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Glossary

BAFA stands for the Federal Office of Economics and Export Control in Germany. It’s responsible for overseeing trade and customs affairs while also providing support for energy and economic development initiatives.

 

BAFA plays a crucial role in facilitating international trade, ensuring compliance with customs regulations, and promoting energy efficiency and renewable energy sources.

 

It operates under the auspices of the Federal Ministry for Economic Affairs and Energy (BMWi). Find out more about BAFA here

Intelligent Document Processing (IDP) is a smart solution that harnesses artificial intelligence (AI) and machine learning (ML) to automatically extract, classify, and process information from different kinds of documents such as invoices, forms, contracts, etc.

 

It usually uses a mix of technologies like optical character recognition (OCR) and other AI methods to understand and extract data from unstructured documents.

 

IDP is a game changer due to its capability to handle large document volumes, catering to businesses of all sizes. By automating repetitive tasks and streamlining processes, IDP accelerates document workflows, enhancing overall efficiency.

 

Smart solutions like IDP offer seamless integration with existing systems, facilitating smooth data exchange and workflow automation.

 

As IDP reduces the need for manual input, it enhances accuracy and makes document processing faster while reducing the risk of human errors.

 

One of the key benefits of IDP is that it ensures consistent adherence to regulatory requirements by accurately processing documents, which also helps lower operational costs.

 

With IDP, organisations can streamline their operations and achieve greater efficiency in handling documents.

An import declaration is an official document submitted to customs authorities when goods are imported into a country from abroad. It contains detailed information about the imported goods, such as the description, quantity, value, and origin. This information is vital for facilitating customs clearance processes.

 

It’s typically submitted electronically before the arrival of the goods at the country’s border or port of entry. An import declaration is vital for assessing import duties and taxes, as well as ensuring compliance with trade regulations. Additionally, import declarations play a crucial role in gathering data for trade statistics and security purposes.

 

Learn more about import declaration here

An export declaration is an official document submitted to customs authorities when goods are exported from one country to another. It contains detailed information about the exported goods, such as their description, quantity, value, and destination. This information is vital for facilitating customs clearance processes.

 

An export declaration is typically submitted electronically before the goods are shipped out of the country.

 

An export declaration is essential for customs clearance, ensuring compliance with trade regulations, and gathering data for trade statistics and security purposes.

Learn more about export declaration here.

An iCalculator is a digital tool crafted to assist in calculating trade-related expenses like customs duty, taxes, and shipping costs. It’s easy to use and can help you with decision-making by providing a clear overview of the total landed cost.

iCalculator seamlessly integrates with ERP, CRM, and other company tools, enabling swift calculations and ensuring easy access to precise calculations anytime, anywhere.


It’s easy to use and can help you with decision-making by providing a clear overview of the total landed cost. iCalculator’s user-friendly interface can minimise your workload by allowing customers to calculate landed shipment costs.


Displaying iCalculator on your website not only enhances traffic but also boosts ranking, making it an invaluable tool for streamlining operations and optimising efficiency.

iZap is an innovative AI solution offering customers instant access to file and submit import and export declarations with HMRC. It utilises cutting-edge technology to streamline the customs clearance process, making iZap a revolutionary tool in trade facilitation.


It’s the fastest custom declaration software that offers an unprecedented approach. iZap allows import and export declarations to be completed in just 90 seconds, revolutionising the customs clearance process.

Its easy and seamless integration saves 70% of time and costs, enabling operations to be completed 70% faster than never before.

With iZap, customers can benefit from real-time data, enabling them to swiftly file forms, submit declarations, and identify the next steps within seconds.

Border Control Post (BCP) is a designated facility located at international borders where customs and other regulatory authorities carry out inspections and checks on goods entering or leaving a country.
These posts are crucial for enforcing import and export regulations, ensuring compliance with trade agreements, and safeguarding public health, safety, and security.
At a Border Control Post, various inspections may take place, including checks on the quality, quantity, and documentation of goods, as well as examinations for compliance with sanitary and phytosanitary standards.
Additionally, customs officials may conduct inspections for the detection of prohibited or restricted items, such as drugs, weapons, and hazardous materials.
Border Control Posts play a vital role in facilitating the smooth flow of goods across international borders while protecting the interests of both the importing and exporting countries.
By conducting thorough inspections and checks, these posts help prevent the entry of unsafe or illegal goods, ensure fair trade practices, and maintain the integrity of the global supply chain.

