Register and enrol for NCTS online service
What is the NCTS?
Details about the New Computerised Transit System, Community/Common Transit and TIR
The New Computerised Transit System (NCTS) is a system of electronic declaration and processing that traders must use to submit Common Transit declarations. You can also use NCTS to submit Transports Internationaux Routiers (TIR) declarations electronically if you’re in Northern Ireland.
The NCTS will process the declaration and control the transit movement. It’s used by the UK, all member states of the EU and the signatories of the Common Transit Convention.
The Common Transit procedure can be used for movements between the UK, the EU and other Common Transit Countries.
The TIR procedure is used for transit operations that begin, end or transit a third (non-EU) country that has signed the TIR convention. You’ll also have to declare such goods to NCTS for any part of the journey taking place within Northern Ireland or the EU.
You must use it if you’re a trader and want to move goods under the Common Transit Convention.
Exceptions to NCTS
There are some exceptions to NCTS for goods moving by air, sea, or rail.
Find out more about moving goods under the Temporary Storage procedure.
You cannot use NCTS to make Proof of Union Status declarations (T2L) documents.
Economic Operator Registration Identification (EORI) Number
Unless you use an agent to make your transit declaration, you must be registered as an Economic Operator, and once registered, use your EORI number on your NCTS declarations. Read more about the Economic Operator Registration and Identification (EORI) Scheme.
Content category
Source URL
/content/what-ncts
Links
What you’ll need to use the NCTS
What you require to use the New Computerised Transit System
To use NCTS and transit goods you’ll need:
- an EORI number
- your business address
- a guarantee
- Trader Identification Number
To use the online service, you’ll need:
- A government gateway ID, you can register for one the first time you access the system
- access to a computer that can download and print Adobe Acrobat PDF documents
- a good quality printer that can print barcodes so you can print your Transit Accompanying Document (TAD) and List of Items
- specific settings enabled on your internet browser
You can use transit simplified procedures when moving goods under transit. Find out more about transit simplified procedures.
Content category
Source URL
/content/what-youll-need-use-ncts
Links
Using EDIFACT to access the NCTS
Understanding the best method of working with NCTS for big businesses
The EDIFACT system sends and receives messages as email attachments, or in the body of the email.
To use this system you’ll need to buy specialised software or develop software that is compatible with NCTS.
If you buy or develop software, you must ensure it is fully compatible with NCTS. Download the technical interface specification (TIS) and the TIS appendices for phase 4 of NCTS at New Computerised Transit System: technical specifications.
HMRC has a test service so you can check your software is compatible before you start using it.
There’s a technical pack if you want to develop your own NCTS system. Testing and technical information, along with a list of NCTS software developers, is available.
If you develop your own software, you’ll need to contact the NCTS helpdesk before you connect to the NCTS system for the first time.
Read technical information about EDIFACT declarations.
If you send an EDIFACT message to NCTS using your own trader software, it will need to translate your declaration into an EDIFACT coded message that NCTS can read. NCTS will then accept or reject the declaration in EDIFACT. Your trader software must also be able to translate this.
Content category
Source URL
/content/using-edifact-access-ncts
Links
Register and enrol for NCTS online service
The most suitable access route to the New Computerised Transit System for small businesses
If you’re a trader in Great Britain moving goods using transit
You’ll need to set up an account to use the GB NCTS service to send transit declarations.
If you’re a trader in Northern Ireland moving goods using transit
You’ll need to use the EDIFACT e-mail channel or XML to send transit declarations.
Read more about how to use NCTS XML.
Content category
Source URL
/content/register-and-enrol-ncts-online-service
Links
Using the XML channel to access the NCTS
Using the XML route for your business and the benefits
You can use XML to integrate your business systems with the NCTS.
Using the XML route to NCTS involves sending and receiving EDIFACT messages ‘wrapped’ with an XML envelope. The NCTS XML channel gives an additional communication route for NCTS which may be useful if you’re running a large business.
You’ll need access to an XML wrapping tool which can send EDIFACT messages to the NCTS.
You can buy or develop your own XML wrapping tool for delivering messages direct from your organisation or you can use a service provider that will perform the XML wrapping on your behalf.
If you want to purchase software, see the list of known software providers.
HMRC services may be slow during busy times. You can also check if there are any problems with this service, or times it will not be available.
Content category
Source URL
/content/using-xml-channel-access-ncts
Links
Using the NCTS
Understanding the different features and processes relating to the New Computerised Transit System
How to submit
When you enter a transit declaration into the NCTS an electronic message is sent to the customs office of departure. If your declaration is accepted the system will allocate a movement reference number. The Anticipated Arrival Record message is sent by the office of departure to the destination customs office.
After you’ve submitted
Your consignments must travel with a Transit Accompanying Document (TAD). The TAD includes your consignment’s Movement Reference Number – printed in numeric form and as a barcode. You must be able to print barcodes to the ISO code 128 standard, rather than EAN 128.
When more than one item is being consigned, a List of Items should also be sent with the TAD.
Goods moving under the transit procedure must be accompanied by a TAD for presentation at destination or in case the goods are diverted, or there are any incidents during transit.
The TAD can be printed out at the customs office of departure or, if your printer can accommodate barcodes, at your own premises. TADs are authenticated by the system and do not need to be stamped by customs.
When your goods arrive at the destination country, it’s important that the TAD is presented to customs at the office of destination, so they can inform the NCTS that the goods have arrived.
De-enrolling from NCTS
Find out more about how to de-enrol your business or a staff member from NCTS with the New Computerised Transit System: supporting guidance.
Content category
Source URL
/content/using-ncts
Links
Using the NCTS
What is the NCTS?
Details about the New Computerised Transit System, Community/Common Transit and TIR
The New Computerised Transit System (NCTS) is a system of electronic declaration and processing that traders must use to submit Common Transit declarations. You can also use NCTS to submit Transports Internationaux Routiers (TIR) declarations electronically if you’re in Northern Ireland.
The NCTS will process the declaration and control the transit movement. It’s used by the UK, all member states of the EU and the signatories of the Common Transit Convention.
The Common Transit procedure can be used for movements between the UK, the EU and other Common Transit Countries.
The TIR procedure is used for transit operations that begin, end or transit a third (non-EU) country that has signed the TIR convention. You’ll also have to declare such goods to NCTS for any part of the journey taking place within Northern Ireland or the EU.
You must use it if you’re a trader and want to move goods under the Common Transit Convention.
Exceptions to NCTS
There are some exceptions to NCTS for goods moving by air, sea, or rail.
Find out more about moving goods under the Temporary Storage procedure.
You cannot use NCTS to make Proof of Union Status declarations (T2L) documents.
Economic Operator Registration Identification (EORI) Number
Unless you use an agent to make your transit declaration, you must be registered as an Economic Operator, and once registered, use your EORI number on your NCTS declarations. Read more about the Economic Operator Registration and Identification (EORI) Scheme.
Content category
Source URL
/content/what-ncts
Links
What you’ll need to use the NCTS
What you require to use the New Computerised Transit System
To use NCTS and transit goods you’ll need:
- an EORI number
- your business address
- a guarantee
- Trader Identification Number
To use the online service, you’ll need:
- A government gateway ID, you can register for one the first time you access the system
- access to a computer that can download and print Adobe Acrobat PDF documents
- a good quality printer that can print barcodes so you can print your Transit Accompanying Document (TAD) and List of Items
- specific settings enabled on your internet browser
You can use transit simplified procedures when moving goods under transit. Find out more about transit simplified procedures.
