What is the UK South Korea Trade Deal?

The UK Government has been working on a potential new trade deal with South Korea. The consultation period ran from December 2022 to February 2023.  A new UK South Korea trade deal would replace the existing deal which currently mirrors the deal the EU signed in 2011.  The UK’s continuity free trade agreement was signed in 2020 post-Brexit.

South Korea is the one of the largest economies in the world and is the UK’s 21st largest export market. South Korea accounts for 1.1% of UK exports.

Will my Business Benefit from the UK-South Korea Trade Deal?

Currently there are preferential tariffs on some commodities for import from South Korea, to check your commodity codes, enter them here and select South Korea, the result will display whether there is a tariff preference.

If you have a shipment to or from South Korea and would like a quote, whether it is sea or air freight contact our team either by calling the office on (+44) 02392 756 575, emailing sales@mercatorcargo.co.uk, or by completing the form below and someone will be in touch with you.

Request a Quote for Shipping to or from South Korea

The amount of import VAT and duty payable upon clearance into the UK is dependent on three factors.  Firstly the percentage of import VAT and/or duty is dictated by the commodity code (sometimes also known as a tariff code) that the goods are being declared to UK Customs as.

The percentage for import duty is applied to the amount for freight, insurance (if any) and the value of the goods. The percentage for import VAT is applied to the CIF value, plus the duty amount, and a minimal amount added as an adjustment (known as a VAT adjustment charge). This calculation is dictated by HMRC. If you are feeling lost, do not worry, your customs clearance agent will do all the sums for you.

How do I find the Tariff Code for my Import?

Generally, your supplier overseas will provide you with the tariff code for your import goods.  If it is not on the commercial invoice, then you can ask them to provide it.  Alternatively you can classify the goods using HMRC’s tariff.

What Percentage of Import VAT and Duty do I need to pay?

This can also be checked on HMRC’s online tariff, simply enter the commodity code and the country that you are importing from. If there are special tariffs applicable due to a trade deal with that country (such as the UK-Australia and New Zealand trade deal), then the online tariff will reflect this.

Complete UK Customs Clearance Service

If you are looking for a UK based customs clearance agent to handle a one-off clearance, or regular customs clearances for your company, then contact our import department.  We will be glad to provide you with a quote for customs clearance, and onward delivery if required.  Mercator has been in business for over 30 years, we have badges at the major ports which means we handle the clearances in house.  Our import department are furnished with the latest software, up to date knowledge and relevant experience to handle customs clearances efficiently and accurately on behalf of our customers.

You can contact our import department by emailing sales@mercatorcargo.co.uk, calling (+44) 02392 756 575 (we are here 9-5 Monday-Friday), or complete the form below and someone will be in touch.

Request a Quote for UK Customs Clearance

At Mercator Cargo we closely monitor worldwide manufacturing and sourcing trends. The recent increase in trade from Vietnam shows the move away from China to other countries, demonstrating the region as one potential new area for traders and manufacturers looking to source cheap, reliable products.

This, of course, is nothing new – like the move away from Europe to China which has prevailed in the previous decades, driven by the increase in the standard of living in China which has increased labour costs driving up manufacturing costs.

The latest move by the USA President, Donald Trump, to increase tariff/duty rates on goods from China will add further pressure to the Chinese manufacturing community. Many US Companies are looking to source goods from outside of China. It makes sense for the rest of the world to follow this trend and begin to look elsewhere, facilities manufacturing goods for the USA will also be able to manage the production of goods for the EU and the rest of the world.

We have excellent partners in Vietnam who not only can provide us with low freight rates for both air and sea, but who can also assist in finding trusted, reliable partners for your manufacturing and sourcing needs. We can also bolt on added services such as warehousing and consolidation.

As Vietnam, and other Asian countries continue to grow we forecast these markets will be the “new” China in a few years’ time, and we are excited to be at the forefront of this new era.

