The United Kingdom's (UK) departure from the European Union (EU), commonly known as ‘Brexit’, has undeniably had an impact on the international trade landscape. This shift has ushered in a new era of trade relations between the UK and each individual country, including New Zealand.
While the transition might seem daunting, understanding the new regulations — and harnessing the right partnerships — can unlock significant opportunities for New Zealand exporters venturing into the post-Brexit UK market. Read on as we discuss the key changes implemented and what New Zealand businesses can do to tap into this lucrative market.
Understanding the new rules and regulations
The UK's departure from the EU has led to the implementation of new customs procedures, tariff structures and documentation requirements for goods entering the UK. For New Zealand businesses shipping to the UK post-Brexit, it is crucial to understand these changes to ensure compliance, and to minimize delays and additional costs.
Key changes in customs procedures
Some of the notable changes in customs procedures include:
- Electronic submissions: All customs declarations for goods entering the UK must now be submitted electronically through the Customs Declaration Service (CDS). This requires familiarity with the UK's online customs system and the necessary software and knowledge to complete these submissions accurately.
- Prepare for inspections: Be prepared for potential physical inspections of your goods by UK customs authorities. This includes proper packaging, clear labeling and ensuring all necessary documentation is readily available. It's also important to be aware of any specific import restrictions or prohibitions that may apply to your products.
- Seek expert advice: Consider engaging a customs broker or freight forwarder to assist with navigating the complexities of UK customs clearance. These experts can provide valuable guidance, help with documentation and ensure your shipments comply with all regulations.
Tariff implications
The UK now has its own independent tariff regime, so it’s essential to be aware of the different tariff structures and how they might impact your business:
- UK Global Tariff (UKGT): This is the UK's independent tariff regime, applied to goods entering the UK from countries with which it doesn't have a free trade agreement. The UKGT sets out specific customs duties for different product categories, which can deal significant exporting costs for New Zealand businesses.
- NZ UK Free Trade Agreement (NZ-UK FTA): Implemented in 2022, the NZ-UK FTA aims to eliminate tariffs on a wide range of goods traded between the two countries. This provides duty-free access to the UK market for eligible New Zealand businesses, offering a significant advantage. However, it's important to note that some goods may still be subject to tariffs, either immediately or over a phased period.
- Commodity codes and preferential tariffs: To determine the exact tariff implications for your products, you need to identify the correct commodity code for each item. These codes are used to classify goods and determine the applicable tariff rates under the UKGT. You may also utilize online resources like the UK's Trade Tariff tool, to determine the correct commodity codes and potential preferential tariffs for your goods.
Documentation requirements
New Zealand exporters must ensure that they have the necessary documents to avoid delays or penalties, including:
- Commercial invoice: Essential for customs clearance, the commercial invoice provides a detailed description of the goods being shipped. This includes their value, quantity and origin. Accuracy is paramount, as this document must be consistent with all other customs paperwork.
- Packing list: The packing list shows the shipment's contents. It outlines what's in each package, specifying the quantity and type of goods in each box or container. This detailed information helps customs officials verify the shipment against the commercial invoice, ensuring everything is accounted for.
- Bill of lading or airway bill: Acting as a contract between the shipper and the carrier, this document is essential for the release of goods to the importer in the UK. It includes key details about the shipment, such as the origin, destination and agreed shipping terms.
- Certificate of origin: Crucial for determining the applicable duty rates, a certificate of origin verifies that the goods were produced in New Zealand. This is particularly important for claiming preferential tariff treatment under the NZ-UK FTA.
- Import licence: Before shipping, confirm whether your goods require an import licence for entry into the UK. Certain items, such as firearms, controlled drugs, and some agricultural products, need this special permission.
- Other documents: Depending on your goods, you may also need the following additional documents:
- Insurance certificates
- Customs declaration forms
- Importer's EORI number
- Import VAT certificate
- Health and safety certificates
DHL Express: Your partner in navigating post-Brexit trade
Navigating the complexities of trade after Brexit can be challenging for New Zealand businesses. DHL Express is your trusted partner in this new trading landscape, offering comprehensive solutions to simplify exporting to the UK. Shipping with DHL gives you access to its expertise in customs clearance, documentation and compliance, ensuring your goods clear customs swiftly and efficiently.
DHL’s team of specialists helps minimize delays and avoid potential penalties by staying up-to-date on the latest UK customs duty regulations and procedures. Additionally, with DHL’s fast shipping, rest assured that your shipments will reach the UK on time and in optimal condition.