Content category
Source URL
/content/what-youll-need-use-ncts
Links
Using EDIFACT to access the NCTS
Understanding the best method of working with NCTS for big businesses
The EDIFACT system sends and receives messages as email attachments, or in the body of the email.
To use this system you’ll need to buy specialised software or develop software that is compatible with NCTS.
If you buy or develop software, you must ensure it is fully compatible with NCTS. Download the technical interface specification (TIS) and the TIS appendices for phase 4 of NCTS at New Computerised Transit System: technical specifications.
HMRC has a test service so you can check your software is compatible before you start using it.
There’s a technical pack if you want to develop your own NCTS system. Testing and technical information, along with a list of NCTS software developers, is available.
If you develop your own software, you’ll need to contact the NCTS helpdesk before you connect to the NCTS system for the first time.
Read technical information about EDIFACT declarations.
If you send an EDIFACT message to NCTS using your own trader software, it will need to translate your declaration into an EDIFACT coded message that NCTS can read. NCTS will then accept or reject the declaration in EDIFACT. Your trader software must also be able to translate this.
Content category
Source URL
/content/using-edifact-access-ncts
Links
Register and enrol for NCTS online service
The most suitable access route to the New Computerised Transit System for small businesses
If you’re a trader in Great Britain moving goods using transit
You’ll need to set up an account to use the GB NCTS service to send transit declarations.
If you’re a trader in Northern Ireland moving goods using transit
You’ll need to use the EDIFACT e-mail channel or XML to send transit declarations.
Read more about how to use NCTS XML.
Content category
Source URL
/content/register-and-enrol-ncts-online-service
Links
Using the XML channel to access the NCTS
Using the XML route for your business and the benefits
You can use XML to integrate your business systems with the NCTS.
Using the XML route to NCTS involves sending and receiving EDIFACT messages ‘wrapped’ with an XML envelope. The NCTS XML channel gives an additional communication route for NCTS which may be useful if you’re running a large business.
You’ll need access to an XML wrapping tool which can send EDIFACT messages to the NCTS.
You can buy or develop your own XML wrapping tool for delivering messages direct from your organisation or you can use a service provider that will perform the XML wrapping on your behalf.
If you want to purchase software, see the list of known software providers.
HMRC services may be slow during busy times. You can also check if there are any problems with this service, or times it will not be available.
Content category
Source URL
/content/using-xml-channel-access-ncts
Links
Using the NCTS
Understanding the different features and processes relating to the New Computerised Transit System
How to submit
When you enter a transit declaration into the NCTS an electronic message is sent to the customs office of departure. If your declaration is accepted the system will allocate a movement reference number. The Anticipated Arrival Record message is sent by the office of departure to the destination customs office.
After you’ve submitted
Your consignments must travel with a Transit Accompanying Document (TAD). The TAD includes your consignment’s Movement Reference Number – printed in numeric form and as a barcode. You must be able to print barcodes to the ISO code 128 standard, rather than EAN 128.
When more than one item is being consigned, a List of Items should also be sent with the TAD.
Goods moving under the transit procedure must be accompanied by a TAD for presentation at destination or in case the goods are diverted, or there are any incidents during transit.
The TAD can be printed out at the customs office of departure or, if your printer can accommodate barcodes, at your own premises. TADs are authenticated by the system and do not need to be stamped by customs.
When your goods arrive at the destination country, it’s important that the TAD is presented to customs at the office of destination, so they can inform the NCTS that the goods have arrived.
De-enrolling from NCTS
Find out more about how to de-enrol your business or a staff member from NCTS with the New Computerised Transit System: supporting guidance.
Content category
Source URL
/content/using-ncts
Links
What you’ll need to use the NCTS
What is the NCTS?
Details about the New Computerised Transit System, Community/Common Transit and TIR
The New Computerised Transit System (NCTS) is a system of electronic declaration and processing that traders must use to submit Common Transit declarations. You can also use NCTS to submit Transports Internationaux Routiers (TIR) declarations electronically if you’re in Northern Ireland.
The NCTS will process the declaration and control the transit movement. It’s used by the UK, all member states of the EU and the signatories of the Common Transit Convention.
The Common Transit procedure can be used for movements between the UK, the EU and other Common Transit Countries.
The TIR procedure is used for transit operations that begin, end or transit a third (non-EU) country that has signed the TIR convention. You’ll also have to declare such goods to NCTS for any part of the journey taking place within Northern Ireland or the EU.
You must use it if you’re a trader and want to move goods under the Common Transit Convention.
Exceptions to NCTS
There are some exceptions to NCTS for goods moving by air, sea, or rail.
Find out more about moving goods under the Temporary Storage procedure.
You cannot use NCTS to make Proof of Union Status declarations (T2L) documents.
Economic Operator Registration Identification (EORI) Number
Unless you use an agent to make your transit declaration, you must be registered as an Economic Operator, and once registered, use your EORI number on your NCTS declarations. Read more about the Economic Operator Registration and Identification (EORI) Scheme.
Content category
Source URL
/content/what-ncts
Links
What you’ll need to use the NCTS
What you require to use the New Computerised Transit System
To use NCTS and transit goods you’ll need:
- an EORI number
- your business address
- a guarantee
- Trader Identification Number
To use the online service, you’ll need:
- A government gateway ID, you can register for one the first time you access the system
- access to a computer that can download and print Adobe Acrobat PDF documents
- a good quality printer that can print barcodes so you can print your Transit Accompanying Document (TAD) and List of Items
- specific settings enabled on your internet browser
You can use transit simplified procedures when moving goods under transit. Find out more about transit simplified procedures.
Content category
Source URL
/content/what-youll-need-use-ncts
Links
Using EDIFACT to access the NCTS
Understanding the best method of working with NCTS for big businesses
The EDIFACT system sends and receives messages as email attachments, or in the body of the email.
To use this system you’ll need to buy specialised software or develop software that is compatible with NCTS.
If you buy or develop software, you must ensure it is fully compatible with NCTS. Download the technical interface specification (TIS) and the TIS appendices for phase 4 of NCTS at New Computerised Transit System: technical specifications.
HMRC has a test service so you can check your software is compatible before you start using it.
There’s a technical pack if you want to develop your own NCTS system. Testing and technical information, along with a list of NCTS software developers, is available.
If you develop your own software, you’ll need to contact the NCTS helpdesk before you connect to the NCTS system for the first time.
Read technical information about EDIFACT declarations.
If you send an EDIFACT message to NCTS using your own trader software, it will need to translate your declaration into an EDIFACT coded message that NCTS can read. NCTS will then accept or reject the declaration in EDIFACT. Your trader software must also be able to translate this.
Content category
Source URL
/content/using-edifact-access-ncts
Links
Register and enrol for NCTS online service
The most suitable access route to the New Computerised Transit System for small businesses
If you’re a trader in Great Britain moving goods using transit
You’ll need to set up an account to use the GB NCTS service to send transit declarations.
If you’re a trader in Northern Ireland moving goods using transit
You’ll need to use the EDIFACT e-mail channel or XML to send transit declarations.
Read more about how to use NCTS XML.
Content category
Source URL
/content/register-and-enrol-ncts-online-service
Links
Using the XML channel to access the NCTS
Using the XML route for your business and the benefits
You can use XML to integrate your business systems with the NCTS.
Using the XML route to NCTS involves sending and receiving EDIFACT messages ‘wrapped’ with an XML envelope. The NCTS XML channel gives an additional communication route for NCTS which may be useful if you’re running a large business.
