Doing Business with the EU and particularly UK

Peter BishopDeputy Chief Executive

London Chamber of Commerce

Day 1 – General

1. Introduction• The overall project and how this element fits in Programme and

objectives of next two days• Who I am, and my credentials• Who you are

2. The Global Context• World trade and the phenomenon of globalisation• What globalisation is, and how it has come about• Impact on Nepal

3. The European Union• How it has evolved and developed• Approach to third countries• Individual markets

4. The UK market• Economic indicators and trading outlook• Business and legal framework; quality standards• Market information and channels of distribution

5. Nepal as an exporter• Current export markets and products• Potential exports• Export procedures and controls• Sources of assistance

6. Principles of Exporting• Market Research• Transport and documentation• Terms of consignment• Marketing• Getting paid

Day 2 – Specific

The programme for the day will be illustrated with examples of

actual/potential Nepalese products for exports.)

7. EU/UK Import Procedures • HS Codes• Controls• Documentation• Duty treatment and taxes• Compliance with EU/UK regulations

8. The UK market• Focus on key sectors• Environmental issues• Trade associations• Agents and distributors• Exhibitions and trade fairs• Doing business with the British!

9. Sources of further information• International Trade Centre UNCTAD/WTO• Banks• Chambers, IBOs• Customs

10. Acting as an Export Adviser• Your role• Assessing a client, company and product• Setting up an import – export advisory service• Ongoing assistance

11. The Export Transaction of the Future • On-line • Global • Tracked

12. Summary and conclusions • Open forum • Q&A• Close

Acknowledgements

The Project

• To make Nepalese IBOS better equipped to facilitate trade between Europe & Nepal

• Target group

• Six courses

The Seminar

• Practical

• Enabling

• Linked with other actions

About Me

• LCCI

• WATAC

• Author

• Adviser

About You

• Target group

• Widely drawn

The Global Context

• How its come about

• What it means

The EU

• Origins in ECSC

• EEC

• Single market

• Eurozone

• Approach to `Third Countries’

The EU Now

• Facts and Figures

• Economy

• Risks to prosperity

The EU

• The markets

• Future members• http://www.londonchamber.co.uk//lcc_publi

c/default.asp?id=866.

The UK Market

• Economic indicators

• Forecast

The UK Market

• Business and legal framework

• Types of business entities

• Registering a foreign company• www.companieshouse.gov.uk

Nepal as an Exporter

• The economy

• Major trading parties

• UK-Nepal trade• http://trade.ec.europa.eu/doclib/docs/2006/

september/tradoc_113424.pdf

• http://ec.europa.eu/external_relations/nepal/intro/index.htm

Nepal as an Exporter

• Procedures and controls

• Customs acts and tariffs

• Major players

• Export manual • www.freightnet.com/country/96.2

Nepal as an Exporter

Nepal as an Exporter

• SWOT analysis

• Work in groups to assess SWOT in relation to exports to UK

Principles of Exporting

• Why export?

• Is export the right option for your clients

• Export potential

• Resources needed

Market Research

• General factors

• Market information

• Accessibility

• Sales potential

• Sources of information

Channels of Distribution

• Direct

• Agents

• Distributors

• Licensing

• Partnerships

Quotations and Pricing

• Basis

• Costing

INCOTERMS

• Terms of consignment

• 13 Incoterms

• Selecting the appropriate term• www.iccwbo.org

Transport and Documentation

• The right mode

• The right documents

Packaging

• Basic rules

• The environment

Getting Paid

• Advance

• Open account

• Collections

• Letters of credit

Bill of ExchangeBill of Exchange No: 1234 London, 1 May 2008 For: GBP 200,000.00At SIGHT Pay this SOLE of Exchange

POUNDS STERLING TWO HUNDRED THOUSAND ONLY

to the Order of OURSELVES

Value Received Which place to account

To: Any Importer For and on behalf ofAnywhereAny Country The UK Exporter

Signed K. Mandu………………..