The Bureau of Industry and Security (BIS) is a division of the U.S. Department of Commerce. Its main job is to create rules about what stuff, technology, and services can be sent out of the United States to other countries.

 

BIS also oversees and makes sure people follow the Export Administration Regulations (EAR). These regulations control how goods, tech, and services are exported, reexported, or transferred from the U.S. to other countries.


BIS aims to keep sensitive technologies and items out of the hands of people who might harm the country while also supporting American businesses in global trade.


BIS works closely with other U.S. government agencies, foreign governments, industry associations, and international organisations to ensure effective export control measures while promoting legitimate trade and technological innovation.

The Customs Declaration Service (CDS) is the UK government’s newly implemented electronic system for managing customs declaration processes. CDS will replace the existing CHIEF system, and all businesses will have to start declaring goods through the CDS on 30 March 2024.

CDS offers a user-friendly interface, making it easier for businesses to submit declarations. Further migration to CDS will eliminate paperwork and enable electronic communication with customs authorities.

With CDS, businesses can comply with customs regulations more easily. Stay updated on the latest implementation status of CDS by registering for HMRC’s email notifications.

Dive deep into CDS here.

Customs Freight Simplified Procedures (CFSP) is an electronic declaration method applicable for importing goods from third countries, including EU member states, as of January 1, 2021, to the UK. It allows UK traders to benefit from simplified import declarations for goods arriving from outside the EU.

CFSP simplifies declarations, potentially leading to faster customs clearance and reduced delivery times. Businesses need to be authorised by HMRC to use CFSP.

CFSP is separate from Simplified Declarations for Imports, which can be used for goods brought into the UK from anywhere, including Northern Ireland and Ireland.

Two CFSP procedures are available: the Simplified Declaration Procedure (SDP) and Entry in the Declarant’s Records. These procedures can be combined.

Customs Handling of Import and Export Freight (CHIEF) is an electronic system currently employed by the UK government to manage customs declaration processes. CHIEF facilitates the National Export System (NES) by serving as an electronic gateway for submitting customs declarations.

 

CHIEF records the movement of goods by land, air and sea. CHIEF also allows importers, exporters and freight forwarders to complete customs formalities electronically and automatically checks for entry errors. 

 

CHIEF  has served as the primary customs declaration system for over 20 years. As of March 30, 2024, CHIEF is no longer accepting new export declarations, and businesses will now have to submit import and export declarations through CDS. 

 

While stepping down, CHIEF leaves a mark on the UK trade administration. CHIEF has paved the way for electronic declarations and streamlined processes, laying the foundation for the more advanced CDS.

 

The transition of CHIEF to CDS ensures the UK adopts a future-proof digital system for its customs operations.

CIP stands for “Carriage and Insurance Paid to.” It’s one of the International Commercial Terms (Incoterms) published by the International Chamber of Commerce (ICC), which define the responsibilities of buyers and sellers in international trade contracts.


In CIP, the seller delivers the goods and transfers the risk to the buyer. The seller is responsible for arranging and covering the carriage costs required to transport the goods to the specified destination.


With CIP, the buyer assumes risk once the carrier takes possession. CIP shares similarities with CPT, with the distinction that the seller must procure minimum insurance coverage for the goods during transit.


It’s essential for parties involved in international trade to clearly define the specific requirements and terms of the CIP arrangement in their contracts to ensure the smooth execution of the transaction.

The Commerce Country Chart is a document or tool provided by the United States Department of Commerce that outlines various trade regulations, requirements, and restrictions for conducting commerce with specific countries. 

 

It typically includes information such as import and export controls, tariffs, trade agreements, licensing requirements, and other trade-related policies for each country listed. 

 

The commerce country chart helps businesses and individuals navigate the complexities of international trade by providing essential information about conducting commerce with different countries around the world.

