INTERNET LAW - Custom Duties and Foreign Trade Regulations in England

Any successful e-commerce endeavor requires knowledge of the customs and trade regulations in the foreign countries where goods or services are to be delivered. Customs duties and foreign trade regulations will definitely influence the ultimate price of goods or services and the time expected to reach the consumer.  Obviously, e-commerce trade will not be successful in those countries with high customs duties and strong foreign trade regulations; contrary, free trade agreements and customs exemptions between countries favorably impact e-commerce transactions.  This article offers a brief description of customs duties and foreign trade regulations in England.

England levies customs duties on many imports.  Customs rates vary depending on the goods and country of origin.  England prohibits importation of certain products; the Commissioners For Revenue and Customs Act 2005 describe these products. Any e-commerce entrepreneur should consult this Act to make sure its products are not listed as prohibited.  England is part of the European Union (EU); therefore, special duties or even zero duties exist with other member states. The EU Directives on customs duties and trade are applicable in England. Also, the EU has trade agreements with Asian countries such as China, Japan, and South Korea.  Lately, the EU has entered into special trade agreements with Latin American and Caribbean countries which have opened the European market to many products from these regions. Particularly, the EU negotiated trade with Mercosur, the free trade agreement among Argentina, Brazil, Paraguay and Uruguay; and the Andean Countries such as Peru and Colombia.  

To learn about England's customs and excise duties see the following laws: the Customs and Excise Duties Act 1979; The Customs and Excise Management Act 1979; the Hydrocarbon Oil Duties Act 1979; the Excise Duties Act 1979; also, certain VAT regulations are applicable and most of them are found in the Value Added Tax Act 1983.

England, as any other European country, has complex trade regulations.  For instance, as a member of the European Union, England offers certain preferences for member states. Thus, an e-commerce company should look for the specific EU Directive applied to its products, if any; this Directive will apply in England along with the England"s specific trade regulations that do not violate any Directive. An example of specific trade regulation in England is the prohibition to import indecent matters; forged coins; goods bearing false trademarks; and certain drugs. Also, as in most countries, trade regulations are implemented to control the importation of agricultural products; food; animals; explosives; and drugs subject to government control. England also prohibits the exportation of certain antiques and metal wastes; these are subject to EU quotas. Alcoholic liquor and tobacco products are subject to specific regulations and customs duties. See the Alcoholic Liquor Duties Act 1979 and the Tobacco Products Duty Act 1979; they describe the specific trade regulations for these products.

Therefore, e-commerce businesses offering services to England customers should first determine the category of its product; then look for the specific EU Directive applicable to them if the e-business is located in a member state; and then look for any specific trade regulation to determine policy and customs duties.  If the e-business is not located in a member state, it should look for any trade agreement between the EU and the e-business country (usually where the Permanent Establishment is); England’s customs duties for that particular product; and trade regulations applicable to the product offered. 

Martha L. Arias, Attorney at Law; IBLS Editor

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