The USA is one of the largest and most influential marketplaces that many eCommerce businesses wish to enter. The companies that want to call themselves global need to have a presence in the US market. For UK businesses especially, the US represents a vast and lucrative market. Cracking UK to US shipping is crucial if you want to sell your products across the Atlantic.
With a growing online shopping culture and a strong appetite of consumers for diverse products, the potential for success in the US is unlimited. However, not everyone can effortlessly deal with the UK to the US shipping of products. In this comprehensive guide, we will equip you with the knowledge you’ll need to confidently expand your business’s reach and tap into this exciting market.
Important Challenges to Consider
Shipping products from the UK to the US isn’t as straightforward as it might seem. While the US and UK have a strong trade relationship, there can still be bumps on the way. You need to be aware of the potential policy changes or increases in tariffs that might affect your overall shipping costs. Here are some hurdles that you might face:
- Distance and Transit Time: The sheer distance between the US and the UK translates to longer transit times compared to if you were shipping within the UK. This could impact your ability to offer competitive delivery speeds, especially for products that consumers need as early as possible.
- Customs Clearance: You can’t just send the products directly to your customers in the US. There’s a major process to pass in between, getting customs clearance for your UK to US shipping. Navigating the US customs landscape can be complex, with delays and additional costs if your paperwork isn’t complete. It is important to have a clear understanding of import duties, taxes, and potential licensing requirements.
- Documentation Accuracy: Incomplete or inaccurate documentation is a recipe for delays, returns, and potential penalties at customs. Ensuring all your paperwork including commercial invoices, packing lists, certificates of origin, etc. complies with the US customs regulations is critical.
- Carrier Options and Pricing: Choosing the right carrier is also crucial to keeping operational costs minimal and offering free shipping options to the customers. Consider your specific needs like speed, cost, and reliability while deciding whom to choose.
Understanding US Customs Regulations
Here is how you can prepare to get customs clearance for your UK-to-US shipping:
1. Get Registered
The first step is to identify the Harmonized System (HS) tariff classification code for your products. This code determines export control requirements and potential export licensing needs. Use the US International Trade Commissioning (USITC) to find the HS code.
Depending on whether your products fall under any export control regulations, you might need to gain an export license from the US Department of Commerce’s Bureau of Industry and Security (BIS) as well.
2. Classify Your Goods
File the Electronic Export Information online with the US Customs and Border Protection (CBP) for commercial shipments valued over $2,500. You can either use a licensed filer for this or do it yourself through the Automated Export System (AES).
If your products require an export license, make sure that you have it before shipping. The type of product and its destination would decide which licensing process would be needed. You’ll also need to obtain a Bill of Lading (BOL) for ocean freight or an Air WayBill (AWB) for air freight. The document will serve as a receipt for the goods and a carriage contract between you and the carrier.
3. Making the Shipment
Prepare a detailed commercial invoice for your shipment. This document will contain your shipment contents, the value of the shipment, and commodity codes. Agree on Incoterms or International Commercial Terms with your supplier to clarify that you will be responsible for customs clearance costs, insurance, and transportation risks.
You can manage the preparation of customs declarations and transport the goods yourself or use a third-party service provider to get these done.
4. Customs Clearance
Once your goods arrive in the US, they may be taken for physical examination by customs officials. Ensure that all your paperwork is accurate and readily available. You should also be ready to pay any applicable duty and VAT on the shipment’s value. Once the dues are paid, the goods will be released for delivery across the US.
Additional Tips:
- Depending on your products, there might be opportunities to minimize the import duty through special reliefs or trade agreements.
- Ensure your products comply with US regulations regarding labeling, marking, and language and safety information.
- Consider working with a licensed customs broker to navigate the complexities of export regulations.
Tips for UK to US Shipping
The following are some useful tips to make your UK to US shipping smooth as possible:
1. Compare Carriers
Compare different carriers and their offerings before making a decision. Don’t fall victim to the first quote you see. Major carriers like USPS, UPS, FedEx, and DHL offer different rates for different service levels. What you want from your business will determine the carrier you should work with.
