10 minute read
International Trade Forum
For any small or medium sized business, starting to export from scratch can seem overwhelming. A group of Sheffield City Region MDs set up the International Trade Forum in 2005 and here the ITF’s Peter Edwards and Alastair Morris share how the forum is helping local firms including manufacturer Lidsters in the areas of promotional Lidsters is a family-owned materials relevant to the cutting tool manufacturer exhibition and advice operating in a purpose-built regarding key areas to focus factory at Killamarsh. By on in relation to providing investing in state-of-the-art congruent information for manufacturing equipment, potential customers. they have become one of the While in Bangkok they largest and foremost drill attended an event organised manufacturers in the UK. by the British Chamber of To expand their business Commerce and met with further and keep pace with representatives of companies international competitors who were working in the they realised the need to region. As a result of attending grow their export sales. the exhibition, Lidsters
For SMEs, starting from identified two potential scratch to try and export to distributors in Thailand a country they have never and a further distributor even been to can seem in New Zealand. Interest insurmountable. Even in distributing Lidster's accessing the help available products was also expressed can be a time-consuming by companies in China, Korea and overwhelming task. and UAE. There are so many different Because the ITF is run by its things on offer from multiple own members, they decide government and commercial where to focus, depending organisations that it can be on their own business hard to know what is relevant. opportunities. The specific Furthermore, there is no spare type of support that is needed capacity from the day-to-day running of the business. RICHARD AND SARAH LIDSTER ATTENDING METALEX IN BANGKOK by a business can be sought from amongst the other
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For that reason, a group members and their networks, of managing directors in the such as introductions to Sheffield City Region formed The group runs run regular their profile in the region and suitable distributors or the International Trade events for its members, finding a suitable distributor guidance on where to get help. Forum (ITF) in 2005. They focused on specific markets of their products. They joined Even when travel was recognised that they could with the most potential. They an ITF-led trade visit to restricted during lockdown, help each other by pooling give an overview of the market, Metalex in Bangkok, Thailand the group adapted its service their collective knowledge highlight common pitfalls and and exhibited on the Made and promoted innovative ways about international markets. opportunities and signpost the in Sheffield stand. Metalex is to develop export strategies When an opportunity in a relevant contacts and support the largest machine tool and remotely, such as virtual trade new market arises, or a great bodies. metalworking exhibition in missions and online one-topotential is spotted, members Having attended an ITF the ASEAN region. one meetings. They were also of the forum have a ready- event focusing on South East Exhibiting overseas for able to help members with the made network of similar sized Asia in 2019, Lidsters took the first time was somewhat in-depth application process businesses, some of whom the opportunity to exhibit daunting, so the support that for the Queen’s Awards for have already trodden the same overseas for the very first fellow members of the ITF Enterprise for International road. time with the aim of raising gave was especially useful Trade.
TRADING POST-BREXIT
Businesses looking to trade internationally need guidance, now more than ever with Brexit looming. Brightfinch’s Claire Dalton gives unLTD’s Chris Coates an overview of the challenges faced by manufacturers and wholesalers when importing and exporting – and shares the solutions available to trading efficiently and minimising import taxes
If a business is importing or exporting goods, what does it need to have in place?
“Businesses will need an EORI number, and the correct commercial documentation such as a commercial invoice and packing list. An EORI number is a unique ID code used by customs authorities to identify a trader for customs purposes.
“In order for goods to cross the border, a customs declaration, which details goods being imported and exported, must be submitted. Completing one is complex and requires software to access the HMRC IT system, so many traders appoint an agent to do it on their behalf. When importing goods, after the customs declaration has been cleared any import VAT or customs duty must be accounted for before the goods can be released from customs
control. When exporting, an export customs declaration must be completed and receive clearance before the goods can leave the UK.”
What challenges do manufacturers face when trading goods?
“When manufacturers are importing materials they use to make products, they will have to pay the import taxes mentioned above before they can access those goods. However, once they have used the materials to make products which they may potentially re-export, it is difficult to get a refund on those import taxes.
“In this scenario, we help clients implement Inward Processing. It allows traders to avoid paying customs duty or import VAT on those materials if they are processed and re-exported within an agreed timeframe, typically three to 12 months. This means that if the manufacturer re-exports those goods, no customs duty or import VAT is ever paid.
“If the processed goods are being sold in the UK, the trader will have to pay the customs duty and import VAT when they are cleared to home use. However, there are still tax saving opportunities as we can often base this calculation on the new commodity code following processing, which may have a lower duty rate.
“Inward Processing must be applied for and requires accurate record-keeping and regular reporting to HMRC, which is where we can help manufacturers wanting to use it to make sure they are following the regulations correctly.
