International Trade eLearning Suite for SMEs-InTeLS

1.     Why should I be thinking of exporting?

 

Economies of scale in production, increased revenue and profit, spread risk base of business, smoothing effect on order book, defend UK sales, develop new product ideas.

 

 

2.     Are my products / services suitable for overseas markets?

 

If you have an established UK market and the product / service is competitive there is no reason why, with proper planning, it could not compete overseas.

 

3.     How do I select the countries to concentrate on?

 

Only you can make that decision based on information and advice available. Consider in-house information and knowledge (e.g. language capability); consult your local office for advice and sources of specialist information and help. Do an exploratory visit e.g. to a trade fair, look at our Sales Lead Service. Use theUK Trade & InvestmentMarketing Research Service to supply you with reliable information to support high entry cost. The Export Explorer service might also be worth considering.

 

4.     How do I sell in overseas markets?

 

Use tailor made market reports from UK Trade & Investment for choice of channel(s) (agent, distributor, licensee, end users) and identification of suitable, interested firms. Join a trade mission with assistance on marketing strategy. Further information is available form you localInternational Trade Teamor our Export Explorer scheme.

 

5.     I can’t speak a foreign language can you help?

 

The commercial staff based in UK Embassies overseas can recommend interpreters for trade fair visits and missions. Contact details can be found on the relevant country pages of the UK Trade & Investment web-site.

 

6.     Do I have to get all my literature translated?

 

Not at first. Enough for initial discussions and then define what is needed, possibly involving the local company in design and / or production.

 

7.     How do I position and price my product / service to make it attractive and competitive?

 

Tailor made market research reports on current suppliers, their success factors and prices. Calculate costs accurately to define margins and price flexibility. Expect to quote in local currency. Consider Euro transparency within the E.U. Contact your local International Trade Team for the different terms of sale used in exporting (e.g.Incoterms).

 

8.     How do I find out about regulations for my product in a country?

 

Consult your local International Trade Team or country specialist at UK UK Trade & Investment.

 

9.     What Export Controls are there for my specialist equipment?

 

The Department of Trade and Industry Export Control Organisation provides advice on export controls and licensing of certain defence-related goods and technology. Details of embargoes and sanctions on a country by country basis, including guidance notes Tel: 0207 215 8070

 

10.   Is there any help in exhibiting at trade fairs overseas?

 

UK Trade & Investment has a range of help. We provide support to exhibit at the world’s major trade fairs and many less-known niche events.

 

11.   What about packing and shipping?

 

You will need a forwarding agent. Consult the British institute of Forwarding Agents and your local office. Get comparative quotations listing all charges before selecting one. Ask about packing and transport procedures.

 

12.   What about paperwork?

 

SITPRO the Uk’’s trade facilitation agency can help. Chambers of Commerce can also advise and offer training courses on paperwork for movement of goods and for payment purposes. They will also recommend handbooks (with frequent updated service) to show the documentary needs for each overseas market. Freight forwarders will also assist with forms – ask about the charges, if any, for this help. For further information contact the British International Freight Association by email at bifasec@msn.com

 

13.   What about import duty?

 

This is normally paid by the buyer when he clears goods at the point of arrival (port or airport). You need to know the rate payable when you are researching market price structures. Consult the commercial staff at our Embassies overseas

 

14.   What about after-sales service / technical support for my customers?

 

Your agreement with the local partners should require him to provide routine support, after training a necessary, with your expertise for back up as required.

 

15.   What about product / service liability?

 

Products and product literature needs to comply with all local regulatory requirements. The British Standards Institute can help to research this. Commercial staff based at our Embassies overseas will advise on insurance against liability actions. In the case of services, contracts need to specify what is being supplied and the limits of obligation. Take advice on local law to ensure it does not override any parts of the contract. Further information is available from the Law Society.

 

16.   How will I promote / advertise overseas?

 

For new and innovative products use UK Trade & Investment New Products from Britain service for initial research or to support a newly appointed partner. Plan promotional activity with a partner, e.g. collaboration at a trade fair, as part of the marketing plan and record it in the contract. Further information is available from the Central Office of Information.

 

17.       How will I get paid, and how quickly?

 

Varies greatly. In Europe open account trading is most common. Elsewhere drafts (bills of exchange) are used. In some markets payment by Letter of Credit is the norm. Times of settlement also very: in northern Europe you can often negotiate payment at 7 or 14 days but in southern Europe settlement at 90 or 120 days is typical. Letters of Credit can provide for payment immediately (“at sight”) of after a certain term. Speak to a Credit Insurance provider or SITPRO.

