Exporting goods to customers outside of the United Kingdom remains a tantalising prospect for many small to medium-sized (SME) business owners. The potential rewards, including increased sales volumes and international exposure, are often deemed worth the additional paperwork and regulatory hurdles. This updated guide will walk you through the essentials of exporting from the UK in 2024, focusing on the impact of Brexit, government support initiatives, and practical advice for navigating the complexities of international trade.
The Current Export Landscape
Since 2015, the landscape for UK exporters has undergone significant changes, particularly due to Brexit and the global COVID-19 pandemic. The UK’s exit from the European Union has introduced new customs requirements and regulatory challenges. However, it has also opened up opportunities for trade with non-EU countries through new trade agreements.
Impact of Brexit
Brexit has fundamentally changed how UK businesses trade with Europe. New customs procedures, tariffs, and regulatory standards mean that goods sent to EU countries are now considered exports rather than ‘dispatches.’ This change has added complexity but also allows for new opportunities in global markets. For example, if you are exporting handmade furniture to Germany, you now need to comply with both UK export regulations and EU import regulations, including obtaining the correct commodity codes and ensuring your goods meet EU standards.
Government Initiatives and Support
The UK government has been proactive in supporting exporters through these transitions. The “Made in the UK, Sold to the World” strategy aims to boost exports to £1 trillion by the end of the decade. Key initiatives include:
- Export Support Service: Provides a single point of contact for exporters to Europe, offering tailored advice and assistance. Businesses can access one-to-one advice via a helpline and online service, making it easier to navigate the complexities of exporting to Europe.
- UK Export Academy: This programme offers training to SMEs on the technicalities of exporting and finding new opportunities in overseas markets.
- UK Tradeshow Programme: Helps businesses exhibit their products at major international trade shows, which can be a game-changer for market exposure.
- UK Export Finance: Expands support for securing overseas business deals, offering various financial products and insurance to ensure no viable export fails due to lack of finance.
Eligibility Criteria for Government Initiatives
To qualify for these government initiatives, businesses generally need to meet specific criteria:
- Export Support Service: Typically, businesses should have a turnover of £500,000 or more, a product or service ready to export, and some experience in exporting. They should also be looking to enter or expand into a new market.
- UK Export Academy: Open to SMEs of all sizes and industries, providing foundational knowledge and skills necessary for exporting.
- Internationalisation Fund: Open to SMEs in England with significant potential to grow international sales. This fund supports attendance at trade fairs and other market expansion activities. To apply, businesses must be registered in England, be SMEs with up to 250 employees, have an annual turnover of less than €50 million, and not be more than 25% owned by a larger enterprise. Additionally, they should have an export action plan approved by a DIT International Trade Adviser.
Applying for the Internationalisation Fund
To apply for the Internationalisation Fund, businesses must follow these steps:
- Initial Contact: Reach out to the Department for International Trade (DIT) via their regional network.
- Discuss Plans: Engage with a DIT International Trade Adviser to discuss your export strategy and identify suitable activities.
- Export Action Plan: Develop and agree on an Export Action Plan with the adviser, detailing how the fund will support your international growth.
- Submit Application: Complete and submit the application, ensuring all criteria and documentation are met.
Funding can be used for activities such as market research, IP advice, translation services, participation in trade fairs, and international marketing efforts. It is important to note that production costs, employee costs, and asset purchases are not eligible for funding.
Emerging Markets and Opportunities
While traditional markets in Europe remain important, there is significant potential in emerging markets such as Asia, Africa, and Latin America. These regions offer high growth rates and increasing demand for quality products and services. UK businesses are encouraged to explore these markets to diversify their export portfolios and reduce dependency on European markets.
Case Studies
Tech Startup Expands to Asia: A UK-based tech startup leveraged government support to break into the Asian market. By participating in the UK Tradeshow Programme, they showcased their innovative products at major tech expos in Singapore and Japan, securing significant contracts and establishing a regional presence.
Manufacturing SME Enters African Market: A mid-sized manufacturing company based in the Midlands used the Internationalisation Fund to attend trade fairs in Kenya and South Africa. Through these events, they connected with local distributors and now export a substantial portion of their products to these growing markets.
Navigating Regulatory Changes
Post-Brexit, businesses need to comply with new customs declarations, rules of origin, and regulatory standards when exporting to the EU. It’s crucial to stay informed about these changes and seek professional advice to ensure compliance and avoid costly delays. For example, food exporters must adhere to stringent EU health and safety standards, requiring detailed documentation and certifications.
Practical Tips for Exporting
- Understand Market Requirements: Research the regulatory standards and consumer preferences in your target markets.
- Utilise Government Support: Take advantage of resources and programmes offered by the Department for International Trade.
- Build Strong Relationships: Establish connections with local partners, distributors, and customers in your target markets.
- Invest in Training: Ensure your team is knowledgeable about export procedures and international trade regulations.
Final Thoughts
Exporting offers significant growth opportunities for UK businesses. By understanding the current landscape, leveraging government support, and strategically entering new markets, SMEs and private individuals can successfully expand their international presence. For tailored advice and support, consider contacting a professional export advisor or using government resources designed to assist UK exporters.
Need Help with Exporting?
Here at TaxAgility, our experienced accountants can provide the expertise you need to navigate the financial complexities of exporting your goods abroad. To discuss your SME’s international export ambitions and how you might seek further assistance, contact us today on 020 8780 2349 or via our contact page to arrange a complimentary, no-obligation meeting.