Trading overseas 

Deciding to start selling your products and services outside of Jersey could be a logical step for growing your business – it gives you the opportunity to reach a much wider market. 

Before you start we strongly recommend that you have a sound understanding of your would-be markets, whether your product offering fits their requirements and also what resources you need to have in place to be able to export.

Are you ready to export?
Carrying out in-depth market research allows you to identify and evaluate the target market, which should include:
• the potential demand of your product/service
• who your competition may be and how you compare with their offering
• whether your brand/identity/marketing messages will work in the new market
• are there any alterations that will need to be made to the product to comply with the target market’s legislations

Planning for export
Once you have identified that there is a market to export to, we strongly recommend that you take some time to put together an export plan. This will help you to identify what you must do to enable you to export your product/service and allow you to work out whether exporting is feasible and profitable for your business. The plan should include:
• your marketing strategy (including off-island media buying, attendance at trade shows, marketing/sales visits)
• your financial requirements both to start exporting and also in relation to your cash flow (bearing in mind the delay between shipping your goods and receiving payment for them)
• what modifications need to be made to your products/services to meet regulations/standards (including what customs requirements you may have to meet)
• how your offering compares price-wise with your competitors (taking into consideration exchange rates; delivery/shipping costs and import duties)
• whether you have the infrastructure in place to meet potential demand (including website, staffing and premises). Do you need to use a fulfilment company? Will you need to change any aspect of your customer service to ensure continuity of service before, during and after your sale (including warranties and servicing)?
• operational requirements of how you will get your product to your potential customer (taking into consideration storage and delivery of your product; proof and timescales of delivery and whether you will implement minimum order quantities)
• export payment mechanisms (when and how your customers will pay for your goods – pro-forma invoicing, credit terms, deposits, factoring)
• what contingency measures you have in place to deal with potential problems in your target market, for example political unrest, economic situations or adverse conditions

Low Value Consignment Relief (LVCR)
Jersey-based businesses can currently benefit from low value consignment relief which means that goods under the value of £18 (with effect from November 2011, this value will be reduced to £15) are not liable for VAT upon import into the UK. Special arrangements have been made to collect VAT liable on goods over this amount sent from Jersey – traders are able to join the VAT accounting scheme which is operated by Jersey Post and Jersey Customs. For more information and to apply please download the VAT Accounting Scheme application form and guidance notes.

Download VAT Accounting Scheme application form (84kb)
Download VAT Accounting Scheme user guide for small exporters (162kb)

Customs Approved Trader
Traders that import regularly can apply to become a customs approved trader which allows them to receive their imported goods under fast track clearance arrangements.

Register online to become a customs approved trader

Duties and taxes on imported goods
There are three different duties and taxes that you might have to pay on imported goods. You need to be aware of these and ensure that you factor them into your pricing:
• Goods & Services Tax (GST) at 3% (this rate will change to 5% from 1 June 2011)
• Excise duty on alcohol, tobacco and fuel
• Common customs tariff (CCT) on all goods imported from outside the EU (this rate will vary depending on the goods imported and from their country of origin)

Grants
There may be grant funding available to your business if you are looking to explore export opportunities. For more information and eligibility criteria please download the Jersey Export Development Initiative application form.

Download Jersey Export Development Initiative application form (68kb)