Consider factors like speed, reliability, customer reviews, tracking options, experience shipping to the US, and of course, cost. Finding the right balance between these factors can significantly impact your customer experience and bottom line.
2. Air Freight vs Sea Freight
There are different ways of getting your products across the Atlantic. If speed is paramount, zooming above the Atlantic is the way to go. Perishable goods, high-value items, seasonal demands, and urgent shipments all benefit from the fast transit times offered by air freight. However, this mode is going to be considerably more expensive than sea freight.
For larger shipments or where price is a primary concern, sea freight offers a cost-effective solution. Bulkier items and non-perishables are ideal cargo for sea travel. However, you’ll have to wait longer for your shipments to be delivered.
3. Insure your Inventory
Damage, loss, or theft of your inventory can happen at any stage of the supply chain. Insuring your valuable products during their journey is important for financial security. In the unfortunate event that something does happen, the insurance policy will provide coverage for any loss. Consider the potential cost of replacing lost or damaged items when deciding if insurance is necessary. The cost of insurance will vary depending on the value of the goods and the chosen carrier.
4. Build Trust with Transparency
Customers hate if something is hidden from them. Be upfront about the shipping costs and estimated delivery times with your customers. Display these details on your website and during checkout to avoid any confusion or frustration later on.
Utilize the real-time tracking tools from your carrier to monitor the progress of the shipment and share it with the customers. This allows them to stay updated on the status of their order and provides peace of mind. These little details go a long way in building customer loyalty.
5. Work with Fulfillment Centers
Handling every aspect of UK-to-US shipping can be a daunting task, especially if you don’t have a base in both countries. Consider working with top last-mile delivery service companies in the USA that have ideally placed fulfillment centers across the country. This can be a strategic move to reduce shipping costs, particularly for high-demand products. By storing inventory closer to your US customers, you can deliver products faster and at lower shipping rates.
PowerSCM: Your Partner for UK to US Shipping
If you’re feeling overwhelmed with the complexities, regulations, and arrangements needed to ship products from the UK to the US, look no further than PowerSCM. We can eliminate your fulfillment headaches, streamline your supply chain, and free up valuable time and resources so that you can focus on growing your business.
Streamline Your US Operations
PowerSCM offers a global fulfillment network and has warehouses spread across the country. By storing your products in our US fulfillment centers, you can ensure that orders are being delivered quickly and efficiently. American customers love timely deliveries and are known to pay extra for expedited delivery as well. We eliminate the need for you to work with different international carriers and help streamline your supply chain.
Simplified Tasks and Reduced Costs
Save valuable time and money on import duties and overall shipping costs by consolidating your shipments to PowerSCM’s warehouses. By shipping the inventory in bulk, you’ll only pay import duties once at the initial entry point.
Our high-value shipments enable us to negotiate competitive rates with major carriers. This way, we can pass on those savings to you and lower your overall shipping costs per unit. Our team of experts will help you estimate import duties and taxes upfront so that you can factor them into your pricing strategy. We ensure that your shipments clear customs smoothly and that there are no delays by keeping you updated with ever-changing US import regulations.
Focus on What You do Best
Running a successful business requires juggling many tasks and PowerSCM doesn’t want fulfillment to be one of those. Our fulfillment platform automates order processing and takes care of inventory storage, organization, and real-time tracking so that you can focus on what you do best – developing and marketing.
PowerSCM understands no business stays stagnant. That is why we offer flexible fulfillment solutions that can adapt to your business growth. Doesn’t matter if you’re a startup or a well-established brand, we tailor our services for you. We pride ourselves in minimizing errors in picking, packing, and shipping to help you protect your brand reputation and maintain customer satisfaction.
Conclusion
Shipping from the UK to the US isn’t rocket science. By partnering with a 3PL or a top last mile delivery service company in the USA, you can cater to your customer base in the US and expand your business.
Contact PowerSCM today to get a free consultation and discover how we can make UK to US shipping easier.
