The understanding behind export documentation
by Liz Ellison

There are many problems that spring to mind when looking at exporting companies, one being the understanding behind export documentation. A number of companies enter into exporting by accident. In some cases they have a web presence that has generated leads from overseas. Some companies shy away from following up these leads due to the lack of knowledge or resources, whilst others are prepared to test the water.

But where do they start, how do they find out if their products or services are fit for the market. Most of the time this is entirely by chance as someone new to this type of sale and naïve to the exporting world may take for granted things that we accept as normality in the UK domestic market.

Before you’ve even made the sale you have to decide whether there is buyer or country risk, do you need to sell on Letter of Credit terms, in fact what is a Letter of Credit and how does it affect my business. How do you make sure that all the new overheads for this type of sale are included?

In the case of products, once you’ve decided on the type of sale, you have to think about what documents are required in order to ship the goods?

Are there any customs implications? The Incoterms that the contract has been sold under mean that you will subsequently be responsible for organising freight and insurance prior to shipment.

If you were an exporter that uses freight forwarders or other 3rd party service providers, once the goods have left your premises you would think that would be the end of your dealings. It is currently the case, but for those exporters who are “JIT” (Just in Time) this may change after March 2002.

HM Customs and Excise is introducing NES (New Export System) an electronic system for declarations. This will affect all exporters, whether completing documentation internally or outsourcing via a freight forwarder or other 3rd party service provider.

Example of how NES will work

The Single Administration Document or C88 as it is more commonly known is currently under SCP (Simplified Clearance Procedure) which accounts for over 80% of export declarations and completed by either exporter or authorised agent acts as proof of export from the UK. At the moment this document is given a specified grace period (usually 14 days) post shipment prior to receipt at HM Customs and Excise. Upon the introduction of NES this period will no longer exist and exporters need to ensure that all information required within the C88 is provided prior to collection of the goods by the freight forwarder, as the declaration will be made automatically.

The introduction of electronic declarations may also cause flow down costs to the exporter if the freight forwarder or 3rd party service provider subsequently has to convert systems to methods of electronic transfer.

SITPRO (The Simple Trade Procedures Board), along with the Freight Transport Association, & HM Customs and Excise are introducing a number of Roadshows within the UK between March and June 2002 to help understand and manage these changes. Further information can be obtained from the Freight Transport Association.