You’ll need access to an XML wrapping tool which can send EDIFACT messages to the NCTS.
You can buy or develop your own XML wrapping tool for delivering messages direct from your organisation or you can use a service provider that will perform the XML wrapping on your behalf.
If you want to purchase software, see the list of known software providers.
HMRC services may be slow during busy times. You can also check if there are any problems with this service, or times it will not be available.
Content category
Source URL
/content/using-xml-channel-access-ncts
Links
Using the NCTS
Understanding the different features and processes relating to the New Computerised Transit System
How to submit
When you enter a transit declaration into the NCTS an electronic message is sent to the customs office of departure. If your declaration is accepted the system will allocate a movement reference number. The Anticipated Arrival Record message is sent by the office of departure to the destination customs office.
After you’ve submitted
Your consignments must travel with a Transit Accompanying Document (TAD). The TAD includes your consignment’s Movement Reference Number – printed in numeric form and as a barcode. You must be able to print barcodes to the ISO code 128 standard, rather than EAN 128.
When more than one item is being consigned, a List of Items should also be sent with the TAD.
Goods moving under the transit procedure must be accompanied by a TAD for presentation at destination or in case the goods are diverted, or there are any incidents during transit.
The TAD can be printed out at the customs office of departure or, if your printer can accommodate barcodes, at your own premises. TADs are authenticated by the system and do not need to be stamped by customs.
When your goods arrive at the destination country, it’s important that the TAD is presented to customs at the office of destination, so they can inform the NCTS that the goods have arrived.
De-enrolling from NCTS
Find out more about how to de-enrol your business or a staff member from NCTS with the New Computerised Transit System: supporting guidance.
Content category
Source URL
/content/using-ncts
Links
Using the XML channel to access the NCTS
What is the NCTS?
Details about the New Computerised Transit System, Community/Common Transit and TIR
The New Computerised Transit System (NCTS) is a system of electronic declaration and processing that traders must use to submit Common Transit declarations. You can also use NCTS to submit Transports Internationaux Routiers (TIR) declarations electronically if you’re in Northern Ireland.
The NCTS will process the declaration and control the transit movement. It’s used by the UK, all member states of the EU and the signatories of the Common Transit Convention.
The Common Transit procedure can be used for movements between the UK, the EU and other Common Transit Countries.
The TIR procedure is used for transit operations that begin, end or transit a third (non-EU) country that has signed the TIR convention. You’ll also have to declare such goods to NCTS for any part of the journey taking place within Northern Ireland or the EU.
You must use it if you’re a trader and want to move goods under the Common Transit Convention.
Exceptions to NCTS
There are some exceptions to NCTS for goods moving by air, sea, or rail.
Find out more about moving goods under the Temporary Storage procedure.
You cannot use NCTS to make Proof of Union Status declarations (T2L) documents.
Economic Operator Registration Identification (EORI) Number
Unless you use an agent to make your transit declaration, you must be registered as an Economic Operator, and once registered, use your EORI number on your NCTS declarations. Read more about the Economic Operator Registration and Identification (EORI) Scheme.
Content category
Source URL
/content/what-ncts
Links
What you’ll need to use the NCTS
What you require to use the New Computerised Transit System
To use NCTS and transit goods you’ll need:
- an EORI number
- your business address
- a guarantee
- Trader Identification Number
To use the online service, you’ll need:
- A government gateway ID, you can register for one the first time you access the system
- access to a computer that can download and print Adobe Acrobat PDF documents
- a good quality printer that can print barcodes so you can print your Transit Accompanying Document (TAD) and List of Items
- specific settings enabled on your internet browser
You can use transit simplified procedures when moving goods under transit. Find out more about transit simplified procedures.
Content category
Source URL
/content/what-youll-need-use-ncts
Links
Using EDIFACT to access the NCTS
Understanding the best method of working with NCTS for big businesses
The EDIFACT system sends and receives messages as email attachments, or in the body of the email.
To use this system you’ll need to buy specialised software or develop software that is compatible with NCTS.
If you buy or develop software, you must ensure it is fully compatible with NCTS. Download the technical interface specification (TIS) and the TIS appendices for phase 4 of NCTS at New Computerised Transit System: technical specifications.
HMRC has a test service so you can check your software is compatible before you start using it.
There’s a technical pack if you want to develop your own NCTS system. Testing and technical information, along with a list of NCTS software developers, is available.
If you develop your own software, you’ll need to contact the NCTS helpdesk before you connect to the NCTS system for the first time.
Read technical information about EDIFACT declarations.
If you send an EDIFACT message to NCTS using your own trader software, it will need to translate your declaration into an EDIFACT coded message that NCTS can read. NCTS will then accept or reject the declaration in EDIFACT. Your trader software must also be able to translate this.
Content category
Source URL
/content/using-edifact-access-ncts
Links
Register and enrol for NCTS online service
The most suitable access route to the New Computerised Transit System for small businesses
If you’re a trader in Great Britain moving goods using transit
You’ll need to set up an account to use the GB NCTS service to send transit declarations.
If you’re a trader in Northern Ireland moving goods using transit
You’ll need to use the EDIFACT e-mail channel or XML to send transit declarations.
Read more about how to use NCTS XML.
Content category
Source URL
/content/register-and-enrol-ncts-online-service
Links
Using the XML channel to access the NCTS
Using the XML route for your business and the benefits
You can use XML to integrate your business systems with the NCTS.
Using the XML route to NCTS involves sending and receiving EDIFACT messages ‘wrapped’ with an XML envelope. The NCTS XML channel gives an additional communication route for NCTS which may be useful if you’re running a large business.
You’ll need access to an XML wrapping tool which can send EDIFACT messages to the NCTS.
You can buy or develop your own XML wrapping tool for delivering messages direct from your organisation or you can use a service provider that will perform the XML wrapping on your behalf.
If you want to purchase software, see the list of known software providers.
HMRC services may be slow during busy times. You can also check if there are any problems with this service, or times it will not be available.
Content category
Source URL
/content/using-xml-channel-access-ncts
Links
Using the NCTS
Understanding the different features and processes relating to the New Computerised Transit System
How to submit
When you enter a transit declaration into the NCTS an electronic message is sent to the customs office of departure. If your declaration is accepted the system will allocate a movement reference number. The Anticipated Arrival Record message is sent by the office of departure to the destination customs office.
After you’ve submitted
Your consignments must travel with a Transit Accompanying Document (TAD). The TAD includes your consignment’s Movement Reference Number – printed in numeric form and as a barcode. You must be able to print barcodes to the ISO code 128 standard, rather than EAN 128.
When more than one item is being consigned, a List of Items should also be sent with the TAD.
Goods moving under the transit procedure must be accompanied by a TAD for presentation at destination or in case the goods are diverted, or there are any incidents during transit.
The TAD can be printed out at the customs office of departure or, if your printer can accommodate barcodes, at your own premises. TADs are authenticated by the system and do not need to be stamped by customs.
When your goods arrive at the destination country, it’s important that the TAD is presented to customs at the office of destination, so they can inform the NCTS that the goods have arrived.
De-enrolling from NCTS
Find out more about how to de-enrol your business or a staff member from NCTS with the New Computerised Transit System: supporting guidance.
Content category
Source URL
/content/using-ncts
Links
What is the NCTS?
What is the NCTS?
