Working with a customs broker The role of a customs broker is to help set up the customs documents and licenses you may need for importing into the UK. They’ll make sure you have everything you need to clear customs smoothly, and can help you avoid delays and possible fines for failing to comply with complex customs requirements. If you’re considering using a customs broker, you might choose a standalone agency that only offers customs services, or use a freight forwarder that also covers customs processes. Remember, there will always be additional costs You may need to think about local taxes and regulatory requirements, which could add to costs, and you will often need export documentation. UK Department of International Trade (DIT) is a good source of information, and many local chambers of commerce can help with export documentation. The cost of import duty to the UK is calculated on the declared value of goods + the cost of transportation. VAT is then worked out using the declared value of goods + the cost of transportation + the duty paid. This means that paying more for transport also means you’re hit by higher duty and VAT costs later. Incoterms indirectly define who pays any import VAT as the normal rule so that only the owner of goods at the time of import can reclaim any VAT, hence planning in this area can help reduce the fully loaded cost. With proper planning, cash flow doesn’t need to be a problem; you can manage risks to take full advantage of the opportunities that exporting can offer your business. The small business guide to import and export 17