National Clearance Hub responsibilities
In this guide:
- National Clearance Hub
- National Clearance Hub responsibilities
- How declarations are processed at the National Clearance Hub
- Queried entries to the National Clearance Hub
- National Clearance Hub entries subject to Route 3 post-clearance profiles
- Further National Clearance Hub documentation requirements
- Importation of motor vehicles using the National Clearance Hub
- Contacting the National Clearance Hub
National Clearance Hub responsibilities
National Clearance Hub processes import and export declarations according to service level guidelines
The main responsibilities of the NCH are:
- processing all import and export entries selected for further checks
- inputting manual import and export entries
- inputting manual requests for export arrival and departure loading information
- controlling un-entered goods for inventory linked ports and airports
- authorising and amending inventory records and removals
- the control of goods imported under specific import regimes
Service levels you can expect from the NCH
The NCH aims to clear all Direct Trader Input (DTI) Route 1 entries within two hours from the time of receipt. For pre-lodged entries, the NCH aims to clear within two hours of the vessel or aircraft's arrival. These times depend on all the relevant paperwork being presented, complete and correct.
Route 1 entries are dealt with in the order that they are presented at the NCH and no priority is given to specific locations or type of goods, including perishables.
Goods that require exceptional treatment are:
- fireworks and explosives
- live animals
- human remains
When sending these entries to the NCH, you should show clearly what the goods are Trader Submission header form you send.
Read more about declarations and the Single Administrative Document.
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How declarations are processed at the National Clearance Hub
Direct Trader Input imports and National Export System declarations submitted to the National Clearance Hub
The procedures for Direct Trader Input (DTI) import and National Export System (NES) declarations are outlined below. Read about how to register for the National Export System to make an export declaration.
You must submit certain documents for clearance and/or examination to HM Revenue & Customs (HMRC) when you are moving goods under either DTI or NES. Read more about contacting the National Clearance Hub.
Documents to be provided for clearance
When you receive Customs Handling of Import and Export Freight (CHIEF) generated form E2 advising that an entry for your goods has been selected Route 1 for documentary check, Route 2 for physical examination or Route 0 you must send the National Clearance Hub (NCH):
- the E2
- a copy of the Single Administrative Document - form C88
- evidence of the goods' value
- packing list of items included
- any appropriate licence or certificate
You can send this information by fax or email and it must be accompanied by an appropriate Trader Submission header form.
Use a separate header for each entry - even where a number of declarations are submitted at the same time. There may be delays to clearance if the appropriate header isn't used.
If you wish to submit declarations electronically you should use e-versions of the same headers. These must show the CHIEF generated entry number on the 'subject' line.
The NCH can receive popular file formats such as JPEG, TIF and PDF files. If you want to use compressed images or non-PC files, you should send a prearranged test email to check that the scanned documents are compatible with HMRC software.
Multi-item entries or multi-importer/exporter entries
HMRC is keen to ensure that the minimum amount of paperwork is submitted to the NCH for clearance to take place. When an entry that has multiple lines is selected for Route 1 or Route 2, contact the NCH enquiry point to determine what paperwork needs to be faxed or emailed for clearance.
Evidence of value
It's your responsibility to fax or email enough copy documentation to provide 'representative evidence' for the value of the total consignment.
When submitting multi-invoice entries you should fax or email all the invoices relating to the entry, or complete HMRC's example invoice summary form.
You will be advised via the CHIEF system if further documents are needed for clearance.
Packing lists
Where an entry is accompanied by a number of packing lists, you can schedule these using an amended version of the HMRC example invoice summary form and fax or email the schedule to the NCH with all other appropriate documentation.
Receipts
You will receive an automatic delivery receipt for email but not for fax submissions.
Pre-lodgement entries
This is the posting, faxing and/or emailing copies of the (accepted) hold import entry and any supporting documents to the National Clearance Hub, post pre-entry but pre-arrival of the vessel/goods into the UK.
Pre-lodgement of expected Route 1 and Route 2 entries and any supporting documents by fax, post and/or email at the NCH will be limited to five actual days prior to the expected/scheduled arrival of the vessel/goods. This period includes weekends and bank holidays.
Pre-lodgement is only provided by HMRC to enable importers/agents to lodge their accepted hold entries which they know, or honestly believe, will be allocated a Route 1 or Route 2 status. This means that the NCH no longer accepts and/or actions large amounts of unsorted pre-lodged entries, many of which ultimately proved to be Route 6 ones.
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Queried entries to the National Clearance Hub
Procedure when the National Clearance Hub has a query about an import or export entry.
If you used the CHIEF system
The National Clearance Hub may query a declaration that has been selected for a check. You should respond to this query through the method you used to submit your declaration.
This makes sure the National Clearance Hub know the query has been answered and should prevent delays. If you do not respond through the method you used to submit your declaration, there will be delays to your clearance.
If a query means that you need to change a declaration, you must submit a copy of the amended declaration.
If your declaration has been amended and has a Route 3 ICS22 status. HMRC must manually clear the goods. You will need to complete your declaration the same as a Route 1 declaration and you should submit documents about your goods to the National Clearance Hub. You’ll need a separate header for each declaration if you submitted by email.
If you used the Customs Declaration Service
If a query is raised by the National Clearance Hub about your goods the query will be sent to your secure inbox on the online service, which is accessed from upload documents and get messages for the Customs Declaration Service.
Responding to queries through the secure 2-way messaging should prevent any delays which would occur if you do not reply.
If you need to change an import declaration following a query, then you will need to send an amendment to change your declaration.
If you need to cancel an import entry declaration you need to request cancellation with reason for request for the National Clearance Hub to approve.
This does not apply to Pre-Lodged declarations that have not been arrived.
If you need to change an export declaration following a query, you must check with your software provider that they have the functionality to allow this. If your provider cannot do this, you will need to cancel and resubmit your declaration.
