Transport industry: international trade regulations
Regulations for importing and exporting cars and other vehicles and trade in freight or passenger services, trade restrictions and health and safety for transport.
Introduction
This guide provides an overview of the transport, transport infrastructure and transport services sector, information about the regulations which will apply to you as an exporter or importer, and further help and support.
It will also show you how to:
- research your overseas markets
- consider health and safety issues
- ensure your vehicles meet the required standards
- deal with transport-related VAT issues
Export regulations
Regulations, charges or other restrictions may apply to the export of vehicles and associated equipment as they leave the UK and when they arrive at their destination country. It is important that you research both sides of the transaction.
Find out more about exporting goods outside the EU and loading goods for dispatch to the EU.
First, you need to classify your goods – using standardised classification codes makes it easier to check if any restrictions or charges apply.
Learn how to classify your imports and exports using the UK Trade Tariff tool.
Remember that in general it is much simpler to trade with other EU countries than with countries outside the EU. This is because the goods are in free circulation. The EU is a single market and the UK is in a customs union, so you can trade with other EU countries without restriction (although some local charges may still apply).
Regulations for transport service providers
If you supply transport services, for example freight or passenger services, you must always ensure that you comply fully with safety regulations in your destination and transit countries.
You’ll need to check local laws on drivers’ hours and ensure that your vehicles comply with construction and use regulations.
Export licensing and certification
You need an export licence to export specified goods with military or dual uses.
You may need an export licence for goods with a potential military use, for example telecommunications equipment and some transmitters.
Find out more about the security and dual-use products that may need an export licence.
You should also be aware of any sanctions and embargoes which apply to your intended export destination.
Find out more about sanctions, embargoes and restrictions.
Find out more about export licences.
Researching your export destination
You should thoroughly research your export destination country when planning to export.
There are a number of issues that you ought to consider. You can seek advice from the Department for International Trade (DIT).
Use the UK Trade Tariff tool to find commodity codes and other measures that apply to imports and exports.
You should also consider product safety and other technical standards in your export market. Your goods may need to be adapted to comply with these. Rules in your export market may be less or more strict than in the UK.
You can ask for information about your export destination country from a range of organisations, including:
- your local DIT team
- your DIT team within the commercial section of the UK embassy in your destination country
- transport sector trade associations
- the Chambers of Commerce in the UK and in your destination country
Tariffs and duties
All businesses in this sector must comply with a range of import-specific regulations. The key issues relate to the Integrated Tariff of the United Kingdom (the Tariff) and intellectual property.
Using the Integrated Tariff
A common customs tariff is applied across all EU countries on goods imported from outside the EU.
Details of specific tariff duties and measures are contained in the tariff.
The tariff is used to determine the specific classification code of your goods and to find out:
- any licensing requirements that apply
- the rates of duty and import VAT that apply
- any additional charges, such as anti-dumping duties
- any available preferential duty rates
Find out more about customs tariffs.
Use the UK Trade Tariff tool to find commodity codes and other measures applying to imports and exports.
Preferential rates of duty
The Generalised System of Preferences (GSP) allows originating products from a range of countries to be imported into the EU at a reduced or zero duty rate.
Find out how to determine whether a product is an originating one.
The European Community has a number of other preferential trade agreements with third countries, as a result of which goods may attract preferential rates of duty.
Find out more about trade preference agreements.
Intrastat
If you are registered for VAT and the goods you acquire from or supply to VAT-registered businesses in other EU member states reach the Intrastat exemption threshold for arrivals (EU imports) or dispatches (EU exports) for the year, you must submit monthly supplementary declarations to HMRC.
Intrastat is the method of collecting information and producing statistics on goods traded between EU member states.
Find out more about Intrastat.
While Intrastat is only applicable to VAT-registered traders in goods above the annual threshold, the requirement to complete EC sales list declarations also applies to businesses supplying services subject to the reverse charge mechanism to VAT-registered businesses in the EU.
Intellectual property
You should ensure that imported goods do not breach the intellectual property (IP) rights of other businesses, for example check that any components you import aren’t infringing active patents. Infringing goods can be seized and destroyed by HMRC.
Find out how HMRC can help protect your intellectual property rights.
Export controls
Find out about UK strategic export control lists if you intend to export controlled military or dual-use goods, in addition to the Tariff.
Import regulations
As the EU is a Customs Union, whilst the UK remains in the EU you can buy goods from other member countries without restrictions, although VAT and excise duty can still apply.
Find out more about trading in the EU.
If you import from outside the EU, you may have to comply with import licensing requirements and with common customs tariffs that apply across the EU.
Find out more about importing your goods from outside the EU.
