3. What we will cover
1. Select your Carrier
2. Terms of Trade
3. Think Customs
4. Descriptions
5. Duties & Taxes
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4. 1. Select the right carrier
Main Criteria
Think about
Cost Brand image Coverage
Speed Ease of Use Trust/Relationship
Flexibility
Size
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5. 2. Terms of trade
EXW Ex Works
Buyer bears all costs & risks to destination
Incoterms 2010
FCA Free Carrier At Establishes responsibility
Seller hands goods cleared for export to Covers sales, transport & risk
carrier
CPT Carriage Paid To Internationally recognised
Seller pays freight to destination, buyer bears 11 different terms
risk during carriage. Duties paid by buyer
Agree them upfront
DAP Delivered At Place Quote on your customs documents
Seller pays freight & bears risk to named
place. Duties & clearance by importer
DDP Delivered Duty Paid
Seller pays freight, bears risk , customs duties
& costs to named place.
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7. 4. Product descriptions
Unacceptable descriptions
Descriptions really count
Dolls, remote controlled
Gifts cars, Board Game One of the main causes for delays
Cardboard packaging or Causes incorrect duties & taxes
Samples Cotton fabric sample
Avoid generic descriptions
Mobile phone, LCD, CD Give a full description
Electronics player, circuit boards HS Codes
Machine Pump, Rubber Seals, What is the product
Parts Engines What does it do
What is it made of
Mens wool trousers, ladies How many there are
Textiles cotton dress
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8. 4.1 Product descriptions - Harmonised System Codes
A “universal” means of classifying
goods that are being imported or HS Codes
exported.
First six digits are fixed The code for International Trade
Eliminates errors
classification for export. The
remaining digits are for import. Enables the correct import tariffs
They are also known by a variety of to be applied
terms such as CMCDs, HS codes, Used for Export entries
Tariff numbers, Taric, or HTS Used for Import entries
Codes
HS codes used in HMRC statistics
Find the HS code that fits your
product – use GOV.UK, Market
Identify other controls
Access Database or DHL Trade
Automation Services
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9. 5. Destination Duties & Taxes
• Take advice from your carrier
• Landed Costs = Value + Transport +Duties + Taxes+ Fees
Destination Duty & Taxes
Landed Costs
Avoid the risks when selling DDP
Provides opportunity for inclusive prices
Needs to be considered if
Terms of Trade DDP
HS codes are essential
Market Access Database
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10. Help for new exporters & importers- printed
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11. Help for new exporters & importers - online
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