Commodity codes are standardised numerical identifiers assigned to specific goods for international trade purposes. Commodity codes are usually organised in hierarchical systems with increasing levels of detail. Typically, the first six digits (known as the Harmonized System (HS) code) provide a broad classification.

 

Commodity codes enable efficient classification, tracking, and taxation of goods crossing borders. Businesses use commodity codes to accurately declare the goods they import or export on customs documentation.

 

Whereas customs officials use commodity codes to identify and categorise goods, assess duties and taxes, and enforce trade regulations.


Using the correct commodity code is crucial for accuracy, compliance, trade facilitation and data analysis.The UK Trade Tariff Tool can be used to find commodity codes.

A Community System Provider (CSP) is a company or organisation authorised by customs authorities to provide electronic services for the management and processing of customs declarations and related documentation within a specific customs union or community. 

These electronic services, facilitated by a Community System Provider (CSP), typically include submitting customs declarations, managing customs documentation, tracking shipments, and communicating with customs authorities electronically.

CSPs play a crucial role in facilitating trade by offering efficient and streamlined electronic solutions for customs procedures, benefiting both traders and customs authorities by improving the speed, accuracy, and transparency of customs processes.

Controlled goods are items or products that require special permission from the government before they can be exported and are subject to a system of export licensing requirements. 

 

Controlled goods can encompass a wide range of items, including military equipment, dual-use goods (goods with both civilian and military applications), certain chemicals, technology, software, etc.

 

Exporters must typically obtain the necessary permits before exporting controlled goods. Failure to comply with these regulations can result in legal consequences, including fines or penalties. UK Strategic Export Control Lists (SECList) define the specific controlled goods.


Read  more about controlled goods here.

Controlled goods are items that require special permission from the government before they can be imported and are subject to import licensing requirements. 

 

Controlled goods for import into the UK include items like firearms, certain chemicals, medicines, and items with military or strategic importance. 

 

These goods require special permission or licences from the UK government before they can be brought into the country. This is to ensure safety, security, and compliance with national and international regulations, particularly for controlled goods.

 

Read  more about controlled goods here.

CPT, or Carriage Paid To, is an Incoterm utilised in international trade contracts, specifically for sea and inland waterway transport. When employing CPT (Carriage Paid To), understanding the buyer and seller’s responsibilities is essential.

 

Under CPT terms, the seller is responsible for delivering the goods to a named destination agreed upon with the buyer. The seller arranges and pays for transportation to this destination, including any main carriage costs, but not insurance. Once the goods are delivered to the carrier, the risk transfers from the seller to the buyer. 

 

CPT is often used when the buyer wants the seller to handle transportation but prefers to arrange their own insurance. Therefore, CPT focuses on carriage costs, not insurance. CPT is particularly suitable if the buyer prefers to manage its own transport insurance.

A customs broker is an agent or a middleman who facilitates the clearance of goods through customs barriers for importers and exporters. They help businesses manage the intricacies of rules and processes related to customs clearance. 

 

Custom brokers navigate the complex and ever-changing world of customs regulations. A customs broker’s primary role is to ensure that shipments comply with all relevant customs regulations and requirements, facilitating the smooth movement of goods across international borders.

Customs clearance is the process of getting goods through customs barriers and gaining approval from customs authorities for their entry or exit from a country. 

It involves a series of procedures and documentation to ensure compliance with customs regulations and payment of any applicable duties, taxes, or fees. 

Customs clearance is a critical part of international trade, as it ensures that goods can move smoothly across borders while complying with regulations and paying any applicable duties or taxes. 

Delays or errors in the customs clearance process can result in disruptions to supply chains and increased costs for businesses. 

Therefore, it’s essential for importers and exporters to understand and properly manage customs clearance procedures to facilitate efficient trade operations.

A customs declaration is an official document used to provide details about goods being exported from or imported into the UK. 

 

When exporting goods from the UK, it’s necessary to submit an export declaration, and when importing goods into the UK, an import declaration must be submitted.

 

Additionally, for trade with EU countries, customs declarations are required for both exports and imports. These import/ export customs declarations contain information about the nature of the goods, their value, origin, and other relevant details necessary for customs clearance and compliance with regulations. 

