Ensuring no business should fail to export for lack of support, advice and expertise.
Want a rocking mission statement? Look no further:
“Our mission is to ensure that no viable UK export fails for lack of finance or insurance, while operating at no net cost to the taxpayer.” https://www.gov.uk/government/organisations/uk-export-finance
It’s the mission statement of UK Export finance and I love it. It is so “can do”.
My mission statement (if I had one) would be similar. I am thinking, “No business should fail to export for lack of support, advice and expertise.”
But this week I ran into a mission, which was more, “Our mission is to do the best we can but we aren’t really sure what to do so can’t really help.”
A bit harsh? I don’t think so. Read on and let me know if you agree.
I am helping a client save money.
The problem:
The client is manufacturing products in the EU.
The client brings the finished product back to the UK for both their UK and export clients.
Every time they bring in their finished product, they paid taxes on that. Every time.
The solution:
I advised them to apply for something called Outward Processing Relief: this means if you get authorisation to use this process, you can get a reduction of Customs Duty and import VAT on the goods you bring back to the UK.
All I needed was a straight answer to what should have been a straightforward question: My client has multiple products and therefore multiple components with different commodity codes. He needed to know simply how he should accommodate all of this on the form, which only allows input of 10 codes. 10 codes could mean just 10 components.
If you have never come across them a commodity code is a 10 digit number used to classify goods for import and export purposes. This is how HMRC will identify the goods under an OPR authorisation so it is important. I’m happy to explain more and give more details on OPR and commodity codes but to be honest, I think I probably lost you at the first mention of commodity codes! (Maybe that would make a great post. Let me know your thoughts on that.)
I sent an email enquiry to HMRC and the department responsible for authorising these applications. Their response? The client will have all the info they need for the application.
Yes, they do, they just need to know how you HMRC want it presenting.
A day and another email later I got a partial answer.
There is a new Exporters helpdesk from the government. There the advice on the same query was to use the EU Import One Stop Shop (IOSS) – designed to help exporters of lower value goods to end customers, pay VAT in the country where the goods will be received; nothing to do with OPR.
Then the Institute of Export rode to our rescue. I got a fabulous response from the Institute of Export and International Trade helpdesk (a benefit of me being a member). It was detailed, helpful and more importantly has allowed us to move on with the application.
International trade is so important, not just to the country as a whole but to every company which is doing it. It balances out natural resources where there is an abundance in one country and a lack in another, it allows companies access to different markets and consumers and at the same time, it allows great choice for consumers. It can really be the icing on the cake for your business, leading to increased profits and growth.
There will be hurdles, which is why companies need good support and advice and more importantly, expertise.
If you are thinking of selling your products abroad or buying from abroad,
· Don’t be put off because it is too hard. Everything is hard when it is outside your area of expertise or comfort.
· Don’t be put off if you encounter a lack of expertise like I did.
· Don’t be put off thinking you will wait until it gets easier. What happens if that doesn’t happen?
· Don’t be put off by the stuff I wrote, which you don’t understand; it’s my job to explain and advise about it.
Do find someone, like me, who can help you take advantage of what the world has to offer. Maybe someone who, like me, has a mission statement like:
“Ensuring no business should fail to export for lack of support, advice and expertise.”