A Guide to Government Support for Exporters Business Information Factsheet BIF235 December 2015 Introduction In 2012 the UK Government set an ambitious target of growing UK export trade to 1 trillion by 2020. As a result, UK firms can now access a variety of Government support initiatives to help them enter or develop new export markets. This factsheet provides information about Government support for UK traders who wish to export their goods and services. It explains where they can get local advice on trading internationally and outlines the main support services for exporters. It covers schemes that help firms develop their export plans, identify opportunities to trade overseas, and address language and cultural barriers. It also covers financial support for overseas trade visits, and access to export finance and insurance. The factsheet includes details of training courses for UK exporters. Local advice on trading overseas UK Trade & Investment (UKTI) is the Government agency that provides support to UK-based exporters to help them succeed in international markets. UKTI has local offices throughout England, with International Trade Teams that can provide expert face-to-face advice and practical support to local firms wanting to grow their business overseas. In Wales, Scotland and Northern Ireland, local advice on international trade is provided by the following partner organisations: Business Wales (https://business.wales.gov.uk/zones/export). Scottish Enterprise (www.scottish-enterprise.com/services/do-business-outside-scotland). Invest Northern Ireland (www.investni.com/support-for-business/finding-newmarkets.html). UKTI provides an online search tool to help users locate their nearest UKTI or partner office (www.uktiofficefinder.ukti.gov.uk). Export development schemes Passport to Export UKTI runs an assessment and skills development programme, Passport to Export, which provides training and support to small and medium-sized firms with little or no experience of exporting. The programme begins with an in-depth analysis of a business to assess its capability for exporting. This is followed by action planning, workshops on the different stages of export and BIF235 Government Support for Exporters Page 1 of 7
guidance from International Trade Advisers. Go to www.gov.uk/passport-to-export-service for further details about the programme. Export Marketing Research Scheme The Export Marketing Research Service, run by UKTI, provides free advice for exporters about how to carry out overseas market research. It can help firms decide whether to export to a new market, and advisers will provide guidance on how best to deliver products and services. UKTI consultants will help firms to get the most out of a market research project, carrying out desk research, field trip planning and conducting interviews. Go to www.gov.uk/export-marketingresearch-scheme for further information. Language and cultural support Export Communications Review UKTI's Export Communications Review (ECR) service provides UK firms with guidance on language and cultural issues to help them improve their competitiveness, as well as their communication with overseas customers. Guidance includes topics such as international sales processes, handling phone calls and e-mails from overseas, and promoting a website internationally. Each firm will be assigned an Export Communications Consultant who will review the firm's communications, focussing on an agreed export market or activity. Each review costs 500 plus VAT, but firms that have been trading for at least two years and have fewer than 250 employees are eligible for a 250 subsidy from UKTI for their first three reviews. Go to www.gov.uk/export-communications-review for details. Postgraduates for International Business UKTI's Postgraduates for International Business programme supports firms to hire UK-based university and higher education students with foreign language skills. The purpose of the scheme is to help exporters overcome language and cultural barriers that may prevent them entering or developing new markets overseas. The programme is open to all firms that are currently receiving support from UKTI. Go to www.gov.uk/postgraduates-for-international-business for more information. Help to identify export opportunities and risks Overseas Market Introduction Service (OMIS) UKTI's OMIS enables exporters at all stages to benefit from the UKTI's international network. Firms can get help with finding international contacts, creating a market entry strategy and promoting a business effectively overseas. Firms using OMIS are initially allocated a UK adviser to help them develop their export plan. Costs are based on the time required to deliver the work. For example, a short report identifying potential distributors can be delivered from 500 upwards. A very comprehensive piece of work, or a number of activities in different markets, will cost more. Go to www.gov.uk/overseas-market-introduction-service for further information. BIF235 Government Support for Exporters Page 2 of 7
