Tips to help you save money when exporting and importing

At Dorset Chamber, we work with businesses across the region to help them import and export thousands of items each week. Our experienced team is on hand to provide the services, support, training and expertise to keep your business trading 365 days a year. When it comes to importing and exporting, careful planning and good knowledge of the processes and legal requirements can go a long way to saving you money. Collaborating with our training partners, International Trade Matters, Dorset Chamber’s International Trade team, shares its five top tips on how to save money when working with global customers and suppliers.

1. Know the Incoterm rule for your shipment

The Incoterm rule should be agreed on every shipment at the time of sale and will allow you to know who is paying for what, who is responsible for each part of the shipment and, most importantly, if it goes wrong, who needs to foot the bill.

2. Can you use thresholds?

When trading with certain countries, if goods fall below a certain amount, duty does not apply. For example, shipments in the EU below €150 do not incur duty. VAT does apply but is recoverable if you are VAT registered in the place where the VAT is payable. Check the values for the country you are trading with as this could help reduce costs.

3. Ensure your commodity code is correct

The correct commodity code for your goods is essential to meet your compliance obligations. They are updated regularly, and it is your responsibility to ensure they are accurate. Check your commodity codes on the UK Trade Tariff on GOV.UK. The wrong code could lead to you paying unnecessary duty and breaking the rules.

4. Ensure your country of origin is correct Country of origin of goods must be accurate when trading internationally. If goods are made in the UK, can you prove this? Or if goods are not made in the UK can you also prove this? Do goods then qualify for preferential origin? If they do, duty costs will be reduced, often to zero. The UK has trade agreements with over 60 countries and regions. Based on this, you can save money by importing the same goods with a different origin if they incur lower duty rates.

5. Can you use an ATA carnet?

If you are moving goods to another country temporarily, you can use an ATA carnet. This document acts as a passport for goods, meaning you do not need to pay import and export duty. These are used for goods which are commercial samples, professional equipment or goods going to either a trade fair or exhibition.

If you need any further information on any of the above, please contact our international trade team on export@dorsetchamber.co.uk or visit our website.