Updated: 28 June 2024
Reading Time: 3 minutes
With Brexit now in effect, free trade between the United Kingdom (UK) and the European Union (EU) has fundamentally changed, forcing many companies to restructure their operations.
Before Brexit, about 48% of UK exports were destined for the EU, while 54% of imports into the UK came from the EU.
Despite the significant volume of trade, recent legislative changes have made these transactions increasingly challenging. The resulting climate of confusion and frustration is palpable.
TecEx’s Oliver Nouwens explains in detail the complexities of international trade in a post-Brexit world.
EU-UK Trade | A New Era
EU companies now face a complex UK import system, while UK companies exporting to the EU must obtain export licenses. Although the UK remains a technological hub in Europe, many smaller businesses struggle with the complexities of import and export processes to their European and global clients.
As a result, many affected companies have turned to TecEx for assistance, greatly valuing our Exporter of Record (EOR), Importer of Record (IOR), and compliance services. This has led to numerous companies abandoning plans to register EU entities, opting instead to use TecEx as a permanent solution.
Exporting from the UK Post Brexit
Whether you need an export license to send goods out of the UK depends on the specific items you’re exporting and their destination. Here’s a breakdown:
When Will You Need an Exporting License from the UK:
You generally need a license if your goods fall under categories including:
- Military goods and technology
- Dual-use items (civilian goods with potential military applications)
- Chemicals, waste, and hazardous materials
- Medicines and medical devices
You can check if your goods require a license using the UK government’s export control checker.
Types of UK Export Licenses
As new trade legislation becomes common practice, companies are now required to obtain various licenses and permits for even the simplest of shipments. These licenses can be challenging to obtain and often require extensive legal counsel. Certain licenses also have long lead times. Here are some types of licenses you might need to trade compliantly:
Open General Export Licenses (OGELs)
Pre-approved licenses for specific controlled items going to certain destinations.
Standard Individual Export Licenses (SIEL)
For controlled items not covered by OGELs. Requires specifying items, quantity, and destination. This SIEL can take around 4-6 weeks for approval.
Open Individual Export Licenses (OIEL)
For long-term contracts, projects, or repeat business with a specific customer. An OIEL allows the exporter to export multiple shipments of controlled goods to specified consignee/s in multiple countries.
Obtaining the correct license for your goods is just one of many compliance requirements for those wanting to export out of the UK, assuming they have a UK-registered entity.
Even with a UK-registered entity, exporting goods requires extensive due diligence regarding the goods and their destinations. This includes maintaining detailed records of shipments, which need annual submission and must be kept for auditing purposes. To help alleviate some of these issues, TecEx has successfully navigated thousands of complex shipments both into and out of the UK.
Importing into the UK
Typically, importing industrial goods into the UK does not require a license. However, there are notable exceptions where a license is necessary. These include items subject to import sanctions imposed by the UK government.