“Manufacturers must also keep up to date with new trade agreements and provide the evidence required for their overseas customers to claim reduced import duty upon arrival at the destination country. We help clients obtain approved and registered exporter status, minimising the paperwork required and ensuring the landed cost of their goods is competitive in overseas markets.” HOLLY TONGE, LEFT AND CLAIRE DALTON OF BRIGHTFINCH
What options are available for wholesalers and the retail industry?
“To avoid paying customs duty and import VAT, wholesalers and retailers can take advantage of Customs Warehousing. This means that goods can be stored in a customs approved warehouse in order to delay paying those import taxes, and there is no time limit for the storage of the goods. Unlike inward processing, goods stored in a customs warehouse are subject to limited forms of handling. However, it gives wholesalers and retailers time to decide if the goods will be sold in the UK or re-exported. If sold in the UK, they are cleared to home use and import taxes are accounted for. However, if they are subsequently sold outside the UK, a re-export from customs control discharges the import tax liability so no import tax is ever paid.
“The unlimited storage time period of Customs Warehousing improves cash flow for traders as they can delay or avoid paying import taxes, and it means that stock is readily available for distribution without decisions about where it is going to be exported to needing to be made within a time limit.
“The same record-keeping, reporting and application requirements apply as with Inward Processing, so we work with wholesalers and retailers to set up and manage Customs Warehousing for them.”
Are these solutions available to traders post-Brexit?
“When we leave the EU, and regardless of whether we reach a trade deal, the regulations which currently apply to countries outside the EU will come into effect for all EU member states meaning that customs declarations will be required for goods in the UK and the EU. If no trade deal is reached, duty and import VAT must be paid by UK and EU importers.
“If traders who currently only trade within the EU are worried about the future, Inward Processing and Customs Warehousing are two options they may not be aware of.
“Despite the uncertainty over a trade deal, it still pays to plan as far ahead as possible for post-Brexit trading. We can support businesses who are assessing their options and help them establish what solutions are available to them to minimise the financial impact of Brexit on their trading.”
Are there any new facilities being introduced to help traders post-Brexit?
“From January 2021, Postponed VAT Accounting is being introduced by the UK Government so the import VAT no longer needs to be accounted for at the time of import, and can instead be offset during their normal VAT return.
“There are also phased controls for UK imports, the most significant being that a UK import customs declaration can be deferred for up to six months, providing the trader or agent holds the correct authorisation to permit this. In addition, goods subject to import health or plant controls will not apply to most movements until April, with only full controls imposed by the UK Government from July 2021.”
About Brightfinch
Brightfinch was established in 2018 by Holly Tonge, who was already well established in the supply chain consulting industry. Brightfinch aims to deliver a refreshing approach to businesses looking for hands on assistance with customs authorisations, compliance and training. The company operates nationwide from offices in Sheffield and Crewe, and works closely with the Institute of Export and the Chamber of Commerce.
As a small consultancy, the firm offers personal service while being supported by a wide network of associates in order to find the best solutions for your business.
Brightfinch offers a free initial telephone consultation to find out what your business needs are and how they can assist you.
To set up a consultation, contact the Sheffield office on 0114 3210165.
MOVING THE BENCHMARK RECRUITMENT CONSULTANCY ANNOUNCES PROMOTION AND NEW HQ
During a period of significant growth for the Sheffield recruitment consultancy, Benchmark has promoted Rebecca Morris to MD. Here the team share with unLTD their exciting growth plans – including opening the doors to a new HQ!
THE BENCHMARK TEAM, L TO R: ELLIE LANGLEY, LOUISA HARRISON-WALKER, REBECCA MORRIS, LEE HARTLE
Benchmark has announced a promotion and a new office space as part of continued growth plans for the Sheffield recruitment consultancy.
After seven years with the company, Benchmark has promoted Rebecca Morris to the role of managing director.
Becca joined Benchmark as a trainee consultant, and her talent and passion for recruitment has led to her building a driven team and taking the company into its ambitious next phase.
Louisa Harrison-Walker, founder of Benchmark, has moved into a Chair role where she will continue to advise on overall business strategy.
Louisa will be balancing this with her interim directorship at Sheffield Chamber of Commerce and other community civic roles.
Here is what she had to say about the changes: “I’m so proud of the way the team has developed over the years. I’m so grateful to have the opportunity to continue to support and develop them as individuals whilst giving them a stake in the business and a key position in the driving seat going forward.”
As part of the company’s next phase, Benchmark have also announced a new residency within newly refurbished Wizu Workspace at 32 Eyre Street.
Becca said: “I am delighted to be working with such an amazing and dedicated team and thrilled to be taking Benchmark into its next chapter as we move to our new home and strengthen our relationships with clients and candidates.
“I look forward to improving on our already excellent service which will continue to be our top priority as we support local businesses and candidates to strengthen the economy through the COVID-19 pandemic and beyond.”
