India is regarded as one of the top countries in the world to produce petroleum products, jewellery, gems, machinery, iron & steel, clothing and pharmaceutical products. And UK is among the leading nations to import most of these items from India, so much that Great Britain has become the eighth largest export market for the nation. Since both the countries have similar administrative and legal systems, many traders consider shipping from India to UK a wonderful business opportunity. This quite explains the ballooning of freight forwarding service providers in United Kingdom during the past couple of decades. Besides similitude in government systems, a common business language of English also makes trade between the two nations highly attractive.
In order to import commercially within the UK, a trader or import agent is required to hold an EORI (Economic Operator Registration Identification) number. This number is issued exclusively by the Customs, that is, the HMRC (Her Majesty’s Revenue & Customs). Besides that, one must also take care of the following things:
- Find the right commodity code for the goods
- Pay the VAT
- Complete a VAT return in case the individual is VAT registered
- Register with CHIEF system and use it for declaring the imported goods
Pay the duty
- Check whether the goods are banned or require special license
Just like a few other countries, the GSP (Generalised System of Preferences) are applicable on goods that originate from India. For claiming these rates, the imported goods are bound to meet regulations of origin that would be supported by felicitous documentation endorsed by proper authority. Shipments that are valued within £5700 will use a simple invoice declaration process, which must state that exporter of the goods declares them to be of Indian origin.
In addition to all of the above, a certificate copy of the IEC (importer/exporter code) and PAN (Permanent Account Number) issued by Directorate General of Foreign Trade is required to export goods from India for ultimately importing them into UK. There are, however, some products which may not require import license and the full costs would be significantly less if the receiver is a bit careful. For example, somebody who wishes to ship from art and craft goods from India can do so without an import license. Estimates of the costs can be made by consideration of a few details such as port of loading, gross weight of the freight, gross cubic measurement, complete list of goods, tariff headings or duty rates, and other specific requirements.