🌍 Trading and Importing from Abroad: A Guide for UK Businesses
International trade isn’t just for multinational corporations, increasingly, UK businesses of all sizes are sourcing products, components, and materials from overseas. Importing can unlock cost savings, higher-quality goods, and access to new markets, but it also comes with challenges that require careful planning and understanding.
1️⃣ Understand the Basics
Before you start importing, it’s important to get the fundamentals right:
Register as an importer with an EORI number (Economic Operators Registration and Identification), required for customs clearance.
Check import restrictions and licenses for products such as food, chemicals, or pharmaceuticals.
Know your tariff codes, each product has a unique commodity code that determines import duty and VAT.
Getting these basics right ensures smoother customs clearance and helps avoid costly delays or fines.
2️⃣ Factor in Costs Carefully
Importing is more than just the price of goods. Consider:
Import duty — a tax based on the type of goods and country of origin.
VAT on imports — reclaimable for VAT-registered businesses.
Shipping and insurance — international freight costs and risk coverage are essential.
Currency fluctuations — exchange rate changes can affect your margins, especially with long payment terms.
💡 Tip: Use the UK Trade Tariff to estimate duties and taxes before placing an order.
3️⃣ Build Strong Supplier Relationships
Reliable suppliers are key to successful importing:
Request samples to check product quality.
Agree on clear payment terms; consider secure options like letters of credit for first-time deals.
Use Incoterms to define responsibilities for shipping, insurance, and customs.
Communicate regularly — video calls or visits can help prevent misunderstandings and build trust.
4️⃣ Navigate Customs and Documentation
Proper documentation speeds up customs clearance:
Commercial invoice and packing list
Bill of lading or airway bill
Import declaration using your EORI number
Many businesses find it easier to work with a customs broker or freight forwarder, who can handle declarations and ensure compliance with all regulations.
5️⃣ Stay Compliant and Competitive
Regulations and trade agreements are constantly changing. Staying informed helps you avoid fines and maintain a competitive edge:
Monitor UK trade agreements for opportunities to reduce tariffs.
Keep up with import bans and sanctions that may affect your supply chain.
Follow sustainability and safety standards — increasingly important to regulators and consumers alike.
6️⃣ Plan for Logistics and Lead Times
International shipping takes time, and delays can impact your business. Consider:
Lead times from your supplier and shipping duration.
Potential customs delays, especially during peak seasons.
Storage and handling costs once goods arrive in the UK.
Planning ahead helps prevent stock shortages and ensures your business can meet customer demand reliably.
7️⃣ Expert Support from JSB Accountants
Importing from overseas can boost growth, but customs and costs are tricky.
JSB Accountants make international trade smooth, handling compliance, paperwork, and planning.
✅ Final Thoughts
Trading and importing from abroad offers exciting growth opportunities, but success depends on preparation. Start small, research suppliers thoroughly, understand costs and regulations, and use professional support when needed. With careful planning, importing can give your business access to better products, new markets, and long-term growth.
As a family-run company, we pride ourselves on providing a bespoke service tailored to your particular needs.
Above all, our objective is to save you time, money and effort in managing your accounts, leaving you free to focus on building your business.
Remember, you’re not alone, we’re always here to help if you have an accounts problem or query.
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