Aid Funded Business UKTI's Aid Funded Business service helps UK firms of any size and turnover find out how to supply goods and services to international aid agencies. To be eligible, firms must have experience of exporting and at least three years' audited accounts. Costs vary according to the level of support given by the network, and the scope of events or missions. Firms will be told about any charges before using the service. Go to www.gov.uk/aid-funded-business for more information. High Value Opportunities UKTI's High Value Opportunities programme helps UK firms to identify large-scale procurement projects and bid for contracts in other countries. Firms of all sizes and levels of exporting experience can apply. Go to www.gov.uk/high-value-opportunities for more information. Business opportunity alerts UK firms seeking export opportunities can register with UKTI to receive international sales leads. UKTI publishes more than 400 business opportunities in over 100 markets every month. These cover a wide range of sectors, and include public and private sector contracts and projects. UKTI can put exporters in contact with potential overseas customers, and can provide further advice and support as required. Go to www.businessopportunities.ukti.gov.uk to register for the alerts. Overseas business risk guides UKTI and the Foreign and Commonwealth Office (FCO) regularly publish overseas business risk guides, which provide detailed information on potential risks when trading in almost 100 different countries. Go to www.gov.uk/government/collections/overseas-business-risk for further details. Support for overseas trade visits UKTI and its partners lead trade missions and support attendance at overseas trade shows to promote UK exports and create new opportunities for UK exporters. They also provide funding to help with the costs of overseas trade development visits. Export Insight Visits Export Insight Visits can provide firms with an introduction to UKTI services, and how UK and overseas networks support companies. In addition, business owners will gain practical information on approaching markets, including cultural and linguistic challenges. The scheme is open to firms with little or no exporting experience. Go to www.gov.uk/export-insight-visits for further details. Tradeshow Access Programme UKTI's Tradeshow Access Programme (TAP) provides grant funding for firms to attend certain overseas tradeshows. Grants range from 1,500 to 2,500 depending on the location of the event and whether or not the firm is attending as part of a group. Go to www.gov.uk/tradeshow-accessprogramme for further details about TAP eligibility criteria. BIF235 Government Support for Exporters Page 3 of 7
Market Visit Support (England, Scotland, Northern Ireland) UKTI's Market Visit Support service helps firms in England, Scotland and Northern Ireland visit new overseas markets to carry out market research, attend trade fairs, or meet potential agents, distributors or buyers. The service provides support with preparing for the visit and access to help from British Embassies, Consulates and High Commissions abroad. Eligible firms may also receive financial assistance of between 200 and 950. The Market Visit Support service is open to small or medium-sized firms with fewer than 250 employees. Firms must be currently working with a UKTI (or equivalent) adviser and be new to the market they want to visit. Go to www.gov.uk/market-visit-support for more information. Overseas Business Development Visit Support (Wales) The Welsh Government's Overseas Business Development Visit Support programme provides assistance to exporters based in Wales to help them carry out trade development activities in new markets overseas. Eligible firms can apply for financial assistance with 50% of the costs of their visit. The programme is open to new exporters, as well as to those targeting new export markets or new business in an existing export market. Go to https://business.wales.gov.uk/zones/ export/support-export-guide for more information. Sector-specific support Music Export Growth Scheme The Music Export Growth Scheme allows small and medium-sized music labels, distributors and management firms to apply for grants ranging from 5,000 to 50,000, to market UK music projects overseas. Applicants will be expected to part-fund the project themselves and must provide detailed plans of how they intend to use the grant. Go to www.bpi.co.uk/megs.aspx for further information. Support for larger firms Medium-sized Business Programme Medium-sized firms with a turnover of between 25 million and 250 million can apply for UKTI's Medium-sized Business Programme. This scheme helps medium-sized firms to start trading overseas or to develop their existing export operations. Firms are allocated a UKTI trade expert and can receive advice on issues such as developing an export strategy, conducting market research projects and understanding international business culture. Go to www.gov.uk/medium-sized-business to find out more about this programme. Firms in Wales, Scotland and Northern Ireland should check their eligibility with their local UKTI partner organisation. Export finance and insurance The majority of UK exports are sold on credit, and exporters often have to accept deferments in payment of up to 180 days, depending on credit terms. Exporters may also be exposed to the risk that they will not receive payment at all. Exporters can overcome these problems by obtaining BIF235 Government Support for Exporters Page 4 of 7