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National Clearance Hub entries subject to Route 3 post-clearance profiles
ICS22, ICS00/ICS25, pre-lodged entries, and record keepingVarious procedures apply after submission of entries.
Uncleared Route 3 entries ICS22
Where a Route 3 entry has been amended and becomes an ICS22 status on the Customs Handling of Import and Export Freight (CHIEF), HM Revenue & Customs (HMRC) must clear the release of the goods. The entry is treated the same as a Route 1 entry and you should fax the entry form to the National Clearance Hub (NCH) with the appropriate header sheet for action. You must include an appropriate header and provide a separate header for each entry. There may be delays to clearance if an appropriate header isn't used.
Route 3 entries ICS00/ICS25
All original import Route 3 entry documentation must arrive at the NCH for post-clearance action within three working days from the date and time of clearance. This time limit does not apply to pre-lodged entries. A freepost service is available to assist in meeting this requirement. Read moer about contacting the National Clearance Hub.
For bulk EUR1s, ATR1s and GSP certificates, you should send the original document with the first Route 3 entry. Subsequent Route 3s should be accompanied by a copy of the appropriate preference certificate. Box 44 of the entry should show the entry number to which the original has been attached.
You should only send export Route 3 original documentation to the NCH if there is a copy 3 that requires stamping.
You should use A4 envelopes if possible and Route 3 entries should be sent to the NCH each day. Entries received will be audited and there are penalties for not complying with these requirements.
Non-presentation of entries
The NCH will undertake regular checks to ensure that all declarations subject to Route 1 and/or Route 3 profiles have been presented as required. There are penalties for regularly failing to submit entries.
Retention of records
All original Route 1 entries and any supporting documents submitted, processed and cleared by fax or email at the NCH are to be retained by the trade for four years. This also applies to Route 6 declarations. This includes originals of fax/email copy entries and supporting documents submitted to the NCH for customs input.
In this context 'the trade' means the:
- third party making the declaration - usually a customs agent - as a direct or indirect representative
- importer or exporter where the declaration is made under self representation
Documentary evidence may be stored electronically if a copy of the original document can be reproduced from it. Documents that contain original stamps or watermarks, eg preference certificates, must be retained as paper copies.
HMRC will keep original entries and supporting documents only if they have been pre-lodged with the NCH for clearance.
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Further National Clearance Hub documentation requirements
Documents needed for manual submissions, known as Customs Input EntriesCustoms Input Entries (CIE)
You can fax, email or post copies of entries and supporting documents to the National Clearance Hub (NCH) for customs input, processing and clearance.
You will need to provide the NCH with:
- a fully completed Single Administrative Document - form C88
- evidence of the goods' value
- packing list of items included
- any appropriate licence or certificate
When sending entries, you should use an appropriate header, clearly marked 'CIE imports', to avoid delays to clearance. For more information, you can contact the NCH Enquiry Line on Tel 03000 588 453 or see how to contact the National Clearance Hub.
The NCH will return any queries or entries requiring amendment by email, fax or post.
The NCH processes CIE requests between 09.00 and 17.00 Monday to Friday, excluding public holidays. It aims to clear all CIE Route 1 entries within 12 working hours from the time of receipt - provided all the relevant paperwork is presented, complete and correct.
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Importation of motor vehicles using the National Clearance Hub
Documentation you should submit when importing motor vehiclesHMRC no longer issue C&E 386 and C&E 388. After all the checks are complete and satisfied, the importers details are placed on Notification of Vehicle Arrivals (NOVA). The Service Level Agreement on cars is 3 working days. The NCH is a processing office only and doesn't give general advice about importing motor vehicles.
For general advice on importing motor vehicles contact the HMRC VAT Helpline on Telephone: 0300 200 3700.
Forms required to import vehicles
You will have to submit specific forms when importing a vehicle. The form needed depends on your reasons for importing the vehicle.
If you are a private importer paying VAT/duty you must submit:
- form C 384
- a copy of the customs entry and invoice
- any other available supporting documentary evidence of the sale
- form C&E109 Import and Export: private motor vehicle application for release for conditions of relief is required if there was no custom declaration instead of a C384.
If you are an importer using transfer of residence (TOR) procedures you must submit:
- form C 104A
- a copy of Customs overseas entry registration form
- any other supporting evidence to justify TOR relief, eg overseas insurance documents or the invoice from overseas purchase
- C104A application for transfer of residence - this document can be downloaded or alternatively you can order it from Telephone: 0300 200 3700
- proof of residency, an official/commercial document which shows clearly that the importer declared on form C104A and form C21 Import and export: customs clearance request was living abroad for at least 12 months prior to the date they became resident in the UK, eg a utility bill, bank statement etc
- proof of ownership for the vehicle, an official/commercial document which shows clearly that the importer declared on form C21 and form C104A has owned and used the vehicle abroad for at least 6 months prior to the date they became resident in the UK, eg insurance documents, title document etc
Importers must have lived outside the European Community for 12 months and have owned the vehicle for six months.
If you are an importer claiming returned goods relief (RGR) you must submit:
- form C 179B
- a copy of customs entry certificate
- the vehicle's export certificate
- the vehicle's overseas registration document
- any other supporting evidence of eligibility for RGR
Importers must have owned the vehicle prior to exportation and must re-import it within three years. You must also be able to provide documentary proof of these facts.
The NCH does not issue documents for VAT-registered traders, who should now input the details onto NOVA or alternatively contact Dover Personal Transport Unit (PTU).
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Contacting the National Clearance Hub
Contact details for the National Clearance HubFor general enquires regarding import, export, international trade and the National Cearance Hub (NCH) please contact the HMRC Customs and International Trade Helpline on Telephone: 0300 200 3700.
