Avoid these common pitfalls on the road to export success

Each year, thousands of South West businesses unlock new growth by selling their goods overseas. Even in a volatile trading environment, the underlying trend remains positive. UK goods exports increased by £0.8 billion in April, showing global demand remains strong. The challenge is to capitalise on these opportunities while avoiding common pitfalls.

While the EU remains the UK’s largest trading partner, UK exporters can benefit from free trade agreements with over 70 other countries, a list that continues to grow. A UK-India agreement is due to take effect in July, while work on an agreement with the Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE) is progressing.

These agreements are designed to reduce or remove import duties, helping South West exporters enter new markets and compete more effectively on price. However, the benefits are not automatic.

Free trade agreements

Each agreement has its own rules on origin, documentation, eligibility and evidence requirements. These can vary significantly.

Without the right processes in place, duty savings may be refused or assessed later, creating unexpected costs and difficult conversations with overseas customers.

Classification is another fundamental building block. Commodity codes determine duty rates, regulatory requirements and eligibility for duty reductions. Nevertheless, many businesses are unfamiliar with the rules or rely on suppliers, despite this being a key focus for HM Revenue and Customs. Errors can lead to overpaid duty, delays at the border, or goods being challenged or held.

The commercial terms used in a contract can have a significant impact on both cost and compliance. For example, delivered duty paid can be an attractive proposition for the customer to secure a sale, but may require a UK exporter to take on complex overseas responsibilities, including import clearance, VAT registrations and appointing a suitable customs representative or indirect agent.

Keeping pace with change

Exporters also need to stay ahead of regulatory change. The US continues to implement new tariffs on UK goods, after some tariffs were found to be illegal and eligible for refund.

From 1 July 2026, the EU will introduce a €3 duty on consignments valued at €150 or less, reshaping the economics of e-commerce. Environmental measures are also gaining momentum, including the EU deforestation regulation, which risks disrupting supply chains next year.

Meanwhile, negotiations continue on a future sanitary and phytosanitary agreement with the EU aimed at reducing friction and paperwork for food and agricultural exports.

Businesses that build and control their processes, documentation and commercial arrangements are best placed to unlock the full value of global trade. Those that do not risk increased costs, delay and uncertainty.

At PKF Francis Clark, our customs team works with businesses of all shapes and sizes. Whether you are reviewing existing export processes, entering new markets or looking to minimise the cost and complexity of international trade, we are always happy to discuss how we can support your business.