The United States is the UK’s largest trading partner, making it a lucrative market for British businesses. In the four quarters to Q2 of 2024, the relationship totalled £304.3 billion accounting for 17.6% of total UK trade.
Whether you’re a seasoned exporter or considering entering the US market for the first time, understanding the process, challenges, and opportunities is key to success.
In this guide, we’ll walk you through the steps to export from the UK to the USA in 2025, including what to expect in the coming year and beyond.
Table of contents
- Why export to the USA?
- Step-by-step guide to exporting to the USA
- UK export regulations
- US import regulations
- Shipping and logistics: getting your goods across the pond
- Currency considerations
- Conclusion
- 10 FAQs about exporting from the UK to the USA
Why export to the USA?
The USA is the world’s largest economy, offering a large, diverse consumer base with the ability to spend significant amounts of money on goods and services.
For UK businesses, it’s an attractive market for various industries, from technology and pharmaceuticals to fashion and food.
Post-Brexit, the UK has looked to strengthen its trade ties with the US. Although the Biden administration failed to provide the UK with what it was hoping for in terms of a comprehensive free trade agreement, the US still offers UK businesses new opportunities to expand.
Read: What is free trade and how can it impact businesses?
Step-by-step guide to exporting to the USA
Trading with the US brings a wealth of opportunities, but getting the process right can be tricky and time-consuming.
To help you get started as quickly and easily as possible, follow our steps below.
Understand market demand
Before exporting, research the US market to understand consumer preferences, industry trends, and demand for your products.
Although Brits and Americans speak the same language, the culture between the two can vary. Understanding how consumers across the pond are likely to receive your goods and services is crucial to hit the ground running.
Resources such as the UK Department for Business and Trade (DBT) and the US Census Bureau can provide valuable insights.
Check regulatory requirements
Both the UK and the USA have strict rules and regulations for exporting and importing goods.
Sticking to these rules is crucial to avoid delays, penalties, or seizure of your goods.
If you’re exporting from the UK to the USA, understanding the following regulations – and the agencies behind them – are essential for ensuring best practice.
UK export regulations
There are several rules and regulations you must stick to to export your goods to the US legally and efficiently. Let’s start with the UK’s export regulations.
Export licences
The UK government may require an export licence for certain goods, particularly those classified as controlled items. This includes:
- Military goods and dual-use items (e.g., technology or software with both civilian and military applications).
- Cultural goods, such as art and antiques. You should check the UK’s Export Control Joint Unit (ECJU) for licensing requirements.
Customs declarations
You must submit a customs declaration through the UK’s Customs Declaration Service (CDS), formerly the Customs Handling of Import and Export Freight (CHIEF).
This includes details about your shipment, its value, and its destination.
Incoterms
You should agree on Incoterms with buyers to clearly outline who’s responsible and liable for your goods during transportation.
Export VAT
Goods exported outside the UK are usually zero-rated for VAT, but proper documentation must be provided to HMRC to prove the export occurred.
Find out if VAT applies to your goods here.
Sanctions and embargoes
You must ensure your goods will not be penalised by sanctions or embargoes. You may be at risk if your goods are destined for sanctioned individuals, organisations, or regions.
The UK keeps a list of sanctions on the government website here.
Health and safety standards
Some goods, particularly food and beverages, must comply with health and safety standards.
This may involve obtaining certificates, inspections, or compliance with packaging and labelling requirements.
US import regulations
In addition to meeting UK export rules, you must comply with US import requirements. These include:
Customs and Border Protection (CBP) compliance
Goods entering the US must be declared to CBP, which enforces rules around tariffs, import duties, and prohibited items.
FDA regulations
The US Food and Drug Administration (FDA) oversees imports of food, pharmaceuticals, cosmetics, and medical devices.
Your products must meet FDA standards, including proper labelling and registration requirements.
Product-specific standards
Goods such as textiles, electronics, and vehicles must meet specific US standards, including safety and energy efficiency regulations.
Tariffs and trade agreements
While the UK and the US don’t currently have a free trade agreement, certain goods may qualify for reduced tariffs under World Trade Organization (WTO) agreements.
Read: How Trump’s tariffs could impact businesses in 2025
Secure a US EIN
To export goods to the USA, you may need an Employer Identification Number (EIN). This is required for customs documentation and tax purposes.
You can apply for one here.
Understand US tariffs and taxes
The USA imposes import tariffs based on the product’s classification under the Harmonized Tariff Schedule (HTS).
Check the rates for your goods and factor these costs into your pricing strategy.
The HTS provides duty rates for almost every existing item.
