How Do Export Procedure Work?
A variety of different export procedures apply to exporting products outside of the United Kingdom. Many of these vary based on whether the destination country is inside or outside of the European Union and what kinds of products are being exported.
Export Procedure Listed Below:
Classifying Goods for Export
The first and most important of the various export procedure required by the government of the United Kingdom is proper classification of goods. Products are classified using the UK Trade Tariff, which is available online. Correctly classifying goods using this manual makes sure that the business gets the right licenses, declares the goods properly, pays the correct amount of duty or VAT, avoids seizure of goods, and avoids having to pay fines. This is thus the first of the export procedure to be performed.
All exporters are required to declare their exports before they leave the country. A computer-based system known as the National Export System is the easiest and quickest way to do this. These export procedures require that an exporting company get a Customs Handling of Import and Export Freight (CHIEF) role to log in. The company is then required to provide their Economic Operator Registration Identification (EORI) number, details on where the goods are going, description of the goods, shipping details, the Customs Procedure Code (CPC), and the correct value of the goods.
Certain kinds of goods are controlled by the Export Control Organization. The export procedure for goods like radioactive materials, weapons, and torture materials, as well as dual-use items like certain chemicals include obtaining an export license. Other types of products may require an export license if they are being shipped to certain destinations, including countries under U.N. or EU embargo, war zones, countries with unstable governments, and others. Not following licensing export procedures is a criminal offense.
Agriculture, Animals, and Plants
Export procedure for agricultural products, processed food, meat, and live animals and plants must also be licensed, but not by the ECO. Agricultural products and processed food require Common Agricultural policy licenses from the Rural Payments Agency. The export procedures that apply to live animals and plants and to meat are slightly different. These types of exports generally need licensing from UK-based government agencies, as well as health inspections, before they are sent.
Export Procedure on The VAT Tax
This is an area where export procedure are different for goods sold to European Union versus non-European Union countries. For EU countries, sales of goods must be reported on UK VAT forms, as would be done for any goods sold in the UK. Exports to non-EU countries, also called third countries, have a different set of export procedures for taxation. In general, paying the VAT tax is not required as long as the products left the EU within 3 months, the company keeps evidence of shipments, and can prove that the transaction took place.
Many export procedure govern the transport of products outside the UK. Make sure that you consult the UK Trade Tariff and publications by the Export Control Organization and the HM Revenue and Customs Department so that you know how to follow the procedures correctly.
If you enjoyed reading about How Do Export Procedure Work then see our next article Exporting License.
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