Do I Need an Import Licence?
Overview of the Import Licence
For many UK small businesses and SME’s, the import of goods is an integral part of their day-to-day operations. Many of these businesses will need to apply for an import licence in order to legally carry out their trade.
An import licence is a legal document that authorises the importing of goods from abroad into the UK. This process is regulated by UK customs and is necessary for all imports of goods from non-EU countries, with certain exceptions such as gifts, book purchases, and wedding items.
The value of the goods being imported and the purpose of the import will dictate which type of import licence is required. An import licence should always be obtained before attempting to import goods as failure to do so can result in heavy fines and the potential seizure and destruction of goods.
Types of Import Licences
The type of import licence that is required will depend upon the goods being imported and whether these goods are subject to import tax or duty. The different types of licence available are:
• Trader’s Licence – This licence is for traders and businesses that import goods from non-EU countries on a regular basis. The import tax or duty that is applicable to the goods will be paid by the importer.
• Temporary Import Licence – This type of licence allows the importer to temporarily delay the payment of customs duties and taxes on the goods. The goods must be re-exported within a fixed period of time or face potential fines and seizure.
• Custom Tariff Relief Licence – This licence allows the importer to benefit from reduced import duty and tax on certain imported goods. Eligibility for this licence will depend upon certain factors, such as the intended use of the imported goods and their source.
• Import Control Licence – This licence allows for the import of goods from countries that are subject to trade restrictions and follows European Union (EU) guidelines. The type of goods regulated by this type of licence include those related to technological, financial, and human rights.
Benefits of Obtaining an Import Licence
Obtaining an import licence can provide a number of benefits to small businesses and SMEs. Firstly, an import licence will ensure that the importing of goods is legal and compliant with UK customs. This can prevent the potential risk of fines and seizure of goods which can be incredibly damaging and expensive.
Secondly, having an import licence can also help small businesses to save money and remain competitive. This is due to the fact an import licence enables businesses to benefit from reduced import duties and taxes and access to trade deals and discounts for goods imported from non-EU countries.
Finally, an import licence will also help to ensure that the goods being imported are high quality and safe to use. This is because only goods that meet the necessary standards for quality, hygiene, safety, and environmental protection, amongst other criteria, will be accepted.
Conclusion
In conclusion, an import licence is an essential document in order for small businesses and SMEs to effectively and legally import goods from non-EU countries. There are many different types of licences available, depending upon the goods being imported. Obtaining an import licence provides benefits such as legal compliance, cost savings, and access to high quality goods. Therefore, all small businesses and SMEs should consider whether they need an import licence for their day-to-day operations.
