Guide
1. Benefits of exporting
Exporting is where a business sells raw materials, products or services to customers in another country.
The benefits of exporting include being able to reach a much wider customer base, with the potential of growing revenue and profit and achieving economies of scale. While exporting can bring new risks, it can also reduce the risks associated with only selling within a single country or market.
Some businesses will consider exporting once they have established themselves in the UK to the extent that there is limited opportunity for further growth. Others may look overseas much earlier in their lifecycle - either because the markets are much warmer to their offering, or to achieve more rapid growth. This may be to meet specific demand from export opportunities which arise in specific countries and sectors.
Exporting isn't simply an add-on to your existing business. It should be part of an overall strategy to develop the business.
If you're planning to export, you need to:
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understand the challenges of exporting
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have sound knowledge of your potential markets
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consider whether your products are right for each target market
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ensure you can comply with regulations in the UK and overseas
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have the necessary resources for marketing and sales
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manage the logistics and transport
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secure any necessary finance.
2. Carrying out international market research
It's essential to carry out detailed market research. Scottish Enterprise offers a free international market research service available to all Scottish businesses that want to target overseas markets. They have access to data that is not available on the internet which includes analysis and reports that can only be accessed by subscribers.
This includes:
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industry overviews including segmentation and growth potential
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trends and forecasts to help you predict demand for your product or service including social, economic, political and technological factors
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insights on individual competitors including their market share, turnover and recent product launches
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identifying potential customers/buyers, partners and investors
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supply chain mapping including suppliers and distributors
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pricing and promotion insights.
Businesses can use this service before investing any resources in exporting which can save time, money and minimise risk. For those who are already exporting, the service can support growth through finding new opportunities.
Once you have a good general overview, you may need to invest some budget in very specific research around your proposed offering in a particular market. Local market research agencies may have direct access to your potential customers, but consider the reputation of the agency and review some of their other projects before appointing one.
Scottish Enterprise offer guidance, advice and support when starting to export, and they have launched a digital Export Assessment tool designed to help companies understand where they are in their export journey, what their next steps might be and what export support is available to them in taking those next steps.
The Department for Business and Trade also has a search tool for you to find market guides appropriate to your sector.
3. Researching tax, duties, licences and certificates
The financial and legal obligations for businesses vary according to the country they are exporting to and what you are exporting. Brexit impacted rules around exports to the EU. For example from July 2026, the EU has removed the exemption on customs duty for parcels valued at EUR 150 or below. More changes are expected in future, including a new EU wide handling fee on eCommerce goods.
The UK government has a self-assessment tool to help you find relevant information about duties and customs procedures. Before working through the steps in the tool, have answers to the following.
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What your product is made of.
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Where you plan to export to.
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What type of goods you’re exporting as you’ll need to know the name or commodity code which is a 10-digit reference number. This is internationally recognised and is used to calculate the relevant duties and taxes. To find this, you’ll need to know what the product is used for, the materials used and how it’s produced as well as how it’s packaged.
The tool will then provide you with specific information on exporting a particular product to that country, covering duties, taxes, charges for the relevant commodity code and any relevant trade agreements such as any rules of origin to obtain preferential tariffs. The site will also signpost you to information on licences and certificates.
The Federation of Small Business provides more information about what tariffs are and how tariffs impact businesses.
4. Understanding the practicalities
Once you are aware of the relevant duties, taxes, licences and certificates, you need to understand, what’s involved in:
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preparing for the UK border so your goods can leave the country
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preparing for the border of your destination country so your goods can be accepted.
The UK government's self-assessment tool also provides guidance specific to your commodity code and destination country, and a step-by-step guide covers other areas and lists key actions to take. These include the following.
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Apply for an EORI number. If you are based in Scotland and exporting goods to any other country outside Great Britain, such as Northern Ireland, Isle of Man, Channel Islands, and other countries within or outside the EU, you will need an Economic Operators Registration and Identification (EORI) number. This is used by authorities such as customs to track shipments.
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Consider applying for approved exporter status. This can be useful if you will be a regular exporter as it simplifies the customs process for certain goods and countries.
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How to manage customs declarations. You need to decide whether to manage customs declarations yourself or hire a third party to help you.
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Understand the required transport documentation. This differs whether you are using road, sea or air.
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Check for sanctions. At any time, the UK may have sanctions in place, preventing exports to specific countries.
