Exporting is great, whether to within or outside of the EU – the trouble is, exporting to outside the EU is a little trickier to exporting within the EU.
So check out our guide to exporting to outside the EU to find out some of the rules and regulations you’ll need to get to grips with.
Exporting to outside the EU
Exports to countries outside the EU are called exports to ‘third countries’, and not only might you need to submit an export declaration for these exports, you may also need an export licence.
Export regulations vary, depending on the country you’re exporting to and you might find you also have to pay custom duties and taxes in the destination country.
Any exports to outside the EU require a commodity code which classifies your goods for duty, tax rates and regulations, such as licences. You can find more on commodity codes at GOV.UK
Export licences
If you need a need a licence to export goods to a third country – exporting agricultural goods or valuable antiques, for example, often needs a licence – you’ll have to get one from the relevant government organisation, such as the Department for Environment, Food and Rural Affairs.
If you’re exporting controlled goods, such as military, defence or security related items, you may need a strategic export licence, and this will also cover Dual Use goods that can be used for both civil and military purposes.
If you do need a strategic export licence, read the guidance first then apply using SPIRE.
Export declarations
If you want to export goods to a third country, you’ll need to submit an electronic export declaration, and you can do this by:
- registering for an Economic Operator Registration Identification number(EORI)
- registering for the Customs Handling of Import and Export Freight system(CHIEF)
- submitting your export declaration through the National Export System (NES) which is part of CHIEF
These declarations are sometimes handled by an agent known as a freight forwarder, and special rules apply for indirect exports, which is when goods are moved via other EU countries before being exported to a third country.
For more information on submitting declarations through NES, visit GOV.UK.
Paying VAT on exports overseas
Most goods you export to non-EU countries can be zero-rated as far as VAT is concerned, but before you can do this, you have to:
- get evidence that the goods have left the EU
- keep a record of the export in your VAT account
And if your customer is collecting the goods from you, you’ll need to keep more detailed records.
You don’t charge VAT for services you export outside the EU.
Paying duty on exports to third countries
The duty you pay on exported goods not only depends upon a number of factors, most notably the type of goods, their value, where they’re from and the charges are set by the country you export to.
The UK Trade Tariff lists the duty charges, tax, custom rules and paperwork for exports to third countries.
There are a number of schemes that can enable you to claim ‘duty relief’ to claim back any charges and VAT or delay payments for some exports outside the EU. For instance, some countries have trade agreements with the EU that allow you to export at lower or zero duty rates. To take advantage of these agreements you’ll usually have to to prove where the goods originated from.
And before exporting to any non-EU country, check there are no embargoes or sanctions against exporting certain goods, specifically military, defence or security related goods.
You can find more information on doing business in non-EU markets at GOV.UK