Find out more about getting the right licences for international trading.
Use the UK Trade Tariff tool to find commodity codes and other measures applying to imports.
Safety requirements
Goods imported to the UK must comply with domestic business standards, including type approval requirements for vehicles and many of their component parts.
Import licences
Import restrictions can be product-specific or trade-specific. Many products are subject to product-specific standards and need to be supported by applicable certificates, product-specific licences and documentation.
Quite separately, quantitative restrictions or limitations and anti-dumping duties may apply to certain imported commodities.
Find out more about anti-dumping and countervailing duties.
Find out about getting the right licences for international trading.
Use the Integrated Tariff of the United Kingdom (the Tariff) for classifying your goods in order to find out which duties and measures apply.
Safety requirements
Goods imported to the UK must comply with domestic business standards, including type approval requirements for vehicles and many of their component parts.
Health and safety considerations
Health and safety are critical issues for all parts of the transport and transport services sector. The rules with which you’ll need to comply in your target country will depend on the type of product or service you’re offering.
These regulations are standardised across the EU so, whilst the UK remains in the EU, if your business is operating solely within this area you can usually ensure compliance by meeting the relevant UK law.
Safety of vehicles and vessels
You must ensure you comply with all local safety requirements for any vehicles and vessels you own, operate or sell. If you manufacture components for vehicles and vessels, these may also be subject to safety regulations.
You need to consider type approval, construction and use requirements. These will be specific to the type of vehicle, vessel or component you’re operating or selling.
Find out more about vehicle type approval.
If you operate in countries outside the EU, you must check the details for each destination or transit country individually to make sure you’re complying with local laws.
Safety of passengers, drivers and freight
If you offer transport services, you’ll have to comply with detailed regulations to ensure the safety of any passengers and freight - as well as the staff you employ. For example, across the EU the maximum hours a driver can work are strictly regulated.
The key areas you must consider, if relevant, are:
- passenger safety
- restrictions on the carriage of dangerous goods
- welfare of drivers and other staff
- worker safety on board the modes of transport your business operates
Special VAT considerations
Whilst the UK remains in the EU, you must comply with specific VAT rules if you:
- sell new vehicles in an EU country
- transport goods
- move vehicles across international borders
The rules are complex, and it’s a good idea to check with HMRC which regulations apply to your particular circumstances.
Call the HMRC VAT Helpline to find out about special VAT considerations.
VAT for freight-transport businesses
The rules covering VAT for freight transport are complex. Freight-transport services must carefully consider the VAT that should be charged to customers on a case-by-case basis. This will depend on:
- the type of transport service you’re providing
- the country or EU member state in which any part of the service is being provided
Read Notice 744B on VAT issues for freight-transport businesses and related services.
VAT treatment of new vehicles
You’ll have to account for VAT and complete form VAT 411 if you buy or sell:
- a ship more than 7.5 metres in length
- any aircraft with a take-off weight of more than 1,550 kilograms
- any motorised vehicle with a cylinder capacity (cc) of more than 48cc or that is electrically propelled using more than 78.2 kilowatts
In simple terms, VAT is zero-rated, but you must account for the VAT whether the purchaser is VAT-registered or not.
Read Notice 728 on the VAT treatment of new means of transport.
If you’re importing a vehicle temporarily into the UK, you may be able to claim relief on import duties and VAT.
Read Notice 308 on the temporary admission to the UK of non-European Community (EC) means of transport.
Help and support
As an importer or exporter in the transport, transport infrastructure and services sector, you can turn to a range of bodies for help and information.
The government organisation with primary responsibility for providing trade support to UK exporters is DIT.
DIT has an impartial global presence in countries throughout the world and helps businesses realise their international potential through knowledge transfer and ongoing partnership support.
Great.gov.uk has information on the services DIT offers.
You can also find your local DIT international trade adviser.
Government sources of help and information
In addition to DIT, other government bodies that provide business support in the transport, transport infrastructure and services sector include HMRC.
Transport sector trade associations and other bodies
The British International Freight Association (BIFA) provides guidance to freight-transport businesses.
The Rail Freight Group (RFG) provides support to rail businesses.
The Society of Motor Manufacturers and Traders (SMMT) provides support to businesses that sell or manufacture motor vehicles.
Further information
Ask HMRC for advice on classifying your goods.
Call the DIT enquiry line on: 020 7215 5000
International trade team search
Country and category of goods database
Vehicle type approval information
Safety Regulations, drivers hours and carriage of dangerous goods advice
Last updated 1 January 2014 + show all updates
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Intrastat exemption threshold for Arrivals changed with effect from 1 January 2014.
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First published.