Interested in taking up exporting your goods stateside?
There are huge opportunities that come with shipping to States. Consumers in the USA spend £12.5 billion on UK products and services every year.
In this blog, we’ll run through the basics of everything you need to know about shipping to America.
Why Ship To The US?
There are plenty of reasons why you might want to start shipping across the pond, but the three most important points to note are these:
Sheer Size
The USA is a large, attractive market. It’s huge. The country, home to over 338 million people, boasts a broad and diverse population.
Stable Economy
The country is growing more slowly than it has done in the past, but it’s growing nonetheless.
Big Player Status
With an affluent economy, the US is a massive market for a variety of high-value and on-trend products. America is also the UK’s third largest market for food & drink exports, and spends heavily in the healthcare sector as well as being the largest tech market in the world.
Particular Opportunities For UK Exporters
If there’s a market for what you’re shipping, (and the US is a great home for demand for niche goods and certifiably ‘English’ products as well as the on-trend variety), you’re likely to find success.
However, the following sectors provide particular opportunities for companies wanting to tackle the giant.
Technology
The US accounts for 31% of the global technology market, and prides itself on being a forerunner in both 5G and AI innovative technologies. The money flying around in the US, combined with the size of the place, means it’s the perfect place for new, exciting products and services.
Healthcare
There’s a gigantic market for anything healthcare related in the US, and the scene is growing. Whether it’s involving one of the large number of pharma and biotech companies in their supply chains or offering medtech solutions to forward-thinking healthcare organisations, UK businesses can capitalise on the USA’s quest for rapid growth.
Edible Consumables
Data put up by HMRC tells us that the US is the UK’s third largest market for food & drink exports. The number totalled £2.0 billion in 2021 and is on the rise.
Things To Consider Before You Ship
Though the US is big and full of demand for goods and services, getting your cargo over there requires thorough knowledge and preparation.
Let’s run through the main do’s and don’ts when preparing to ship stateside.
1 – The US Is A Federal System
And as such runs completely differently from the UK, which is a single national market. Each US state has its own rules, procedures and regulations which need to be taken into account.
2 – Tax Works Differently Across The Water
The IRS, or Inland Revenue System, is on top of taxes in the US, and the way it works is vastly different to the UK.
For one thing, VAT doesn’t exist over there. Instead, because it’s a federal system, sales tax varies by state.
Due to its complex nature, it’s advisable to get professional advice from those in the know. Consider seeking out a certified accountant or lawyer if you’re thinking about exporting your wares overseas.
3 – Check Technical Regulations, Licensing And Restrictions
The same goes when shipping cargo anywhere in the world. Rules and regs rarely remain the same.
Ensuring your documentation is clear and correct is the best way of getting through customs and making sure your goods get to their destination in time.
It’s also a good idea to check whether your product is on the US Customs and Border prohibited list, or if it requires an export licence.
Getting to grips with the ins and outs of physically getting goods into the US will save you plenty of time and money in the long run. Plan ahead to spot trade barriers and check out the UK government website’s helpful search tool to get the information you need.
4 – Correct Packaging And Labelling
Shipping goods such as medical equipment, food and cosmetics comes with very specific labelling requirements. Not fulfilling the essential specifications means long delays spent rectifying the problem.
Things To Consider When Doing Business In The USA
Rights granted in the UK don’t always copy across the pond. As mentioned previously, Millennium strongly recommends obtaining legal advice from lawyers with expertise in both UK and US law.
One particular example of differences between the countries relates to intellectual property, things like patents and copyrights. Intellectual property rights granted in the UK don’t provide protection in the US, so it’s worth looking for support from the International Property Office.
Things like exchange rates and the currency of the consignment price should come high on your agenda, too. Disputes that arise surrounding the payment will need to be dealt with by the US legal system – note that this would need to take place in the state noted in the contract itself, and as such is subject to the specific laws of that state alone.
Shipping To The USA Isn’t Simple But Can Reap Rewards
Whilst we’ve covered the basics, sending cargo across the pond is complex.
Don’t be afraid to go looking for extra external support to ensure your goods end up where they need to be. On time.
Looking for guidance with exporting to America? Call Millennium today for expert advice and signposting to other services that can answer your questions.