Bromley Solicitors

Bromley Import/Export FAQs

We hope you find these frequently asked questions of some use.  Please bear in mind that due to the variety of possible circumstances and applications of laws of many other countries (depending on the country you are trading with), these FAQs are an overview of things to bear in mind, rather than a list of specific laws.

What things should I consider when exporting?

From a legal point of view, you must be aware of export  restrictions and regulations that apply in your own country as well as import restrictions and regulations that apply in the destination country.  You might need to apply for an export license in the UK and an import license in, for example, China too.  You must adhere to the local laws of the country you are exporting to.  There may be certain labelling requirements (such as having the labels in the language of the target country) and restrictions on marketing certain type of goods, such as pharmaceuticals.

Matters are often made a lot simpler when exporting within the EU or countries which have free trade agreements with the EU such as South Korea.  Whilst you will still have responsibilities for local taxes, you will not have to pay duties, which apply when importing into the EU only.

What should I consider with regards to intellectual property?

You should also review your intellectual property.  Whilst you might have a patent or trademark registered in your own country, you may need to protect your property in your destination country too.

What things should I consider in my export contract?

The export contract must unequivocally state your duties and obligations with regards to delivery.  You might want to use the provisions of Incoterms, which are internationally agreed terms for delivery and stating positions with regards to compensation and dispute resolution.  The terms are translatable into many different languages and therefore useful.  It is absolutely vital that you properly cover payment provisions  in your contract and think about how safe the payment method of your choice is.  You should also state who will be responsible for any customs duties and any taxes in the destination country and you might want to use a freight forwarder to make matters simpler.

What is a safe method of receiving payment when exporting?

As with any business matter, it is vital to try and build trust and get a feel for who you are dealing with.  Of course, for particularly large orders you may want to meet the customer directly and get references.  When you are unsure of the supplier, you could ask for a letter of credit.

What does the country of origin principle mean?

The country of origin principle is a principle used in European Union Law.  It basically states that disputes can be handled according to local laws in member states of the European Union.  So, if you export to France and you have a dispute with a French customer, the dispute will be settled by French law.  For this reason, you should bear in mind that French consumer law, for example, may have different standards to consumer laws in England and Wales, so always double check.

What things should I consider when importing?

Much of the same considerations for exporting are also relevant for importing.  You will have to get a license in the UK for certain types of goods and some specific goods, particularly foodstuffs, seeds, plants and flowers, may be outlawed all together.  You will of course have to consider the duties and taxes you will have to pay (particularly when exporting from outside the EU) and excise rates for certain things like tobacco and alcohol. If you are export products from the supplier country, you will of course have to comply with local regulations, requirements for export licenses and tax regulations.

The following link will take you to the main import export law page