods are allowed and to calculate if there are any duties or taxes to be paid.
Customs forms need to be attached to the outside of your item with all relevant fields completed. You are responsible for ensuring a fully complete Customs Form is attached to your item. Any items with incomplete or absent customs forms are likely be returned to the sender so it's important you get it right.
Do I need a customs form?
It is mandatory to complete a customs form if:
- you are sending goods or gifts from England, Wales or Scotland to anywhere outside of the UK
- you are sending goods or gifts from Northern Ireland to any non-EU destinations (except UK)
You don’t need to complete a customs form if:
- you are sending goods within the UK
- you are sending from Northern Ireland to EU destinations
- you are sending letter or large letters only containing correspondence, commercial invoices or shipping documents
Information you will need for completing the customs form
If you don't complete the relevant fields below, it's likely your item will be returned or delayed. Customs forms require full attention, be careful when filling them out and include all mandatory information relevant to you and your item. You can always ask a member of staff in branch if you have any questions
- Sender's name and address - mandatory
- Type of Contents and accurate content description - mandatory
- Value, quantity and weight of each item - mandatory
- Total value, quantity and weight - mandatory
- Business customers only - HS Tariff number (you can find these here) and GB EORI number or VAT registered number - mandatory for businesses only
- If using a CN23: recipients name and address – mandatory
CN22 customs form
The CN22 is a customs form used when sending gifts and goods abroad worth less than £270 with Royal Mail.
They are mandatory for all gifts and goods being sent internationally from England, Scotland or Wales anywhere outside the UK, if posting from Northern Ireland they are only needed for posting to non-EU destinations.
How to complete a CN22 customs form.
CN23 customs form
The CN23 is a customs form used when sending gifts and goods abroad worth more than £270 with Royal Mail.
They are mandatory for all gifts and goods being sent internationally from England, Scotland or Wales anywhere outside the UK, if posting from Northern Ireland they are only needed for posting to non-EU destinations.
How to complete a CN23 customs form.
CP72 Customs Despatch Pack
Posting from Northern Ireland: a CP72 Customs Despatch Pack (PFU509) is mandatory for non-EU destinations, unless using global express which requires a CP72 Customs Despatch Pack for ALL destinations regardless of value of the item
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Receiving items from abroad
The rules about receiving goods from abroad.
When receiving goods from abroad, recipients may have to pay VAT and duties. The VAT and duties will be applied depending on the type and value of the goods. For gifts over £39 and goods over £135, Royal Mail may collect the VAT and customs duties on behalf of HM Revenue & Customs (HMRC) from the recipient prior to delivery. Letters, postcards and documents are usually exempt.
Read more about customs and receiving items from abroad.
Read more about changes to VAT treatment of overseas goods sold to customers.
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Install best-practice safety procedures against business crime
In this guide:
- Avoiding crime and fraud in international trade
- Understand common types of fraud in international trade
- Protect your business identity against fraud
- How to safeguard your IT against fraud
- Vetting business partners
- Install best-practice safety procedures against business crime
- Safeguard against crime in your supply chain
- Understanding intellectual property crime
- How to report a business crime or fraud
Understand common types of fraud in international trade
Scams, stings and money laundering tricks your business might face.
Fraudsters may try to steal your goods, business identity or tap into your business to launder money. Criminals may approach you through letters, a phone call, or via email. Increasingly, cyber-crime is a principal priority risk for UK residents and businesses. Typical scams include investment offers or opportunities to acquire new customers who you supply but never receive payment from.
'Phishing', or rogue emails asking for your business banking details, are a common way to steal money. Read more about how to safeguard your IT against fraud.
You can anonymously report fraud by phoning Crimestoppers on Tel 0800 555 111.
Action Fraud is a central point of contact to call and get help if you have been a victim of fraud. Report a fraud online.
Money laundering and terrorist financing
- Money laundering is the process by which funds derived from unlawful conduct are given apparent legitimacy - in essence cleaning the criminal proceeds.
- Terrorist financing is the process by which funds are gathered and used for terrorist activity.
The National Crime Agency (NCA), HM Revenue & Customs (HMRC), other law enforcement agencies, regulators and professional bodies work together to combat money laundering. Certain sectors, such as financial services, money service businesses, accountancy, legal, estate agencies, trust and company service providers, high value dealers and casinos have various legal obligations to consider.
Read about POCA and obligations you may have under the law.
VAT fraud
Missing Trader Intra-Community fraud, or carousel fraud, costs the UK several billion annually. VAT concessions on carbon allowances have also led to VAT fraud. While the frauds are carried out by organised gangs, businesses must take care to keep their VAT invoices, records and VAT numbers in order. It's important to keep complete records on file, in order to avoid becoming liable for investigation by HMRC.
If you suspect you're the victim of fraud, you should take steps to protect yourself. Read more about vetting business partners.
Fraudsters may also attempt to steal your business identity so you should consider how to protect your business identity against fraud.
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Protect your business identity against fraud
Different ways criminals can steal your business identity.
It is estimated that every year in the UK identity fraud costs more than £2.7 billion and affects over 1.8million people. Organised criminals attempt to steal the identity of honest businesses so that they can commit credit card and online banking fraud. ID scams are getting more sophisticated and harder to detect.
Report business document identity fraud.
IT attacks
Many attacks may come through your business IT system. Thieves may try to access usernames, passwords and credit card details through 'malware' such as computer viruses, worms, Trojans, spyware or adware. Read more about IT security.
Taking action to prevent fraud
Use these simple ways to protect your business against ID fraud:
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If your plastic cards are lost or stolen, cancel them immediately. Keep a note of the emergency numbers you should call.
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Be careful how you dispose of waste paper, particularly blank headed paper and financial correspondence.
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Tear up or shred statements, invoices to suppliers and signed correspondence that you no longer need.
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Never disclose or email financial details unless you're absolutely confident you know who you're speaking to or that the website you're using is secure.
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Sign up to the Protected Online Filing (PROOF) service, a free, secure online-filing scheme.