Details about the New Computerised Transit System, Community/Common Transit and TIR
The New Computerised Transit System (NCTS) is a system of electronic declaration and processing that traders must use to submit Common Transit declarations. You can also use NCTS to submit Transports Internationaux Routiers (TIR) declarations electronically if you’re in Northern Ireland.
The NCTS will process the declaration and control the transit movement. It’s used by the UK, all member states of the EU and the signatories of the Common Transit Convention.
The Common Transit procedure can be used for movements between the UK, the EU and other Common Transit Countries.
The TIR procedure is used for transit operations that begin, end or transit a third (non-EU) country that has signed the TIR convention. You’ll also have to declare such goods to NCTS for any part of the journey taking place within Northern Ireland or the EU.
You must use it if you’re a trader and want to move goods under the Common Transit Convention.
Exceptions to NCTS
There are some exceptions to NCTS for goods moving by air, sea, or rail.
Find out more about moving goods under the Temporary Storage procedure.
You cannot use NCTS to make Proof of Union Status declarations (T2L) documents.
Economic Operator Registration Identification (EORI) Number
Unless you use an agent to make your transit declaration, you must be registered as an Economic Operator, and once registered, use your EORI number on your NCTS declarations. Read more about the Economic Operator Registration and Identification (EORI) Scheme.
Content category
Source URL
/content/what-ncts
Links
What you’ll need to use the NCTS
What you require to use the New Computerised Transit System
To use NCTS and transit goods you’ll need:
- an EORI number
- your business address
- a guarantee
- Trader Identification Number
To use the online service, you’ll need:
- A government gateway ID, you can register for one the first time you access the system
- access to a computer that can download and print Adobe Acrobat PDF documents
- a good quality printer that can print barcodes so you can print your Transit Accompanying Document (TAD) and List of Items
- specific settings enabled on your internet browser
You can use transit simplified procedures when moving goods under transit. Find out more about transit simplified procedures.
Content category
Source URL
/content/what-youll-need-use-ncts
Links
Using EDIFACT to access the NCTS
Understanding the best method of working with NCTS for big businesses
The EDIFACT system sends and receives messages as email attachments, or in the body of the email.
To use this system you’ll need to buy specialised software or develop software that is compatible with NCTS.
If you buy or develop software, you must ensure it is fully compatible with NCTS. Download the technical interface specification (TIS) and the TIS appendices for phase 4 of NCTS at New Computerised Transit System: technical specifications.
HMRC has a test service so you can check your software is compatible before you start using it.
There’s a technical pack if you want to develop your own NCTS system. Testing and technical information, along with a list of NCTS software developers, is available.
If you develop your own software, you’ll need to contact the NCTS helpdesk before you connect to the NCTS system for the first time.
Read technical information about EDIFACT declarations.
If you send an EDIFACT message to NCTS using your own trader software, it will need to translate your declaration into an EDIFACT coded message that NCTS can read. NCTS will then accept or reject the declaration in EDIFACT. Your trader software must also be able to translate this.
Content category
Source URL
/content/using-edifact-access-ncts
Links
Register and enrol for NCTS online service
The most suitable access route to the New Computerised Transit System for small businesses
If you’re a trader in Great Britain moving goods using transit
You’ll need to set up an account to use the GB NCTS service to send transit declarations.
If you’re a trader in Northern Ireland moving goods using transit
You’ll need to use the EDIFACT e-mail channel or XML to send transit declarations.
Read more about how to use NCTS XML.
Content category
Source URL
/content/register-and-enrol-ncts-online-service
Links
Using the XML channel to access the NCTS
Using the XML route for your business and the benefits
You can use XML to integrate your business systems with the NCTS.
Using the XML route to NCTS involves sending and receiving EDIFACT messages ‘wrapped’ with an XML envelope. The NCTS XML channel gives an additional communication route for NCTS which may be useful if you’re running a large business.
You’ll need access to an XML wrapping tool which can send EDIFACT messages to the NCTS.
You can buy or develop your own XML wrapping tool for delivering messages direct from your organisation or you can use a service provider that will perform the XML wrapping on your behalf.
If you want to purchase software, see the list of known software providers.
HMRC services may be slow during busy times. You can also check if there are any problems with this service, or times it will not be available.
Content category
Source URL
/content/using-xml-channel-access-ncts
Links
Using the NCTS
Understanding the different features and processes relating to the New Computerised Transit System
How to submit
When you enter a transit declaration into the NCTS an electronic message is sent to the customs office of departure. If your declaration is accepted the system will allocate a movement reference number. The Anticipated Arrival Record message is sent by the office of departure to the destination customs office.
After you’ve submitted
Your consignments must travel with a Transit Accompanying Document (TAD). The TAD includes your consignment’s Movement Reference Number – printed in numeric form and as a barcode. You must be able to print barcodes to the ISO code 128 standard, rather than EAN 128.
When more than one item is being consigned, a List of Items should also be sent with the TAD.
Goods moving under the transit procedure must be accompanied by a TAD for presentation at destination or in case the goods are diverted, or there are any incidents during transit.
The TAD can be printed out at the customs office of departure or, if your printer can accommodate barcodes, at your own premises. TADs are authenticated by the system and do not need to be stamped by customs.
When your goods arrive at the destination country, it’s important that the TAD is presented to customs at the office of destination, so they can inform the NCTS that the goods have arrived.
De-enrolling from NCTS
Find out more about how to de-enrol your business or a staff member from NCTS with the New Computerised Transit System: supporting guidance.
Content category
Source URL
/content/using-ncts
Links
Receiving payments from overseas customers
In this guide:
- Getting paid when exporting
- Research overseas customers' and markets' creditworthiness
- Payment terms for overseas customers
- Receiving payments from overseas customers
- Assess the risk level for overseas payments
- Managing your overseas customers' payment performance
- Insurance against non-payment by overseas customers
Research overseas customers' and markets' creditworthiness
Political, economic, currency exchange and banking issues to consider.
To minimise the risks of non-payment, you should research the market conditions in your target country and the credit worthiness of potential customers before you start trading.
Understand country risks
Start by building an overall picture of payment practices in your customer's country:
-
The political situation - war, civil unrest, corruption or security issues might affect payments. Changes in government could lead to embargoes or the introduction of tariffs.
-
The economic situation - stability and sustained growth in the local economy will mean more potential customers are solvent. Check there are no problems with the supply of money in your target market.
-
Foreign exchange and banking conditions - you will be exposed to foreign exchange fluctuations when selling overseas unless your customer agrees to pay in sterling, thus taking on the risk. An historically stable currency will minimise your risk. Read more about foreign currency and exchange risks. Check the stability of the banking sector - this can affect the efficiency and speed of your receiving payment. Find banking and other business information in your target market.
-
The UK's relationship with the target market - what are the prevailing conditions? For example, are specific trading agreements in place?
Read coface reports on the creditworthiness of countries.
Read more about researching and entering overseas markets.
Understand buyer risks
You will need to assess your potential customer's financial position and trading record to limit the possibility of non-payment. The most common causes of non-payment are the buyer becoming insolvent or simply refusing to pay.
It's essential to carry out a credit check on potential overseas customers. This will indicate how they have kept up with their liabilities in the past.
Invest Northern Ireland can provide a range of support services to businesses thinking about investing overseas.
UK Export Finance also provides help to exporters through its Export Credit Insurance scheme. New exporters can contact the UK Export Finance Enquiry Line on Tel 020 7271 8010.