You can also contact NCH using an online form, webchat or by post. Contact the National Clearance Hub.
Complaints
If you have any complaints regarding the NCH you can contact them by email: noscomplaintsteamgrimsby@hmrc.gov.uk or by Telephone: 0300 200 3700. If you wish to send a complaint by post the address is:
Freepost RTGR-LSCG-LTJS
HM Revenue and Customs
National Clearance Hub
Ralli Quays
3 Stanley Street
Salford
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How to safeguard your IT against fraud
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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Understand common types of fraud in international trade
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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Trade imports by post - how to complete customs documents
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
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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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Negotiate the right import deal
Plan your import objectives
Setting goals and deciding your import objectives.
Before you start importing, it's a good idea to be clear about what you are trying to achieve.
Establish your import objectives
You might want to:
- find a cheaper source of supplies overseas
- import products that aren't yet available in the UK to sell to your customers
At the same time, importing should fit in with your overall business strategy. For example, importing low cost goods might be part of a cost-control strategy, but you want to be sure that this does not compromise your reputation for quality.
How much time, money and effort should you invest in importing?
It's worth thinking about how much time, money and effort you want to devote to setting up and managing your importing activities. You are unlikely to want to invest heavily for a small, one-off import. But if importing is going to be an important part of your business, you might be prepared to spend more on finding the best suppliers, building relationships and so on. Read more about what importing involves.
You also need to decide how much involvement you want to have in the import process. Importing can be fairly straightforward if you only deal with experienced suppliers who handle most of the paperwork and logistics, and get help from an import agent. On the other hand, dealing with less experienced suppliers and handling more of the process yourself could be more time consuming but also more profitable. Read more about how to decide your approach to importing.
Whichever approach you choose, you should ensure that all the key people in your business agree and are committed to it.
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What does importing involve?
Dealing with suppliers, controlling risk, handling import paperwork and foreign currencies.
Importing goods from overseas suppliers involves all the same issues as purchasing from suppliers in the UK. It's up to you to establish what you require, and find the right supplier. Check the supplier is creditworthy and can meet your quality standards. You'll want to check the supplier's subcontractors as well.
You'll need to negotiate deals and manage the relationship. All of this can become more complicated because of the distances involved and different languages, business cultures and legal environments. Read more about managing overseas suppliers.
Check that any goods will suit your production processes and satisfy customer demands. There are also extra issues to consider, such as whether imported goods meet UK legal requirements or require an import licence.
Resolving problems - such as incomplete deliveries - can be difficult, so it's important to plan ahead. For example, you might decide to hold extra stocks so that you don't run out even if a delivery is late or contains faulty goods.
Logistics and payment when importing
There are also practical issues to consider. Depending on the contract you agree with your supplier, you might be responsible for clearing goods through UK customs. You might also need to arrange some of the transport and insurance, eg from a UK port to your premises. Draw up a clear agreement setting out each party's responsibilities and who is at risk if goods are delayed, damaged or lost while being delivered.
Allow for of the extra costs involved, including transport, insurance and import duties and taxes. Whether you pay these directly, or through a mark-up added by your supplier, they can significantly increase the overall cost of imported goods.
Payment issues can also be more complex, particularly if you are dealing in a foreign currency. Read more about foreign currency and exchange risks.
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Assess your skills and resources for importing
Finances, personnel and other resources for importing.
Importing requires special skills and extra resources. Before you start importing, you should assess whether you have the right skills and resources and decide how to cope with any shortcomings.
You need to understand UK customs procedures and ensure you have the right paperwork when deliveries arrive in the UK. International trade often uses payment methods, such as letters of credit, that require an understanding of payment documentation. If you agree to pay in a foreign currency, you also need to be able to handle foreign exchange. You will probably need new administrative systems to track deliveries and payments and manage the paperwork.
If you do not have the skills in house, you may want to invest in training. Or you could use someone else - such as an import agent - to handle specialist areas. You may also need extra personnel to handle the additional workload.
Alternatively, you might decide to only deal with suppliers who handle most of the procedures. Many first time or small scale importers prefer to keep things simple. Read more about how to decide your approach to importing.
Financial resources
As well as skills, you need to think about what resources you can devote to importing. Researching overseas markets and managing overseas suppliers can be time-consuming and expensive, particularly if you need to visit them.
If your finances are limited, you may prefer to deal with suppliers who offer credit. On the other hand, agreeing to pay promptly could help you negotiate a competitive price.
Make sure you have planned how you are going to use the imports, and have the skills and resources you need in place. For example, you might need production capacity for processing imported components, or a marketing plan and sales resources for selling imports on to your customers.
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Decide your approach to importing
Keeping importing simple by dealing with experienced exporters in developed countries and using agents
It's up to you to decide how involved in importing you want to be, and whether you can cope with the paperwork, logistics and payment issues. Dealing with inexperienced suppliers, and organising most of the logistics yourself can offer greater profit potential. But it also requires more investment, and tends to carry greater risks.
Businesses that are new to importing often prefer to keep things relatively simple and low risk:
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It's generally easiest to import from countries within the European Union. It's also relatively easy to import from developed countries such as the USA. Importing from developing countries can be more complicated.
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If you deal with experienced exporters, it's usually possible to negotiate a contract where they take responsibility for delivering the goods to the UK - or even to your own premises. Of course, the supplier will want to build all these costs into the price they charge you.
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You can also negotiate contracts in pounds sterling, rather than the supplier's currency. Again, the supplier will want to build extra costs into their price for this.
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Some suppliers, particularly in developing countries, require payment by letter of credit. This can cause problems, especially if you are inexperienced.
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You can use third parties to handle your responsibilities. For example, you can use an import agent to handle UK customs clearance, and a freight forwarder to handle onward delivery to your premises.