 

18.       What happens if the payer doesn’t pay?

 

You can and should insure against non-payment of export invoices with a specialist provider or arrange for you bank to take over the risk, e.g. discount your export sales ledger. Staff in our local offices will advise. You can pursue a foreign debt through collection agencies but prevention is better than cure.

 

19.       How long will it take to get my first order?

 

You may obtain an initial trial order on you first, exploratory visit to a new or even before, but there is normally a proving period as your partner develops familiarity and gains confidence. As in the Home market, it could take 12 months or more to establish the trading pattern. Speak to established exporters – use your local International Trade Forum (Export Club) to gain a better understanding of what is involved. 

 

20.   How much will I have to spend, typically, to set things up in an oversea market?

 

Apart from your time commitment, expect to invest in at least two short visits and the purchase of some market research to define any necessary tailoring of your product / service and its literature. There may also be registration / approval costs included. Promotional support, if part of the arrangement with you partner, will have a cost (even if this is in the form of extended credit for an initial stock order) and your eventual agreement with the partner should be professionally drafted. Speak to your localInternational Trade Team.

 

21.   Are there any grants / financial assistance available for new exporters?

 

Generous subsidies are available throughUK Trade & Investment for investigating new market opportunities. They provide:

 

·        Free access to an International Trade Adviser for initial planning advice and information on sources of help.

·        Free access to an Export Promoter for specialist advice on approaching a particular market. Use the Contacts section in the Trade Partners UK country and sector pages.

·        Free use of an extensive self-help Information Centre in London.

·        Free information online through the UK Trade & Investment site about markets and sectors, plus sign posting to other web-sites for further research and services.

·        Tailored market research, at very modest cost, by our commercial staff based in our Embassies overseas report on conditions, opportunities, buyers, potential partners and other requested information. Interview of candidate partners can be included.

·        Commercial staff based in our Embassies overseas can help in arranging local visit programmes, including an interpreter if required.

·        Trade mission sponsorship

·        Exhibition and Trade fair sponsorship

·        Low cost publicity for new product / service including professional copy, translation, targeting of relevant press and media by the embassy in the chosen market(s).

·        Free advise on conducting export marketing research

·        The Export Market Research Service helps carry out marketing research for your chosen market. Customers may be eligible for grants to cover up to 50% of their export marketing cost. This is a joint initiative between UK Trade & Investment and British Chambers of Commerce.

 

22.   How can I finance export business if cash flow is a problem?

 

As a first step it is worth asking suppliers about extended terms to enable you to develop additional demand from overseas. Also, if you are selling into markets where sight terms are the norm, i.e. no credit I expected by the buyer, this assists cash flow. But when your export business begins to have an impact on cash flow it may be worth considering factoring to free up working capital.

 

23.   Where can I find professional export training for my staff?

 

Your local Chamber of Commerce office is the first step – access them via the British Chambers of Commerce Website. Your local International Trade Team will offer various types of training in-house and can put you in touch with a full range of specialist providers for other courses in International Trade including those of the Institute of Export. Home study courses are available in many cases or use the course materials available on the InTeLS website.

 

24.   Do I need an export licence?

 

Export licenses are necessary for only a number of products; those which have controls placed on them, often in relation to the destination or, more obviously the type of product.  The clearest example of license requirements exist for Arms and Military equipment, butIndividuals and companies might require an export licence if they are planning to export a wide variety of goods such as antiques, medicines, plants, wildflowers, controlled drugs and much more.

If your business is considering exporting goods, you will need to check if you need an exportlicence - particularly if you're planning to export military goods or technology, artworks, plants and animals, medicines or chemicals. Remember that exporting controlled goods without a licenceis a criminal offence!You should seek advice from the BIS (Department for Business Innovation & Skills) should you be in any doubt. 

 

25.   Which government department is responsible for export licensing?

 

ECO (The Export Control Organisation at the BIS) is responsible for legislating, assessing and issuing export licences for specific categories of "controlled" goods. This encompasses a wide range of items including so-called dual-use goods, torture goods, radioactive sources, as well as military items. Whether a licence is required depends on various factors including the items exported and any sanctions in force on the export destination.

