The US is Britain’s largest export market and is the leading destination for British overseas investment. There are over 7,000 British companies that have established offices in the US.

UK SUPPORT NETWORKUK
Trade & Investment is the government organisation that supports UK businesses wishing to trade internationally, and overseas businesses seeking to invest in the UK. We assist UK companies, by providing a network with partner agencies in regions across the UK and with national development agencies in Scotland, Northern Ireland and Wales, to help companies realise their export potential.

In the US, we have trade officers who are appointed for their knowledge of US industry, business practices and their network of contacts. The trade officers are based in 14 commercial sections of the British Embassy and Consulates throughout the US covering three time zones. Our services are confidential and tailored to the needs of your company. Ask us about market intelligence, joint ventures and for advice on regulations, sales leads and financial and practical support.

WHAT CAN UK TRADE & INVESTMENT OFFER?
UK Trade & Investment will help UK companies make business decisions, based on 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 Programme, 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. Visa-free travellers, including children, entering the US under the Visa Waiver Program (VWP) require individual machine-readable passports (MRP). This requirement has been in place since 26 October 2004. For further details on entry requirements for the US, check the US Embassy website at: www.usembassy.org

Passports issued on or after 26 October 2005, must include a biometric identifier based on applicable standards established by the International Civil Aviation Organization (ICAO). The Department of Homeland Security has announced that from 26 October 2005, a digital photograph of the passport holder’s face printed on the data page of the passport will be the acceptable standard. Passports issued on or after 26 October 2006 must also include an integrated circuit chip capable of storing the biographic information from the data page, a digitised photograph and other biometric information.

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 for 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 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
• Good local contact with the US customers
• Good forecasting regarding production and delivery of products

For advice on specific options for UK businesses, it is advisable to contact their International Trade Team at their local business link. To find details of local business link offices, please contact the Business Link hotline on tel: 0845 600 9006.

International Trade Teams in the Business Links comprise International Trade Advisers from both the private and public sectors – many with practical experience of exporting successfully – and their support teams, funded by UK Trade & Investment and managed by nine International Trade Directors. They can help you tap into the 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 their dutiable value unless specifically exempted by law. A goods dutiable value is determined in various ways. A goods duty varies according to its classification; 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 (www.hmce.gov.uk) 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 routine tariff classification advice down to the six digit Harmonised System subheading level, used worldwide. The Customs Classification Help line 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 a section Exporters 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.

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 at: www.taxadmin.org/fta/rate/tax_stru.html

Additional taxes
Many states impose an annual franchise tax on corporations incorporated in the state, registered with the Secretary of State, and 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 ASSISTANCE
US Marketing Scholarship Programme
UK Trade & Investment has been running the US Marketing Scholarship Programme for the past 10 years. The programme aims to give senior managers in UK SMEs the opportunity to learn more about marketing effectively in the US and then to spend time with a company to see how it is done.

The programme offers the opportunity to attend a five-day course at the J L Kellogg Graduate School of Management in Illinois and then undertake a short business attachment to a US company. The course is sponsored principally by a British businessman resident in Chicago, Ellis Goodman CBE. 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:

Fiona Clague,
Bay 804, Kingsgate House,
66-74 Victoria Street,
London, SW1E 6SW
E-mail: fiona.clague@uktradeinvest.gov.uk;
Tel: +44 (0) 20 7215 4885.

International Business Schemes – Support for Exhibitions and Seminars Abroad (SESA)
This scheme provides grant assistance to SMEs seeking to enter overseas markets by taking part in trade fairs or sectoral outward missions. SESA also supports overseas seminars promoting the capabilities of a UK sector to an invited audience. SESA is being reviewed and this is a description of the scheme as it will run in 2005/06.

Overseas Market Introduction Service
The Overseas Market Introduction Service (OMIS) puts you directly in touch with the staff in our overseas offices and provides individually agreed, focused business advice, information and visit support. This service is available worldwide. There are three levels of service priced at £400, £800 and £1,600. 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.

ADDITIONAL INFORMATION
UK Trade & Investment has several helpful publications, including: “Exporting to the USA: Getting Started – A Practical Guide”; “Marketing in the USA”; “Establishing a Business Presence in the US”; “Selling Through US Agents and Distributors in the US”; and “Exhibiting at US Trade Shows: Tips to Help You Succeed”.

All publications can be found at:
www.trade.uktradeinvest.gov.uk/usa

To order any publications,
please contact: Allan Attra
Tel: +44 (0) 20 7215 4722
E-mail: allan.attra@uktradeinvest.gov.uk