As you build experience and confidence, you may want to increase the scale and complexity of your importing. You can choose which skills to develop. For example, if your supplier offers a substantial discount for dealing in their currency, you might want to arrange training in managing foreign exchange, open a foreign currency bank account and invest in accounting software that can handle transactions in other currencies.
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Negotiate the right import deal
Negotiating the right import terms, planning ahead and reaching a clear agreement.
Understanding your own strengths and weaknesses, and what your supplier's priorities are, helps you negotiate the best deal. For example, if you have a healthy cash position, you could offer to pay more promptly in return for a good price.
The best way to split responsibility for delivery and customs clearance depends on your skills and what third parties you use. It can be more cost-effective for you (or your agent) to handle UK customs clearance and onwards delivery to your premises. Before you finalise the contract, make sure you can handle everything involved.
Try to plan ahead, anticipating what could go wrong and working out how you could deal with it. Even if the supplier is responsible for something, or you use an agent, you could still have problems if things go wrong, eg if a delivery doesn't arrive and you can't supply your own customers.
Whatever you negotiate, it's important to have a clear contract setting out exactly what payment and delivery terms you have agreed. Using internationally agreed Incoterms (International Commercial Terms) helps reduce the risk of delivery problems or misunderstandings. The contract should also cover what payment is required, when and in what currency, and what payment method will be used. You may want to take advice from a lawyer with experience of international trade.
Imports tend to run most smoothly if you build a good relationship with your suppliers. Read more about how to manage overseas suppliers.
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Review your import readiness
Import planning and strategy, product, skills and finance checklist.
You can use these points to help you decide whether you are ready to start importing or discover what else you need to do to prepare.
Planning and strategy
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Are you committed to importing? Have all the key people in your business agreed?
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Do you have a well-defined import strategy?
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How much time and money are you prepared to invest in starting to import?
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Do you know what suppliers, in which countries, you will consider? Have you planned how you will research and select them?
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Do you understand your own strengths and weaknesses? What will be your objectives in negotiating import contracts?
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Have you planned how you will store, process and/or sell the imports? Do you have the resources you need?
Product specifics
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Do the goods you plan to import need an import licence?
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Do the goods need to meet any UK standards or legal requirements?
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What requirements are there for the goods to fit in with your production processes or customer demands?
Skills and administration
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Do you understand international payment methods and can you handle them?
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Do you understand international delivery contract terms - ie Incoterms? Have you got the right legal advice?
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Do you have the skills to handle import tasks like customs clearance and delivery, or have you built relationships with third parties to do this for you?
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How do you plan to develop your importing skills? Have you organised any training?
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Have you set up administration systems to handle importing, eg tracking deliveries and payments?
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Do you have the personnel resources to handle the additional work? Which individuals will be responsible for each task?
Finances
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Have you identified all the costs of importing, including transport, insurance and import duties and taxes?
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Do you have enough working capital to finance imports or will you need to negotiate credit from suppliers or arrange a trade finance package with your bank?
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Decide your approach to importing
Plan your import objectives
Setting goals and deciding your import objectives.
Before you start importing, it's a good idea to be clear about what you are trying to achieve.
Establish your import objectives
You might want to:
- find a cheaper source of supplies overseas
- import products that aren't yet available in the UK to sell to your customers
At the same time, importing should fit in with your overall business strategy. For example, importing low cost goods might be part of a cost-control strategy, but you want to be sure that this does not compromise your reputation for quality.
How much time, money and effort should you invest in importing?
It's worth thinking about how much time, money and effort you want to devote to setting up and managing your importing activities. You are unlikely to want to invest heavily for a small, one-off import. But if importing is going to be an important part of your business, you might be prepared to spend more on finding the best suppliers, building relationships and so on. Read more about what importing involves.
You also need to decide how much involvement you want to have in the import process. Importing can be fairly straightforward if you only deal with experienced suppliers who handle most of the paperwork and logistics, and get help from an import agent. On the other hand, dealing with less experienced suppliers and handling more of the process yourself could be more time consuming but also more profitable. Read more about how to decide your approach to importing.
Whichever approach you choose, you should ensure that all the key people in your business agree and are committed to it.
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What does importing involve?
Dealing with suppliers, controlling risk, handling import paperwork and foreign currencies.
Importing goods from overseas suppliers involves all the same issues as purchasing from suppliers in the UK. It's up to you to establish what you require, and find the right supplier. Check the supplier is creditworthy and can meet your quality standards. You'll want to check the supplier's subcontractors as well.
You'll need to negotiate deals and manage the relationship. All of this can become more complicated because of the distances involved and different languages, business cultures and legal environments. Read more about managing overseas suppliers.
Check that any goods will suit your production processes and satisfy customer demands. There are also extra issues to consider, such as whether imported goods meet UK legal requirements or require an import licence.
Resolving problems - such as incomplete deliveries - can be difficult, so it's important to plan ahead. For example, you might decide to hold extra stocks so that you don't run out even if a delivery is late or contains faulty goods.
Logistics and payment when importing
There are also practical issues to consider. Depending on the contract you agree with your supplier, you might be responsible for clearing goods through UK customs. You might also need to arrange some of the transport and insurance, eg from a UK port to your premises. Draw up a clear agreement setting out each party's responsibilities and who is at risk if goods are delayed, damaged or lost while being delivered.
Allow for of the extra costs involved, including transport, insurance and import duties and taxes. Whether you pay these directly, or through a mark-up added by your supplier, they can significantly increase the overall cost of imported goods.
Payment issues can also be more complex, particularly if you are dealing in a foreign currency. Read more about foreign currency and exchange risks.
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Assess your skills and resources for importing
Finances, personnel and other resources for importing.
Importing requires special skills and extra resources. Before you start importing, you should assess whether you have the right skills and resources and decide how to cope with any shortcomings.
