Exporting product out of the United Kingdom is a time consuming and logistically challenging process. There are plenty of places to become unstuck and encounter extra charges which impact your bottom line. Taking time to consider your options and make sure everything is in order is advisable.
Here we go through 10 quick-fire tips to consider when exporting goods out of the UK.
Research the destination country
You need to know details about the country you’re exporting to. In a logistical context, this is less about whether there is a market for your goods and more to discover whether they have any unusual documentation requirements.
The logistical requirements can also be affected by the type of goods you’re looking to export. Documentation needed for food or other Products of Animal Origin (POAO) can often be more thorough. Likewise with dangerous goods.
For example, if you are exporting to the USA, you will need to complete a Power of Attorney as standard, so that a freight forwarder can process your customs clearance. Meanwhile, if you’re exporting food in the US, you’ll need to complete several extra forms, on top of the other basic requirements, in order to be compliant.
The documentation requirements change substantially from one nation to the next, so every market needs to be looked at individually.
A good freight forwarder should assist with documentation requirements, so goods don’t get stuck at customs.
Consider all the transportation options
What we mean here is a simple sea vs air vs rail vs road freight calculation. All methods have their benefits and drawbacks. Which one is right for you depends on a range of factors:
- Final destination
- Produce use-by date
- Cost
- Amount of cargo
- Size of individual items
Also consider the option of combining two transport methods. For example, combining sea and air freight could be the best balance of speed and cost for your situation.
Make sure you have a valid EORI number
To export goods out of the UK you need an EORI number. So, for Great Britain (not Northern Ireland), that now includes shipping to the EU.
Getting one should be straight forward if you are an established business with a premises. You can apply for an EORI number easily on the government’s website here.
Once issued, they are permanent and you shouldn't ever need to apply again.
Assess whether you need LCL or FCL
Only relevant to sea or rail freight shipping, but ensure you investigate whether an FCL (Full Container Load) or LCL (Less-than Container Load) would be best for your shipment.
Usually if you have a 20/40ft containers’ worth of goods, then FCL is the cheapest option in terms of cost per item. But shipping more regularly and in reduced quantities could enhance flexibility in your supply chain and save you more money on warehouse space. So, it’s worth considering whether LCL could be the best way to go.
Explore several routing options
Alongside deciding on a transport method, it could also be worth considering a few route options.
There are endless routes your goods could take, and an endless amount of stops they could make along the way. Below is a small example of the different options you can expect to see. Route one is almost certain to be cheaper than the second.
Ships which make more calls to offload and onload cargo are usually cheaper. Due to a higher turnover of goods on them throughout the journey. Obviously, there is a time trade-off here. But if your cargo is non-perishable and you can afford to wait for it, consider quotes from slower ships to increase profitability.
In air freight, using a deferred service (one which transits via a different destination) is almost always cheaper than a direct flight.
So, once you’re settled on a transport method, it’s worth taking some time to discover a few routes.
Make sure you have the correct licence to export
There is a whole range of goods which require a special licence to export and have specific rules.
Acquiring these licences is likely to require some financial outlay. In some instances, officials may need to inspect your premises, or require regular updates on the products you are exporting.
The following goods require a special licence to export from the UK:
- Animal and animal products
- Plant and plant products
- Drugs and medicines
- Medical devices
- Chemicals
- O-zone depleting substances and F-gases
- Radioactive substances
- Diamonds
- Art works, antiques, and culturally significant goods
- Waste
- Goods that could be used for torture or capital punishment
- Firearms, ammunition, and related equipment
- Military goods, services, and technology
- Items that have both civil and military uses
Failure to obtain the correct licence is a serious offence, which could result in severe consequences for your business.
Utilise a visibility tool
In 2022, the technology is there for full visibility of your shipment. A good logistics/freight forwarding provider should be able to offer you some sort of visibility tool as part of their service.
Digital tools act as a central source of truth for all the information related to your goods. Storing all documents related to the shipment and giving you accurate location data. You’re able to log-in anytime and see the progress your cargo is making towards its destination.
At the very least, your forwarder should be able to offer a single point of contact for any questions relating your shipment, including where it is. At WTA UK, we offer both.
Visibility is moving away from being a luxury to a necessity in logistics. More platforms are entering the market, which is ramping up their accessibility for smaller shippers.
Investigate if you want marine insurance
You might want to invest in insurance to cover loss or damage to your goods at any point in transit. It is not a legal requirement, but obviously saves you from loss and gives you peace of mind.
Marine insurance can cover transit by sea, aircraft, rail, and road. However, the marine insurance act of 1906 doesn’t specifically mention land and air. So when taking out a contract ensure it is for all transportation types.
Due to the nature of international shipping and Incoterms of trade, is it standard for the marine insurance policy to transfer from the seller to the buyer on route. This happens at the point the goods transfer from the seller to the buyer’s responsibility. When that point is depends on the Incoterms. Ensure you have all these details ironed out before shipping.
Incoterms can be quite tricky to understand, so click the link below to discover the ones best suited to your business.
Whether you decide to take out marine insurance can depend on several factors including the incoterms, value of the cargo, transit time and transit route.
Education, organisation, and planning
Here you are at the 9th tip in this article, so the good news is you’re already doing this. As mentioned in the introduction, exporting from the UK is a complicated process. Particularly if inexperienced.
Taking time to learn about the process is essential. Also making sure shipping quotes are sought long before the goods need to be at their destination.
First and foremost, this will save money. Last-minute quotes are nearly always more expensive. Secondly, it removes much of the stress involved with getting space on transportation and reduces the chances of delays.
This level or organisation is always advisable in shipping, particularly with the supply chain disruption experienced in recent years.
Use a reliable freight forwarder
Your supply chain is critical to the success of your business. Given the scope for problems, you need a trustworthy forwarder to handle your valuable goods.
That means using a company with decades of experience. Only that way do they have the expertise throughout the business to solve challenges at all stages of a shipment.
But reliability extends beyond experience. You also need a forwarder who cares about your supply chain. When asking for quotes, find out if you would get a dedicated point of contact for your shipments. That’s usually a good indication of the service level offered.
At WTA UK, we place enormous emphasis on recruiting and keeping the best people. Only through their experience and expertise are we able to offer our truly specialist service. For further bespoke guidance related to your exact requirements, reach out to one of our specialists today.
Alternatively, discover our free international shipping checklist below.