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Under the Data Protection Act, you cannot discard intact customer, staff, and supplier information, so you should be sure to shred this too.
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Don't take a great-sounding business offer for granted. Check the authenticity of the organisation through regulatory bodies.
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Be vigilant
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How to safeguard your IT against fraud
How to protect your business data and stay safe online.
Computer security takes three forms:
- physically protecting your hardware
- electronic protection
- educating yourself and your staff on social engineering attacks that can leave your systems vulnerable
Protect your computers physically
You should:
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hold regular equipment audits and track movement of computers
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keep computers in a locked room and secure your premises
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keep records of serial numbers and identification marks
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allocate responsibility for equipment to individuals
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establish measures to control use and movement of equipment
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mark your IT with postcodes or passive electronic-marking devices
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use a burglar alarm
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ensure that your staff take care of mobiles and laptop computers when using them away from business premises
Protect your computers online
You should ensure you have the right IT security installed and that staff understand security processes. You can take the following measures:
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put an IT Security policy in place
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limit your employees' access to information and restricting access to the level needed for each job
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keep your passwords and PINs safe and change them regularly
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use up-to-date anti-virus software
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install a firewall
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update all software with patches
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don't write down your password or other security information unless it's well disguised
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always take reasonable steps to keep your password and other security information secret at all times - never reveal it to family or friends
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always access internet banking by typing the bank's address into your web browser
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never visit a website from an email link to enter personal details - if in doubt, contact the bank separately on an advertised number
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check your bank's website for safety tips
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check your statement thoroughly
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look for a locked padlock or unbroken key symbol in the bottom right of your browser window before accessing the bank site - the beginning of the bank's internet address will change from "http" to "https" when a secure connection is made
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don't leave your computer unattended when logged in to internet banking
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wipe your hard drive before you sell or give away an old computer
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always have a disaster recovery plan in place and updated
Bank Safe Online sets out simple steps you can take to keep safe and provides updates on the latest scams. You can also report any suspicious emails or websites via the site.
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Vetting business partners
Protect your business against scams and frauds by checking your associates are safe to trade with.
Protect your business from crime and fraud, including money laundering, by checking your customers and suppliers. If a supplier or customer is reluctant to give you their details, it could be a bad sign.
If a business owes you money unlawfully or you suspect criminal activity, contact the Insolvency Service.
How to vet a company
You can check the details of another UK company on the Companies House website. For a fee, you can sign up to the Companies House monitoring system, which emails you every time a document is filed.
You can use the free company WebCHeck service.
To check a company abroad, ask for original documents of incorporation or for references from other companies.
You should check a new customer's credit. Ask for references, or use an international credit-checking agency. You can also assess crime risks in the countries you trade with.
You can check a new customer's international bank account number (IBAN) to make sure that the code numbers are correct.
You can also check VAT numbers for companies within the European Union (EU).
Agreeing secure methods of payment
You should also agree secure methods of payment. These include:
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payment on open accounts
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documentary collection where the supplier draws up a bill of exchange, specifying when payment will be made - the customer becomes legally liable for payment once they accept the bill
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documentary credit - customer arranges a letter of credit with their bank
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electronic funds transfer using secure means
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Install best-practice safety procedures against business crime
How to vet your staff and install safety processes in your business.
Unfortunately, businesses sometimes face risk of crime and fraud from their own staff. Some specialist industries in international trade - such as the aviation industry - require staff to be vetted.
Positive vetting is increasingly common and is a valuable safeguard against attacks from within your business. You should:
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check the identity and take up references of all new employees
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know your staff well enough to be able to spot financial pressures or alcohol and drug problems
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check staff frequently in purchasing and accounting departments - and supply-chain processes - where theft is most common
Read more about monitoring and security of staff.
Because of the information restrictions arising from the Data Protection Act, the police can't provide information concerning the criminal background of individuals. Ask your prospective employees to provide this information themselves.
Installing safety processes in your business is important to deter criminals. You should:
- create a best-practice code of ethics for staff and an IT Security policy and treat employees fairly
- use logical access controls - ie limit your employees' access to information and restricting access to the level needed for each job
- introduce business continuity plans and risk assessments for your IT
and treat employees fairly -
regularly review internal financial and stock control systems
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ensure your systems cannot be bypassed
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conduct random audits
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review your vulnerability to fraud and theft every six months
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keep your IT secure
- ensure that there is a clear separation of duties between staff involved in security, sensitive and financial work, eg to prevent one member of staff undertaking all the steps necessary to make a payment without supervision or authorisation
For organisations working in, or relying on, the logistics industry, certification to the international ISO/PAS 28000:2005 supply-chain management standard minimises the risk of security incidents during the delivery of goods and supplies. Read more about how to safeguard against crime in your supply chain.
It's important to work with reputable shippers. For air cargo, it's recommended that you work with registered air shippers or consignors.
It's also important to use reliable freight forwarders. Check if your UK freight forwarder is registered with British International Freight Association.
When shipping internationally, make sure that your foreign freight forwarder is a member of the International Federation of Freight Forwarders (FIATA), the world-wide equivalent of BIFA. Read more about using brokers and forwarders.
Some high-risk industries, such as banking, chemicals, excise trading, and freight transports, must comply with specific regulations and use approved premises. Contact your trade association for help.
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Safeguard against crime in your supply chain
Protect your transport and logistics against crime.
Criminals target high-value disposable goods such as alcohol, cigarettes, electrical goods, computers and designer clothing which they can sell easily on the black market. Road freight crime in the UK is on the increase - it is estimated that it costs the UK economy up to £250 million a year.
Vet staff
It's a good idea to vet your staff and pay particular attention to security staff - remember to include temporary workers. Check the identities of drivers who collect your goods. Read more about installing best-practice safety procedures against business crime.
Don't forget to ensure transport and security staff are well trained.
