Exporting from the UK? Don't let compliance hold you back

When many businesses start exporting, they focus on finding customers, generating enquiries and winning orders. But before you ship your first order overseas, it's important to understand the legislation and regulations that apply to international trade.

However, the good news is that export compliance doesn't have to be complicated and whilst the exact requirements will vary depending on your products and destination market. Most UK exporters only need to understand a handful of key areas including EORI numbers, customs declarations, export licences, VAT, duties, commodity codes, Incoterms® and product certification requirements. This guide explains the essentials to help your business export with confidence.

Do you need an EORI number?

If you're moving goods between the UK and other countries, you'll typically need an Economic Operator Registration and Identification EORI number - this identifies your company when dealing with customs authorities and is often required when:

- Exporting goods from the UK

- Importing goods into the UK

- Completing customs declarations

- Working with freight forwarders and customs agents

Without an EORI number, customs clearance delays can occur, potentially affecting delivery times and customer satisfaction. So before exporting, make sure your EORI registration is in place and that any logistics partners have the information they need.

Understanding Export Declarations

Most exports require customs declarations. These declarations provide information about:

- The exporter

- The customer

- The goods being shipped

- Their value

- Their destination

- Any applicable licences or restrictions

Accurate declarations are essential, because incorrect information can result in delays, additional costs, customs inspections and financial penalties. Many SMEs choose to work with freight forwarders or customs specialists who can assist with export documentation, but it's important to remember that it is the exporter who remains responsible for the accuracy of the information provided. So, when choosing a freight forwarder you should consider factors such as their reputation and experience as well as their global network and range of services….and of course not forgetting the cost.

Do you need an Export Licence?

Not every product requires an export licence. Certain products may be subject to export controls, including military equipment, dual-use goods, advanced technologies and some chemicals.

As the exporter, it is your responsibility to determine whether a licence is required. If you're unsure, it's always advisable to check before shipping. For a more detailed overview, read our guide: A Quick Guide to Applying for an Export Licence

Understanding VAT and Duties

One of the most common questions new exporters ask is: "Do I charge VAT on exports?" The answer depends on a number of things such as where the customer is located, whether they are a business or consumer, the type of product or service being supplied and the local tax regulations. In many cases, goods exported outside the UK can be zero-rated for VAT purposes, provided the correct evidence and records are retained. Similarly, customs duties are usually determined by:

- The destination country

- The type of product

- The product's origin

- Any trade agreements that may apply

Because tax regulations vary significantly between countries, businesses should always seek professional advice relevant to their circumstances. For more information, see: Understanding the Taxing Aspects of Exporting In addition, because VAT rules can vary depending on your circumstances, it is always advisable to check current HMRC guidance. Accurate record keeping is also essential, particularly where customers arrange collection or where goods are shipped through intermediaries.

Understanding Commodity Codes and Tariffs

Every product traded internationally is assigned a commodity code. These codes can be found using the UK Government's Trade Tariff Tool and play a crucial role in international trade. The code assigned to your products can affect customs duties, VAT treatment, licensing requirements and whether any restrictions or additional documentation apply.

It's also important to note that using the wrong code can result in delays, unexpected costs and compliance issues. Learn more about classifying goods for import and export and check whether licences, duties or restrictions apply to your products before exporting.

Why Incoterms® Matter

One of the easiest ways to avoid misunderstandings when exporting is to clearly define who is responsible for what. This is where Incoterms®  come in - these internationally recognised trade rules which clarify:

- Who arranges transport

- Who pays freight costs

- Who handles customs procedures

- Who is responsible for insurance

- Where responsibility transfers from seller to buyer

Using the correct Incoterms® helps reduce risk and ensures both parties understand their obligations from the outset. For SMEs entering international markets for the first time, this can prevent costly disputes later.

Real World Example: Selling to a Customer in Germany

Product Standards and Certifications

Even if your products meet UK requirements, you may need additional certifications in overseas markets. Depending on the country and sector, this could include safety standards, labelling requirements, technical certifications, environmental compliance and industry-specific approvals. Researching these requirements - the relevant UK and international standards before entering a new market can save considerable time and expense later.

Protect Your Business Overseas

Winning an international customer is exciting, but it's important to protect your business as well as your revenue. Start by ensuring all agreements are documented clearly and supported by robust contracts. Consider how your intellectual property will be protected in overseas markets and check that your insurance arrangements provide cover for international trade.

You should also remember that UK anti-bribery legislation applies to international business activity. Having suitable compliance procedures in place can help reduce legal and reputational risks.

Research Before You Export

Compliance is only one part of a successful export strategy. The most successful exporters research market demand, their competitors and potential customers as well as distributors and industry trends. Before entering a new market, understanding who your ideal customers are can dramatically reduce risk and improve your chances of success.

Using Kompass EasyBusiness, exporters can identify potential customers, distributors and business partners in more than 70 countries, helping them focus their efforts on the markets most likely to generate results. If you're at the beginning of your export journey, these guides can help you build a successful export strategy:

Plan Your Export Strategy – Getting Started

Export Market Research – Getting Started

How to Analyse & Research Export Markets

Planning Your Export Transport & Logistics

Get Expert Advice Before You Export

Whilst exporting can unlock significant growth opportunities for SMEs, it is important to remember that every market is different. So, before shipping overseas, make sure you understand:

- Customs requirements

- VAT and duties

- Product standards

- Licensing requirements

- Documentation requirements

- Contractual responsibilities

Taking the time to understand these areas will help you avoid delays, reduce risk and build stronger relationships with international customers.

Ready to Find New Export Opportunities?

Looking for new customers, distributors or business partners overseas? Kompass EasyBusiness gives you access to verified business information from more than 70 countries, helping you identify export opportunities and build targeted prospect lists.

Talk to the Kompass team to discover how business data can support your export growth strategy.

Additional Resources for UK Exporters

Sell to the world with tailor made support from Business.gov.uk

UK Export Finance provides trade finance and insurance for exporting.

Find resources and grow your business globally through the International Chamber Network

The Chartered Institute of Export and International Trade give advice and guidance

Build your global brand and online presence with Kompass Digital Marketing

Disclaimer: Please note that this blog only contains general information and insights about legal matters. The information is not advice, and should not be treated as such. Kompass.com