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Country Commercial Guides FY 2000: United Kingdom Report prepared by U.S. Embassy London, released July 1999 Note*

VI. Trade Regulations and Standards

-- Trade Barriers including tariffs, non-tariff barriers and import taxes:

The U.K. has no significant trade or investment barriers, or restrictions on the transfer of capital. Those few barriers that do exist are the result of U.K. implementation of EU Directives and regulations, rather than the intended result of actions of the U.K. Government.

An EU common external tariff applies to all non-EU imports, and a local valued-added tax (VAT) of 17.5% applies to most transactions including imports. VAT on business expenses paid by non-EU participants at trade fairs, exhibitions and conferences can be recovered by the foreign firm's local agent or accountant.

-- Customs regulations:

Duty is assessed on the fair market value of goods at the time of importation, negotiated under open market conditions in the United Kingdom between an independent buyer and seller. The invoice value is usually accepted as the normal price, but if a preferential arrangement has been established between the overseas supplier and the U.K. importer, HM Customs reserves the right to assess a fair market value for duty purposes.

Duty is payable at the time the goods are imported. However, importers can arrange with U.K. Customs and Excise to defer payment for a 30-day period under a bonding arrangement.

-- Tariff rates:

The applicable rates of import duty can be obtained from U.S. Department of Commerce Export Assistance Centers, and copies of the tariff can be purchased from H.M. Stationery Office, Atlantic House, Holborn Viaduct, London EC1P 1BN.

-- Import licenses:

A very limited range of goods requires import licenses, which are issued by the U.K. Department of Trade and Industry. These include firearms and explosives, controlled drugs and certain items of military equipment.

-- Temporary entry:

Raw materials, temporarily imported for incorporation into products for export, may be admitted without payment of duties and taxes. The importer must provide a bank or insurance company guarantee or indemnity for the applicable duties and taxes. Duty-free admission, for a period of up to six months, of goods intended for unaltered re-export may be also arranged with HM Customs & Excise.

Duty-free entry is also permitted for machinery, plant, and equipment imported by lease or loan, goods imported solely for processing, repair, technical examination and testing.

Professional and demonstration equipment may be temporarily imported into the U.K. free of duty and tax under the Customs Convention on the Temporary Importation of Professional Equipment. For this, a carnet should be obtained from the U.S. Council of the International Chamber of Commerce.

-- Special import/export requirements and certifications:

The documents required for shipments include the commercial invoice, bill of lading or air waybill, packing list, insurance documents, and, when required, special certificates of origin, sanitation, ownership, etc.

The commercial invoice should accompany the shipment to avoid delays in customs clearance. No special form of invoice is required, but all details necessary to establish the true value of the goods should be given. At least two copies of the invoice should be sent to the consignees to facilitate customs clearance. Consular documents are not required on shipments to the U.K.

-- Labeling and marking requirements:

Origin, weight and dimension, chemical constituent composition and appropriate hazard warnings are required for consumer protection purposes on any product offered for retail sale. If the product cannot be labeled or marked, the data may be included on any packaging or accompanying printed material or product literature. Although metric units of weight and dimension are required, the continued use of labels with both metric and standard U.S. units is permitted.

-- Prohibited imports:

Prohibited imports include AM citizens band radios, switchblade knives, devices that project toxic, noxious or harmful substances (e.g., CS or tear gas), counterfeit coins and currency, and certain types of pornography.

Warranty and non-warranty repairs:

Consumer legislation requires full refund or direct replacement of goods that have a material defect or faulty workmanship that make them unfit for their intended purpose. The manufacturer's warranty is usually expressed in terms that limit contingent claims. Extended warranties of two years or longer are frequently offered as sales incentives for goods which are inherently reliable, or for which extensive service networks exist.

Independent service and repair businesses have evolved as local industries in many parts of the U.K., supporting capital equipment, consumer durable and leisure industry goods. Many of these small firms welcome the opportunity of becoming service points for larger firms, for warranty and non-warranty repairs and upgrades.

-- Export controls:

The U.K. participates in the Wassenaar Arrangement for the control of dual-use exports, the Australia Group for the control of chemical and biological weapons and the Nuclear Suppliers' Group for nuclear-related goods. The U.K. also supports United Nations' sanctions restricting exports to certain destinations. Although sensitive to the extraterritorial application of U.S. law in export controls, the U.K. cooperates closely with the U.S. in preventing the reexport of sensitive technology of U.S.-origin to unauthorized destinations.

-- Standards:

Within the EU, standards are hierarchical. The order of precedence is ISO, EU and national standards, with the higher standard superseding the lower as soon as it is issued. Although industry-specific standards and approvals have no legal standing, they are often accepted as an assurance of product quality if no relevant national standard exists. Such acceptance, though, is invalidated when a national, EU or ISO standard is adopted.

Standards information can be obtained from the British Standards Institution, 389 Chiswick High Road, London W4 4AL, Tel 011-44-208-996-9000; fax 011-44-208-996-7400. Assistance in identifying applicable foreign standards is available from the Standards Information Service Center, Technology Building 228, Room B-166, National Institute of Standards and Technology, Gaithersburg, MD. 20234; Tel (301) 975-4037. Copies of the standards can be obtained from the American National Standards Institute (ANSI), an agent for BSI, located at 11 West 42nd Street, New York, N.Y. 10036; (212) 642-4900; fax (212) 302-1286.

-- Free trade zones:

The Free Trade Zones of the U.K. are the cargo ports and freight transshipment points of Birmingham, Humberside, Liverpool, Prestwick, Sheerness, Southampton and Tilbury. These seven zones are used only for cargo storage and consolidation, and not for value-added processing of the goods concerned.

-- Membership in Free Trade Arrangements:

The U.K. participates in the Free Trade Arrangements of the European Union (EU) and European Free Trade Association (EFTA). -- Customs contact information:

Imports and Customs procedures inquiries:

HM Customs & Excise New Kings Beam House 21 Upper Ground London SE1 9PS Tel: 44-207-568-5444

Value-added tax and revenue inquiries:

HM Customs & Excise Thomas Paine House Angel Square Torrens Street London EC1V 1TA Tel: 44-207-865-3000 Fax: 44-207-865-3171