Guidance and Support with Importing
We can guide your business through every aspect of importing, making sure that your business is structured to maximise the benefits of international trade.
Support with Imports
It can be a little daunting to think about importing products from overseas. Nonetheless, there are many advantages, such as increased profit margins, lower production costs, and a competitive edge.
As with most things in business, it is wise to research imports thoroughly before diving in headfirst. We can provide all the information and support your business requires to be successful when importing products.
A new breed of entrepreneurs is seizing the opportunities that importing goods presents.
The Benefits of Importing
Bringing in goods and raw materials from overseas is a great way to boost profit margins. Importing goods has several advantages, including superior quality, competitive pricing, the introduction of new products to the market, cost savings, and the potential to become an industry leader.
High Quality Products
Success in business depends on developing enhanced quality control, and trading internationally can present several chances to do so. Businesses can obtain access to varied quality control procedures and standards, as well as specific knowledge and skills, by collaborating with foreign manufacturers or suppliers.
Importers often benefit from increased access to a greater range of resources through international trade, such as raw materials, technological know-how, enhanced manufacturing procedures, and output quality. Subsequently, this can lessen the chance of product flaws or recalls and guarantee that goods meet consumer expectations.
Reduced Costs
Obtaining lower production costs is one of the main advantages of imports. Many organisations find importing raw materials and products is far more cost-effective than creating or sourcing them domestically. Businesses often acquire high-quality products at low prices, even when the total cost of imports is considered. Many importers reduce costs further by placing bulk orders and obtaining better deals.
Access to a Wider Range of Products
The ability to access new markets and a greater variety of products is another important advantage of importing for companies. Businesses can increase their consumer base and access new markets that may not be available to them domestically by participating in international trade. This can lead to higher income and sales, as well as chances for development and expansion.
How to import products into the United Kingdom
A guide for importing goods
Will your business be importing products from outside the United Kingdom?
This section describes the many procedures involved in the import process and assists you in determining if your business is suitably prepared to import.
Check if your company is allowed to import into the UK
Economic Operators Registration and Identification (EORI) Number
An Economic Operators Registration and Identification (EORI) number is required to import into the United Kingdom. Their EORI number serves as a unique identifier when importers exchange information with customs authorities.
Business Establishment
Customs and other authorities use the Economic Operators Registration and Identification number (EORI number) to keep an eye on and track shipments coming into and out of the UK. To get an EORI number, your business usually needs to have premises based within the UK and this is called ‘being established.’ To apply for an Economic Operators Registration and Identification Number (EORI number), you will need a Government Gateway user ID and be VAT registered.
Verify if any Licences or Certificates are required
If your business plans to import specific commodities, such as plants and plant products, medications, food, chemicals, radioactive material, human tissue, or products containing fluorinated gas, you might need to obtain licences and certificates. Importing manufactured items, food, or plant seeds requires you to make sure your products are properly labelled, marked, and marketed.
Sourcing from the right supplier
Selecting an Overseas Supplier
There are big differences between trading with suppliers in overseas markets and trading within the United Kingdom. Working with a foreign supplier will require you to carefully manage your connection to obtain the benefits and get over the difficulties associated with global supply chains. Selecting an overseas supplier is comparable to selecting a supplier within the UK. Finding the best deal and quality should be your top priorities, and your business should confirm that the new supplier can regularly satisfy delivery deadlines and meet high standards.
Whether selecting domestic or foreign suppliers, due diligence is essential. Your business must conduct thorough investigations regarding their manufacturing procedures, adherence to regulations, and dedication to excellence and dependability.
Ensuring the Commodity Codes are correct
Correctly Classifying Imported Goods
Imported goods within international trade are categorised and subcategorised based on their attributes and nature. Commodity codes are a set of numbers assigned to each type of product. There are commodity description codes for over 98% of products, classifying products from a pin to an elephant. These codes assist in identifying what the product is for customs clearance purposes, so that correct duties and taxes can be charged, preferential trade agreements can be applied, and import or export restrictions can be identified.
Importers have a legal responsibility to classify their goods correctly with customs authorities.
Ensuring the correct cost for the goods
Landed Cost
A product's "landed cost" is the total cost incurred during its international transit from the seller’s factory to the buyer's door. The cost of the products, shipping expenses, insurance premiums, customs charges, and any other expenses incurred are all included. Your business will need to verify that the amount agreed upon covers all expenses, including import tariffs, shipping, packaging, and insurance. Make sure that all expenses are covered by carefully reading the terms and conditions of your contract.
Learn more about Landed Cost >>
Incoterms 2020
By agreeing to the relevant Incoterms 2020 rules with the supplier and then incorporating them into the contract, your business and the supplier will understand their responsibilities in the event of loss or damage. The Incoterms 2020 rules also make it clear who pays for each different cost within the international supply chain.
Correct Import Documentation
Import Documents
Having the correct documentation is vital when importing, as inappropriate or overlooked documentation can lead to shipping delays, increased costs, and business risks such as cancelled international commercial activities. Even if you’re using a freight forwarder, your company will still be held liable, as the importer of the goods, for late or incorrect documentation.
The commercial invoice, bill of lading or airway bill, packing list, insurance documents, and, if necessary, specific certificates of origin and health certificates are some of the documentations needed for shipments that are being imported.
Cargo Insurance
Marine Cargo Insurance
Marine insurance can also cover the cargo during transfer to a transit warehouse and while the cargo is stored in the warehouse. Therefore, the word 'marine’ is a very misleading term, as it implies the insurance is only for goods shipped by sea freight. This is not the case.
In many cases, it is not mandatory to have a marine cargo insurance policy to cover goods in transit. However, the owner of the goods would need to set aside substantial funds as a contingency against loss or damage.
Learn more about Marine Insurance >>
Insurance and Incoterms
The Incoterms 2020 rules define who is liable in the event of any damage or loss of goods in transit.
Customs Clearance Agent
What is a Customs Clearance Agent?
Customs Clearance Agents are companies that facilitate the customs clearance of imports into the UK. Customs Clearance Agents assist the importer with the clearance process while submitting all necessary documentation and the customs clearance declaration to enable the import of the goods. In the case of imports, the Customs Clearance Agents will ensure that the appropriate duties and taxes are declared.
Duty Payments
Paying Customs Duty
Customs duty is typically not refundable; therefore, businesses must factor it into their pricing since it could affect their profit margin and capacity to compete. Your mandatory payment of UK duty is contingent upon the type of product your business is importing and the declared value of the goods. The UK duty rating/percentage varies for each product type.
The Customs Declaration Service (CDS) system provides different ways to process your declaration payments, and you can use one of five methods to make your payment.
Import VAT Payments
Paying Import VAT
Import VAT is a tax levied on an import, on movements of goods into Great Britain from anywhere in the world, or those to Northern Ireland from anywhere outside the EU. Import VAT only becomes due when imported goods are cleared into free circulation within the UK.
VAT-registered businesses can account for import VAT on their VAT returns by using postponed VAT accounting. Alternatively, importers can choose to pay import VAT on importation.
Paying Overseas Suppliers
International Payment Methods
Paying foreign suppliers for goods you import from them can be accomplished in four primary ways: open account trade, documented collection, letters of credit, and cash-in-advance payments. Each payment method has benefits and drawbacks.
Our Initial Import Consultation is free of charge
If you want more advice about importing or are unsure about anything, please contact us to arrange an initial consultation.
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