 

Completing accurate and comprehensive import/export customs declarations is key to ensure compliance with customs requirements and for facilitating smooth trade operations.

Customs duty is a charge levied by a government on goods that are imported into or exported out of a country. It’s essentially a tax collected by the customs authorities at the border, and contributes to government revenue.

 

Customs duty varies widely depending on the goods and the country involved. It’s typically based on the value, quantity, or weight of the goods. 

 

The amount of customs duty also depends on what kind of goods they are and where they’re coming from or going to.

 

Customs duty serves as a key income stream for governments and has a crucial role in overseeing global trade and safeguarding local industries.

CFSP stands for “Customs Freight Simplified Procedures”. It’s an electronic declaration method that expedites customs clearance. CFSP enables importers to postpone the declaration and payment of customs duties and taxes until a later stage, typically when the goods are taken out of the customs-approved location. 

There are two CFSP procedures, Simplified Declaration Procedure (SDP) and Entry in the Declarant’s records, which can be combined.

CFSP is applicable to low-risk commodities to minimise the amount of documentation and processing timeframes.

It simplifies customs procedures and can help streamline the movement of goods, especially for businesses that import goods regularly. 

CFSP also provides advantages such as improved cash flow and decreased administrative burdens for qualifying businesses.

The customs value of goods is the stated monetary value assigned to goods being imported or exported for customs declarations. So when businesses declare goods for import, they must state the customs value of the goods in the customs declaration. 

 

Further, the customs value of goods is needed to calculate customs duties, taxes, and fees that may be applicable. 

 

Customs authorities use the customs value of goods to ensure that importers and exporters accurately declare the value of their goods and pay the appropriate duties and taxes owed to the government. 

 

Accurate valuation of goods is essential for ensuring compliance with customs regulations and avoiding penalties or delays in customs clearance.


Read more about the customs value of goods here.

The Incoterm known as Delivered at Place (DAP), alternatively referred to as Delivered at Terminal (DAT), is a term frequently employed in international trade transactions. 

 

It means that with the Delivered at Place (DAP), the seller is in charge of getting the goods to a specific spot. Usually, this spot is where the buyer wants the goods to go or a terminal both parties agree on.

 

Under DAP terms, the seller bears all risks and costs associated with transporting the goods to the specified destination, including import clearance, duties, and taxes.

 

Once the goods are delivered to the agreed-upon place, the buyer assumes responsibility for unloading the goods and any further transportation, as well as any subsequent risks and costs. 

 

DAP terms are commonly chosen when the buyer wants the seller to take care of getting the goods to a particular place, but afterward, the buyer is in charge of dealing with customs and arranging further transportation.

The DDP (Delivered Duty Paid) Incoterm is an international trade term used in the sale of goods and is used in international sales contracts. It lays out the terms and responsibilities for both the buyer and the seller.

 

Under DDP terms, the seller is responsible for delivering the goods to the buyer’s designated destination, cleared for import and ready for unloading, with all applicable duties, taxes, and charges paid.

 

 In essence, the seller takes on the most responsibility in this arrangement, handling the transportation, customs clearance, and payment of any duties or taxes incurred in importing the goods. The seller is not responsible for unloading.

 

The buyer’s responsibility begins once the goods are delivered at the agreed-upon destination, where they take over the risk and costs associated with further transportation and handling. 

 

DDP terms provide clarity and convenience for both parties, as the seller ensures that the goods are delivered directly to the buyer’s premises, simplifying the import process for the buyer. This maximises convenience for the buyer while incurring higher costs for the supplier.

 

It’s essential for both parties to clearly understand their obligations and liabilities under DDP terms to avoid misunderstandings or disputes during the transaction.

The Delivered at Place Unloaded (DPU) Incoterm is a trade term used in international contracts to specify the responsibilities and obligations of the buyer and seller regarding the delivery of goods.