The Authorised Economic Operator (AEO) certification scheme is aimed at reducing security risks in your supply chain as businesses registered as AEOs will have undergone checks on their commercial and financial management record.
Also on this siteContent category
Source URL
/content/research-overseas-customers-and-markets-creditworthiness
Links
-
Payment terms for overseas customers
Learn about the main transaction types for overseas customers.
There are four main transaction types for overseas customers.
Transaction type Description Payment in advance This involves taking payment before dispatching goods and means you bear no risks or financing costs. You might use it when you have concerns about a customer's ability to pay. However you should be aware that very few trade customers will agree to pay in advance. Documentary credits Known as letters of credit, this is one of the safest ways to get paid by overseas customers. Your customer arranges a letter of credit with their bank, which pays a bank in the UK once you complete the necessary paperwork, the goods have arrived at their destination city, and the documents are accepted without any discrepancies.
If your documentation is accurate, you are guaranteed to be paid on time. Your customer bears the cost of issuing the letter of credit. You will have to pay commission to your bank.Documentary collection In this system, payment becomes due when your customer accepts ownership of your goods. You instruct your bank to draw up a bill of exchange, which allows you to keep control of your goods. An overseas bank, acting for your bank, will release the documents allowing your customer to take the goods once they accept the terms of the bill.
There is a risk that the bill of exchange will not be accepted, but you retain ownership of the goods - although they'll be in your customer's country. There is still a risk of non-payment unless your bill of exchange has been guaranteed by the bank. You will have to pay commission to your bank and the overseas bank.Open account This is similar to offering credit to a UK customer. You supply the goods and invoice the customer, stating when you expect to receive payment.
This option has the highest risk of non-payment. You will bear the costs of production and shipping until you are paid. However, there are no other costs except ordinary freight costs and other overheads. You should only use open accounts when you have an established relationship with your customer and are confident they can pay.
Choosing your payment optionsConsider your customer's creditworthiness, trading conditions in your customer's country and your business' financial strength. Ensure you research overseas customers' and markets' creditworthiness and consider how to assess the risk level for overseas payments.
You should also consider currency choice and payment methods.
Also on this siteContent category
Source URL
/content/payment-terms-overseas-customers
Links
Receiving payments from overseas customers
Interbank transfers, buyer's cheques, banker's drafts, international money orders and debit or credit cards.
There are two key issues when receiving payment from overseas customers - the currency in which you will be paid and the method the customer will use to make payment.
Currency issues
Most customers will prefer to be invoiced and pay in their local currency. You may lose business if you insist on being paid in sterling.
However, accepting foreign currency will result in additional costs for your business. There will be a transaction cost for converting the payments into sterling. You also carry the risk of the currency devaluing between the time you supply the goods and when you are paid for them.
Read more about foreign currency and exchange risks.
Payment methods
There are four main payment types:
-
Interbank transfer - your customer pays directly into a bank account that you nominate. This is standard practice in many countries.
-
Buyer's cheque - a cheque payable to you drawn against your customer's account. Accepting cheques from buyers can be risky - they can bounce or be lost in transit. The payment will also need time to clear.
-
Banker's draft - a cheque payable to you drawn against your customer's bank rather than their account. These provide more security than buyer's cheques but the bank will usually charge your customer to provide a banker's draft. They can also be lost in transit.
-
International money orders - documents that can be exchanged for cash in the supplier's country via a Post Office or through an issuer's office. They are cheaper to obtain than banker's drafts but can be lost in transit.
Discuss the options with your customers and make the agreed payment methods clear in your trading agreements.
Debit and credit cards
Customers may offer to pay using credit or debit cards. While this can prove a fast and convenient way of receiving payment, there is a risk that the charge may be disputed by your customer and reversed.
Pay careful attention to the terms and conditions of your merchant account to minimise the risk.
Read more about using payment cards to buy and sell goods or services.
Also on this siteContent category
Source URL
/content/receiving-payments-overseas-customers
Links
-
Assess the risk level for overseas payments
Risk analysis and payment terms when selling overseas.
To decide which payment terms and payment methods to offer overseas customers, assess the level of risk that trading with them will entail.
You should research the market and the local trading conditions, including the economic and political situation, for an overall picture.
You can then make an informed decision about the level of risk you're prepared to accept, and how to manage it.
The risk ladder
To find appropriate payment terms with overseas customers you need to balance your risks against customer requirements and expectations. What is more secure for you is more risky for them - and vice versa.
The principle is described in a 'risk ladder':
Exporter Importer Least secure Open account Most secure v
vDocumentary collection ^
^Documentary credits Most secure Payment in advance Least secure
Most international trade transactions are carried out in the middle of the ladder - balancing the risks of the seller with the needs of the customer.Which payment terms to use is a key decision when starting to trade overseas. Get advice if you are unsure. Find out about the Invest NI support for selling outside Northern Ireland.
The International Chamber of Commerce has established rules governing documentary credits worldwide. The Uniform Customs and Practice for Documentary Credits (UCP600) is a set of internationally accepted rules on the issue and use of letters of credit. These rules are commonly used by banks in commercial transactions worldwide. As they are incorporated into contracts voluntarily, the rules are flexible, but once applied to any documentary credit, they are binding on all parties to the credit, unless specifically modified or excluded by the credit.
You should use Incoterms, an internationally agreed set of delivery contract terms, in all your contractual agreements with overseas customers to avoid confusion and legal disputes. But remember that Incoterms cover your delivery terms only - they do not cover payment arrangements
You should also consider arranging insurance against non-payment.
Also on this siteContent category
Source URL
/content/assess-risk-level-overseas-payments
Links
Managing your overseas customers' payment performance
Credit control and keeping on top of overseas customer debt when exporting.
You need to have efficient credit control procedures when selling overseas. Payment for most export transactions takes time, and you will have to finance your export activities until you are paid.
Many processes and best-practice principles for effective overseas credit control, such as offering discounts for prompt payment, are the same as in your home market. Read more about managing late payment.
Specific considerations for exporters
Ensure you have the skills and manpower to run an effective credit control operation for overseas customers.
Key issues include:
-
Language. Can your staff communicate with overseas customers? If not, chasing payment can be difficult.
-
System knowledge. Payment terms, such as letters of credit, can be complex. Do your staff have sufficient training?
-
Time zones. When trading overseas, your customers' working hours may differ from yours. Could you arrange to contact them in their working hours?
-
Communications infrastructure. How strong is the communications network in your customers' country? What are the implications for speed of communication and payment?
-
Cost. Chasing overseas debt can be time-consuming and costly. Have you got the resources to fund this?
Outsourcing credit control
If you are not confident about managing your own credit control procedures for overseas customers, or do not have the resources, you can outsource them.
Managed credit insurance schemes will obtain country information, check customer details, set credit limits and chase overseas payments for you. You will have to pay for this service, usually as part of a premium for credit insurance cover. Read more about insurance against non-payment by overseas customers. Some banks also offer this service for a fee.
You could also sell your invoices to a debt-factoring house, which will take on the work of recovering the payments. You can also raise money through invoice discounting, but you remain responsible for recovering the debt. Read about the basics of factoring and invoice discounting.
Non-payment
If you are not paid and the relationship with your customer breaks down, you should consider claiming on your insurance. Most insurance protecting against non-payment from overseas customers is tailored to suit your business. You can choose to cover your entire overseas turnover, specific customer debts or single large contracts.
Alternatively you may wish to use a debt collection agency to pursue the debt.
