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Whenever you sell there are risks - your customer fails to pay, for example, or you get sued for harm caused by your product. But doing business with a customer in a different country, and perhaps using a different language and a different currency, can create extra risks and complications.

What risks are involved when exporting?

There are a number of potential risks when exporting including:

• Assessing the creditworthiness of your customer can be more difficult, while at the same time taking legal action to recover unpaid debts might be expensive or even impossible.
• Dealing with a different language, business culture and legal system can increase the risk of confusion and potential problems. Understanding the market is essential.
• Your customer's country can present risks. For example, the country might be economically weak, politically unstable or prone to natural disasters.
• Goods generally take longer to deliver overseas, adding an extra delay from when you incur costs such as raw materials to when the customer receives the goods and pays for them. This can increase your financial burden so it's important to check that you can afford to tie up working capital in exports. Read more about the basics of cashflow management.
• If you quote or sell in foreign currency, it's a good idea to protect yourself against the risk of changes in the exchange rate. Read more about foreign currency and exchange risks.
• You must register for Intrastat if, in any calendar year (from 1 January to 31 December), your business either: receives more than 拢500,000 worth of goods from the EU into Northern Ireland or moves more than 拢250,000 worth of goods to the EU from Northern Ireland. You do not need to use Intrastat for goods you move between Great Britain (England, Wales and Scotland) and the EU, or between Great Britain and Northern Ireland. Read our introduction to Intrastat.
• Companies overseas may try to copy your ideas or abuse your trade marks, and it can be difficult to protect and enforce your rights. Read more about intellectual property protection overseas.
• Managing international deliveries and payments can be more complex than when trading within the UK. You need to make sure that you have the right skills and resources.
• Your customer may be based in a country that imposes restrictions or limits on the type of goods you wish to export, which could cause delays or even prevent your dealings.
• If you are trading in a third country outside the European Union and there are trade barriers which make trading difficult, you can appeal using the . This is a single entry point where you can request clarification on third-country tariffs, import formalities, documentation and other measures. You can also make complaints if you think trade barriers are unrealistic or illegal or are imposed unfairly.