Under DPU terms:

  • Seller’s Responsibilities: The seller’s responsibility is to get the goods to the agreed destination, like a terminal or warehouse, and to unload them there.
  • DPU also specifies that the seller bears all expenses related to transportation, including export fees, carriage, unloading from the main carrier at the destination port, and destination port charges. Additionally, the seller assumes all risks until the goods reach the destination.
  • Buyer’s Responsibilities: The buyer needs to handle things like customs clearance, pay any taxes or fees, and receive the goods once they’re unloaded at the agreed destination.

DPU is a versatile trade term that lets parties choose any location as the delivery destination, making it adaptable to different transportation methods and delivery situations. 

It’s crucial for both the buyer and seller to clearly agree on the destination and their roles in the contract to prevent confusion and ensure a problem-free deal.

Dual-use goods are goods  that are made for regular, everyday use but can have both civilian and military applications. So, they serve two purposes: one normal and one potentially dangerous.

 

Examples of dual-use goods include certain chemicals, materials, electronics, software, and technologies that have applications in industries such as aerospace, telecommunications, biotechnology, and nuclear energy.

 

Due to the potential dangers linked with dual-use goods, numerous nations have implemented regulations and export control measures to oversee and limit their transfer, especially to worrisome destinations or entities associated with weapons proliferation.


If you intend to export dual-use goods from the UK to another country, you are required to obtain an export licence. Read about dual-use goods here.

A duty deferment account is a facility provided by customs authorities that allows businesses to defer the payment of customs duties, import VAT, and other charges on imports until a later date. 

 

This helps businesses avoid paying duties and taxes upfront at the time of importation, thereby improving cash flow and facilitating smoother trade operations. Duty deferment accounts are particularly beneficial for businesses that import goods regularly or in large volumes. 

 

It’s really important for businesses to follow the rules of their duty deferment account and pay the deferred amounts on time. If they don’t, they could face penalties or even lose the ability to defer payments. 

 

Also, it’s a good idea for businesses to check their duty deferment account statements regularly to make sure everything adds up correctly and to stay in line with customs rules.

The Economic Operator Registration and Identification (EORI) number is a unique identifier assigned to businesses and individuals involved in importing or exporting goods within the European Union (EU). 

 

EORI number is used to track and monitor transactions related to customs activities. It also helps customs authorities identify and verify the entities involved in international trade. 

 

Businesses need to get an EORI number before they can do business with EU countries. In essence, the  EORI number facilitates smoother and more efficient customs procedures.


Want to get an EORI number? Find out here

An export accompanying document  EAD is a document that accompanies goods being exported from one country to another. It contains essential information about the goods, such as their description, quantity, value, and destination. 

 

EAD helps customs authorities in both the exporting and importing countries to verify the contents of the shipment and ensure compliance with regulations.

 

Overall, EAD  plays a crucial role in the smooth and efficient movement of goods across international borders, providing transparency, legality, and accountability throughout the trade process.

Export Administration Regulations (EAR) refer to a set of regulations enforced by the United States Department of Commerce to control the export of certain goods, technologies, and services from the United States to other countries.

 

These rules protect national security and foreign policy interests. The EAR also aims to prevent the spread of weapons of mass destruction. 

 

It’s important for anyone sending goods from the US to follow EAR to stay compliant.

A customs declaration is an official document that provides essential information about goods being imported or exported across international borders. It typically includes details such as the description of the goods, their quantity, value, country of origin, and intended use. 

 

Customs declarations must be filled out whenever goods are exported to other countries (export declaration) or imported from other countries (import declaration).

 

This document is required by customs authorities to assess duties and taxes, enforce trade regulations, and ensure compliance with import/export laws. 

 

Importers or exporters are responsible for accurately completing and submitting the customs declaration to the relevant customs authority.

 

Overall, customs declaration plays a crucial role in international trade by providing transparency, legality, and accountability in the movement of goods across borders. 

 

It streamlines customs procedures, facilitates trade, and ensures the smooth flow of goods between countries.


Check if you need to declare goods here

An export licence is an authorised document issued by the UK  that allows the export of specific goods from one country to another. It’s mandatory for sensitive or controlled items, including military gear, strategic resources, or products for both civilian and military use.

The export licence specifies the type and quantity of goods authorised for export, as well as any conditions or restrictions that apply. 