Make sure that you choose a well-established and reputable freight forwarder who has direct connections locally in Vietnam. If you would like to discuss any aspect of shipping or supply chain from Vietnam or you would like a quotation, then get in touch: +44 2392 756 575 or email sales@mercatorcargo.co.uk

 

Get more information on Vietnam Trade

Shipping to the UK can be a relatively straight forward experience as long as you follow a set of golden rules:

Make enquiries before you commit to buying goods

There are a few things that you need to make sure you know before buying goods overseas to ship to the UK.  Firstly it is a good idea to make preliminary enquiries with a UK shipping agent (like Mercator) who will be able to assist you with the rate of UK import VAT/duty that is applicable (if any).  The rate will depend on a few factors including country of origin and the nature of the goods.  This is cost that you should take into account when shipping goods to the UK.

Make sure you understand your buying terms

It is important that you understand your buying terms with your supplier.  Incoterms are a set of rules which set out the responsibilities of the buyer and the seller when it comes to international trade and shipping.  The most commonly used terms are DAP ‘Delivered at Place’; FOB ‘Free on Board’ and DDP ‘Delivered Duty Paid’.  You’ll need to factor in this when working out your sums: for example, if you are buying EXW ‘Ex Works’ where the buyer is pretty much responsible for the whole shipping including pick up, sea/air freight, customs clearance and local duties etc, there will be costs to pay on top of just buying your goods. Compare this with buying DDP ‘Delivered Duty Paid’ where the seller covers the majority of the shipping costs.

If you are new to international trade, then it is worth discussing this with your nominated shipping agent, who will be able to assist you.  Our team at Mercator have a great deal of experience with import shipping to the UK and different Incoterms, so do get in touch for assistance (+44 2392 756 575).

Appoint a reputable UK freight agent

Appointing a freight agent in the UK (such as Mercator) will save you a lot of headaches.  They can handle any aspect of your shipment to the UK that you want them to handle.  Mercator’s services include all elements of shipping from collection at your goods origin, through sea/air freight to the UK, UK customs clearance, payments to HMRC for VAT/Duty and delivery to your door in the UK.

If you have a shipping consignment for the UK then do not hesitate to get in touch.  We have over 20 years’ experience in the industry.  We are members of the UK’s freight forwarding trade association which means we have certain regulations and conditions of trade we have to adhere to which protects our customers.  We are also founding members of a worldwide shipping agent network, with members in over 90 countries.  Our membership allows us personal contacts across the globe and valuable local knowledge in your goods origin country (this can be from local export customs, through to arranging a pick-up overseas and delivery to the port of departure).

If you would like to make a start on your shipping consignment to the UK, then do get in touch, one of our import shipping team will be happy to assist and get the ball rolling, sales@mercatorcargo.co.uk or call +44 2392 756 575

 

Request a Quote for Shipping to the UK

If you have not imported goods into the UK before, you may be wondering how import VAT and duty works.

How much VAT and duty will I need to pay?

HMRC uses a ‘tariff’ to determine the rate (a percentage) of VAT and duty that needs to be paid on customs clearance.  This means that the rate is dependent upon what your goods are, and their worth.  Take a look here: https://www.gov.uk/trade-tariff.  Our team of freight forwarders will classify your goods when we handle your shipment and/or customs clearance, calculate the amount payable, and handle payments to HMRC (if required).

Who is responsible for paying for the VAT and duty?

You, as the importer, are responsible for settling any VAT and duty payable upon your goods arrival in the UK.  Your goods will not be released from customs until this is settled.  Most of our customers opt to use us to clear their import through customs.  Our standard procedure is to calculate the rate of VAT and duty payable, an invoice is raised for this amount, once funds from our customer has cleared into our account, we forward the payment to HMRC with the necessary release instructions.  Customs clearance is required for both air and sea imports.

Can I claim back VAT and duty?

If you are VAT registered, then you should be able to claim back any import VAT (not duty).  To import into the UK you will require an EORI number (Economic Operator Registration and Identification).  This is a straight forward process of filling in a form, you should receive your EORI number within a week.  We can assist you with this if required.

Give us a call to discuss Mercator Cargo handling your shipment, or UK customs clearance and delivery.  Our team of freight forwarders deal with UK clearance and delivery, and international shipping on a daily basis – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.

 

Request a Quote for UK Customs Clearance

Shipping containers have been used since the 1950s when they were invented by an American trucking businessman.  Since then, freight forwarders, importers and exporters have used shipping containers for the transit of all kinds of goods.

