How to Start an Import/Export Business in the UK

Planning a new business venture? If you’re interested in setting up an import/export company, you’ll encounter exciting opportunities as well as challenges - especially now that the UK has left the European Union.

There’s a lot of paperwork, rules and regulations to get to grips with before you can get your new business off the ground. And then there’s logistics, which is at the core of any import/export business.

To help you get started, we’ve put together the essential guide on how to start an import/export business. This includes all the first steps, from how to get a licence through to what goods to focus on.

We’ll also look at legal requirements, best practices and how to manage international payments using clever solutions such as Wise Business.

💡Learn more about Wise Business

What is import and export?

Importing is where goods are sourced and purchased from overseas, and brought back into the company’s home country (i.e. the UK). It’s often cheaper to source certain goods internationally, or the particular category of goods may not be available locally.

Exporting is the opposite of importing. It’s the sale of products and services made in the home country (i.e. the UK) to overseas markets. These products could be in demand internationally, meaning there’s a profit to be made from exporting them to other countries.

From the perspective of a UK business, here’s an example of what an import and export transaction would look like:

• Import - UK-based importers bring cars over from the United States, Germany, China and Belgium, for sale in the UK automotive market.¹
• Export - UK manufacturers of aircraft parts export goods to airlines and aviation businesses in Europe.

What does the UK import and export?

Let’s take a look at what the UK’s main imports and exports are, focusing on the most common goods taken in and out of the country. Here are the latest figures for 2022, from the Office of National Statistics (ONS):

UK main imports²

UK main exports³

How to start an import business in the UK?

If you plan to start an import business in the UK, you’ll need to first understand the legal requirements involved. This includes rules around labelling, licensing, certification and marketing standards, plus regulations for UKCA marking.

You’ll also need a business management strategy, including actionable steps to get your new company up and running. Here are some things to consider at this early stage:⁴

• Research and understand the process for importing to the UK from your chosen overseas markets. There are different rules and procedures depending where goods are coming from, and there may be additional taxes and duties.
• Get an EORI number. This is an Economic Operators Registration and Identification number issued by HMRC, part of the registration process for importers and exporters.
• Check the labelling and licensing laws relating to the goods you’ll be importing.
• Make connections with manufacturers and vendors who supply the goods you’re interested in. Check that they have the required export declarations, licences and certificates.
• Check if you’ll need to register for VAT.
• Understand which customs declarations will be required when importing goods into the UK, or hire a specialist customs agent to manage it for you.
• Organise the transport of goods, in both the exporting country and in the UK for when goods arrive.
• Set up a system for managing paperwork, including invoices, records and other essential documents. To run an importing business in the UK, you need to be on top of the documentation.

It’s also worth familiarising yourself with the general importing process, so you know what happens when. This includes sourcing, negotiating and buying goods, before planning for international shipping and customs clearance.

And of course, there’s payment. Solutions such as the Wise Business multi-currency account are hugely useful for importing and exporting businesses.

The Wise account lets you pay suppliers all over the world in their own currencies, for low fees⁷ and the mid-market exchange rate. You can even automate payments using the powerful Wise API.

💡Learn more about Wise Business

How to get an import licence in the UK?

Most importing businesses won’t need to get an import licence. However, they will need to register with HMRC and get an Economic Operators Registration and Identification (EORI) number.

But for importing certain goods, a special licence or certificate. These goods include:⁵

• Animals and animal products
• Plants and plant products
• High risk food
• Veterinary medicines
• Human medicine
• Controlled drugs
• Tissues and cells for human application
• Waste
• Products containing F gas
• Precursor chemicals
• Hazardous chemicals
• Nuclear material
• Guns, knives, swords and other weapons
• Weapons and goods that could be used for torture or capital punishment.

Go to the GOV.UK website to find out how to get the required licence for importing any of these categories of goods.

Best products to import to the UK

Choosing the right products to import to the UK is essential, as you need to make sure that your new import company will be sustainable and profitable. A good starting point is the list of the main imports we covered above, but you should also look for categories of goods that:

• Are easy to import
• Have high market demand
• Are lacking in the UK market.

You may also choose to import particular goods because you have expertise in a particular field, or because you have contacts with suppliers or manufacturers in a specific industry.

How to export goods from the UK?

Now, here’s what you need to know to start an export business in the UK.

Just like with importing, it’s crucial to have all of the legal requirements covered and to understand the processes involved.

Here are some of the key points and actions to consider as you set up your business:⁴

• Understand the processes and procedures you need to follow, which may vary depending on the goods and where you’re exporting to.
• Get to grips with labelling, marking and marking standards.
• Check whether there are any rules or restrictions on what goods you can bring into the destination country.
• Register with HMRC and get an EORI number.
• Apply for the required export licence - this is needed for certain goods, and we’ll cover it in more detail shortly.
• Check if you need to register for VAT, and if you can zero rate the goods you export for VAT.
• Make connections with buyers in your target markets, and start the process of negotiating contract terms and prices. Check that whoever is receiving the goods is legally able to import them.
• Hire a customs agent or plan to make customs declarations yourself.
• Organise transport and international shipping for your goods.
• Classify your goods correctly with the right commodity codes.
• Implement a system for managing paperwork, including invoices and customs documentation.

Along with negotiating with buyers, navigating customs and shipping goods, you’ll also need to find the best way to send and receive money internationally.

Wise Business can help. When you open a Wise Business account you get access to local account details to +9 major currencies besides GBP, these include USD, EUR, AUD and HUF. This way you can get paid like a local, making it easy for your customers to pay you and effective for your business.

Get started with Wise Business 🚀

How to get an export licence in the UK?

If you’re exporting what are designated as ‘controlled goods’, you’ll need to get an export licence. These goods include:⁶

• Animals and animal products
• Plants and plant products
• Drugs and medicines
• Medical devices
• Chemicals
• Ozone-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 can have both civil and military uses.

To find out if you need a licence and the process for getting one, head to the GOV.UK website.

Pay and get paid internationally with ease

Once you’ve mastered the paperwork, regulations and legal requirements, the next challenge to overcome as an import/export business is payment.

It can be expensive, slow and time-consuming to use a bank for international payments. A better solution could be to use an international transfer specialist like Wise Business.

With a Wise Business multi-currency account, you can manage your company’s money in 40+ currencies.

Send money all over the world and convert currencies for low fees⁷ and the mid-market exchange rate.

When it comes to getting paid, Wise Business gives you local account details in 9 major currencies. This means you can get paid like a local in your client’s currency, without unnecessary extra costs.

Have overseas expenses to take care of? If you’re travelling the world meeting suppliers and buyers, make sure to take the Wise Business debit card with you.

Get started with Wise Business 🚀

And that’s it - your essential guide on how to start an import/export business in the UK. We’ve looked at legal requirements and licensing, along with the first steps you can take to get your new venture off the ground.

You’ll have a lot more reading and research to do as the owner of a new importing or exporting business, as the rules around international trade can be complicated. But hopefully after reading this guide, you should have an idea of where to start. Good luck!

Sources used for this article:

Sources checked on 3-Nov-2023.