finance and insurance from their bank or a credit insurer, but those that cannot get help from commercial sources may receive support from the Government. UK Export Finance (UKEF, also known as the Export Credits Guarantee Department) is the UK Government's export credit agency. UKEF services are commonly used by larger firms and established exporters. UKEF can provide lines of credit to facilitate the purchase of UK exports by overseas buyers, and credit insurance policies to cover UK exporters against the risk of nonpayment by overseas customers. UKEF can also provide overseas investment insurance, which covers exporters for losses resulting from political events in a country they do business with. The UKEF Direct Lending Facility provides export credit loans directly to overseas purchasers of goods and services supplied by UK exporters. There is no lower limit, but exporters enquiring about loans of 5 million or less should contact UKEF, as another scheme may be more appropriate. Go to www.gov.uk/direct-lending-scheme for details. Go to www.gov.uk/government/collections/exporting-find-out-if-we-can-help for details about all UKEF products and services. Go to www.gov.uk/government/collections/uk-export-finance-quick-links for answers to frequently asked questions. Training for UK exporters Export UKTI provides training events, conferences and webinars to help UK exporters develop their skills and knowledge of overseas markets. Its high-profile ExploreExport event (www.exploreexport.ukti.gov.uk) takes place each November, offering seminars, workshops and market briefings at venues across the UK. Go to www.events.ukti.gov.uk for more information about UKTI events and webinars. Local Chambers of Commerce run training courses in business and exporting skills at locations across the UK. Further details are available on request from local chambers. Go to http:// exportbritain.org.uk/training.html for details. The Institute of Export (IOE) runs a range of courses on exporting, including one-day courses such as An Introduction to Exporting, Effective International Sales and Marketing, and Legal Aspects of International Trade. These run regularly in locations including London, Peterborough and Glasgow, and cost 360. Go to www.export.org.uk/training for further details. Customs and VAT UKTI and HM Revenue & Customs (HMRC) have developed two free online customs and VAT training courses for exporters. The training covers the export process, record keeping, finding commodity codes, and other customs and VAT issues, and includes examples and exercises. The two courses cover selling goods in the European Union (EU) (www.hmrc.gov.uk/courses/ syob2/ukti_tr/index.htm) and selling goods outside of the EU (www.hmrc.gov.uk/courses/syob2/ ukti_exp/index.htm). BIF235 Government Support for Exporters Page 5 of 7
Hints and tips The GOV.UK website provides a range of information for UK exporters. Go to www.gov.uk/ browse/business/imports-exports for details. Local UKTI International Trade Teams provide free expert advice for exporters. Exporters can sign up for business opportunity alerts from UKTI and attend UKTI training events. Further information To access hundreds of practical factsheets, market reports and small business guides, go to: Website: www.scavenger.net BIF 208 A Guide to Export Documentation BIF 225 An Introduction to Getting Paid by Overseas Trade Customers BIF 238 A Guide to Methods of Entering Export Markets BIF 318 Choosing and Using a Business Translator BIF 396 Choosing and Using a Freight Forwarder Useful publications 'UKTI Teams in the English regions: helping companies to export and grow overseas' UKTI Website: www.gov.uk/government/publications/ukti-teams-in-the-english-regions Useful contacts UK Trade & Investment (UKTI) is the Government agency responsible for promoting UK export trade. Tel: (020) 7215 5000 Website: www.gov.uk/government/organisations/uk-trade-investment UK Export Finance (UKEF) is the UK's export credit agency, providing Government support to exporters. Tel: (020) 7271 8010 Website: www.gov.uk/government/organisations/uk-export-finance Business Wales provides information and advice about exporting from Wales. Tel: 0300 060 3000 Website: https://business.wales.gov.uk/zones/export Scottish Enterprise is a partner organisation of UKTI, providing specific support to firms in Scotland. Tel: 0800 019 1953 Website: www.scottish-enterprise.com/services/do-business-outside-scotland Scottish Development International works in partnership with Scottish Enterprise to deliver advice to exporters in Scotland. Tel: 0300 013 2734 Website: www.sdi.co.uk BIF235 Government Support for Exporters Page 6 of 7
Invest Northern Ireland provides export advice to firms based in Northern Ireland. Tel: 0800 181 4422 Website: www.investni.com/support-for-business/finding-new-markets.html 'Export for Prosperity' is an online resource including news and information about exporting issues and opportunities. It is published in association with UKTI. Website: www.exportforprosperity.com Open to Export is a UKTI-backed online community supporting small and medium-sized UK exporters. Website: http://opentoexport.com The British Chambers of Commerce provide information, support and training for exporters. Tel: (020) 7654 5800 Website: www.exportbritain.org.uk The Institute of Export (IOE) is a professional membership body representing anyone involved in exporting and international trade. Tel: (01733) 404400 Website: www.export.org.uk The British Exporters database is a resource providing links to agents and exporting opportunities. Website: www.exportuk.co.uk/index.php The British Exporters Association (BExA) is a trade body representing UK exporters and organisations that support them. It publishes free PDF guides for UK exporters. Tel: (020) 7222 5419 Website: www.bexa.co.uk DISCLAIMER While all reasonable efforts have been made, the publisher makes no warranties that this information is accurate and up-to-date and will not be responsible for any errors or omissions in the information nor any consequences of any errors or omissions. Professional advice should be sought where appropriate. Cobweb Information Ltd, Unit 9 Bankside, The Watermark, Gateshead, NE11 9SY. Tel: 0191 461 8000 Website: www.cobwebinfo.com BIF235 Government Support for Exporters Page 7 of 7