Licences & Permits.
International trade is heavily regulated for some goods and you should be aware that you may suffer significant penalties if you don’t have the necessary documentation, and your goods might be seized by the relevant country’s authority such as Customs. Unlawful trade in some goods, such as weapons to countries under sanction, can result in criminal action.
There are controls on exports of goods, so, if your business is considering exporting or importing goods, you will need to check if you need a licence, permit or certificate allowing your proposed activity. Requirements for a permit or certificate will depend on:
- The type of product
- The product’s commodity code
- Where your product originated from
- Whether you’re exporting or importing
- Your product’s final destination
Trade associations and government departments have up to date information and legislation on such issues so it is imperative that checks are made and advice taken on export controls applying to your products.If your product is of an unusual or out of the ordinary -make enquiries whether any extra paperwork is required for your goods, over and above the usual commercial and licensing documentation.
There are controls on exports of goods such as – military or paramilitary goods, technology, artworks, plants and animals, medicines and chemicals. Licence requirements may depend on the potential use of the item – eg if it has a military application (usually referred to as dual-use goods) and where you are exporting to. There are also controls on imports including firearms, plants and animals, foods, medicines, textiles and chemicals. Exporting or importing controlled goods without the correct licence is a criminal offence, so it is important to check first.
It is important to note that you may need a licence even if you are only exporting or importing goods temporarily – eg taking a sample to an exhibition.
Following the correct procedures for goods that require permission before you import or export will help you avoid transport and processing delays and may improve your finances. You can also take advantage of trading schemes known as ‘preferences’ and ‘tariff quotas’ which aim to boost trade in certain products and with particular countries by reducing duties. You may need a licence if you want to take part in these schemes.
Export within EU.
In general export licences are not generally required to dispatch to European Union (EU) member states. However, there are restrictions on movements of certain goods. Most goods aren’t restricted, but some, including chemicals and military and paramilitary goods, need a licence, permit or certificate. There may be licensing or certification requirements that apply to food or agricultural produce dispatched within the EU. You may need to contact the customs authorities in the country of destination in individual cases.
If your business includes trade in certain services, you must make sure specific information is available to your customers about how you work before you complete contracts or make agreements. From 2013 onwards, special rules will also apply to firms supplying communications and media services.
You will need to check with relevant government departments for individual licence requirements. Common licences include:
- Certain objects of cultural interest that are more than 50 years old and above certain financial thresholds
- Live animals and animal products
- Endangered plant and animal species and products made from them
- Ozone-depleting substances (ODS). ODS include refrigeration and air-conditioning products, fire-fighting and foam blowing equipment and aerosols and solvents
- Medicine
- Controlled drugs
- Rough diamonds that have arrived from a third (non-EU) country and are on their way to another member state
- Certain fish species
- Moving dangerous chemicals outside the EU
- Personally dispatched firearms – unless the traveller carrying the firearm possesses a European Firearms Pass
- All military controlled items and some highly sensitive dual-use goods need a licence
Export to ‘third countries’.
The export of goods transported from the EU to a destination outside the EU is known as export to ‘third countries’. Traders who export goods to countries outside the EU must ensure they have the appropriate licences where they are required and make export declarations to customs through the National Export System. It must also be ensured that VAT, import taxes and duties in the destination country are paid where necessary and transport procedures followed – though this is normally the responsibility of the importing person or company. There are a number of export procedures, such as duty relief schemes which can benefit businesses.
Always ensure that you are up to date with the current legislation, regulations and procedures.