Bribery
The Bribery Act is in force in the UK. While bribery in business is already illegal and traders may have been subject to anti-bribery obligations abroad, the Act added a duty for businesses to protect or safeguard against accusations of bribery. For example, a firm can be held liable for failing to prevent individuals bribing others. However, the law makes clear that genuine hospitality or similar expenditure doesn't count as a bribe.
Insurance and asset recovery
You should make sure your business is properly insured against crime and fraud. Check your freight is properly insured. An agent or freight forwarder may be able to help you with this. Read more about using brokers and forwarders.
The standard international trade contract terms (Incoterms) will help clarify who is responsible for your goods at each step of the trading process. Read more about International Commercial Contracts - Incoterms.
Key security factors to consider
It's important to keep opportunities for crime on the premises to a minimum when moving goods. For instance, keep washrooms and social areas away from the main cargo depot or goods storage. Also, when you package goods, try to use a seal for each container. Your seals should be numbered and issued one at a time.
Safeguard your premises. It's a good idea to secure:
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the entry and exit points of your premises with gates
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perimeter fencing
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cargo storage areas
Log in the entry and exit of:
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empty containers
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full containers
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general goods
Key transport security factors
You should:
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inspect trucks, lorries and containers regularly
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inspect non-company vehicles and visitors' vehicles
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use registered freight carriers
If you discover crime in your supply chain, call the police. Read more about how to report a business crime or fraud.
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Understanding intellectual property crime
Ensure your intellectual property rights are respected.
Intellectual property (IP) is the collection of unique ideas, products or information that adds commercial value to your business. IP includes copyrights, patents, trade marks, industrial design rights, plant breeders' rights and plant variety protections and logos. Read more about intellectual property protection overseas.
Find information on the different types of IP protection.
Types of IP fraud
IP fraud is difficult to measure but steadily on the increase. It’s currently estimated at £9 billion in the UK alone. These illegal imports threaten the trade of legitimate UK businesses.
Current crimes include:
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importing illegal goods, such as counterfeit, pirated, or patent-infringing goods
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importing plants or seeds that infringe national or community plant variety rights
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imports that infringe designations of origin or geographical indications, for example 'Champagne' that is simply fizzy wine
There are many different types of IP crime - you can learn more about IP crime.
Unwittingly, some honest UK businesses commit IP fraud by buying goods from suppliers abroad who are infringing other businesses' IP rights. Importers must check that suppliers are legitimate and that their imports aren't infringing existing IP rights belonging to competitors. Read more about vetting business partners.
What to do if you suspect your IP rights have been infringed
Under European Union (EU) law, HM Revenue & Customs (HMRC) can protect your business' IP against illegal imports. With your help, officers from the UK Border Agency can identify, seize or destroy counterfeit goods. You should examine a sample of the goods and the suspected counterfeits may be tested and verified by a testing agency.
If you think fraudulent goods are arriving in the UK, ask HMRC for help. You can apply for customs action at the UK border.
Customs officers will also take action for you in two or more EU member states.
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How to report a business crime or fraud
The role of the police and crime-fighting organisations in international trade crime.
If you're under threat of fraud or if you become aware of a crime - whether against you or not - you should report it.
If a business owes you money unlawfully or you suspect one of its members of criminal activity, contact the Insolvency Service.
As a first step, call the local police. You can find contact details for your local police station.
Action Fraud is a central point of contact to call and get help if you have been a victim of fraud. Report a fraud online with Action Fraud.
The police can help with all types of international trade crime except fraudulent imports of intellectual property, in which case you should contact HM Revenue & Customs (HMRC). The police deal with the theft of goods, extortion, fraud, and the smuggling of drugs, excise goods and people.
You should then call your insurers without delay. Insurers, particularly those dealing with international trade, will provide you with valuable assistance and in many countries will work with the police to process your claim.
If you suspect you're the victim of organised crime, you should contact the police. If you're feeling intimidated, bear in mind the police are improving the way they protect victims of crime.
It's a good idea to contact your local trade association for crime-fighting advice.
If you're the victim of freight crime, you can contact transport trade associations for help.
Trade in some goods, including drugs, firearms, wildlife, weaponry and strategic goods, is restricted. Trading in some goods is illegal. You can view a list of banned and controlled goods.
If you suspect banned or restricted goods are entering or leaving the UK illegally, call the police. They have powers to seize goods and prosecute criminal traders.
Money laundering: how to make a Suspicious Activity Report (SAR)
If you suspect money laundering, submitting a SAR to the NCA means that you will be complying with the PCA 2002 or the Terrorism Act 2000.
A SAR alerts law enforcement officers that some of your client/customer activity appears suspicious and might indicate money laundering, terrorist financing or proliferation. Submitting a SAR provides valuable information on potential crime as well protecting you, your firm and UK financial institutions from the risk of laundering the proceeds of crime, terrorist financing or proliferation.
Obtain consent
Where persons or businesses have concerns about a proposed transaction or other business activity they plan to undertake in the future, the law provides a defence against potential money-laundering charges if they have first submitted a SAR asking the NCA’s UK Financial Intelligence Unit (UKFIU) for consent. Where consent is sought the NCA has 7 working days to respond. If consent is refused the transaction or activity must not proceed. Law enforcement action should take place within 31 calendar days of a decision to refuse. If it becomes clear at any time that this planned activity cannot be undertaken within the 31 days, the NCA will inform the reporter. Please note that the NCA’S consent to undertake the activity does not automatically mean the funds or the activity is not linked to criminality. Any future suspicion on the same client or activity should be considered on its own merits, and not set aside because the NCA granted consent to a previous submission.
Guidance and support
The preferred method for submitting SARs is via the NCA’s SAR Online system. The NCA also has a helpdesk to help you to submit SARs, available from 9am to 5pm Monday to Friday (excluding bank holidays). If you need help submitting a SAR, via SAR Online or by other means, please call UKFIU - SAR Control on Telephone: 020 7238 8282 and select option ‘3’ from the menu.
Sources of help and support in managing international crime and fraud
As a trader, there are several sources of information and practical support to help you safeguard your business against crime. As a first step, it’s a good idea to contact your trade association or seek advice from your freight forwarder or customs agent.
