The U.K is among the world’s top ten countries in terms of exports and attracts investors from the EU, the U.S., and many other countries across the world. The U.K exports most of its commodities to the EU, U.S., and Asia. The Middle East and Australia also form important export destinations.
If you are a drop-ship reseller based in the U.K. or want to export to the U.K. markets, you need to be aware of regulations, requirements, and best trade practices. International trade involves paperwork, particularly if you deal in high volumes. Drop-ship resellers are spared many stresses of international trading because the supplier takes care of the paperwork and other issues. However, the reseller should be aware of international drop-ship requirements and how they can impact their business.
The supplier should have a contract with the buyer if selling in high volumes. The contract should be written, and it must be signed by both parties. One of the main purposes of having a contract is spelling out the roles and responsibilities of each signing party. This includes cost breakup, payments, and how to calculate liability for insurance. As a reseller, you should sign a contract with your drop-shipper. The contract should cover destinations, logistics, insurance, duties, and customs requirements. Without these terms clearly stated, you run the risk of disputes, lawsuits, and losses. In addition to a contract, the reseller must also investigate the following:
1. Import license: If your supplier is located in another country, you will need an import license for bringing their products into the U.K. Licensing norms depend on the type of product imported and the originating country. Importing food items, for example, has certain additional requirements that import of bead jewelry does not have.
2. Export license: If your supplier is located in the U.K., they need to have an export license. Like import licenses, an export license defines the type of products you can export and the destination countries.
3. Declaring exports to customs: Joining the EU has simplified trade among member countries. You can export within the EU with minimum documentation. The reseller does not have to declare the export goods when trading within the EU. However, you are required to report the transaction via the New Export System if you are exporting products to non-EU destinations. When signing the contract 먹튀검증 with your supplier, discuss who is responsible for declaring the transaction to the customs department.
4. Inspections: Inspection of the consignment is carried out by an independent agency to verify that the goods named in the packing list are indeed going onboard.
5. Insurance: The suppliers need to file an insurance certificate to export or import products.
6. Receiving port: The supplier must fill out different forms when hiring the services of a shipping company for overseas export. The Standard Shipping Note is a list of instructions to the receiving port. It advises the port authorities how your shipment should be treated, lists the items carried, and provides instructions on handling, storage, and forwarding. Dock and warehouse receipts are important requirements for unloading and storing goods.
7. Shipping company: The Export Cargo Shipping Instruction notifies the cargo company about the type of item they are carrying and how they should be handled. A properly drawn out Shipping Instruction prevents damage to the goods and danger from improper packing, loading, storage, and unloading. A consignment note refers to a list of items being shipped, and the exporter is required to provide that in addition to instructions on how to handle cargo.
8. Lading notification: The shipping company will provide a list of items they received from you or the supplier. This is proof that you had shipped the items.
9. Consul’s permission: Check if the destination country allows imports without a note from their consul in the originating country. If not, you will need to get a letter from their consul in the U.K. allowing the goods to be sent to the buyer country.
10. VAT/duties: To bypass taxation and duty requirements at the destination, request an import certificate that allows the speedy distribution of the goods on payment of a security deposit.