importing and exporting

The factors covered are:

• Overview

• Imports

• Exports

• Further information

The UK Government agency responsible for the collection of customs and excise duties is HM Revenue & Customs. For detailed information on the full responsibilities of businesses that intend to import or export please see: www.hmrc.gov.uk

1. Overview

The UK is one of the leading trading nations in the world. It is the second largest exporter and third largest importer of commercial services, and the eighth largest exporter and fifth largest importer of merchandise (Source: World Trade Organization, 2009).

An important aspect of the UK’s import and export policy is its membership of the European Union (please see Appendix A), a customs union where imported goods can circulate freely within European Union member states once customs duty and any other charges have been paid.

Goods that are exported from the UK are not charged customs duty. Due to the UK’s multiple international trading agreements, many exports from the UK also receive preferential tariff rates of duty (often nil) in their country of destination.

2. Imports

Imported goods that enter European Union member states from outside of the European Union are subject to a common external tariff entitled the “European Community Common Customs Tariff” (CCT). In order to calculate the CCT, the European Union annually publishes a “Combined Nomenclature” that is based on the “Harmonised Commodity Description and Coding System” used by most trading nations worldwide. The Combined Nomenclature shows the conventional duties payable across the European Union and also gives general information on tariffs and other measures affecting the import, export and transit of goods, the valuation of goods for import duty purposes, VAT and excise duties. Duties are usually calculated as a percentage of the value of the goods imported, although some goods are liable to specific rates (for example, euros per kg). For further information please see: www.berr.gov.uk/europeandtrade/importing-into-uk/import-tariffs/page11291.html or call the HMRC Customs Tariff Classification Enquiry Helpline on: +44 (0)1702 366 077.

In order to fully establish the level of customs duty to be paid, the European Union applies “rules of origin” to identify the country in which a product has originated (or has “acquired origin”). Once this has been established and the requisite tariff has been paid, the goods can move between European Union countries without further duty having to be paid (although the goods may still be liable to national taxes). The two main types of European Union rules of origin are “preferential rules” and “non-preferential rules”. For detailed information on European Union rules of origin please contact the Department for Business, Enterprise & Regulatory Reform on: +44 (0)20 7215 5059 or see: www.berr.gov.uk/europeandtrade/key-trade-issues/rules-of-origin/page22727.html.