You need to understand UK customs procedures and ensure you have the right paperwork when deliveries arrive in the UK. International trade often uses payment methods, such as letters of credit, that require an understanding of payment documentation. If you agree to pay in a foreign currency, you also need to be able to handle foreign exchange. You will probably need new administrative systems to track deliveries and payments and manage the paperwork.
If you do not have the skills in house, you may want to invest in training. Or you could use someone else - such as an import agent - to handle specialist areas. You may also need extra personnel to handle the additional workload.
Alternatively, you might decide to only deal with suppliers who handle most of the procedures. Many first time or small scale importers prefer to keep things simple. Read more about how to decide your approach to importing.
Financial resources
As well as skills, you need to think about what resources you can devote to importing. Researching overseas markets and managing overseas suppliers can be time-consuming and expensive, particularly if you need to visit them.
If your finances are limited, you may prefer to deal with suppliers who offer credit. On the other hand, agreeing to pay promptly could help you negotiate a competitive price.
Make sure you have planned how you are going to use the imports, and have the skills and resources you need in place. For example, you might need production capacity for processing imported components, or a marketing plan and sales resources for selling imports on to your customers.
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Decide your approach to importing
Keeping importing simple by dealing with experienced exporters in developed countries and using agents
It's up to you to decide how involved in importing you want to be, and whether you can cope with the paperwork, logistics and payment issues. Dealing with inexperienced suppliers, and organising most of the logistics yourself can offer greater profit potential. But it also requires more investment, and tends to carry greater risks.
Businesses that are new to importing often prefer to keep things relatively simple and low risk:
-
It's generally easiest to import from countries within the European Union. It's also relatively easy to import from developed countries such as the USA. Importing from developing countries can be more complicated.
-
If you deal with experienced exporters, it's usually possible to negotiate a contract where they take responsibility for delivering the goods to the UK - or even to your own premises. Of course, the supplier will want to build all these costs into the price they charge you.
-
You can also negotiate contracts in pounds sterling, rather than the supplier's currency. Again, the supplier will want to build extra costs into their price for this.
-
Some suppliers, particularly in developing countries, require payment by letter of credit. This can cause problems, especially if you are inexperienced.
-
You can use third parties to handle your responsibilities. For example, you can use an import agent to handle UK customs clearance, and a freight forwarder to handle onward delivery to your premises.
As you build experience and confidence, you may want to increase the scale and complexity of your importing. You can choose which skills to develop. For example, if your supplier offers a substantial discount for dealing in their currency, you might want to arrange training in managing foreign exchange, open a foreign currency bank account and invest in accounting software that can handle transactions in other currencies.
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Negotiate the right import deal
Negotiating the right import terms, planning ahead and reaching a clear agreement.
Understanding your own strengths and weaknesses, and what your supplier's priorities are, helps you negotiate the best deal. For example, if you have a healthy cash position, you could offer to pay more promptly in return for a good price.
The best way to split responsibility for delivery and customs clearance depends on your skills and what third parties you use. It can be more cost-effective for you (or your agent) to handle UK customs clearance and onwards delivery to your premises. Before you finalise the contract, make sure you can handle everything involved.
Try to plan ahead, anticipating what could go wrong and working out how you could deal with it. Even if the supplier is responsible for something, or you use an agent, you could still have problems if things go wrong, eg if a delivery doesn't arrive and you can't supply your own customers.
Whatever you negotiate, it's important to have a clear contract setting out exactly what payment and delivery terms you have agreed. Using internationally agreed Incoterms (International Commercial Terms) helps reduce the risk of delivery problems or misunderstandings. The contract should also cover what payment is required, when and in what currency, and what payment method will be used. You may want to take advice from a lawyer with experience of international trade.
Imports tend to run most smoothly if you build a good relationship with your suppliers. Read more about how to manage overseas suppliers.
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Review your import readiness
Import planning and strategy, product, skills and finance checklist.
You can use these points to help you decide whether you are ready to start importing or discover what else you need to do to prepare.
Planning and strategy
-
Are you committed to importing? Have all the key people in your business agreed?
-
Do you have a well-defined import strategy?
-
How much time and money are you prepared to invest in starting to import?
-
Do you know what suppliers, in which countries, you will consider? Have you planned how you will research and select them?
-
Do you understand your own strengths and weaknesses? What will be your objectives in negotiating import contracts?
-
Have you planned how you will store, process and/or sell the imports? Do you have the resources you need?
Product specifics
-
Do the goods you plan to import need an import licence?
-
Do the goods need to meet any UK standards or legal requirements?
-
What requirements are there for the goods to fit in with your production processes or customer demands?
Skills and administration
-
Do you understand international payment methods and can you handle them?
-
Do you understand international delivery contract terms - ie Incoterms? Have you got the right legal advice?
-
Do you have the skills to handle import tasks like customs clearance and delivery, or have you built relationships with third parties to do this for you?
-
How do you plan to develop your importing skills? Have you organised any training?
-
Have you set up administration systems to handle importing, eg tracking deliveries and payments?
-
Do you have the personnel resources to handle the additional work? Which individuals will be responsible for each task?
Finances
-
Have you identified all the costs of importing, including transport, insurance and import duties and taxes?
-
Do you have enough working capital to finance imports or will you need to negotiate credit from suppliers or arrange a trade finance package with your bank?
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Assess your skills and resources for importing
Plan your import objectives
Setting goals and deciding your import objectives.
Before you start importing, it's a good idea to be clear about what you are trying to achieve.
Establish your import objectives
You might want to:
- find a cheaper source of supplies overseas
- import products that aren't yet available in the UK to sell to your customers
At the same time, importing should fit in with your overall business strategy. For example, importing low cost goods might be part of a cost-control strategy, but you want to be sure that this does not compromise your reputation for quality.
How much time, money and effort should you invest in importing?