Customs expertise
DHL Express has a team of dedicated customs specialists who possess in-depth knowledge of UK customs regulations and procedures. This includes knowledge on:
- Customs declarations: DHL Express’ specialists are experts in preparing and submitting accurate customs declarations, ensuring your shipments comply fully with UK import regulations. DHL helps you classify your goods correctly, determine the appropriate tariffs and provide all necessary documentation, facilitating a smooth customs clearance process.
- UK customs regulations: Staying up-to-date on the ever-changing UK customs regulations and procedures is crucial for seamless shipping. DHL Express takes this responsibility seriously, ensuring your shipments always meet the latest requirements. This includes staying informed about any changes to import controls, documentation needs or tariff updates.
- Minimizing delays: DHL Express leverages its expertise to minimize potential delays at customs. By ensuring all your paperwork is accurate and complete, we proactively address any potential issues that may arise. This keeps your shipments moving efficiently through the UK customs clearance process.
Trade facilitation solutions
Beyond its core shipping services, DHL Express also offers a range of value-added solutions designed to simplify the complexities of international trade. These solutions include:
- Trade advisory services: Need help understanding the intricacies of UK customs regulations, documentation requirements or tariff implications? DHL Express trade experts offer comprehensive guidance, empowering you to make informed decisions and ensure complete compliance with UK import regulations.
- Documentation support: Accurate documentation is crucial for smooth customs clearance. DHL Express provides comprehensive support, assisting you in preparing and submitting all necessary paperwork, from commercial invoices and packing lists to certificates of origin. This minimizes the risk of delays or errors that can disrupt your supply chain.
- Duty and tax payment options: Simplify the financial aspects of international trade with DHL Express's flexible duty and tax payment options. DHL’s streamlined processes ensure smoother transactions and help you avoid unnecessary complexities.
- Digital tools and platforms: Gain enhanced visibility and control over your shipments with DHL Express's online tools and platforms. Track your goods in real-time, manage customs documentation digitally and access valuable trade information, all of which streamline your export operations and improve efficiency.
Seizing opportunities in the UK market
The NZ-UK FTA has unlocked significant opportunities for New Zealand businesses to expand into the UK market. With increased market access and reduced tariffs, Kiwi businesses can now compete more effectively and reach a wider customer base.
To truly capitalize on these opportunities, it's essential to understand the UK market and develop targeted strategies for success. This involves conducting thorough market research to identify the right products and customer segments, as well as building strong relationships with key partners in the UK.
Market research and targeting
Successfully expanding into the UK market requires a deep understanding of consumer preferences and effectively targeting the right customer segments. Some ways to get started are:
- Identify suitable products: Conduct thorough market research to identify products with high demand and growth potential in the UK market. Analyze consumer trends, competitor offerings and market gaps to determine which of your products are best suited for export.
- Target customer segments: Define your target customer segments in the UK based on demographics, psychographics and buying behavior. This will allow you to tailor your marketing messages and channels to reach the most receptive audience.
- Adapt marketing and branding: Adapt your marketing and branding strategies to align with UK consumer preferences and cultural nuances. This may involve adjusting your messaging, branding elements and marketing channels.
- Utilize market research tools: Utilize various market research tools and resources to gather insights into the UK market. This can include online surveys, competitor analysis and industry reports.
- Stay updated on trends: Continuously monitor market trends and consumer behavior in the UK to ensure your products and marketing strategies remain relevant and effective.
Building relationships and partnerships
Establishing solid relationships with key players in the UK market is essential for long-term success. Some ways to cultivate this include:
- Networking: Actively participate in industry events, trade shows and online forums to connect with potential partners and build your network in the UK.
- Relationship building: Focus on cultivating long-term relationships built on trust and mutual benefit. Regular communication, transparency and delivering on promises are crucial for building strong partnerships.
- Cultural understanding: Demonstrate an understanding of UK business culture and etiquette. This can help foster rapport and build trust with potential partners.
- Collaboration: Explore opportunities for cooperation with UK businesses, such as joint ventures or co-marketing initiatives. This can help expand your reach and access new customer segments.
- Local expertise: Partnering with local businesses can provide valuable insights into the UK market and help you navigate cultural nuances.
Embracing the future of New Zealand-UK post-Brexit trade
The post-Brexit era presents challenges and opportunities for New Zealand businesses exporting to the UK. While adapting to new trade rules can be complex, the NZ-UK FTA offers significant potential for growth. To succeed, New Zealand businesses should also understand the new regulations, adapt to the evolving UK market, and leverage the expertise of trusted logistics partners.
DHL Express is committed to helping New Zealand businesses thrive in the UK market. DHL’s comprehensive solutions, global network, and customs expertise simplify the complexities of international trade, ensuring your goods reach their destination seamlessly. By embracing the opportunities and proactively adapting to the new trade landscape, New Zealand businesses can unlock their full potential in the UK and beyond.
