SUMMER 2023 GOING ABROAD THIS YEAR? A recent report outlines the support UK small businesses need if they are to achieve their international trading ambitions UK small business trading facts: n Top 5 markets for exports: Ireland, Germany, France, the US and the Netherlands n Top 5 origin markets: Germany, the US, China, France and Italy n Top export and import market by global region: Europe 93% export; 87% import n Top non-European market for SME trade: US 59% of exporters; 32% of importers The UK government should adopt a think small first approach to customs policy, placing small businesses at the heart of new trade and customs structures to avoid disproportionate cost or administrative burdens. That is one of the recommendations in the Federation of Small Businesses (FSBs) recent report Customs Clearance, which looks at the challenges facing firms that want to trade internationally. The FSB also wants the customs duty threshold raised to 1,000. International trade allows businesses to reach a wide range of customers and markets, boosting sales and growth. In recent times, however, small firms like everyone else have had to grapple with the seismic events that have rocked the global economy. The Covid-19 pandemic and Russias invasion of Ukraine have severely affected the ability of supply to meet demand worldwide, while many UK businesses that trade with the EU are continuing to adapt to new customs processes following Brexit. International trade allows businesses to reach a wide range of customers and markets, boosting sales and growth According to the FSBs quarterly Small Business Index (Q4 2022), 13% of SME EU traders have stopped trading, temporarily or permanently, with the European Union since the UKs exit from the EU. Relatively few (6% of exporters and 5% of importers) have pivoted to new markets, while 5% of exporters have or are looking to warehouse goods in the EU. The majority of the challenges facing SMEs, as outlined in Customs Clearance, are financial or logistical from high shipping costs to complex paperwork. Their top-three priorities for the government are to: n Lower the overall cost of trade (51%) n Make customs declarations more user-friendly (39%) n Deliver clear guidance (36%). With the right support, many firms have the potential to export. By making it easier, cheaper and more attractive for them to do business internationally, there is an opportunity to boost growth across the economy. Read the FSBs full recommendations in Customs Clearance. Credit: Karen Woolley, development manager, Federation of Small Businesses Image: Shutterstock / vovidzha Key findings from the FSBs Customs Clearance report: SME international trade is often low-volume/low-value but relatively high-frequency: n 45% say the average value of items they trade is less than 2,000. n 39% move goods at least once a week; 27% more than once a week. Small firms are struggling with the costs of trade: n 9% have stopped importing or exporting in the past five years, because of: l volume of paperwork (56%) l overall costs (49%) l supply chain or logistical issues (29%) The top challenges traders face are: n High shipping costs (61%) n Losses and delays in transit (54%) n Lack of clear guidance (45%) SMEs have limited resources to deal with trade in-house: n 9% have a dedicated employee or team to handle customs n 71% use an intermediary for at least some customs declarations n 61% use a large fast-parcel operator For further information, please contact your local Trading Standards Service For up-to-date news stories and information, follow us on Supply chain disruption is driving costs and reducing availability: n 81% have experienced cost increases n 60% have noticed lower availability of goods from outside the UK n 40% have had to absorb costs n 56% have had to increase their prices Anonymous Hotline 0300 303 2636 Is your sector being undermined by unscrupulous traders operating outside the law? Report them via Trading Standards Anonymous Hotline or online and help level the playing field for honest businesses.