It's worth thinking about how much time, money and effort you want to devote to setting up and managing your importing activities. You are unlikely to want to invest heavily for a small, one-off import. But if importing is going to be an important part of your business, you might be prepared to spend more on finding the best suppliers, building relationships and so on. Read more about what importing involves.
You also need to decide how much involvement you want to have in the import process. Importing can be fairly straightforward if you only deal with experienced suppliers who handle most of the paperwork and logistics, and get help from an import agent. On the other hand, dealing with less experienced suppliers and handling more of the process yourself could be more time consuming but also more profitable. Read more about how to decide your approach to importing.
Whichever approach you choose, you should ensure that all the key people in your business agree and are committed to it.
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What does importing involve?
Dealing with suppliers, controlling risk, handling import paperwork and foreign currencies.
Importing goods from overseas suppliers involves all the same issues as purchasing from suppliers in the UK. It's up to you to establish what you require, and find the right supplier. Check the supplier is creditworthy and can meet your quality standards. You'll want to check the supplier's subcontractors as well.
You'll need to negotiate deals and manage the relationship. All of this can become more complicated because of the distances involved and different languages, business cultures and legal environments. Read more about managing overseas suppliers.
Check that any goods will suit your production processes and satisfy customer demands. There are also extra issues to consider, such as whether imported goods meet UK legal requirements or require an import licence.
Resolving problems - such as incomplete deliveries - can be difficult, so it's important to plan ahead. For example, you might decide to hold extra stocks so that you don't run out even if a delivery is late or contains faulty goods.
Logistics and payment when importing
There are also practical issues to consider. Depending on the contract you agree with your supplier, you might be responsible for clearing goods through UK customs. You might also need to arrange some of the transport and insurance, eg from a UK port to your premises. Draw up a clear agreement setting out each party's responsibilities and who is at risk if goods are delayed, damaged or lost while being delivered.
Allow for of the extra costs involved, including transport, insurance and import duties and taxes. Whether you pay these directly, or through a mark-up added by your supplier, they can significantly increase the overall cost of imported goods.
Payment issues can also be more complex, particularly if you are dealing in a foreign currency. Read more about foreign currency and exchange risks.
Also on this siteContent category
Source URL
/content/what-does-importing-involve
Links
Assess your skills and resources for importing
Finances, personnel and other resources for importing.
Importing requires special skills and extra resources. Before you start importing, you should assess whether you have the right skills and resources and decide how to cope with any shortcomings.
You need to understand UK customs procedures and ensure you have the right paperwork when deliveries arrive in the UK. International trade often uses payment methods, such as letters of credit, that require an understanding of payment documentation. If you agree to pay in a foreign currency, you also need to be able to handle foreign exchange. You will probably need new administrative systems to track deliveries and payments and manage the paperwork.
If you do not have the skills in house, you may want to invest in training. Or you could use someone else - such as an import agent - to handle specialist areas. You may also need extra personnel to handle the additional workload.
Alternatively, you might decide to only deal with suppliers who handle most of the procedures. Many first time or small scale importers prefer to keep things simple. Read more about how to decide your approach to importing.
Financial resources
As well as skills, you need to think about what resources you can devote to importing. Researching overseas markets and managing overseas suppliers can be time-consuming and expensive, particularly if you need to visit them.
If your finances are limited, you may prefer to deal with suppliers who offer credit. On the other hand, agreeing to pay promptly could help you negotiate a competitive price.
Make sure you have planned how you are going to use the imports, and have the skills and resources you need in place. For example, you might need production capacity for processing imported components, or a marketing plan and sales resources for selling imports on to your customers.
Also on this siteContent category
Source URL
/content/assess-your-skills-and-resources-importing
Links
Decide your approach to importing
Keeping importing simple by dealing with experienced exporters in developed countries and using agents
It's up to you to decide how involved in importing you want to be, and whether you can cope with the paperwork, logistics and payment issues. Dealing with inexperienced suppliers, and organising most of the logistics yourself can offer greater profit potential. But it also requires more investment, and tends to carry greater risks.
Businesses that are new to importing often prefer to keep things relatively simple and low risk:
-
It's generally easiest to import from countries within the European Union. It's also relatively easy to import from developed countries such as the USA. Importing from developing countries can be more complicated.
-
If you deal with experienced exporters, it's usually possible to negotiate a contract where they take responsibility for delivering the goods to the UK - or even to your own premises. Of course, the supplier will want to build all these costs into the price they charge you.
-
You can also negotiate contracts in pounds sterling, rather than the supplier's currency. Again, the supplier will want to build extra costs into their price for this.
-
Some suppliers, particularly in developing countries, require payment by letter of credit. This can cause problems, especially if you are inexperienced.
-
You can use third parties to handle your responsibilities. For example, you can use an import agent to handle UK customs clearance, and a freight forwarder to handle onward delivery to your premises.
As you build experience and confidence, you may want to increase the scale and complexity of your importing. You can choose which skills to develop. For example, if your supplier offers a substantial discount for dealing in their currency, you might want to arrange training in managing foreign exchange, open a foreign currency bank account and invest in accounting software that can handle transactions in other currencies.
Also on this siteContent category
Source URL
/content/decide-your-approach-importing
Links
-
Negotiate the right import deal
Negotiating the right import terms, planning ahead and reaching a clear agreement.
Understanding your own strengths and weaknesses, and what your supplier's priorities are, helps you negotiate the best deal. For example, if you have a healthy cash position, you could offer to pay more promptly in return for a good price.
The best way to split responsibility for delivery and customs clearance depends on your skills and what third parties you use. It can be more cost-effective for you (or your agent) to handle UK customs clearance and onwards delivery to your premises. Before you finalise the contract, make sure you can handle everything involved.
