Importers advice

If you import items into the UK, you will have a number of legal responsibilities. For example, you'll have to:

Check that the items you're planning to import are allowed in and whether they need an import licence. For instance, the Department for Business, Enterprise and Regulatory Reform (BERR) requires import licences for goods such as imported textiles, iron and steel. You can find a list of goods requiring an import licence on the BERR website

Import restrictions may be operated by other government departments. For more details, contact the HMRC National Advice Service Enquiry Line on Tel 0845 010 9000.

Consider whether you're liable, under the principles of product liability, for any harm caused by the imported items.

Find out about any laws that may be applicable in the items' country of origin and make sure these are adhered to. You may need to prove origin using documents supplied by the seller.

Notify HM Revenue & Customs (HMRC) by making an import entry if you're importing from outside the European Community (EC). Usually a freight forwarder can arrange this for you. If you're buying from within the EC you might need to complete an Intrastat declaration if the value of the goods exceeds a certain threshold per annum.

Seek professional advice about European Union (EU) import quotas and the level of any duty you may have to pay for goods from outside the EC.

Pay any duty and VAT that apply under UK and EC law. These will both have to be paid before the goods are released to you. Often a freight forwarder can do this and re-invoice you for the cost.

HMRC is introducing a new status for businesses - Authorised Economic Operator. While the scheme is not compulsory, companies that meet the requirements can take advantage of simplified customs procedures.

Overseas suppliers

Finding the right overseas suppliers ...

Importing directly for the first time can be daunting. So it's important that you devote time to finding exactly the right overseas suppliers for your requirements.

One solution is to import indirectly, meaning that you use a third-party company to handle the importation process and you buy the goods from them. The disadvantage of this, however, is that it might not be so profitable and you don't have total control of the process.

If you're going to import directly, look for a supplier with a record of efficiently supplying goods to the UK and with whom there will be no language difficulties. Personal recommendation is always a good route to a reliable supplier but if that's not available you could try consulting any trade or professional organisations your business belongs to.

Such an organisation might also be able to advise you on how to negotiate terms and conditions and which methods of payment are likely to be most beneficial to your business. Alternatively, you could seek legal advice on the former, and consult your bank on the latter.

National embassies can also be a useful source of help. The commercial section of a country's national embassy may be able to help you find a supplier from their country.

Prepare in advance

Before doing business with any country, go on a fact-finding trip. Source potential suppliers via the Internet and word of mouth before arranging a meeting. Most companies in China, for example, have people who speak English. One of the key difficulties is having technical conversations over the phone - it is much easier to do it by fax or email where you can include drawings.

A big concern is what to do if something goes wrong. If there is a contractual dispute it would be heard in court in the supplier's country.

Prior to finding suppliers, research the culture. It is useful to know the correct manners, such as how to accept a business card. Being aware of these things can be invaluable.

Get the goods home safely

It is important to get the goods quality checked before they are shipped. If they are faulty when shipped you will have to wait for more goods to be shipped and send the others back.

This means paying for the shipping three times and you risk letting customers down. The quality checker can either be your own employee or an agent. You also need to visit at least every few months, not just for quality control but to maintain relationships.

When you import you have to pay duty and VAT and be aware of what code to use.