Please see our frequently asked Import and Export questions below:
Q: What does an import/export consultant do?
A: We are helping businesses navigate international trade by ensuring compliance with customs regulations, optimising logistics and reducing costs. We also provide freight solutions for your road, sea and air shipments worldwide.
Q: Can you help with both imports and exports?
A: Yes. If you’re bringing goods into the country or shipping them abroad, we will provide full support, from documentation and tariffs classification to freight movement and pricing.
Q: Which industries do you work with?
A: We work across multiple sectors, including manufacturing, retail, food & beverage, textiles, and technology. We tailor our approach to your industry’s specific regulations.
Q: How do you ensure compliance with trade laws?
A: We are up to date with global trade regulations, tariffs, and free trade agreements. This ensures your business avoids costly penalties or shipment delays whilst acting as your first line of defence in terms of audit scenarios from the Customs authorities.
Customised Training
Q: Do you offer in-house training?
A: Yes. We provide customised training on import/export processes, documentation, and compliance so your team can operate confidently. We provide training face-to-face or via zoom calls, depending on your preference.
Q: What options do you have for training?
A: A full range of options, from a Customs Health check – looking at your processes and checking all aspects of your business remain Customs compliant to tailormade training on Classification, valuation, export controls, Incoterms, Import/Export procedures and documentation, border IT systems and customs special procedures.
Incoterms
Q: What are Incoterms and why are they important?
A: Incoterms, short for international commercial terms, clearly explain the rules and terms that buyers and sellers use in international and domestic trade contracts. These globally recognised standards reduce confusion in foreign trade by defining the legal obligations of both buyers and sellers.
Q: What is the difference between DDP and DAP?
A: DAP (Delivered at Place) indicates that goods will move forward to a specific (named destination) and costs for the export would be picked up by the exporter. Control over the use of a specific courier / carrier would be the choice of the exporter and they could look to decide whether to insure the goods at the same time.
DDP (Delivered Duty Paid) is the shipping process covered all the way through to a delivery point in the destination country. The goods would need to be customs cleared at destination by the exporter as well as them managing the shipment process. Duty liabilities and potentially VAT would therefore be the responsibility of the seller.
Documentation
Q: What do I need to show on an invoice for import/export purposes?
A: Basically, a clear and detailed invoice can help avoid delays and ensure Customs Agents can better ensure correct declarations are made. Details required include seller and buyer’s full name, trading address and EORI’s, delivery address, Incoterms and currency. A breakdown of goods shipped to include a description of item, quantities, net and gross weights and total values per line/invoice total.
Q: What is an EORI?
A: An EORI number (Economic Operators Registration and Identification number), issued by HMRC. It is the unique code used to identify a business involved in import or export of goods to/from the UK. A UK issued EORI will be prefixed by “GB” and is 12 digits. Often, but not always, the first 9 digits will match a businesses VAT number. Having a VAT number does not negate the need to apply for an EORI.
Q: How do I apply for an EORI?
A: UK businesses can apply for an EORI via their HMRC Government Gateway account. Applicants will provide basic details relating to the business (VAT number, Companies House details). It usually takes 3 to 5 days to process. It is good practice to apply for an EORI well in advance of your first anticipated import/export, in case HMRC need to make further checks before issuing.
Customs Compliance
Q: What is postponed VAT?
A: Postponed VAT Accounting (PVA) is a scheme which allows businesses to delay paying/accounting for VAT on goods imported. PVA avoids the need to physically pay VAT at import. Instead, they account for the VAT amount on their next VAT return. This scheme can be a major boost to an importers cash flow.
Q: Who can use PVA/Postponed VAT accounting?
A: Any UK VAT registered business not involved in any simplified VAT schemes such as the flat rate scheme. Private importers and none VAT registered businesses are unable to make use of the scheme. Regardless of size of business, volume of imports or trade sector, PVA is available to all but those mentioned above.
Q: What is a deferment account?
A deferment account with HMRC lets you delay paying Duty or VAT on the goods you import. Instead of paying these charges when your goods arrive in the UK, you can declare your Deferment Account Number (DAN) on the import declaration. HMRC will then collect Duty or VAT by direct debit from your agreed bank account on the 15th of the following month (for example, if you import goods on 1 January, you pay on 15 February).
You apply for a DAN through your business’s Government Gateway account, and your bank takes part in the process because HMRC requires a Direct Debit before approving your application. Using a DAN can help you avoid delays when your goods arrive, as long as your account has enough balance to cover the Duty or VAT owed.
Help with your deferment account
Q: What if I find an error on a declaration?
A: Underpayment will result in the need to promptly notify HMRC. Fill out the voluntary disclosure form C2001, and HMRC will issue a C18 demand note.
An overpayment is refundable within three years. Fill out form C285.
Neither option applies to VAT only errors importers must account for the underpaid import VAT on your VAT Return.
Q: What is an non-monetary error?
A: Where an error is identified but does not affect Duty paid, this still needs to be notified to HMRC (mainly for future audit purposes).