At NatWest, we’re here to help you champion your potential. We know that understanding international regulations and staying compliant is key to making your global trade journey a smooth one. This guide will help you get to grips with the essential rules, showing you how to manage them effectively so you can trade with confidence.

In this article, Royal Bank's trade specialists explore:

• Why compliance matters: Protect growth, trust, and reputation
• Export controls & licences: Check what you can trade
• Customs, tariffs & VAT: Get classifications and costs right
• Standards & certification: Meet local product rules
• Payments & trade finance: Get paid and manage risk
• Legal, data & ethics: Contracts, privacy, and integrity
• Get help and guidance: Take confident next steps with the right backing

Why compliance matters: keeping things on track

When you trade internationally, you’re not just dealing with the rules in our country. You’ll need to follow the laws of the countries you’re trading with, and sometimes international agreements too. Getting this right isn’t just about avoiding problems; it’s about building trust, protecting your reputation, and making sure your business can keep growing without any bumps in the road.

1. Understanding export controls and licensing

Some goods and technologies are restricted for export, usually for reasons like national security or human rights. These are known as export controls.

• What you need to know: You might need a licence to export certain items, even if they seem harmless. This can apply to physical goods, software, and even technical information. The Department for Business and Trade (DBT), which is part of the UK government, can give you detailed guidance on this. They have a unit called the Export Control Joint Unit (ECJU) that manages this.

2. Customs and tariffs: moving your goods across borders

When your products cross international borders, customs authorities will get involved. This means dealing with paperwork, duties, and taxes.

• Tariff codes: Every product has a specific classification code, known as a commodity code or harmonised system (HS) code. Getting this right is really important, as it affects the duties and taxes you’ll pay and any import restrictions that apply.
• Duties and VAT: You’ll need to understand what import duties and value added tax (VAT) might apply in the destination country. This can significantly impact your pricing and profitability.
• Customs declarations: You’ll have to complete accurate customs declarations. Mistakes here can lead to delays or fines.

3. Product standards and certification: meeting local requirements

Different countries have different rules about how products should be made and tested. Your products might need to meet specific health, safety, environmental, or technical standards.

• Key certifications: For instance, if you’re exporting to the European Union, your product might need a CE marking. Other regions will have their own specific marks or certifications.
• Early checks: It’s best to research these standards early in your planning. Changing your product to meet a new standard can take time and money, so you’ll want to factor that into your export strategy.

4. International payments and financial regulations: making sure you get paid

Getting paid securely and on time is vital. But international payments have their own set of rules.

• Anti-money laundering (AML) and sanctions: Banks like NatWest must follow strict rules to prevent money laundering and to comply with international sanctions. This means thorough checks on transactions and parties involved.
• Exchange rates: Managing currency exchange rate changes is also a big part of financial planning. NatWest offers solutions to help you manage this risk, protecting your profits from unexpected movements.
• Trade finance solutions: We offer various trade finance products like letters of credit and guarantees. These can provide assurance that you’ll get paid, helping to reduce financial risks in international dealings.* UK Export Finance also provides guarantees and insurance to support UK exports.

*Security may be required. Product fees may apply. Over 18s only. Subject to status, business use only. Any property or asset used as security may be repossessed or forfeited if you do not keep up repayments on any debt secured on it. Our Trade Services Terms and Conditions are available here.

5. Contracts and legal considerations: protecting your business

Having clear legal agreements is super important when trading internationally.

• International sales contracts: These should clearly state the terms of your agreement, including payment terms, delivery, dispute resolution, and which country’s laws will apply.
• Seeking legal advice: It’s always a good idea to get legal advice from experts who understand international trade law. They can help you draft solid contracts and navigate any legal challenges.

6. Data protection and privacy: handling information carefully

If you handle personal data from customers in other countries, you’ll need to comply with their data protection laws. For example, if you’re dealing with customers in the EU, you’ll need to make sure you comply with GDPR, or similar regulations in other regions. This means being careful about how you collect, store, and use personal information.

7. Ethical compliance: doing business the right way

Maintaining high ethical standards is crucial for your reputation.

• Anti-bribery and corruption: Laws like the UK Bribery Act apply to your overseas operations. You must make sure your business and anyone acting on its behalf doesn’t engage in bribery or corruption.
• Due diligence: This means doing proper checks on any overseas partners, agents, or distributors to make sure they also comply with ethical standards.

Getting the support you need

Navigating these rules can feel like a lot, but you don’t have to do it alone. There are plenty of resources and experts ready to help:

• Royal Bank Business Insights: We offer insights and advice to help businesses grow globally. For example, see how Lincoln College Group used international trade to grow revenue and strengthen its supply chain. Our relationship managers can connect you with specialists.
• Department for Business and Trade (DBT): The DBT offers extensive guidance, support, and connections for UK businesses looking to export. Their website is a treasure trove of information.
• Chartered Institute of Export and International Trade: This organisation offers business support and educational resources and training through its academy and advisory services, helping businesses overcome the import, export, and supply chain challenges of today.

Your confident step to global growth

International regulations and compliance are a big part of global trade, but they’re manageable with good planning and the right support. By taking a proactive approach and using the resources available to you, your mid-sized business can confidently navigate the global marketplace.

At Royal Bank, we’re here to be your supportive change-maker, helping you to overcome obstacles and take positive action. We’re at your side throughout your journey to achieve your international ambitions. Why not chat to us about how we can help you get started?