Prevent crime
You should try to keep up to date with the latest scams and stings. You can view fraud updates. You can also see the latest news on card fraud.
The key source of crime prevention, support and prosecution in the UK is the Police. You can find your nearest police force on the Police Information website.
Sources of help
If you’re the victim of international trading crime, key government organisations may also be able to help you. The Serious Fraud Office (SFO) investigates international fraud.
Action Fraud is a new UK point of contact to call and get help if you have been a victim of fraud. Report a fraud online on the Action Fraud website.
You can contact Company Investigations if you suspect serious misconduct, fraud, scams or sharp practice in the way a company operates.
The NCA’s statutory remit, as provided in its founding legislation, the Serious and Organised Crime and Police Act 2005 (SOCAP), consists of preventing and detecting serious organised crime and contributing to the reduction of such crime in other ways and to the mitigation of its consequences. The NCA’s strategic priorities as set by the Home Secretary are Class A drugs, organised immigration crime, non-fiscal fraud, cyber crime and firearms. The NCA is also working to target and recover criminal finances and profits generated by unlawful conduct.
The UK Financial Intelligence Unit is part of the NCA’s Strategy and Prevention Group and has national responsibility for the financial intelligence submitted through the Suspicious Activity Reporting regime.
Overseas Security Information for Business (OSIB) provides security related information to British business.
In Scotland and Northern Ireland, the Scottish Crime and Drugs Enforcement Agency and the Police Service of Northern Ireland will continue to exercise the functions they currently undertake in partnership with existing UK agencies.
HMRC is responsible for preventing and detecting illegal import and export of controlled drugs, the investigation of organisations and individuals engaged in international drug smuggling, their prosecution and identification of the proceeds of such crime.
HMRC works with the police and other agencies at home and abroad. The Maritime Branch is responsible for marine operations to detect and stop traffic by sea and for developing international cooperation in this field. The HMRC Law Enforcement division is also responsible for the management of the HMRC Drugs Liaison Officer network and for operational intelligence resources.
While traders may not deal directly with UK or EU organisations, key agencies are implementing plans to reduce trade and crime in international trade. Customs cooperate with each other, and the UK and EU has a dedicated police service, Europol. Shared laws and trade processes make this easier within the UK and countries of the EU.
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Advantages and disadvantages of using an overseas distributor
In this guide:
- Entering overseas markets
- Develop an export marketing plan
- Break-even analysis when exporting
- The different ways to enter overseas markets
- Advantages and disadvantages of opening an overseas operation
- Advantages and disadvantages of using an overseas agent
- Advantages and disadvantages of using an overseas distributor
- Finding and contracting with overseas agents and distributors
- Top tips for export success
- Entering new markets - BubbleBum (video)
Develop an export marketing plan
Use market research and trade visits to develop an exporting marketing plan.
It's essential to build a detailed export marketing plan, based on market research, for each of your overseas markets. Huge differences between markets and countries prevent the use of a 'one size fits all' approach.
Your export marketing plan should take into account your chosen approach to the market and your plans for logistics, order fulfilment, customer service and supplier management.
Export marketing plan considerations
Investigate your new market and how your product will fit into it. Consider the following questions:
- What's your priority - minimising potential costs or controlling the process?
- Do you have the market knowledge (and language skills) to make contacts and generate sales?
- Do you have the time and money to invest in setting up a local branch or subsidiary?
- Are there restrictions on the way you can enter the market? For example some countries may insist you form a joint venture with a local business.
- What is appropriate for your product? If it requires specialist after-sales support, selling through an intermediary may not be suitable.
- What are the usual distribution channels for products like yours in the target market?
Choose your target export markets
One of the key decisions you will make when exporting is choosing which markets to target. Trying to export to several different countries can be very expensive. Unless you tailor what you offer to suit each individual market, you may fail to offer what customers really want. Instead, it's usually best to focus on selling to one or two individual markets. See country guides: exporting to the EU and country guides: exporting to GB and outside the EU.
Read more about how to choose which export markets to enter.
Visit your target markets
Trade visits are organised visits to target markets. While they provide an excellent opportunity to research overseas markets, you can also use them to generate business.
Invest NI offers a range of services to help businesses going on trade visits to generate advance publicity in their target market. It also offers a range of other advice and financial support. Read more about the available support for exporting.
Research partners, logistics, and infrastructure
The distribution channels available for selling will vary between countries. There are several different ways to enter overseas markets.
Consider the following:
- How will you be paid by your overseas customers?
- Will the exchange rate be prone to excessive fluctuation?
- What's the communications infrastructure like?
- Does your target market have widespread access to telephones, faxes or the internet?
- Do you need UK freight forwarders experienced in your chosen market and product?
Read more about getting paid when selling overseas and transport options for moving your goods.
Communicate with customers abroad
As part of your promotion, you may want to communicate directly with customers in your export market. The choice you make will be defined by your budget and how effectively each method will reach the customers in your chosen market. Read more about the basics of advertising.
Alternatively, you may choose to buy in a database of potential customers from a direct mail agency. You should select the agency carefully to ensure you receive high-quality data. Read more about the basics of direct marketing.
Exporting marketing plan template
Download an export marketing plan template (doc, 162KB).
If you are importing, you will need to identify countries to trade with, as well as individual suppliers within those countries. You will also need to consider how you are going to manage overseas suppliers.
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Break-even analysis when exporting
Use a break-even analysis to determine how many products you must sell and at what price in order to make a profit.
A break-even analysis enables you to determine how many products you must sell and at what price in order to make a profit.
Your break-even point is when your business is producing enough revenue each month to cover all your fixed and variable costs.
Why is break-even important when exporting?
Conducting a break-even analysis lets you see what your minimum sales requirement is in order to avoid making a loss. This information can help inform your pricing strategy and help you understand how many products you will need to sell in any new market you enter.