Shipping and logistics: getting your goods across the pond
While it’s essential you know all you can about export/import regulations, understanding how to move your goods to the US is equally important.
Choose a shipping method
In summary:
- Air freight: Faster but more expensive, ideal for perishable or high-value goods.
- Ocean freight: Cost-effective for large volumes but slower, typically taking 30–40 days.
The cost of both forms of shipping largely depends on factors like the type of your goods, the transport you choose, the size of your cargo, and the distance to your destination.
Comply with customs procedures
As listed above, exporting from the UK to the USA requires a lot of paperwork. To ensure you tick all the right boxes and avoid any fines, delays or seizures, you could work with a registered customs broker.
They’ll help you complete all the required documents to export your goods, including commercial invoices and packing lists, ensuring they’re accurate and comply with US regulations.
Modern customs brokers automate large parts of the process to make your customs paperwork as hassle and fine-free as possible.
Working with a customs broker who can help automate your processes could be a great way to streamline your operations.
Packaging and labelling
Your exported products must meet US labelling standards. These need to include information about your product’s name, description, quantity, country of origin, as well as its HTS code, shipment origin, and destination.
Also, you’ll need to ensure your packaging is durable enough to withstand long transit times.
Currency considerations
Exporting from the UK to the USA likely means you’ll be dealing with multiple currencies, namely the pound sterling (GBP) and US dollar (USD).
It’s important to note that the value of GBP/USD is constantly changing. This value shifts due to a variety of factors making it volatile and vulnerable to sudden swings.
These fluctuations in value can be the difference between you making a profit or not.
To protect your profit margins from GBP/USD swings, you can partner with a currency specialist.
At Privalgo, we help businesses build currency risk management strategies, enabling them to capitalise on market opportunities and limit potential damages.
Fill in the form below to discuss how our services can protect your business from currency volatility and help you grow globally.
Conclusion
Exporting from the UK to the USA offers exciting opportunities but requires careful planning and execution.
By understanding the market, complying with regulations, and taking the right approach, UK businesses can thrive in the American market.
If you’re ready to expand your reach across the Atlantic, ensure you have the right financial strategies in place to manage costs and protect your profits.
Privalgo specialises in currency risk management, helping businesses like yours navigate the challenges of international trade.
Contact us today to learn how we can support your business’ international growth.
10 FAQs about exporting from the UK to the USA
Below are 10 frequently asked questions about exporting from the UK to the USA. Some responses include information already discussed in this article.
Is there export tax from the UK to the USA?
No, there isn’t an export tax in the UK for goods sent to the USA. However, you must comply with US import duties and tariffs, which vary depending on the product type.
What paperwork do I need to export from the UK?
To export from the UK, you’ll need documents such as a customs declaration, commercial invoices, packing lists, and any required export licences. For the US, you may also need compliance with FDA and CBP regulations.
How can I export my product to the USA?
To export to the USA:
- Research the market demand.
- Check UK and US regulatory requirements.
- Obtain the necessary export licences and documentation.
- Choose a suitable shipping method.
- Ensure compliance with US packaging and labelling standards.
Do I pay VAT on goods from the UK to the USA?
Goods exported from the UK to the USA are typically zero-rated for VAT. However, you must provide proper documentation to HMRC to confirm the export.
What are the main challenges of exporting to the USA?
Key challenges include:
- Navigating complex US regulations.
- Managing high shipping costs and transit times.
- Addressing currency volatility between GBP and USD.
- Ensuring compliance with US labelling and packaging standards.
What are the best shipping methods for exporting to the USA?
- Air Freight: Faster but more expensive, ideal for perishable or high-value goods.
- Ocean Freight: More cost-effective for large shipments but slower, taking 30–40 days on average.
Do I need an Employer Identification Number (EIN) to export to the USA?
Yes, an EIN is often required for customs documentation and tax purposes when exporting to the USA. You can apply for one through the US Internal Revenue Service (IRS).
What are Incoterms, and why are they important?
Incoterms are international trade terms that define the responsibilities of buyers and sellers in the transportation process. They ensure clarity on who is responsible for costs, risks, and delivery.
What are the labelling requirements for goods exported to the USA?
US labelling standards require product information such as:
- Product name and description.
- Quantity.
- Country of origin.
- Harmonized Tariff Schedule (HTS) code. Proper labelling is crucial to comply with US regulations and avoid shipment delays.
How can I protect my business from GBP/USD currency fluctuations?
Currency fluctuations can impact profit margins. Partnering with a currency specialist, like Privalgo, can help manage risk through tools such as forward contracts and hedging strategies.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
