The Beginners Guide to Cross-Border Shipping

Cross-border shipping is the process of shipping goods from a seller in one country to a buyer in another, such as shipping a product from a warehouse in the UK to a customer in France or Germany. Unlike domestic shipping, which is relatively straightforward, cross-border shipping can be complicated.

As every country has its own import rules and tariffs, cross-border logistics is subject to constantly shifting regulations. A prime example would be the huge changes and additional layers of regulations the UK has had to adapt to since its withdrawal from the EU’s Single Market and Customs Union. With greater flexibility, cost-effectiveness and shorter transit times than sea or rail freight, road freight is the most common form of cross-border shipping across Europe or between the EU and the UK. Longer distances, such as between China and the UK or EU, may rely on several different modes of shipping, such as sea, rail, or road.

Moving products across international borders is a key driver of international trade, particularly in e-commerce, because it allows businesses to expand into new markets by selling and delivering products to customers worldwide. According to Statista, the global cross-border e-commerce market is growing fast and will be worth $7.9 trillion by 2030, compared to a mere $785 billion in 2019. This represents a huge growth opportunity for businesses who want to boost their sales and widen their customer base worldwide.

While the benefits of cross-border shipping are enormous, e-commerce businesses are often daunted by the complicated, time-consuming logistical challenges involved, from customs clearance and regulations to unexpected fees, all of which can cause costly delays. Shippers looking to sell to international customers today need to either have a strong, up-to-date grasp of customs arrangements and local taxes, or a reliable logistics partner with the expertise to navigate all the documentation, duties, taxes, and fees involved.

For cross-border shipping, you’ll need a variety of documents to ensure smooth customs clearance and delivery. It can be challenging for smaller businesses and start-ups who are already at full stretch, but ensuring accurate and complete data on these documents is essential, because mistakes or omissions can slow down customs clearance. Specific requirements vary according to the destination and goods being shipped, but the main documents include:

This is absolutely essential in the customs clearance process. It is a key record of the goods being shipped and it must be accurate and complete in every detail to avoid delays. It should include a description of the goods, the quantity and unit of measure, the value of the goods, terms of sale, names and addresses of the buyer and seller, country of origin, the shipping and payment terms, plus any relevant identification codes or numbers.

The customs broker uses the information on your commercial invoice to prepare the customs declaration for authorities, who can then determine if the goods are safe, legal and compliant to move in or out of the country. It also enables the customs authorities to calculate the taxes and duties due.

Some goods may require specific export or import licenses depending on the country’s specific regulations. Every nation has its own list of restricted items to regulate the goods crossing its borders. Businesses wishing to import or export such goods must apply for special licenses from the origin and destination countries. You will need to provide a licence for each separate shipment.H3: Standard shipping note

This provides essential details for carriers, authorities and forwarders, itemising the contents of each package in the shipment, including dimensions, weight, and quantity. You would also usually need a waybill attached to the exterior of the shipment with a tracking ID that allows the shipment to be monitored in real time.

With so many different rules and documents to keep track of, it’s easy to make one of the common mistakes that can cause hold-ups and extra costs. These include inaccurate or incomplete information, missing or illegible labels, incompatible documents, and a lack of verification or validation.

Customs duties are basically a form of tax on cross-border goods that are collected by customs on behalf of the nation’s government. A few examples include trade tariffs, export duties and anti-dumping taxes. These are usually paid by the importer. The amount of duty that will be levied on a shipment depends on a number of factors, including its classification, the total value of the goods (including freight insurance) and the trade agreements in place between the origin and destination countries. The importer will also usually pay local taxes such as VAT and sales tax.

Duties and taxes add to the total cost of your shipment, so it’s important that you factor them into your pricing strategy to make sure the transaction is still profitable. Successfully navigating the tax and duty regulations of each country is essential, because failing to adhere to them can cause your shipment to be held up at customs or make you liable for hefty fines. Because of this complexity, the most effective way to reduce the risks of delays or fines is to make sure you partner with an experienced cross-border freight provider, such as Amazon Freight, who can streamline the whole process, accurately calculate duty costs and give you clear, simple guidance on paperwork and procedures, even if you have no knowledge or experience at all.

