1. What is inward processing relief (IPR)?

Inward processing relief (IPR) is if you intend to re-export goods you've imported after processing them, you can apply for inward processing relief. This means VAT and duty only become payable if you decide to sell your goods in the UK or if you fail to meet the conditions of the scheme.

2. What is forwarding agent?

Forwarding agent is most smaller importers use a forwarding agent to handle customs clearance for goods coming into the UK from outside the EU.

3. What is DEQ?

DEQ is delivered ex quay (named port of destination). This is an Incoterm. Find more information about Incoterms at the Incoterms 2000 website. The seller clears the goods for export and pays for delivery. The goods are delivered when they're placed on the quay at the named port of destination. The buyer is responsible for clearing the goods for import and associated costs, unless agreed otherwise.

4. What is groupage?

Groupage is this allows exporters of small consignments to gain the benefits of containerisation. A freight forwarder undertakes to group together different exporters' consignments to fill a whole container for a particular destination.

5. What is CIP?

CIP is carriage and insurance paid to (named place of destination). This is an Incoterm. Find out more information about Incoterms on the Incoterms 2000 website. The seller clears the goods for export and pays for delivery to the named destination. The goods are delivered when the seller passes the goods to its carrier. From this point the buyer takes responsibility for all costs and risks. But the seller must also take out insurance to cover the buyer's risk during transport.

6. What is pre-shipment inspection (PSI)?

Pre-shipment inspection (PSI) is a few countries require goods and documents to be examined before export by an independent agency. In some countries it's optional but can be requested by the customer. Usually, countries where PSI applies have appointed one dedicated agency to perform the pre-shipment inspection. Normally, your freight forwarder or customer will be able to advise on the necessary arrangements.

7. What is import license?

Import license is some countries may require import licences for certain or all goods. As an exporter it's normally your customer's responsibility to comply with import procedures, but it's a good idea to check they're doing so.

8. What is Foreign and Commonwealth Office (FCO)?

Foreign and Commonwealth Office (FCO) is government department responsible for foreign affairs. With the Department of Trade and Industry, the FCO manages British Trade International to support international trade by UK exporters and boost inward investment by overseas firms in Britain .

9. What is customs commodity code?

Customs commodity code is eight-digit commodity code required for exports outside the EU. It needs to be entered on your customs export declaration. Sometimes known as the “first eight digits of the Customs Tariff number” or “CN (Customs nomenclature) code”, it's also used as the basis for the import declaration in the country of destination. Find more information about Customs community codes in Customs Notice 600 on the Customs and Excise website.

10. What is certificate of manufacture?

Certificate of manufacture is statement (often legalised by a notary) in which a producer of goods certifies that manufacture has been completed and the goods can be bought.

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