| The US is the UK’s largest
export market and is the leading destination for UK
overseas investment. There are over 7,000 UK companies
that have established offices in the United States.
WHAT CAN UK TRADE &
INVESTMENT OFFER?
UK Trade & Investment is the UK Government organisation
that supports UK businesses wishing to trade internationally
as well as overseas businesses seeking to invest in
the UK. Our services help UK companies make business
decisions, based on our commercial expertise and unrivalled
local access and knowledge. We can assist with the following:
- Targeted outward missions to
the US and support at trade shows, with over 100 US
events supported each year
- Tailor-made research and in-depth
analysis on sectors in the US
- Industrial knowledge, business
contacts and local knowledge of requirements and business
practices
- Pipeline into US Government at
federal, state and local levels
ENTRY REQUIREMENTS
Currently, the US operates a Visa Waiver Program, available
to most British Citizen passport holders travelling
on business, pleasure or transit from where they normally
reside and who intend to stay in the US for less than
90 days. From 26 October 2004, all British passport
holders, including children, travelling to the US under
the Visa Waiver Program will need their own machine-readable
passports (MRPs).
From 26 October 2004, anyone without an MRP, including
children who are currently on a parent’s passport,
will need a visa to travel to the US. For further details
on entry requirements for the US, check the US Embassy
website at: www.usembassy.org
WORK PERMITS
UK companies are advised to seek up-to-date advice from
a US immigration attorney before applying for a visa.
UK companies should select the business visa appropriate
to their own and their employee’s needs. For example,
some visas require annual renewal, while others can
only be acquired for a limited number of years.
UK companies should also ensure that all employees who
frequently visit the US in order to attend trade shows
and other business meetings acquire the right type of
business visa.
FORMING A COMPANY
When properly established and managed, a US trading
company or subsidiary provides the following advantages
for UK companies:
- Credibility with US customers
- Maximum control over how the
brand name and image is established in the US
- Local contact with the US customers
- Good forecasting regarding production
and delivery of products
For advice on specific options for UK businesses, please
contact your local International Trade Team. International
Trade Teams are based in Business Links and Chambers
of Commerce across the UK and comprise International
Trade Advisers from both the private and public sectors
– many with practical experience of exporting
successfully. To find details of local Business Link
offices, please contact the Business Link hotline on
0845 600 9006.
The UK Trade & Investment International Trade Teams
can help you tap into a wealth of information, advice
and support to make the right decisions about export
strategies.
COMPANY TAXATION
All goods entering the US are subject to duty on that
goods’ dutiable value, unless specifically exempted
by law. A goods’ dutiable value is determined
in various ways. A goods’ duty varies according
to its classification, and classification of the goods
and the valuation is the responsibility of the importer.
The US Customs Service will then determine the relevant
duty. Goods cannot leave the port of entry until the
duty has been determined (liquidation). After liquidation,
importers have 90 days in which to appeal.
Reductions in the duty on goods, which have been imported
from the US to the UK and then combined with UK goods,
are available for the value of components manufactured
in the US. HM Customs and Excise can help you locate
your local Customs Advice Centre and your local Excise
and Inland Customs Advice Centre, which is the first
line of enquiry for anything from routine tariff classification
advice down to the six digit Harmonised System subheading
level, used worldwide. For more information, visit
www.hmce.gov.uk
The Customs Classification Helpline can also provide
advice on tariff classification numbers.
The Helpline is open from 08:30-17:00, and a voicemail
service is available outside these hours.
Tel: +44 (0) 1702 366 077.
The European Commission’s Market Access Database
gives tariff information for many non-EU countries.
The Applied Tariff Database section allows users to
get a tariff rate by selecting a country and then searching
the database by HS code or by product. The database
also has an Exporter's Guide to Import Formalities.
This database (searchable by HS code or by product),
gives an overview of import procedures to a country,
as well as any general and specific requirements for
a product.
The Market Access Database can only be accessed with
an ISP that is based in the EU. Visit: http://mkaccdb.eu.int/
SALES TAX
Sales tax is determined state by state. Some states
have no sales taxes at all. To find out more on individual
state sales taxes, visit the Federation of Tax Administrators
website: www.taxadmin.org/fta/rate/
ADDITIONAL TAXES
Many states impose an annual franchise tax on corporations
incorporated in the state, registered with the Secretary
of State and actually doing business in the state. Franchise
taxes are usually based on the amount of the capital
stock, but can also be calculated on bases such as gross
receipt, net income and net worth.
Real estate and personal property are subject to taxes,
whether or not the property is used in the business.
Employees must pay unemployment taxes into a fund that
provides compensation payments to the unemployed. The
taxes are levied based on the “experience ratings”
of the company’s employees. There is also a federal
unemployment tax, which is reduced by the amount of
tax paid to the state.
GRANTS AND ASSISTANCEUS
Marketing Scholarship Programme
UK Trade & Investment has been running the US Marketing
Scholarship Programme for the past 10 years. The programme
gives senior managers in UK SMEs the opportunity to
learn more about marketing effectively in the US. They
then spend time with a company to see how it is done.
The programme offers the opportunity to attend a five-day
course at the JL Kellogg Graduate School of Management
in Illinois and then undertake a short business attachment
to a US company. The course is sponsored principally
by British businessman Ellis Goodman CBE, who is resident
in Chicago. Other sponsors include British Airways and
UK Trade & Investment. The sponsorship covers the
fees for the residential course and return airfares.
Eligible companies are selected to take part in the
programme via a competitive selection process. Places
are awarded to those candidates and companies best placed
to take advantage of this significant opportunity.
You can find out more about the programme, including
closing dates for applications, by contacting: Khalid
Khan, UK Trade & Investment, Bay 816 Kingsgate House,
66-74 Victoria Street, London, SW1E 6SW Tel: +44 (0)
20 7215 4928.E-mail: khalid.khan@uktradeinvest.gov.uk
OUTWARD MISSIONS
Outward missions provide an extensive framework of both
practical and financial help for UK businesses travelling
abroad as part of a group to markets outside Western
Europe to promote UK goods and services. UK Trade &
Investment supports approximately 3,500 companies every
year through the outward mission scheme. Our events
database provides a searchable list of all UK Trade
& Investment events, including outward missions.
OVERSEAS MARKET INTRODUCTION
SERVICE
The Overseas Market Introduction Service (OMIS) will
put you directly in touch with the staff in our overseas
offices, who can provide you with focused business advice
and visit support. This service is now available in
all our markets overseas.
There are three levels of service, priced at £300,
£600 and £1,200. These packages are built
around the typical requirements of businesses making
their first steps into a new overseas market. All provide
a flexible blend of preparatory advice and research,
and support when you visit the market.
Each business and each market is unique. Our overseas
experts will propose a programme of support and advice
at the level you have chosen. Our teams will help research
markets for you, arrange appointments and guide you
through the process of exporting to markets involved
in the scheme. The aim is to support you with market
information, potential contacts and, ultimately, guide
you to successful completion of a visit to the market.
For more information,
contact UK Trade & Investment
:
Tel:
+44 (0) 20 7215 8000
Website:
www.trade.uktradeinvest.gov.uk/usa
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