When exporting, you need to follow specific rules that depend on whether your goods or services are being exported to a country in the EU or outside the EU.
Here are a number of common questions relating to exporting and importing.
Import duty is a tax that an importer has to pay to bring foreign goods into his or her country. Import duty is also known as customs duty, a tariff or import tariff.
Imports may be liable to import duty, depending on the classification of the goods and where they come from.
For example: An importer brings bicycles from China into the UK and pays duty on them. They are now in free circulation. You can buy the bicycles and dispatch them to another EU country, such as France, without paying duty on them.
If duty hasn't been paid on goods arriving from outside the EU you have to follow the rules for importing goods from non-EU countries.
A harmonised code is a customs tariff code and a key element of customs declarations. The harmonised tariff code identifies the type of goods that are being imported/exported. It is the basis for calculations of duties – such as customs duty and import duty – and defines whether goods are subject to import or export controls.
It also helps governments to produce statistics on international trade flows and understand the impact of trading agreements across the world.
A harmonised code is also known as a 'tariff number', 'commodity code' or 'HS code' (HS stands for harmonised system), and is an internationally agreed common protocol for identifying goods.
- - European HS codes are usually 8 digits for export declarations, 10 digits for imports
- - Some import codes can be 14 digits
- - The first 6 digits are defined by the Harmonised System, the rest are individual
- - There can be variation in codes between countries, so make sure you double-check
You, as the importer or exporter are responsible for the correct tariff classification of your goods.
Classifying your goods correctly means that you:
- - pay the correct amount of duty and VAT
- - know if duty is suspended on any of your goods
- - know if any preferential duty rates can be applied
- - know if you need to obtain an import or export licence
By correctly classifying your products you’ll know what measures apply to them
The UK Trade Tariff is an easy-to-use online tool. It gives you free and direct access to current trading information on taxes and levies, rebates, preferences, restrictions and other information supplied by HM Revenue & Customs on all imports to and exports from the European Union.
It enables you to find commodity codes that accurately describe your goods, as well as a full list of duties and other measures such as taxes, rebates and conditions that apply to any code.
The UK Trade Tariff is based on the EU TARIC which holds commodity codes for all EU member states. The information in the EU TARIC is consistent across the EU.Read more about classifying your goods for importing and exporting .
You can search for a product code based on your product description. The database also gives important tariff information and how it’s applied in other countries.
Whether or not you need an export licence for your goods will be determined by 4 factors, the:
- - nature of the goods due to be exported
- - destination concerned
- - ultimate end use of the goods
- - licensability of trade activities
There are a variety of different types of licences that you may be able to use to export your goods. The main categories of licences issued by the Export Control Organisation (ECO) are:
- - Open General Export Licences (OGELS)
- - Standard Individual Export Licences (SIELS)
- - Open Individual Export Licences (OIELS)
Regional trade agreements (RTAs) are preferential trading arrangements between countries or groups of countries. The World Trade Organisation (WTO) has rules under which groups of countries can agree to trade together on preferential terms. They are designed to encourage open and competitive markets for businesses in the participating countries.
As a member of the European Union (EU), the UK currently participates in EU regional trade agreements. These are negotiated by the European Commission.
Since the UK is a member of the European Union it participates in EU Regional Trade Agreements. These deals are negotiated by the European Commission with other countries or trading groups. The purpose of these agreements is to make it easier for EU businesses to sell their goods to the other country (and vice versa).
The European Union has 34 bilateral and regional trade agreements in place, which cover 60 partners in total.
The World Trade Organisation (WTO), which regulates international trade, has rules under which groups of countries can agree to trade together on preferential terms.
You can find information on all current RTAs notified to the World Trade Organisation in the RTA database
Know your legal responsibilities
- Do you need a licence?
- Get the right business insurance
- Comply with the law when providing goods and services
- Know your customers' rights
- Distance and online selling rules
- Understand pricing legislation
- Buying goods from outside NI
- Selling goods outside NI
- GDPR compliance checklist
- Pay your business rates
- Understand staff contracts and your responsibilities
- Taking on contractors and subcontractors
- What you need to do about health and safety
- Know your legal obligations on pensions
Understand tax and VAT
Sell and market your products or services