Prior to freight forwarders using 40 foot or 20 foot containers, ships hulls were loaded manually by dock workers, box by box, piece by piece.  This is a time consuming job, and sometimes these big shipping liners spent more time at the docks than they did at sea.

Now, using shipping containers, freight forwarders can get their cargo off the shipping liners within hours, rather than weeks.  Their uniformed sizes mean that they can be easily transferred from ship to dockside, to truck, to train, and so on.

These rather simple developments in freight forwarding have dramatically decreased costs involved in importing and exporting goods.

If you have a full container load, or even a less than container load, of cargo to be exported or imported, then get in touch today to discuss our freight forwarding services available – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.

 

Request a Quote for International Containerised Shipping

If you are new to importing or exporting from the UK, you may be wondering what a freight forwarder does, what their role with your company should be, what they can offer, and what the responsibilities of the importer/exporter (i.e. you) versus the freight forwarder are.

To cut the jargon, the freight forwarder (the person or company that you appoint to handle your shipment) will do just that – they will handle your shipment for you. Freight forwarders oversee the worldwide movement of goods from country to country, and can offer services such as packing, documentation and customs clearance on behalf of exporters and importers.

Your freight forwarder should be able to offer any kind of level of service you require. For example, if you are completely new to importing and exporting your goods, you may wish your freight forwarder to arrange all aspects of your shipment. This might include a door-to-door delivery (i.e. arrange the collection of goods, and delivery of goods to the door for your chosen destination), insurance, customs clearance, and all services required to deliver goods from one country to the next. However, you may decide that you only wish for a delivery from door to port, or from port to door, and so on. Mercator can offer either a fully comprehensive freight forwarding service, or arrange smaller aspects of your shipment.

So what kind of role do you wish your freight forwarder to have with your company? Again, this entirely depends on your needs and the needs of your business. If you are a first time importer, or exporter, you may wish to make initial contact with your freight forwarder before committing to any international trade with other companies. Mercator Cargo can offer you advice on buying terms from abroad, provide quotes for exports from the UK so you can inform your buyers, and also advise what you can or cannot import from country to country. Our experienced team of freight forwarders can offer as much “hand holding” as you require.

What are your responsibilities, and what are our responsibilities? In a nut shell, our responsibilities are to get your goods to its destination for you as instructed, to inform you every step of the way of your shipment, and to provide reliable advice relating to your shipment. Your responsibilities as an importer or exporter vary from shipment to shipment.  You are required to declare your goods accurately (i.e. if a declaration is made on your behalf as instructed, and it is not accurate, you are liable for this, not the freight forwarder), therefore it is essential you advise your freight forwarder of the accurate nature of your goods.

If you think that you might need the services of a freight forwarder, then give us a call, we will be happy to discuss your freight forwarding needs with you – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.

 

Request a Quote for Freight Forwarder Services

Mercator Cargo is a founding member of the global freight forwarding network Marco Polo Line (MPL).  What does this mean for you, the potential (or existing) customer?

Marco Polo Line was founded with the intention to give independent freight forwarders (like Mercator Cargo) advantages that the bigger freight forwarders have traditionally enjoyed over the independent forwarders.

The first, and biggest impact that Mercator finds invaluable on a daily basis (both for our customers, and our operations in the office) is the personal contacts that we now have globally.  Marco Polo Line holds annual conferences, where members can meet face-to-face and build working relationships.  Mercator Cargo takes full advantage of these conferences, sending at least two members of the freight forwarding team.  These personal contacts allow Mercator to arrange shipments seamlessly, using valuable local knowledge, and offer to-door shipments in almost any country in the world (thanks to our global partners).

The other advantage is that members are ‘vetted’, tried and tested (you cannot join MPL by just filling a form in).  Membership is monitored, so if there are problems, these can be raised and eradicated.  This means that our partner offices are trustworthy and reliable to handle your shipments, where ever they are in the world.

These are just a few examples of the benefits of choosing Mercator as your freight forwarder.

Contact us today to discuss how we can help you with your freight forwarding needs – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.

 

Request a Quote for Freight Forwarding Services