Export or die! In the modern, globalised economy, the old maxim has never been more relevant.

The burden of borders

Great products and intelligent marketing are obviously vital to export success, but so too is the products’ ease of movement.

Despite the international momentum towards global free trade, among the greatest burdens exporters face are tariffs and duties.

Free trade within the EU

For UK-based companies looking to sell to the EU, this is no longer an issue.

The world’s largest single market, with 455 million consumers, the EU now accounts for around 40 per cent of world trade and 56 per cent of the UK’s exports (although the complete removal of customs barriers means they are no longer classed as exports for customs purposes.)

Preferential tariff agreements

For companies looking to export outside the Union, the EU has agreements with many countries and country groupings, which include preferential tariff rates.

These include the non-EU European Free Trade Area (EFTA) countries, several Mediterranean and Eastern Europe countries, and the African, Caribbean and Pacific (ACP) group of states.

In many cases the tariff rates are lower than non-EU inward investor companies would pay if exporting from their home countries.

How to find more about import tariffs

UK Trade and Investment also has a ‘Trade Services’ team that actively supports non-EU exports.

Its International Trade Advisors can familiarise exporters with a destination country’s tariff and customs clearance systems.

Exporters can also contact the destination country’s UK Embassy, or High Commission.

Handling export rules

Of course, tariffs are not exporters’ only concern; to the uninitiated complying with export rules can also be a burden.

Compliance is overseen by Her Majesty’s Revenue and Customs (HMRC) – a new body, which resulted from the April 2005 merger of HM Customs & Excise, and the UK’s main tax authority, the Inland Revenue.

Export licenses and declarations

Although a small range of controlled goods, such as arms, require an export licence, most do not, and are generally cleared quickly by HMRC.

However, clearance requires an export declaration and wrongly completed declarations can hold up exports.

Online declarations

The declaration process has been streamlined by the New Exports System.

Introduced in 2003, it replaced paper-based declarations with electronic submissions.

Proof of export

Exporters’ other main administrative obligation is to produce proof of exports.

This consists of valid commercial or official evidence of export, supported by appropriate commercial documents, such as the customer's order, contract correspondence, export invoices and evidence of payment and receipts.

The best available help

HMRC actively supports new exporters struggling with the system.

Each regional office has a Business Education and Support Team (BEST), dedicated to helping businesses get things right on exporting and other procedures.

By investing a little time in BEST workshops or one-to-one consultations, firms can avoid the mistakes that could cost much more time further down the line.

Rationalisation results from merger

The merger of HM Customs & Excise and the Inland Revenue should bring further benefits to exporters.

The new organisation is aiming for what it terms ‘seamless policy and operational activity’, which minimizes the risk of delays, whilst maximizing safety and security.

Bringing together international trade and detection staff operating under one command should bring further benefits to exporters.

The new system is designed to improve their service to exporters by having only one check carried out for all export control purposes.

Links

UK Trade & Investment Trade Services

Import & Export Guides

Tariff information on the Internet