Also on this siteContent category
Source URL
/content/managing-your-overseas-customers-payment-performance
Links
-
Insurance against non-payment by overseas customers
Commercially available cover and government-supported insurance for exporters.
It's a good idea to consider insurance against non-payment by overseas customers. Exporting can restrict your cashflow and a delayed or lost payment can have serious consequences. Getting the right insurance can help minimise the impact if problems occur.
You will need to factor the cost of insurance into your pricing. While this may make your price higher, if you are concerned about non-payment it could be a false economy to discontinue your insurance in order to make your pricing more competitive.
The form of insurance will depend on the type and value of business you are conducting overseas. Payment insurance is only one form that you should consider to protect your interests. Read more about insurance for international trade.
Commercially available insurance
This is available for all exporters who export goods or materials on cash or credit terms of up to two years. There is a variety of cover options available, from coverage for all export activities through to one-off transactions. It's a good idea to shop around as the sector is quite competitive.
Find a financial export credit insurer.
Government-supported insurance
To complement cover available from the private market, UK Export Finance - the UK's official export credit agency - offers a range of products and services. These include export insurance policies for contracts to a value of at least £20,000 typically involving the export of capital equipment and project-related goods and services. If your contract is not for semi-capital or capital goods and related services, you must first attempt to purchase insurance from a private export credit insurer before you apply to UK Export Finance.
To find out whether your business is eligible for export insurance, you can call the UK Export Finance Enquiry Line on Tel 020 7271 8010.
ActionsAlso on this siteContent category
Source URL
/content/insurance-against-non-payment-overseas-customers
Links
Develop an export marketing plan
In this guide:
- Entering overseas markets
- Develop an export marketing plan
- Break-even analysis when exporting
- The different ways to enter overseas markets
- Advantages and disadvantages of opening an overseas operation
- Advantages and disadvantages of using an overseas agent
- Advantages and disadvantages of using an overseas distributor
- Finding and contracting with overseas agents and distributors
- Top tips for export success
- Entering overseas markets – Allsop Software
- Entering new markets - BubbleBum (video)
Develop an export marketing plan
Use market research and trade visits to develop an exporting marketing plan.
Creating a detailed export marketing plan tailored to each overseas market is essential for international business success. Due to significant differences between countries, a 'one size fits all' approach rarely works. This guide helps you consider logistics, order fulfilment, customer service, and supplier management to maximize your export potential.
Key considerations for your export marketing plan
Investigate your new market and how your product will fit into it. Consider the following questions:
- What's your priority - minimising potential costs or controlling the process?
- Do you have the market knowledge (and language skills) to make contacts and generate sales?
- Do you have the time and money to invest in setting up a local branch or subsidiary?
- Are there restrictions on the way you can enter the market? For example some countries may insist you form a joint venture with a local business.
- What is appropriate for your product? If it requires specialist after-sales support, selling through an intermediary may not be suitable.
- What are the usual distribution channels for products like yours in the target market?
How to choose target export markets for success
One of the key decisions you will make when exporting is choosing which markets to target. Trying to export to several different countries can be very expensive. Unless you tailor what you offer to suit each individual market, you may fail to offer what customers really want. Instead, it's usually best to focus on selling to one or two individual markets. See exporting country guides.
Read more about how to choose which export markets to enter.
Visit your target markets
Trade visits are organised visits to target markets. While they provide an excellent opportunity to research overseas markets, you can also use them to generate business.
Invest NI offers a range of services to help businesses going on trade visits to generate advance publicity in their target market. It also offers a range of other advice and financial support. Read more about the available support for exporting.
Researching partners, logistics, and infrastructure for exporting
The distribution channels available for selling will vary between countries. There are several different ways to enter overseas markets.
Consider the following:
- How will you be paid by your overseas customers?
- Will the exchange rate be prone to excessive fluctuation?
- What's the communications infrastructure like?
- Does your target market have widespread access to telephones, faxes or the internet?
- Do you need UK freight forwarders experienced in your chosen market and product?
Read more about getting paid when selling overseas and transport options for moving your goods.
Communicate with customers abroad
As part of your promotion, you may want to communicate directly with customers in your export market. The choice you make will be defined by your budget and how effectively each method will reach the customers in your chosen market. Read more about the basics of advertising.
Alternatively, you may choose to buy in a database of potential customers from a direct mail agency. You should select the agency carefully to ensure you receive high-quality data. Read more about the basics of direct marketing.
Exporting marketing plan template
Download a practical export marketing plan template (doc, 162KB) to tailor your strategy.
If you are importing, you will need to identify countries to trade with, as well as individual suppliers within those countries. You will also need to consider how you are going to manage overseas suppliers.
Also on this siteContent category
Source URL
/content/develop-export-marketing-plan
Links
Break-even analysis when exporting
Use a break-even analysis to determine how many products you must sell and at what price in order to make a profit.
A break-even analysis enables you to determine how many products you must sell and at what price in order to make a profit.
Your break-even point is when your business is producing enough revenue each month to cover all your fixed and variable costs.
Why is break-even important when exporting?
Conducting a break-even analysis lets you see what your minimum sales requirement is in order to avoid making a loss. This information can help inform your pricing strategy and help you understand how many products you will need to sell in any new market you enter.
By knowing where your break-even point is, you are able to establish:
- how many units you need to sell before you start to make a profit
- how much your sales can decline before you start to incur losses
- how reducing price or volume of sales will impact your profits
How to calculate break-even point
Break-even point is calculated using the following equation:
Break-even point = fixed cost / (sales price - variable cost)
When completing our break-even template you will need to input the following information:
- The profit you will be aiming for - make sure you consider what variable costs are involved in order to get your product to your chosen market.
- Your overheads - your overheads are your ongoing expenses when operating your business. These may include rent, mortgage or electricity payments.
- Your average unit price - this is the price you expect your customers to pay for your product.
- Labour costs - employee's salary.
- Material costs - tools, raw materials etc.
Break-even analysis template
Download our free Break-even analysis template.
Also on this siteContent category
Source URL
/content/break-even-analysis-when-exporting
Links
The different ways to enter overseas markets
An overview of your options for entering overseas markets.
When you decide to enter an overseas market, it's important that you identify the best approach for your business.
There are four main ways to sell to customers in overseas markets. You may find you need to use more than one entry strategy, depending on the markets you target and the products you offer.
Method of selling Description Selling directly from the UK This typically involves making periodic sales visits to the country, supplemented by telephone sales or accepting overseas orders on an e-commerce website. It can be a simple and cost-effective way to enter an overseas market. However, it may isolate you from your customers, and make you unable to share the exporting workload with partners or intermediaries.
Opening an overseas operation
This involves opening your own branch or subsidiary in the new market, or entering into a joint venture with a local business. Having a presence on the ground can be valuable, but setting it up and maintaining it may involve major resource commitments.
Using an overseas sales agent
A sales agent acts on your behalf in the overseas market, either by introducing you to a customer or by receiving commission on any sales to that customer. Agents are used extensively in the European Union and are protected from abusive business tactics by law. Ensure that you understand what you have agreed and seek legal advice on your agreement, as it's not advisable to operate without an agency agreement in place.
Using an overseas distributor
A distributor buys from you and then sells on at a higher price to their market and customers. They take full responsibility for the import of your goods. A distributor takes ownership of the goods and therefore can do with them as they wish, which means you must trust them with your brand.
Important considerations when entering overseas marketsThere is much more to exporting than simply generating overseas sales. An intermediary can help you with issues including customs and other paperwork, shipping, warehousing and after-sales service. Selling direct means you will have to handle these issues yourself.