Position: Director ……………………

Collection Flowchart

Letters of Credit

• Irrevocable

• Confirmed irrevocable

Letters of Credit

EU/UK Import Procedures

• The tariff

• Helping the importer pick your client as their supplier

EU/UK Import ProceduresProduct Tariff Code

Carpets 5701

Articles of leather – ie. trunks, suitcases, wallets, purses

4202

Leather clothing 4203

Jute and other textile bast fibre 5303

Woven fabrics of jute 5310

Wheat and meslin 1001

Rice (round, medium, long grain etc) 1006

Flowering plants with buds or flowers 0602 90 91

Cut flowers and flower buds for bouquets 0603

Fruits, nuts and other edible parts of plants 2008

Gum, wood or sulphate turpentine 3805

Lentils 0713 40

Aluminium and articles thereof 76

Aluminium structures and parts of structures 7610

Copper and articles thereof 74

Copper zinc-base alloys (brass) 7403 21

Articles of iron or steel 73

Machinery for washing, cleaning, wringing, drying, ironing, pressing, bleaching, dyeing, dressing, finishing, coating of iron

8451

Ceramic glassware 7013 10

Worked ivory, bone, tortoiseshell, horn, antlers, coral, mother-of-pearl and other animal carving material, and articles of these materials

9601

Bamboos 1401 10

Seats of bamboo or rattan 9401 51

Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal

7113

- of silver, whether or not plated or clad with other precious metal

7113 11

Shawls, scarves, mufflers and veils 6117 10

Envelopes, letter cards, plain postcards and correspondence cards, of paper or paperboard; boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery

4 817

UK and EU Trade

 www.uk-customs-tariff.com http://ec.europa.eu/taxation_customs/dds/tarhome_en.htm Summary of EU External Trade Legislationhttp://europa.eu/scadplus/leg/en/s05020.htm

Generalised System of Preferences (GSP) http://ec.europa.eu/trade/issues/global/gsp/index_en.htm

Export Helpdesk for Developing Countries http://exporthelp.europa.eu/

Market Access Database http://mkaccdb.eu.int

Preference

• GSP Form A

• Origin criteria met

• Direct consignment

• Questions about GSP

UK/EU Tariff

• 7 columns

• Description

• HS

• Special provisions

UK/EU Tariff

• Units of quantity

• Full rate of duty

• Preferential rate of duty

• Rate of VAT

• Tariff Preference: A guide to the EC's proposed new Generalised System of Preferences (GSP) for the Period 1 April 2005 to 31 December 2008

Documentation

• Import license

• C88 (SAD)

• Statistical declaration

• http://www.berr.gov.uk/europeandtrade/importing-into-uk/import-licensing/page9780.html

Origin Rules

• GSP

• Other origin rules

UK/EU Regulations

• http://ec.europa/enterprise/sectorsen.htm

• www.bsi-global.com

UK Market

• Outlets

• Market information

• Trade associations

• Making contact

• http://mkaccdb.eu.int

• www.btaa.org.uk

• www.keynote.co.uk

Coffee

• Trends

• www.britshcoffeeassociation.co.uk

• www.ico.org

• www.britishcoffeeassociation.org

Fresh Produce

• www.freshproduce.org.uk

Database Sources

• www.kompass.co.uk

Sector Summaries

• Giftware

• www.ga-uk.org

• Glassware

• Fruit and vegetables

Sector Summaries

• Jewellery and watches

• Stationery

• Flowers

• Carpets and rugs

Fairs and Exhibitions

• www.exhibitions.co.uk

Dealing with the British!

• Concepts and values• Business practices• Do’s and don’ts• Culture quiz• http://www.communicaid.com/cross-cultural-

training/culture-for-business-and-management/doing-business-in/British-business-and-social-culture.php

Acting as an Export Adviser

• Your role

• Your resources

• Exercise

Export Transaction of the Future

• What happens now…

• ..in five years time

Open Forum

• Comments

• Questions

• Discussion