 

It helps the government regulate the export of sensitive goods to prevent them from being used for illegal or harmful purposes, such as in weapons proliferation or human rights abuses.

 

Moreover, the export licence serves as a legal document that grants permission to export these goods and ensures compliance with export control regulations and international trade agreements.

 

If you’re unsure whether you need an export licence, consult the following guidance.

EXW, or Ex Works, is an international trade term that specifies a type of delivery agreement between a buyer and a seller. In an EXW agreement, the seller’s responsibility ends when they make the goods ready for pickup at the designated place.

 

From that moment on, the buyer takes on all responsibility for transporting the goods, clearing them through customs, and covering any related expenses or risks.

EXW is often used when the buyer arranges for their own shipping and logistics, and it provides the least amount of responsibility and risk for the seller.

FAS stands for “Free Alongside Ship,” which is an international trade term used in transactions involving goods transported by sea and shipping contracts.

 

In FAS agreements, the seller delivers the items alongside the vessel designated by the customer at the indicated port of shipping. 

 

Once the goods are placed alongside the ship, the buyer assumes all responsibility for transportation, insurance, and any risks associated with the goods. FAS is often used when the buyer arranges for the shipping and logistics of the goods.

 

FAS provides clarity regarding the point at which the seller’s responsibility ends, and the buyer’s responsibility begins, helping to minimise misunderstandings and disputes between parties involved in international trade.

FCA stands for “Free Carrier.” It’s an international trade term that outlines the responsibilities of the seller and the buyer in an international transaction. 

 

FCA specifies an agreement where the seller delivers the goods to a named place, usually the seller’s premises or a designated location, and is responsible for clearing the goods for export. 

 

Once the goods are delivered to the carrier nominated by the buyer at the named place, the risk transfers from the seller to the buyer. 

 

FCA is often used when goods are transported by any mode of transport, including road, rail, air, or sea. 

 

FCA provides clarity and delineates the obligations of both parties, helping to facilitate smooth and efficient international trade transactions.

FOB stands for “Free On Board.” It’s an international trade term that specifies an agreement where the seller is responsible for delivering the goods on board a vessel nominated by the buyer at a named port of shipment. 

With FOB terms, the buyer takes ownership and bears the risk for the goods as they embark on their journey. The buyer is then responsible for arranging transportation, insurance, customs clearance, and any other necessary steps to transport the goods from the port of shipment to their final destination.

Once the goods are on board the vessel at the specified port under FOB terms, the risk and responsibility are transferred from the seller to the buyer.

Overall, the FOB arrangement simplifies the transaction process, as the seller doesn’t need to worry about transportation beyond loading the goods onto the designated vessel.

Foreign trade law refers to the set of rules and regulations that govern the exchange of goods and services between different countries. It encompasses various aspects of international trade, including import and export regulations, tariffs, customs procedures, trade agreements, and dispute resolution mechanisms.

 

Foreign trade law plays a pivotal role in shaping the global economy by providing a framework for regulating international trade activities. 

They’re meant to boost the economy, safeguard local businesses, and keep trade between countries in balance.

 

These laws ensure trading is fair, clear, and follows the rules. With foreign trade law in place, countries can establish rules and procedures that govern imports, exports, tariffs, and customs processes, thereby facilitating smoother trade transactions.

Foreign trade law serves as the cornerstone of international trade governance, providing the legal framework necessary for regulating, facilitating, and balancing trade activities between countries.

HMRC, or Her Majesty’s Revenue and Customs, is the UK government’s tax authority responsible for collecting taxes, customs duties, and enforcing regulations related to customs, excise, and other forms of taxation. It is one of the largest government departments in the UK and plays a vital role in ensuring compliance with tax laws and regulations.

 

HMRC is pivotal in bolstering the UK economy through revenue collection, overseeing tax and customs systems, and encouraging adherence to tax laws. HMRC also strives for fairness, transparency, and efficiency in taxation, aiming to meet the needs of both taxpayers and the government.

 

Read more here

Low-risk products /goods are those goods that present minimal hazards to consumers, the environment, or public health when used as intended. They don’t need strict rules because they’re not very risky.