Find out more about how to manage the risks of exporting.
When selling overseas, you can sell your product or service directly to customers or use an intermediary. You may decide a mix of these approaches is best for your business. There is no 'one size fits all' solution.
You should consider the implications of each method in terms of:
- the direct and indirect costs, such as investment in an overseas operation, or the heavy discounts often demanded by distributors
- how much control you'll retain over how your product is sold, and how much you'll need to delegate to partners or intermediaries
- which export-related risks you'll have to bear, such as exchange-rate movements, non-payment risks, longer trading cycles and delays due to documentation problems
An intermediary may be able to handle issues such as paperwork, shipping and warehousing. However, you will have less direct control. Selling directly may give you more control, but you will have to bear higher costs.
Also on this siteContent category
Source URL
/content/different-ways-enter-overseas-markets
Links
Advantages and disadvantages of opening an overseas operation
A local office, subsidiary company or joint venture offers great flexibility.
Opening an operation in your overseas market is generally the most costly and time-consuming way to enter it, but the rewards can be great.
Local rules may restrict your options, but the three main ways to open an overseas operation are to set up:
-
a local office - staffed by one or more of your employees
-
a locally registered subsidiary company - a new business in the target market, subject to local company, employment and tax rules, and generally hiring some local staff
-
a joint venture - partnering with a local business to set up a new business with ownership shared between you
Advantages of opening an overseas operation
A local office in this way gives you the chance to identify and exploit opportunities in your target market. It also gives you the flexibility to control your operation, and expand if necessary. There are other benefits:
-
While intermediaries may opt for short-term sales, this way you can plan for the long term.
-
Your customers will take you more seriously if you have a local base. This is particularly true if your products require specialist after-sales service.
-
If you use a joint venture, you will be able to share the risk. You will also benefit from your partner's local knowledge and reputation.
-
If you operate alone, all profits from the enterprise remain yours alone.
-
A local subsidiary company offers limited liability if things go wrong. It is also easier to expand than a local office.
-
It provides an opportunity to extend your intellectual property rights and registrations into other markets.
Disadvantages of opening an overseas operation
This option may require significant resources, and involves greater administrative and managerial burdens than other approaches to entering overseas markets:
-
You will need to understand corporate, employment and tax law in the new territory, and use local specialists to help you.
-
You may need to rebrand the business to attract local attention or if your existing business or product name has a different meaning in the new territory.
-
Costs will be high if things go wrong.
-
You have to take all the risks yourself (if you don't work with a local partner). These could include non-payment or regulatory compliance problems.
There are important legal and financial implications involved in setting up an overseas business. You should take advice from your solicitor, accountant or business adviser, as well as from similar professionals in the target market.
ActionsAlso on this siteContent category
Source URL
/content/advantages-and-disadvantages-opening-overseas-operation
Links
-
Advantages and disadvantages of using an overseas agent
An overseas sales agent can be a low-cost option, but you need to choose carefully.
A sales agent acts on your behalf in the overseas market by introducing you to customers who you supply and invoice direct. They are paid a commission for any sales they make ranging between 2.5% and 15%. The key benefit of using an overseas sales agent is that you get the advantage of their extensive knowledge of the target market.
While there are clear benefits, agency relationships can also have downsides.
Advantages of using an overseas agent
- You avoid the recruitment, training and payroll costs of using your own employees to enter an overseas market.
- An agent should be well placed to identify and exploit opportunities.
- Your agent should already have solid relationships with potential buyers - it might take you some time to build up your own contacts.
- Using an agent allows you to maintain more control over matters such as final price and brand image - compared with the other intermediary option of using a distributor.
Disadvantages of using an overseas agent
- You remain responsible for shipping and other trade-related logistics - although your agent should be able to help.
- You need to specify in an agent's contract if you need them to credit check your customers for you.
- Arrangements must be made to allow access to your sales ledger as part of the commission payments process.
- After-sales service can be difficult when selling through an intermediary.
- You may lose some control over marketing and brand image, compared with entering the market yourself.
Read more about finding and contracting with overseas agents and distributors.
Also on this siteContent category
Source URL
/content/advantages-and-disadvantages-using-overseas-agent
Links
Advantages and disadvantages of using an overseas distributor
Distributors take on many of the risks and burdens of trading overseas, but they expect heavy discounts in return.
A distributor buys your goods from you and then takes full responsibility for selling them on in the overseas market. While the role of a sales agent is to find you customers, a distributor is your customer.
Advantages of using an overseas distributor
-
The main advantage of using a distributor is simplicity. Distributors enable you to access international markets while avoiding logistics issues and many trade-related risks.
-
The distributor is usually responsible for the shipment of goods, and the accompanying customs formalities and paperwork.
-
If you sell to a UK-based distributor, you avoid currency-related risks.
-
It would be easier for a distributor with an established reputation and contacts list to introduce a new brand to the market than it would be for you.
-
Distributors generally spend on marketing to support their sales effort, although they will sometimes expect you to make a financial contribution.
-
A distributor will often offer credit facilities to potential customers.
-
Many distributors carry a stock of the products they sell - so they buy in bulk, and take care of warehousing and inventory control in the overseas market.
Disadvantages of using an overseas distributor
-
In return for taking on your trade-related risks and burdens, distributors will expect heavy discounts and generous credit terms from you.
-
You may lose control of the way your products are marketed and priced.
-
If you use a sales agent, you can use the commission structure to motivate them - there's no similar mechanism with a distributor.
-
Distributors often demand a long period of exclusivity, so you need to be sure that you choose one that has experience selling your type of products and has customers for the kind of goods you sell. Read more about finding and contracting with overseas agents and distributors.
It's important to seek advice from your legal adviser before concluding a distributorship agreement.
Also on this siteContent category
Source URL
/content/advantages-and-disadvantages-using-overseas-distributor
Links
-
Finding and contracting with overseas agents and distributors
Make a shortlist of intermediaries and compare what they can offer you and how well each is run.
Make sure you conduct research before selecting an agent or distributor. Draw up a shortlist of at least three, then carefully compare what each can do for you.
Where to find agents and distributors
There are many organisations that can help you with your search, including:
- trade associations covering your sector
- membership bodies for businesses trading between the UK and your target country
- major banks - these have trade teams which may be able to help
You may also have the opportunity to join trade visits or attend exhibitions in your target country.
Choosing which intermediary to work with
The most important thing to establish is that an agent or distributor has proven experience in your target market. But there are many other factors to consider:
- Are they well located, with the geographical coverage you need?
- Are they well established in the market, and how do they compare with their own competition?
- Look at the product lines they currently sell - will your product fit in well?
- Ask about their strategy for the next five years - does it fit well with your objectives in the market?
- How large and experienced is their sales team? Is it well managed and given effective incentives?
- Can they provide you with market research to feed into your sales forecasts?
- Do they have the warehousing, servicing and other facilities you're looking for?
It's also important to look into their financial standing to ensure you're dealing with a reputable business that can be relied upon to pay you. This can be more difficult with overseas businesses, but it may be possible to conduct a status query through your bank.
International contracts
Make sure any agreement with an agent or distributor is formalised in a clear written contract. It's worth seeking expert advice - eg from a lawyer with trade-related experience or your local UK Trade & Investment team. Make sure you are satisfied with every part of the contract. Read more about getting paid when selling overseas.