Try to plan ahead, anticipating what could go wrong and working out how you could deal with it. Even if the supplier is responsible for something, or you use an agent, you could still have problems if things go wrong, eg if a delivery doesn't arrive and you can't supply your own customers.
Whatever you negotiate, it's important to have a clear contract setting out exactly what payment and delivery terms you have agreed. Using internationally agreed Incoterms (International Commercial Terms) helps reduce the risk of delivery problems or misunderstandings. The contract should also cover what payment is required, when and in what currency, and what payment method will be used. You may want to take advice from a lawyer with experience of international trade.
Imports tend to run most smoothly if you build a good relationship with your suppliers. Read more about how to manage overseas suppliers.
Also on this siteContent category
Source URL
/content/negotiate-right-import-deal
Links
Review your import readiness
Import planning and strategy, product, skills and finance checklist.
You can use these points to help you decide whether you are ready to start importing or discover what else you need to do to prepare.
Planning and strategy
-
Are you committed to importing? Have all the key people in your business agreed?
-
Do you have a well-defined import strategy?
-
How much time and money are you prepared to invest in starting to import?
-
Do you know what suppliers, in which countries, you will consider? Have you planned how you will research and select them?
-
Do you understand your own strengths and weaknesses? What will be your objectives in negotiating import contracts?
-
Have you planned how you will store, process and/or sell the imports? Do you have the resources you need?
Product specifics
-
Do the goods you plan to import need an import licence?
-
Do the goods need to meet any UK standards or legal requirements?
-
What requirements are there for the goods to fit in with your production processes or customer demands?
Skills and administration
-
Do you understand international payment methods and can you handle them?
-
Do you understand international delivery contract terms - ie Incoterms? Have you got the right legal advice?
-
Do you have the skills to handle import tasks like customs clearance and delivery, or have you built relationships with third parties to do this for you?
-
How do you plan to develop your importing skills? Have you organised any training?
-
Have you set up administration systems to handle importing, eg tracking deliveries and payments?
-
Do you have the personnel resources to handle the additional work? Which individuals will be responsible for each task?
Finances
-
Have you identified all the costs of importing, including transport, insurance and import duties and taxes?
-
Do you have enough working capital to finance imports or will you need to negotiate credit from suppliers or arrange a trade finance package with your bank?
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/content/review-your-import-readiness
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-
Manage export contracts and logistics
In this guide:
- Preparing to export
- Challenges of exporting
- Assess your skills and resources for exporting
- Assess export market opportunities
- Choosing the right export markets
- Plan your export market entry strategy
- Manage export contracts and logistics
- Use the right export support services
- Export checklist: review your export readiness
Challenges of exporting
Challenges of exporting include market research, export paperwork and financing.
Exporting isn't simply an add-on to your existing business. It should be part of an overall strategy to develop the business.
Before you start exporting, it's worth making sure you have developed a complete export plan looking at all the costs and risks involved.
Challenges of exporting
- Understanding what export customers want and how the market operates is vital. Read more about researching and entering overseas markets.
- You need to cope with extra logistical problems, contractual issues and paperwork. You may require a contract drawn up using internationally recognised terms and conditions and standard commercial practices to make it clear what your responsibilities are. There's also a range of international trade paperwork for sorting out transport, customs clearance and payments.
- If you are VAT registered, you must provide details of all your transactions with other European Union (EU) member states on your VAT return. If the value of goods you buy from or sell to other EU countries reaches the sales or purchases Intrastat threshold during the course of a calendar year you must submit additional monthly supplementary declarations to HM Revenue & Customs.
- You need to comply with regulations in both the UK and overseas. For example, some goods that are allowed in the UK might not satisfy another country's standards or even be legal there.
- Exporting demands additional resources, both in terms of financing and skilled personnel. Find out more about how to assess your skills and resources for exporting. It can also present extra risks.
If you have got a good product to offer and a well-run business, the chances are there are opportunities out there. If the rewards you expect justify the investment and the risks, you should commit to your export plan and make it happen.
Read more about the available support for exporting.
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Assess your skills and resources for exporting
Exporting demands extra time, money and skills.
To start exporting successfully, you should take a planned approach and decide what your export strategy is. You need to spend time and money planning, researching market opportunities and building relationships. You may also need to invest in modifying your product and service to suit overseas customers.
Exporting is usually a way of growing a successful business, rather than an easy way out for one that's in trouble. If you're struggling with limited finances or overworked employees, you may not have the resources to take on the extra work.
Special skill required when exporting
Once you have planned your exporting activities, you also need to devote extra resources to handling your exporting business. Marketing to overseas customers tends to be more demanding than selling within the UK. Exporting also needs special skills - such as organising international transport and handling customs clearance.
Many businesses find that the best way to get started is to buy in the services they need, and build in-house skills and resources later. For example, you might use a local agent to sell, and a freight forwarder to handle deliveries. Read more about how to use the right export support services.
Additional financing when exporting
Exporting can also be financially demanding. Customers often want credit from the time they receive the goods. For a long distance shipment, this could be weeks after you produced and shipped the goods, so you get paid later than you would by a customer in the UK. At the same time, you may have to meet extra costs like transport and insurance.
The more successful you are, the greater the demands placed on your business will be. It's worth planning ahead to be sure you have the capacity to handle the extra production, selling and after-sales support.
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Assess export market opportunities
Researching and adapting to customer requirements and the business environment in overseas markets
You might first consider exporting in response to enquiries from potential customers overseas. Or you might actively decide to look for opportunities. In either case, thorough market research is essential.
You need to understand what overseas customers want, and what the competition is like. As well as local suppliers, you may be competing with other exporters from around the world.
Reaching customers in overseas markets
It's worth thinking about how you will reach your customers. It's important you consider how to plan your export market entry strategy.