Individuals and companies might require an export licence if they are planning to export a wide variety of goods such as antiques, medicines, plants, wildflowers, controlled drugs and much more. For exports subject to control under other UK legislation which are not covered by the ECO's remit, you will need to contact the relevant government departments and agencies as outlined below:

 

• Antiques and works of art

The Museums, Libraries and Archives Council (MLA) which forms part of the Department for Culture Media and Sport (DCMS) is responsible for export licences for cultural goods

The MLA is responsible for an Open General Export Licence for the export of cultural goods. This covers some firearms, arms and armour. See information on the OGEL (Objects of Cultural Interest)  For more information:  MLA web site (external site)

 

• Certain chemicals (mainly pesticides)

The Health and Safety Executive is the UK's national authority responsible for export controls of dangerous chemicals  There are various requirements including the need for a Prior Informed Consent (PIC) before exportation.  For more information: HSE web site (external site)

 

• Food, Animals and Animal Products (including endangered animals and wildlife), Plants, Seeds and Plant Products , Horticulture, Organic Products

The Department of the Environment, Food and Rural Affairs (DEFRA) is concerned with exports in relation to areas of animal health and welfare and the environment. For more information see: DEFRA web site (external site) Foods Standards Agency web site (external site providing details of exporting foods to the US and EU) Convention on International Trade in Endangered Species web site (external site)

 

• Prescription drugs and Medicinal products

The Medicines and Healthcare Products Regulatory Agency (MHRA) on behalf of the Department of Health, issues export certificates for the export of medicines

For more information see MHRA web site (external site)

 

• Controlled drugs, Precursor chemicals and reagents

Companies and individuals across the UK need to apply for Home Office licences if they wish to export controlled drugs. For more information see:  Home Office/Drugs web site (external site) 

 

• Veterinary medicinal products

For more information: Veterinary Medicines Directorate, on 01932 336 911 or to the Export Certificates Scheme document (No 25) which is published on the Veterinary Medicines Guidance Notes page (external website). 

 

• Vehicles

If you are taking a vehicle out of the country on a permanent basis you must notify the Driver and Vehicle Licensing Agency (DVLA). On a temporary basis you must complete the relevant documentation. For more information see :  Direct Gov web site (external link)

 

• Clothing, Footware and Fashion

An export licence is required for textiles or garments with military uses (for instance, camouflage garments). These are licensed by the Export Control Organisation if more than 50 years old and worth over £12,000. Licences are issued by the Museums, Libraries and Archives Council (MLA) For more information: MLA web site (external site)

 

26.   What is Trade Facilitation?

 

The World Trade Organisation (WTO) definition of trade facilitation is “the simplification and harmonisation of international trade procedures” with trade procedures being “activities, practices and formalities involved in collecting, presenting, communicating and processing data required for the movement of goods in international trade”.

In simple terms trade facilitation focuses on simplification and rationalisation of customs and other administrative procedures, which get in the way of trading across borders.

Trade facilitation reduces scope for illegal trafficking, corruption and fraud. Presently inefficient procedures act as a hidden tax (but with no public benefit) on the honest trader. Trade facilitation is also a paradigm of good governance: transparency, better regulation, due process, and government-private sector working together.

The UK is fully committed to reducing red tape associated with the International supply chain. BERR, Her Majesty's Revenue & Customs (HMRC) and Department for Environment,Food & Rural Affairs(DEFRA), are working on the development of an International Trade Single Window (ITSW). Once developed this will provide a single point of Entry, through which traders clear all of their UK export and import formalities

 

27.  What is the market access database ?

 

The Market Access Database is a free, interactive, easy to use service providing:

· Information about Market Access conditions in non-EU countries.

· A systematic way for the European Commission to follow up complaints from businesses about barriers to trade in non-EU countries.

· A means of ensuring that our trading partners are abiding by their international commitments.

· Better input for defining the EU's trade policy objectives on further trade liberalisation in the framework of the World Trade Organisation (e.g. Doha Development Agenda) and new free trade agreements between the EU and preferential partners (e.g. EU - MERCOSUR).

 

28.  What's in the Market Access Database ?

 

Sectoral and Trade Barriers - information on trade barriers which may affect you in the individual countries.

Applied Tariffs - entering a HS code or product description, will provide you with the duties and taxes applicable to your products, allowing you to calculate a landed cost.

Exporters' Guide to Import Formalities - all you need to know about the import procedures and documents required for the import of a particular product is available by simply entering a HS code or product description.

Statistical Database - an overview of trade flows between the EU and non-EU countries, accessed by simply entering a HS code or product description.

SPS Database - a database designed to facilitate the identification of Sanitary and Phytosanitary export problems with any non-EU country.

Studies - downloadable text of reports concerning market access related studies referring to geographical areas, selected business sectors or relevant horizontal issues (e.g. labelling).