Key contract points to consider include:
- Parties - the names and addresses of the businesses involved, and the nature of the relationship, eg agency or distributorship.
- Products - a clear description of your goods.
- Territory - the geographic area within which the agent or distributor will sell your goods.
- Exclusivity - will they have sole rights to sell your goods? If not what are the exceptions? Can they pass their job to a third party?
- Transport - whose responsibility? Your obligations should be clearly set out in a written contract using Incoterms 2020.
- Pricing - what price will you receive from a distributor for your goods? What price will an agent charge their customers?
- Commission - what commission will an agent receive?
- Payment terms - when will payments be made, in what currency, and at what exchange rate?
- Period - set a termination date for the agreement, and include clear provisions for ending the agreement before that date.
- Confidentiality - make sure that sensitive information about your business or products is protected.
- Intellectual property - what rights will the agent or distributor have to use your business name, brand names, trade marks etc? Read more about intellectual property protection overseas.
- After-sales care - for example, product liability, insurance and warranties. Who is responsible at each stage of the trading process?
- Marketing - what promotional activities will support your products and who will pay for them?
- Jurisdiction - which country's rules will apply to the contract?
HelpAlso on this siteContent category
Source URL
/content/finding-and-contracting-overseas-agents-and-distributors
Links
Top tips for export success
The following top tips will help you to get the support you need to begin exporting.
Before you make your first move into an overseas market, it's essential that you get the best advice and support for your specific business. This will increase your chances of export success. There is a range of support available to new and established businesses to help you start trading successfully outside Northern Ireland.
1. Register for training programmes: Training programmes and seminars provide an opportunity to get a feel for the potential of overseas markets. There is a range of export training and support available for you to access including:
- Going Dutch
- UK Export Academy
- InterTradeIreland Digital Sales Support
Read more about export training programmes.
2. Get in-market support: Once your business decides on your chosen market, there are numerous schemes to provide ongoing support:
- UK Tradeshow Programme
- Invest NI Trade Advisory Scheme
- Department for Business and Trade (DBT) in-market support
Read more about in-market support for exporting.
3. Do your research: It's important to know which markets offer the best fit with your business so that you can effectively target your export activity. Focused market research will increase your chances of successfully selling into markets outside Northern Ireland. Research support includes:
- Invest NI Business Information Centre
- Enterprise Europe Network
- InterTradeIreland Acumen programme
Read more about research support for exporting.
4. Get advice: There are several sources of advice for businesses in Northern Ireland wanting to trade overseas:
- Invest NI workshops, Export Development Service, Legal advice, translation services
- NI Chamber Export Documentation and Chamber Connections
Read more about advisory support for exporting.
5. Search for opportunities: Having knowledge of specific products or services that are in demand outside Northern Ireland, and keeping up-to-date on the latest contract opportunities, can help boost your business performance and profitability. You should consider:
- Invest NI Tenders Alert Service and tender guides
- NI Chamber Connecting for Growth
Also on this siteContent category
Source URL
/content/top-tips-export-success
Links
Entering overseas markets
Entering overseas markets – Allsop Software
Luke Johnston, Digital Marketing Lead at Allsop Software, explains how the business has entered new export markets.
Allsop Software, a Belfast-based software company founded in 1996, offers cloud-based solutions to business software users in Ireland, the United Kingdom, and the United States. Luke Johnston, Digital Marketing Lead at Allsop Software, shares insights into the company's successful expansion into new export markets.
Preparing to export
"As part of our international expansion, I completed Invest Northern Ireland's Graduate to Export programme. This programme equipped me with essential skills in market research, planning, and execution for overseas market entry, allowing me to gain first-hand experience in the target location."
"We identified a global demand for our Software as a Service (SaaS) solution, particularly within the food and beverage industry. Our product aims to streamline business processes by eliminating manual data entry and providing valuable insights. Before entering a new market, we carefully consider factors such as SaaS adoption rates, competitor presence, and legal or regulatory challenges specific to software services."
Conducting market research
"Initially, we relied on outsourced research. However, the Graduate to Export programme enabled me to conduct detailed, independent research, refining our overall approach and allowing us to conduct export market research in-house. This approach allows us to apply tailored insights to each market."
"Being based in the territory, attending events, and networking with influential people has provided invaluable first-hand insights that may not have been possible through research alone. The three most important aspects of export market research are:
- Customer needs: Understanding the specific requirements of businesses in each market.
- Competitive landscape: Identifying how our products can differentiate themselves.
- Potential partnerships: Exploring opportunities for local partnerships, resellers, or distributors."
Planning to enter overseas markets
“We have an export marketing plan that focuses on positioning our SaaS products globally while tailoring our message to specific regions, and relevant personas within our target companies.”
“The plan is a comprehensive strategy encompassing target market analysis, localised marketing approaches, partnership development, regional compliance considerations, competitive landscape assessment, financial projections, and customer support planning.”
"Our export marketing plan focuses on positioning our SaaS products globally while tailoring our message to specific regions and personas within our target companies. The plan encompasses target market analysis, localised marketing approaches, partnership development, regional compliance considerations, competitive landscape assessment, financial projections, and customer support planning. This multifaceted approach ensures we address all critical aspects of entering new markets, from understanding local preferences to navigating regulations."
Business challenges and successes
“We have encountered several challenges when entering overseas markets. One significant hurdle has been adapting to diverse regulatory environments, particularly concerning data protection and privacy laws which vary greatly between countries.”
“Another challenge has been providing effective localised customer support. This requires understanding cultural nuances, which sometimes involves establishing local teams or partnerships. Additionally, we've had to navigate different business practices and sales cycles. This often requires adjusting our approach to relationship-building and contract negotiations in each new market.”
“Our risk management approach for exporting is comprehensive and proactive. We begin by conducting thorough market research to understand local business practices, regulations, and potential challenges in each target market. We mitigate financial risks by diversifying our market entry strategies across regions and approaches."
“Cybersecurity is a top priority, and we maintain robust measures to protect our software and customer data from potential threats. We also stay vigilant about international trade policies and regulations, ensuring our operations remain compliant across all markets.”
What would I have done differently
"Reflecting on our export journey, I would have prioritised two key areas: firstly, investing more time in understanding the nuances of each target market's business culture and practices. This deeper insight would have allowed us to tailor our approach more effectively."
"Secondly, I would have established stronger relationships with local partners and industry experts earlier in our expansion process. These connections could have provided invaluable guidance on market-specific challenges and opportunities, potentially accelerating our growth and reducing missteps in new territories."
Identifying new export markets
“We use a comprehensive approach to identify new export markets. This involves analysing global economic trends, monitoring industry developments, using data analytics to track digital transformation opportunities, attending international events, and consulting local experts. This strategy helps us pinpoint the most promising markets for our SaaS products.”
Also on this siteCase StudyLuke JohnstonPrimary parentContent category
Source URL
/content/entering-overseas-markets-allsop-software
Links
Entering overseas markets
Entering new markets - BubbleBum (video)
Grainne Kelly, CEO and Founder of BubbleBum explains how they enter new markets.
BubbleBum is the maker of the world's first inflatable car booster seat for children. Their award-winning seat fits into a bag or glove compartment and is sold in over 20 countries.
CEO and Founder, Grainne Kelly explains the preparation needed when planning to enter new markets. She details the support they receive to help achieve this. Grainne also shares her experience of the challenges and benefits that breaking into new markets brings.
Case StudyGrainne KellyContent category
Source URL
/content/entering-new-markets-bubblebum-video
Links