You'll also want to understand all the issues that affect doing business in that country. There may be legal considerations, like product regulations, export or import licences or extra taxes that make it difficult to compete. You might be faced with a different business culture, and need to communicate in the local language.
Deciding what to offer
UK products and services often need to be modified to suit local regulations and customers' requirements. You'll also need to think about what after-sales service you need to provide and the best way of doing so.
All this adds costs - over and above the additional costs such as delivery. Many exporters find that they need to position their product as a premium brand to justify higher prices and cover all these costs.
Read more about researching and entering overseas markets.
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Choosing the right export markets
Focusing on export market opportunities that suit your strengths.
Different export markets often have different requirements. For example, product modifications that suit customers in China might be the opposite of what customers in Canada want.
Considerations when choosing an export market
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. In large countries like the US, you might even concentrate on a particular region, and roll out gradually across the country as you build your market presence.
Read more about the things you should consider when trading with the EU and when trading with GB and countries outside the EU.
How to choose an export market
The first step for a lot of new exporters is to choose markets that are relatively easy to deal with. For example, the practicalities of dispatching goods to countries within the European Union (EU) are relatively straightforward. Many trading practices, regulations and standards apply throughout the EU, and key tasks such as accounting for VAT have been simplified. This can be a good way of building your export skills.
Or you might choose to target a market where you have some links - eg through your family, personal contacts or employee knowledge.
Developing countries can be riskier to deal with. The risks are generally lower if the country has an investment protection and promotion agreement with the UK. Read more about free trade.
Ultimately, it's up to you to decide which markets offer the best opportunities and suit your own export strategy. Read more about how to assess export market opportunities.
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Plan your export market entry strategy
Choosing the right distribution channels and ways of promoting your product in overseas markets.
The best way to sell into an export market depends on your circumstances and local market conditions. For example, if local wholesalers dominate the market for your product, you might target them rather than trying to sell directly to end-customers.
You also need to think about how to promote yourself. It's important to take local culture and regulations into account. For example, it might be illegal to advertise your product to children, or the name of your product might have an unwanted meaning in the local language.
If you work with a local agent or distributor you will benefit from their local contacts and expertise. In some countries, working with a local partner is almost essential - or even legally required.
For many businesses, the internet is a good way of marketing to customers overseas, or even selling directly to them. Read more about planning for e-commerce. Trade visits can also be an important part of creating awareness, building relationships and making sales.
You should think about practical aspects as well, such as clearing goods through overseas customs. If you are dealing with experienced importers, they may be prepared to take responsibility for this themselves. Otherwise, you might want to work with an experienced agent or freight forwarder who can handle this. Consider how to use the right export support services.
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Manage export contracts and logistics
Understanding export contracts, delivery and payments.
Like any sales contract, you need to agree what goods you will deliver, and when. The agreement should make it clear who is at risk if the goods are lost or damaged at any stage during delivery. Your agreement also needs to cover where you will deliver the goods and whether you will arrange for them to be cleared through customs.
It's good practice to use internationally recognised Incoterms in your contract to set out the responsibilities for transport and insurance.
Taking on more responsibility can help you to be more competitive, particularly if you are selling to customers who do not have import experience. But you also face increased costs and risks. Whatever you agree, it's important to be sure that you can handle your responsibilities. International trade paperwork can be complicated, and mistakes can be costly. You may want to use specialist help such as a freight forwarder. Consider how to use the right export support services.
Payment options when exporting
You need to agree how much the customer will pay, when payment will be due, and how payment will be made. Different payment methods, such as advance payment or letters of credit give you more security than giving your customer open account credit. Read more about getting paid when selling overseas.
Pricing in the local currency, rather than pounds sterling, can help make you more competitive but puts you at risk if exchange rates change. Read more about foreign currency and exchange risks.
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Use the right export support services
Government help for exporters and other sources of information and support.
Invest Northern Ireland offers a range of services for UK exporters, including market information and help breaking into new markets. Many of these services are free.
The Northern Ireland Chamber of Commerce also offer export services such as export training and help with export documentation.
You may also want help in several other areas:
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An experienced lawyer can help with contract negotiation. Read more about how to choose and work with a solicitor.
-
Your bank can advise you on payment methods, financing and handling foreign exchange.
-
A freight forwarder can handle transport. Read more about international transport and distribution.
-
You may want to use a broker to find the right insurance. Read more about insurance for international trade.
Find out more about the available support for exporting.
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Export checklist: review your export readiness
Export readiness review: planning, marketing and export procedures.
You can use these points to help you decide whether you are ready to start exporting or what else you need to do to prepare.
Planning and strategy when exporting
-
Do you have a well-defined export strategy and a thorough plan? How will you start exporting, and how will you develop your export business?
-
Do you have the resources you need to carry out your plan, eg finances, personnel, production?
-
How will you build your export skills?
-
How much do you expect to invest, and what return do you expect?
-
Are you committed to exporting? Have all the key people in your business agreed?
Export marketing
-
Do you know what markets you will target?
-
How much research have you done into your target market? Do you understand the business culture and legal environment? Read more about researching and entering overseas markets.
-
What is the market for your product? Who are you competing against and what do they offer?
-
Will your product need to be modified to meet local regulations or customer requirements?
-
How will you position your product? What price will you charge? What currency will you price and sell your products in?
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How will you market and promote your product? What distribution channels will you use? Read our guide on selling and promotion overseas.
Export procedures
-
What contracts will you aim to negotiate? What are your preferred Incoterms and will these suit your customers?
-
What payment method and terms will you offer? Do you have the skills to handle any specialist methods such as letters of credit? Will you require a foreign currency bank account or accounting software that can handle foreign currency transactions?
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How will you transport your products? Will you use a freight forwarder? Read more about transporting your goods.
-
Have you identified all the costs, such as transport, insurance, duties and taxes? Will your export business be profitable after taking these into account?
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