By knowing where your break-even point is, you are able to establish:
- how many units you need to sell before you start to make a profit
- how much your sales can decline before you start to incur losses
- how reducing price or volume of sales will impact your profits
How to calculate break-even point
Break-even point is calculated using the following equation:
Break-even point = fixed cost / (sales price - variable cost)
When completing our break-even template you will need to input the following information:
- The profit you will be aiming for - make sure you consider what variable costs are involved in order to get your product to your chosen market.
- Your overheads - your overheads are your ongoing expenses when operating your business. These may include rent, mortgage or electricity payments.
- Your average unit price - this is the price you expect your customers to pay for your product.
- Labour costs - employee's salary.
- Material costs - tools, raw materials etc.
Break-even analysis template
Download our free Break-even analysis template.
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The different ways to enter overseas markets
An overview of your options for entering overseas markets.
When you decide to enter an overseas market, it's important that you identify the best approach for your business.
There are four main ways to sell to customers in overseas markets. You may find you need to use more than one entry strategy, depending on the markets you target and the products you offer.
Method of selling Description Selling directly from the UK This typically involves making periodic sales visits to the country, supplemented by telephone sales or accepting overseas orders on an e-commerce website. It can be a simple and cost-effective way to enter an overseas market. However, it may isolate you from your customers, and make you unable to share the exporting workload with partners or intermediaries.
Opening an overseas operation
This involves opening your own branch or subsidiary in the new market, or entering into a joint venture with a local business. Having a presence on the ground can be valuable, but setting it up and maintaining it may involve major resource commitments.
Using an overseas sales agent
A sales agent acts on your behalf in the overseas market, either by introducing you to a customer or by receiving commission on any sales to that customer. Agents are used extensively in the European Union and are protected from abusive business tactics by law. Ensure that you understand what you have agreed and seek legal advice on your agreement, as it's not advisable to operate without an agency agreement in place.
Using an overseas distributor
A distributor buys from you and then sells on at a higher price to their market and customers. They take full responsibility for the import of your goods. A distributor takes ownership of the goods and therefore can do with them as they wish, which means you must trust them with your brand.
Important considerations when entering overseas marketsThere is much more to exporting than simply generating overseas sales. An intermediary can help you with issues including customs and other paperwork, shipping, warehousing and after-sales service. Selling direct means you will have to handle these issues yourself.
Find out more about how to manage the risks of exporting.
When selling overseas, you can sell your product or service directly to customers or use an intermediary. You may decide a mix of these approaches is best for your business. There is no 'one size fits all' solution.
You should consider the implications of each method in terms of:
- the direct and indirect costs, such as investment in an overseas operation, or the heavy discounts often demanded by distributors
- how much control you'll retain over how your product is sold, and how much you'll need to delegate to partners or intermediaries
- which export-related risks you'll have to bear, such as exchange-rate movements, non-payment risks, longer trading cycles and delays due to documentation problems
An intermediary may be able to handle issues such as paperwork, shipping and warehousing. However, you will have less direct control. Selling directly may give you more control, but you will have to bear higher costs.
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Advantages and disadvantages of opening an overseas operation
A local office, subsidiary company or joint venture offers great flexibility.
Opening an operation in your overseas market is generally the most costly and time-consuming way to enter it, but the rewards can be great.
Local rules may restrict your options, but the three main ways to open an overseas operation are to set up:
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a local office - staffed by one or more of your employees
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a locally registered subsidiary company - a new business in the target market, subject to local company, employment and tax rules, and generally hiring some local staff
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a joint venture - partnering with a local business to set up a new business with ownership shared between you
Advantages of opening an overseas operation
A local office in this way gives you the chance to identify and exploit opportunities in your target market. It also gives you the flexibility to control your operation, and expand if necessary. There are other benefits:
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While intermediaries may opt for short-term sales, this way you can plan for the long term.
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Your customers will take you more seriously if you have a local base. This is particularly true if your products require specialist after-sales service.
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If you use a joint venture, you will be able to share the risk. You will also benefit from your partner's local knowledge and reputation.
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If you operate alone, all profits from the enterprise remain yours alone.
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A local subsidiary company offers limited liability if things go wrong. It is also easier to expand than a local office.
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It provides an opportunity to extend your intellectual property rights and registrations into other markets.
Disadvantages of opening an overseas operation
This option may require significant resources, and involves greater administrative and managerial burdens than other approaches to entering overseas markets:
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You will need to understand corporate, employment and tax law in the new territory, and use local specialists to help you.
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You may need to rebrand the business to attract local attention or if your existing business or product name has a different meaning in the new territory.
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Costs will be high if things go wrong.
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You have to take all the risks yourself (if you don't work with a local partner). These could include non-payment or regulatory compliance problems.
There are important legal and financial implications involved in setting up an overseas business. You should take advice from your solicitor, accountant or business adviser, as well as from similar professionals in the target market.
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Advantages and disadvantages of using an overseas agent
An overseas sales agent can be a low-cost option, but you need to choose carefully.
A sales agent acts on your behalf in the overseas market by introducing you to customers who you supply and invoice direct. They are paid a commission for any sales they make ranging between 2.5% and 15%. The key benefit of using an overseas sales agent is that you get the advantage of their extensive knowledge of the target market.
While there are clear benefits, agency relationships can also have downsides.
Advantages of using an overseas agent
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You avoid the recruitment, training and payroll costs of using your own employees to enter an overseas market.
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An agent should be well placed to identify and exploit opportunities.
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Your agent should already have solid relationships with potential buyers - it might take you some time to build up your own contacts.
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Using an agent allows you to maintain more control over matters such as final price and brand image - compared with the other intermediary option of using a distributor.
Disadvantages of using an overseas agent
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You remain responsible for shipping and other trade-related logistics - although your agent should be able to help.
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You need to specify in an agent's contract if you need them to credit check your customers for you.
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Arrangements must be made to allow access to your sales ledger as part of the commission payments process.
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After-sales service can be difficult when selling through an intermediary.
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You may lose some control over marketing and brand image, compared with entering the market yourself.
Read more about finding and contracting with overseas agents and distributors.
