Taxation – The rules on VAT and other export taxes are different depending on the country you are exporting to (E.g.: Non EU countries). Most exports outside the EU will also need to be declared to customs.
Payment - Can you arrange and be sure of receiving payment in a suitable method? Who will pay for currency conversion costs; it is usually the importer, but they may want you to bear the risk as part of their sales deal. Are you prepared for currency fluctuations which could lose you money, or will the prices of your products appear to go up in other countries, losing you sales?
Product Delivery – Can you be sure of the products arriving safely? You can take insurance, but this may lower your profit margins.
Exporting can provide you with many new sales opportunities, but you must look at your options carefully and plan thoroughly first; otherwise you could end up wasting a lot of money.
Product Liability
Under the Consumer Protection Act 1987, you are liable for any harm caused by your products being faulty or defective. For example: If in production a sharp edge was mistakenly left on your product, and a child accidentally cut themselves on it, you would be liable for damages. Even if the fault was caused by a component manufactured by someone else, you would still be jointly responsible.
“…be certain of your product’s safety, or you could face large fines.”
This liability means that you must be certain of your product’s safety, and that no potentially dangerous items are ever sold. Otherwise you could face large claims in the event of an accident caused by a fault in your product.
You can take insurance to cover you for product liability, this is generally recommended to all manufacturers, although it is not a legal requirement.
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