Preparing your shipment correctly is essential. Follow these steps to make sure it arrives on time and without delays or additional costs:

• Use appropriate packaging: Choose sturdy boxes that can withstand the demands of international shipping.
• Seal securely: Reinforce the edges and seams of your box to prevent damage in transit.
• Label clearly: Stick shipping labels (waybills) to the top of the box so it can be tracked accurately and smoothly. Make sure no confusing older labels are present.
• Think about a plastic pouch: This can protect essential documents like invoices.

Staying on top of different customs regulations can be complicated, but it’s vital to understand the specific regulations of the destination country you’re shipping to. You have the option of doing this yourself by searching countries’ government websites, such as the European Commission’s customs controls list, but this can be pretty time-consuming. Most sellers will instead rely on up-to-date guidance from their customs broker or freight forwarder. At Amazon Freight, for example, we provide expert support to ensure compliance with all international shipping requirements.

Incoterms (International Commercial Terms) are a set of 11 standardised international trade terms published by the International Chamber of Commerce (ICC) that specify who is responsible for managing and paying for the shipment, including insurance, documentation, customs clearance and other logistical activities. You can find out more on the ICC website. Because they govern who is responsible for costs like import duties and taxes, it is essential that you apply the relevant, correct Incoterms. Your customs broker or freight forwarder can advise you of the relevant Incoterm that applies to your shipment. If you choose Amazon Freight, for example, we can advise you of key Incoterms such as:

• DDP (Delivered Duty Paid). You deliver orders at your own expense to a destination in the importing country, paying all import duties in addition to all costs.
• DAP (Delivered at Place). You are responsible for delivering your orders, including transportation costs, to the named destination, but all import taxes must be paid by the buyer or recipient.

We know that getting ready to send your first cross-border shipment can be a daunting experience, so we’ve suggested a few tips below to make the process easier:

• Choose a reliable shipping provider that specialises in cross-border shipping and offers robust tracking, a simple process and support when you need it.
• Research the information and documentation needed for your first shipment, as well as the duties and taxes involved, and any potential restrictions. A good freight provider will be able to help you with this.
• Start with smaller and less time-sensitive shipments first, so if you do make mistakes or encounter unexpected delays or costs, they won’t be mission-critical and you can correct any errors in your next shipment.

To select a reliable freight partner, it’s important to consider experience, cost-effectiveness, reliability, and how good their communication is. Evaluate their track record, the size of their carrier network, and their expertise in handling customs paperwork and international regulations. Perhaps most importantly, consider if they are the right partner for your kind of business. If they are geared towards multinational companies that send large volumes of shipments across the world every day, they may not understand the needs of a smaller business, e-commerce business, or start-up. At Amazon Freight, our tailored shipping solutions are designed to help small businesses scale up and thrive, and we achieve over 96% on-date pickup and delivery. We make it easy for you to quickly arrange cost-effective, dependable cross-border road freight across the UK and EU, for a single pallet or a whole truckload, without needing any specialist knowledge.

Cross-border shipping offers huge opportunities for businesses to upscale and achieve their ambitions by expanding into new markets and finding new customers across the world. But without the right support, shipping overseas can seem daunting, complicated and time-consuming, with potential pitfalls ranging from changing customs regulations to unexpected fees, all of which can cause costly delays. Amazon Freight is committed to making UK and EU freight shipping simple, accessible and reliable for businesses of all sizes.

We’ve also made it easy for you to get a quote quickly in three easy steps. Simply create a free shipper account and you can get an instant quote for an LTL or FTL shipment in just three easy steps. If you’d like to find out more about how we can meet your freight needs first, take a look at our freight products and services to discover our full range of solutions.

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