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Advantages and disadvantages of using an overseas distributor
Distributors take on many of the risks and burdens of trading overseas, but they expect heavy discounts in return.
A distributor buys your goods from you and then takes full responsibility for selling them on in the overseas market. While the role of a sales agent is to find you customers, a distributor is your customer.
Advantages of using an overseas distributor
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The main advantage of using a distributor is simplicity. Distributors enable you to access international markets while avoiding logistics issues and many trade-related risks.
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The distributor is usually responsible for the shipment of goods, and the accompanying customs formalities and paperwork.
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If you sell to a UK-based distributor, you avoid currency-related risks.
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It would be easier for a distributor with an established reputation and contacts list to introduce a new brand to the market than it would be for you.
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Distributors generally spend on marketing to support their sales effort, although they will sometimes expect you to make a financial contribution.
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A distributor will often offer credit facilities to potential customers.
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Many distributors carry a stock of the products they sell - so they buy in bulk, and take care of warehousing and inventory control in the overseas market.
Disadvantages of using an overseas distributor
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In return for taking on your trade-related risks and burdens, distributors will expect heavy discounts and generous credit terms from you.
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You may lose control of the way your products are marketed and priced.
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If you use a sales agent, you can use the commission structure to motivate them - there's no similar mechanism with a distributor.
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Distributors often demand a long period of exclusivity, so you need to be sure that you choose one that has experience selling your type of products and has customers for the kind of goods you sell. Read more about finding and contracting with overseas agents and distributors.
It's important to seek advice from your legal adviser before concluding a distributorship agreement.
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Finding and contracting with overseas agents and distributors
Make a shortlist of intermediaries and compare what they can offer you and how well each is run.
Make sure you conduct research before selecting an agent or distributor. Draw up a shortlist of at least three, then carefully compare what each can do for you.
Where to find agents and distributors
There are many organisations that can help you with your search, including:
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trade associations covering your sector
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membership bodies for businesses trading between the UK and your target country
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major banks - these have trade teams which may be able to help
You may also have the opportunity to join trade visits or attend exhibitions in your target country.
Choosing which intermediary to work with
The most important thing to establish is that an agent or distributor has proven experience in your target market. But there are many other factors to consider:
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Are they well located, with the geographical coverage you need?
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Are they well established in the market, and how do they compare with their own competition?
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Look at the product lines they currently sell - will your product fit in well?
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Ask about their strategy for the next five years - does it fit well with your objectives in the market?
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How large and experienced is their sales team? Is it well managed and given effective incentives?
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Can they provide you with market research to feed into your sales forecasts?
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Do they have the warehousing, servicing and other facilities you're looking for?
It's also important to look into their financial standing to ensure you're dealing with a reputable business that can be relied upon to pay you. This can be more difficult with overseas businesses, but it may be possible to conduct a status query through your bank.
International contracts
Make sure any agreement with an agent or distributor is formalised in a clear written contract. It's worth seeking expert advice - eg from a lawyer with trade-related experience or your local UK Trade & Investment team. Make sure you are satisfied with every part of the contract. Read more about getting paid when selling overseas.
Key contract points to consider include:
- Parties - the names and addresses of the businesses involved, and the nature of the relationship, eg agency or distributorship.
- Products - a clear description of your goods.
- Territory - the geographic area within which the agent or distributor will sell your goods.
- Exclusivity - will they have sole rights to sell your goods? If not what are the exceptions? Can they pass their job to a third party?
- Transport - whose responsibility? Your obligations should be clearly set out in a written contract using Incoterms 2020.
- Pricing - what price will you receive from a distributor for your goods? What price will an agent charge their customers?
- Commission - what commission will an agent receive?
- Payment terms - when will payments be made, in what currency, and at what exchange rate?
- Period - set a termination date for the agreement, and include clear provisions for ending the agreement before that date.
- Confidentiality - make sure that sensitive information about your business or products is protected.
- Intellectual property - what rights will the agent or distributor have to use your business name, brand names, trade marks etc? Read more about intellectual property protection overseas.
- After-sales care - for example, product liability, insurance and warranties. Who is responsible at each stage of the trading process?
- Marketing - what promotional activities will support your products and who will pay for them?
- Jurisdiction - which country's rules will apply to the contract?
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Top tips for export success
The following top tips will help you to get the support you need to begin exporting.
Before you make your first move into an overseas market, it's essential that you get the best advice and support for your specific business. This will increase your chances of export success. There is a range of support available to new and established businesses to help you start trading successfully outside Northern Ireland.
1. Register for training programmes: Training programmes and seminars provide an opportunity to get a feel for the potential of overseas markets. There is a range of export training and support available for you to access including:
- Going Dutch
- UK Export Academy
- InterTradeIreland Digital Sales Support
Read more about export training programmes.
2. Get in-market support: Once your business decides on your chosen market, there are numerous schemes to provide ongoing support:
- UK Tradeshow Programme
- Invest NI Trade Advisory Scheme
- Department for Business and Trade (DBT) in-market support
Read more about in-market support for exporting.
3. Do your research: It's important to know which markets offer the best fit with your business so that you can effectively target your export activity. Focused market research will increase your chances of successfully selling into markets outside Northern Ireland. Research support includes:
- Invest NI Business Information Centre
- Enterprise Europe Network
- InterTradeIreland Acumen programme
Read more about research support for exporting.
4. Get advice: There are several sources of advice for businesses in Northern Ireland wanting to trade overseas:
- Invest NI workshops, Export Development Service, Legal advice, translation services
- NI Chamber Export Documentation and Chamber Connections
Read more about advisory support for exporting.
5. Search for opportunities: Having knowledge of specific products or services that are in demand outside Northern Ireland, and keeping up-to-date on the latest contract opportunities, can help boost your business performance and profitability. You should consider:
- Invest NI Tenders Alert Service and tender guides
- NI Chamber Connecting for Growth
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Entering overseas markets
Entering new markets - BubbleBum (video)
Grainne Kelly, CEO and Founder of BubbleBum explains how they enter new markets.