 

Examples of low-risk products include basic cosmetics, household items, non-prescription medications, and simple consumer electronics. However, it’s important to remember that what counts as a low-risk product can change depending on how it’s used and its effects on safety and health.



Want to find out more about low-risk goods? Read the list of goods to find out more.

The New Computerised Transit System (NCTS) is a sophisticated electronic platform designed to streamline and facilitate the movement of goods under customs control across international borders. 

 

It serves as a centralised system for processing transit declarations and managing the transit movement of goods from one customs office to another. NCTS is utilised by the United Kingdom, all member states of the European Union (EU), as well as the signatories of the Common Transit Convention (CTC).

 

NCTS operates by allowing businesses to electronically submit transit declarations, providing essential information about the goods being transported and the intended transit route. Once submitted, the system processes these declarations, facilitating customs control procedures and ensuring compliance with relevant regulations.

 

It aims to streamline and digitise transit procedures, allowing for the electronic submission and processing of transit declarations, as well as providing real-time monitoring and tracking of goods in transit. 

 

One of the key features of NCTS is its ability to monitor and track the movement of goods in real time. This enables customs authorities to closely monitor the transit process, verify the legitimacy of shipments, and take necessary actions in case of any discrepancies or irregularities.

 

By digitising and automating transit procedures, NCTS helps expedite cross-border trade, reduces administrative burdens for businesses, and enhances customs control and security measures.

Hence, NCTS  plays a crucial role in facilitating international trade and ensuring the smooth flow of goods between countries while maintaining compliance with customs regulations and standards. 

 

Learn more about NCTS here

Products of Animal Origin (POAO) refers to goods derived from animals that are intended for human consumption or use, such as meat, dairy products, eggs, and honey. 

These products are subject to specific regulations and requirements to ensure food safety and prevent the spread of animal diseases. 

 

The “N” designation may refer to the specific category or classification within regulatory frameworks, but without additional context, it’s difficult to provide a precise interpretation. 

 

Typically, POAO-N may indicate a subset of products within the broader category of Products of Animal Origin, possibly denoting a specific type of product or a regulatory classification.


Learn more about POAO-N

The term “Transition period – N” likely refers to a specific phase of time designated for transitioning from one set of regulations, policies, or agreements to another. 

 

The “N” designation may indicate a particular category or classification within the transition period, but without additional context, it’s challenging to provide a precise interpretation. 

 

In a broader sense, a transition period is a temporary period during which changes are implemented gradually, allowing individuals, businesses, or countries to adjust to new rules or circumstances. 

 

The transition period often involves the phasing out of old practices and the adoption of new ones to facilitate a smooth transition.

The UK Global Tariff (UKGT) is a list of taxes that the UK charges on goods coming into the country from other nations. It replaced the old EU tariff system after the UK left the EU. These taxes vary depending on the type of goods being imported. 

The UK global tariff aims to simplify things for businesses and make the tariff system clearer. Under the UK global tariff, businesses importing goods into the UK need to check the applicable tariffs for their products to understand the taxes they’ll need to pay. Uncover the details of the UK global tariff here

Want to check the tariff rates for your imported goods? Find out here

Goods and services consumed in the UK usually incur Value Added Tax (VAT), but certain products and services are exempt from VAT. 

 

The exemption of a zero VAT rate can make goods more accessible to consumers and support certain businesses, but it’s important to note that the specific exemptions may differ between countries.

 

If businesses export goods, including to EU countries, after January 1, 2021, and those goods are consumed outside the UK, they might be charged zero VAT.

 

For this to apply,  businesses must ensure certain conditions are met, such as :

  • They must provide evidence to show they qualify for a zero VAT rate.
  • They must ship the goods out of the UK within specified timeframes.
  • They must get proof of export within specific time limits to support a zero rating.

 

For further details regarding the conditions and the process for applying the zero VAT rate, check out the  VAT Notice 703

📢 Join HMRC, iCustoms & Institute of Export to discuss Developments in UK customs IT and AI.

Join HMRC, iCustoms & Institute of Export to discuss Developments in UK customs IT and AI.