A Guide to the UK Import and Export Business

The UK is a leading investment destination for mostThe preferential rules fix low or sometimes even
global companies that focus on the development andzero rates of duties on industrial goods that originate
growth of their businesses at an international level.from or are imported from EU's preferential partner
According to the World Bank, the time required tocountries. The origin of goods depends on whether
set up business in the United Kingdom is 13 days. Thethe product is fully or sufficiently processed in a
World Bank has also given the UK the sixth rank inpreferential partner country.
the world to operate a business.Non- preferential rules of origin are applicable on
The World Trade Organisation, 2007 claimed that thegoods imported from non-preferential countries like
UK was the second largest exporter and the seventhCanada, Australia, Japan, South Korea New Zealand,
largest exporter. The country is also said to be theand the USA. These goods can be either wholly
third largest importer of commercial services and theoriginate from a single country or can be from where
fourth largest importer of merchandise. This statusthe production involves more than one of the above
has been achieved by the UK because of itsmentioned countries.
membership in the EU (European Union).As for the UK's export business, an exports
While customs declaration is not a necessity fordeclaration has to be given to the Customs before
goods imported from within the EU, it is required forexports take place. Except for certain goods which
imports abroad. Encouraging imports, the UK hasrequire licenses, permits and certificates, the Customs
abolished most of its import licensing controls exceptpromptly clears exports through the New Export
for a few of the national import restrictions whichSystem.
have been retained for public health and securityExports in the UK require the maintenance of an
reasons.official document of export along with relevant
Member states of the EU enjoy free circulation ofbusiness documents is required for this purpose. The
imported goods on the payment of customs dutiesdocuments are inclusive of the contract
and other regulatory charges. While a commoncorrespondence, customer's order, copy export
external tariff is fixed on goods which are importedinvoices, consignment notes, advice notes, packing
from outside the EU, the level of customs duties thatlists, evidence of payment and receipts from abroad,
need to be paid are established by the EU in itsinsurance and freight charges and so on. Such
"preferential" and "non-preferential" regulations ofdocuments are required for VAT purposes.
origin.