BubbleBum is the maker of the world's first inflatable car booster seat for children. Their award-winning seat fits into a bag or glove compartment and is sold in over 20 countries.
CEO and Founder, Grainne Kelly explains the preparation needed when planning to enter new markets. She details the support they receive to help achieve this. Grainne also shares her experience of the challenges and benefits that breaking into new markets brings.
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Carrying out and commissioning research on overseas markets
In this guide:
- Researching export markets
- Advantages and disadvantages of researching export markets
- Researching export markets online
- Researching customers and markets abroad
- Conducting in-market export research
- Research product and packaging changes for export
- Top tips for conducting export market research
- Carrying out and commissioning research on overseas markets
- Researching export markets – Genie Insights
Advantages and disadvantages of researching export markets
The benefits and potential drawbacks of researching export markets before selling to them.
Researching potential export markets before you commit to entering them is a logical step but there are things to consider before you start.
Advantages of export market research
There are a number of benefits to undertaking market research before you enter new overseas markets, these include:
- spotting trends
- minimising risk
- identifying threats and opportunities
Disadvantages of export market research
There can be potential drawbacks to conducting market research, these may include:
- the expense of accessing expert information
- outdated information leading to bad decision-making
- it can be time-consuming
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Researching export markets online
Ways of conducting online research on export markets.
Conducting thorough online research can help you pull together valuable information which can be crucial to your export planning. It will help inform your decision making in a timely and cost-effective way.
Researching potential overseas markets online can help you:
- assess market potential
- find customers
- analyse your competition
- assess market barriers and risks
- find the best routes to market
Read more about the things you should consider when trading with the EU and when trading with GB and countries outside the EU.
Business risk reports
Read the Overseas Business Risk reports for information on political instability, terrorism, crime, corruption, human rights issues and intellectual property risks.
EU Market Access Database
You can check the EU Market Access Database to research a country's duty rates and licensing rules.
Check whether EU wide technical rules or national rules apply if you're sending goods within the EU. If technical rules or national rules apply, you can get advice from the product contact point for that country.
Invest NI Business Information Centre
The Invest NI Business Information Centre provides free access to market research, company databases, and other business information to help local companies develop their markets, identify export opportunities and find new customers.
The Centre is located at Invest NI's office in Belfast. The wide range of business information includes:
- trade and business journal collection
- details of trade fairs
- worldwide country profiles
- tenders information
- guidance on import/export procedures and business agreements
To access this information, call the Invest NI helpline on Tel 0800 181 4422.
Tenders Alert Service
The Invest NI Tenders Alert Service allows you to identify local, UK and European contract opportunities from a wide range of public sector organisations via a daily email alert service. It also has information about selling to the government - it has compiled a NI Councils Procurement fact sheet giving contacts for buyers and brief data on how they buy goods and services.
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Researching customers and markets abroad
Research overseas markets, consumers and countries to make informed decisions about your business.
When researching overseas markets, you will need to identify your potential customers and their needs, by considering the following factors:
- Who will buy from you? Each marketplace is different. For example, you may find that your overseas customers are in the public sector, while those in your home market are small businesses.
- What influences customers' purchasing decisions? This could include culture, age, gender and many other factors.
- Why do customers buy from you? Consider what you need to know about your customers' needs.
- What price can the product profitably sell for? This will influence your pricing and marketing decisions.
Read more about how to create customer personas.
You need to establish:
- Size of your potential market - this could be limited by population, cultural or economic factors.
- Politics and economics - an unstable political climate or unfavourable trading conditions can make exporting risky.
- Culture - this may affect your selling proposition. Investigate any barriers to your product's success. Will your product be valued the same as at home? Will your customers have the same reasons to buy it?
- Language and etiquette - can you market your product effectively in the local language? Will you have access to professional translators and marketing agencies? It is important to communicate effectively and understand cultural differences.
- Safety and security - the risks presented by local terrorist activities as well as the global risk of indiscriminate terrorist attacks. Also, the level of crime in the target market. Read more about overseas business risk.
- You can also find travel and security information in your target market.
Support for researching other countries
When researching potential countries to sell to, you can find information from the following:
- Invest NI support for selling outside Northern Ireland
- The Department for Business and Trade support for planning entry into new overseas markets
- Search for commercially available research from Market Research World
- Trade visits provide valuable first-hand experience
Invest NI Graduate to Export programme
The Graduate to Export programme from Invest NI aims to help Northern Ireland companies with their growth plans by providing them with support to employ a graduate for up to eighteen months to take forward a market research project that targets a specific overseas market. Read more about the Graduate to Export programme and its eligibility criteria.
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Conducting in-market export research
Ways of conducting in-market research on export markets.
Once you have gathered enough information through online research to help you choose appropriate markets for your product or service, you should then conduct some in-market research.
Visiting your target market will allow you to gather specific information on the market for your product or service. You could also visit a trade show or conference, or participate in a trade mission. The data you gather in-market should be accurate and up-to-date.
Overseas Market Introduction Service
The Overseas Market Introduction Services (OMIS) is a chargeable service offered by the Department for International Trade through its network of staff in overseas embassies and consulates. It can be commissioned and managed online. OMIS offers:
- bespoke market research, sector advice and market entry strategies
- support during overseas visits
- identification of possible business partners
- help to prepare for exhibitions, events and trade fairs
Contact an International Trade Adviser (ITA) to find out about OMIS. Your ITA can help with advice on all aspects of exporting.
Trade Advisory Scheme
The Trade Advisory Service provides businesses with tailored export consultancy from Invest Northern Ireland advisors based in overseas markets. For information on the Trade Advisory Scheme call the Invest NI Business Support helpline on Tel 0800 181 4422.
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Research product and packaging changes for export
Adjusting your product to comply with law overseas.
You may need to adjust your product or its packaging to comply with local laws and regulations. For example, there may be specific health and safety standards in your target country that differ from those in the UK. It is your responsibility to make sure you comply - and errors can be costly.