5. Organising sales and distribution
How you organise your sales presence overseas is key to successful exporting.
Depending on your product, you may be able to sell directly. For example, you might be able to sell online or by exhibiting at local trade shows.
Many businesses look for a partner who already understands the local market. For example:
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a distributor who then sells your products locally
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a sales agent who sells products on your behalf, or puts you into contact with potential customers on a commission basis
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a joint venture with a local business, which gives you a share of the management and profits of the joint venture, but is more complicated and expensive.
You can also set up your own local office so you have more controls - but this is the most expensive option.
You’ll need a marketing strategy and promotional activity to build demand in your chosen market and support the sales effort. Your approach will be informed by your earlier market research and competitor analysis. Any promotions and advertising will need to respect the traditions, culture and legislation in those countries and support may be needed from local marketing agencies.
6. Managing contracts
Selling overseas involves all the same issues as selling in the UK. You need to meet customer needs at the right price, and ensure you receive prompt payment.
The relationships can become more complicated because of the distances involved and different languages, business cultures and legal environments.
To draw up a contract you will need to agree what payment is required, when and in what currency, and what payment method will be used. You will also need to decide your specific roles and responsibilities for:
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clearing goods through customs in the UK and destination country
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the transport and insurance from your premises to your customers
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paying duties and taxes
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what happens if goods are delayed, damaged or lost while being delivered.
To help these discussions and reduce the risk of misunderstandings between exporters and importers when drawing up contracts, the International Chamber of Commerce (ICC) IncotermsⓇ - a set of 11 international commercial terms made up of three letters - are a form of shorthand used globally to ensure that all parties can properly assign, agree and log the main responsibilities, costs and risks. For example, the term “FOB: Free on Board” relates to ocean freight and means that the seller has responsibility for transport costs until the goods are on the vessel, and once loaded, the buyer takes responsibility for the remaining costs and risks until the goods reach the destination.
The Department for Business and Trade has a summary of Incoterms and the benefits and considerations for exporters and importers. The International Chamber of Commerce website contains the complete list of Incoterms.
You may want to take advice from a lawyer with experience of international trade.
Resolving problems, such as delayed deliveries, even when you use an agent, can be more complicated and impact your cashflow. It’s important to think ahead and carry out risk assessments to understand the potential impacts and identify contingencies.
7. Planning transportation
Getting international transport right can be complicated. Your responsibility for transport depends on your agreement with your customer or supplier. As mentioned above, Incoterms are standard trade terms that set out who is responsible for transporting goods, insuring the goods during transportation, paying duties, and customs clearance.
The best mode of transport for your goods will depend on the type of goods and how quickly they need to be delivered. You may need more than one mode. The goods will also need suitable packaging and labelling for transportation. It may be possible for your goods to be sent via post.
Depending on the contract, you may need to arrange insurance. Marine insurance can cover transport by air, road or rail as well as by sea.
Many companies use a specialist freight forwarder to handle transport. If you are using one, confirm exactly what they will do and whether they can handle all documentation and other procedures.
Look for a forwarder who exports regularly to that destination. They can 'consolidate' your goods with other consignments in a single container to reduce costs. Reputable freight forwarders are usually members of the British International Freight Association (BIFA).
8. Writing an export plan
Before you commit, you need to honestly assess your export potential, covering both the readiness of your business and of your product or service.
You will need:
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a marketing strategy that includes international trade development
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the necessary financial resources
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the right people to develop the new export markets
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adequate knowledge of the requirements of your chosen market
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an understanding of export payment mechanisms and export finance.
Your product or service must be suitable for export to meet the standards and regulations in the overseas market and you will need to understand the costs of any adaption of your product or service.
Scottish Enterprise offers a Preparing to Export programme that provides training to help Scottish businesses move from the market research stage to creating an export plan. It involves digital modules, interactive workshops, and networking with other businesses to share experiences.
They also provide a template export plan. It has sections for:
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setting clear objectives and defining how it supports your overall strategy
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products and services you will be exporting, including any changes to meet the needs or regulations in different markets, and protection for intellectual property
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target markets
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marketing and sales plan
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fulfilment, deliveries, documentation, and insurance
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budget and pricing
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risk analysis
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monitoring
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forward planning.
Your finished plan will not only help you set off in the right direction to achieve your objectives, it will enable you to have constructive and credible discussions with banks, investors and potential partners.