You may need to adjust your product or operational set-up to comply with local laws.
You should investigate:
- local export legislation and technical regulations
- certification and testing requirements
- local standards affecting your existing and future products
- product liability
- quantities and units
- patents and trade marks
- staff qualifications
Find out about the Invest NI support available for exporters.
You may need detailed information on international aspects of standards, accreditation and measurement infrastructure, including more specific facts and figures for a number of countries. You should also be aware that your product may need an export licence, or be subject to import duty and sales tax outside the European Economic Area.
The British Standards Institute (BSI) international projects department can help you deal with technical barriers to trade including any regulatory issues you might face.
Read more about how to make your product packaging effective and how to package food for export or import.
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Top tips for conducting export market research
Five top tips to help you conduct your export market research.
Researching your potential customers, competitors and the trading environment in your target overseas markets, you will increase your chance of success.
The following tips will help you successfully research your export markets before committing to entering them.
- Use online databases to investigate the demand for your products in new markets as well as if the market share is there - read more about researching export markets online.
- Consider visiting the markets. Visit your target market to gather specific information on the opportunities for your product or service - read more about conducting in-market export research.
- Get help - Before you make your first move into an overseas market, you should seek expert advice and support. Find out about the available support for exporting.
- Confirm the reliability of your data with multiple sources.
- Research the laws, legislations, taxes and trading standards in the countries you're hoping to trade in - view a range of exporting country guides.
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Carrying out and commissioning research on overseas markets
Undertaking market research in overseas export markets.
Market research is available from government agencies and commercial organisations.
Conduct your own market research
You can conduct research using media sources, such as newspapers, trade journals and the internet, and get information by networking with experienced exporters. Your trade associations may be able to help you with contacts. For many small businesses, the best approach is to visit the market and spend some time interviewing a range of people. Read more about how to develop an exporting marketing plan.
GOV.UK produces 'sector in-country' reports for many markets.
Commission market research
You can commission a market research agency to investigate your overseas market on your behalf.
Decide whether you want to use a UK-based agency or a local one. A local agency may understand your potential customers better and will be able to access the necessary information more easily. You should select your agency carefully, and check that their proposal shows that they understand your needs.
State what you expect to find out from your research in a clear brief. This should specify your aims in commissioning the research, and the timescales and presentation you want. Describe your business and product, state the information required and the geographical scope.
Access published market reports
You can also buy reports on some overseas markets.
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Researching export markets
Researching export markets – Genie Insights
Matt Reeve, Director of Genie Insights, explains how the business researches export markets.
Genie Insights provides complementary products and services to the transport and logistics industry. Their two primary divisions are fleet management software and solar solutions for commercial vehicles.
Matt Reeve, Director of Genie Insights, explains how the business researches export markets.
Export markets
"Until recently, our main customer base was within the island of Ireland, when we were solely supplying our fleet management software and offering other related consultancy services. However, in 2020, we moved into the supply of physical products (solar panels), which have a much broader scope for export."
"Our primary export market for our solar solutions is currently Great Britain, but we have started to move into some of Europe, specifically the Republic of Ireland, the Netherlands, Poland and Scandinavia."
Conducting market research
"When we first added solar panels to our business, we were a small team competing against businesses with larger sales teams. So, we had to devise a different approach that would allow us to punch above our weight. Instead of selling directly to the market, we built strategic distribution partnerships with original equipment manufacturers (OEMs) to supply our product. Although we had less control over the direct-to-market sales, we could leverage the OEM’s larger sales teams to get our product into the market."
"For our software product, we have used industry-specific databases that have given us the ability to prioritise potential customers based initially on fleet size. From there, we can then complete online research to find out more. As well as company websites and social media profiles, we’ve found it useful to search for companies in the news or industry trade journals, as you can often find quotes in articles from the relevant decision-maker."
"For our solar division, most of our relationships have been built via personal connections. As we roll out a new product for a specific application, we have sought to align ourselves with the market leader in the industry sector."
Advice and support
"We are very grateful to have received support from Invest NI to assist us with some of the costs of the in-market research. This has been via the Growth Accelerator Programme (GAP) and the ‘Going Dutch’ programme."
"The GAP has provided financial assistance to support the cost of travel to export markets to meet with potential partners. We launched our solar division during COVID so most of our sales activity was established via remote online meetings. Once travel restrictions were lifted, it was invaluable meeting people face-to-face to better build the relationships."
"The GAP has also supported attendance at various trade shows – there’s no better way to get face-to-face with potential distributors and customers."
"The Going Dutch programme went even further – Invest NI’s team conducted research and set up appointments for us before our market visit. Following the initial market visit, we now have a sales agent in the Netherlands."
"But perhaps the most significant impact Invest NI has had on our business has been the Key Worker Salary Grant. A contribution towards an employee's salary has helped us to bring on additional much-needed resources."
"Our export growth has been steady over the past few years. Between 2019 and 2023, our sales outside NI grew from 42% to 94%. This activity is still heavily focused on GB as our largest export market, but sales to the EU are increasing year-on-year. By the end of 2024, we anticipate EU sales will exceed 10% and may see sales into further new markets."
Business challenges and successes
"The only way to be effective going into a new market is to understand what you are getting yourself into. Insights from market research can guide product development, assess competitor activity and identify appropriate target customers. This approach helps you go into a market with a clear understanding of how you should be positioning your offering and who you want to sell to."
"Having a more strategic approach to market development has been a lesson for us. In the earlier days, we were guilty of trying to design products to suit all market applications simultaneously, but we quickly realised that we didn’t have the resources to do that. When we re-focused and concentrated on researching and launching one product application to one market segment at a time, everything became more manageable. Because we put most of our time and energy into researching and delivering for one market initially, we could more quickly dominate that market before moving on to the next application and the next to replicate the model.
"Having to ship a physical product abroad is still challenging today, particularly when despatching it to a new market for the first time. We have sought advice from a company specialising in customs arrangements when we’ve needed it."
Case StudyMatt ReevePrimary parentContent category
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