With the UK Government’s Small Business Plans including a revamped Board of Trade to get more small firms exporting around the world, Spring GDS, the leading logistics solutions provider specialised in cross-border e-commerce, has revealed some frequently asked questions from small businesses seeking to play on the world stage.
Indeed, as many associated factors including navigating additional costs at customs and ports. Relocation of distribution centres, and longer, more unpredictable delivery times.
With the UK keen to retain its position as a base from which e-commerce providers can grow their businesses internationally. The company whose client base is currently 50% SMBs (or businesses with less than 250 employees) has received many questions from growing retail and e-commerce customers in recent months.
With many focused on jargon busting and untangling new complexities on going ‘international’ including:
Q: How do I set up my business for international shipping and manage it thoroughly?
There are three main registrations you need to be able to ship internationally: IOSS, VAT and EORI. Once you have these in place, an experienced, global logistics company like Spring GDS can help you access the local delivery hero in each destination through a single supplier, helping reduce admin and complexity. With a simple API integration into your sales channel or shipping platform, we can also pass information automatically between systems making it easy to keep on top of your orders and answer any delivery queries from customers.
Q: I don’t understand IOSS, can you help?
IOSS stands for Import One-Stop Shop. It’s an electronic portal introduced by the EU on 1 July 2021 to simplify VAT compliance for businesses selling goods to EU consumers. It applies to sales of goods imported into any EU market, valued up to €150.
With Spring GDS, your IOSS number is passed through our data flow and this will automatically be applied to the relevant shipments through the integration. With an internal customs team, we are then able to do the IOSS clearance internally to avoid any delays from third parties.
Q: How do I get my IOSS number, and is it expensive?
An IOSS number is relatively low cost. There are two main routes:
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You can use an intermediary – This is the most common solution as they’ll manage the registration and monthly filing on your behalf, they typically charge a registration fee and monthly filing fee. This is usually a few hundred pounds.
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If you’re VAT-registered in the UK, you can also register for IOSS yourself via HMRC for free.
Q: What is the £135 threshold and why does it matter?
A: For shipments to the UK, goods valued under £135 are subject to different VAT rules. Above this threshold, import VAT and potentially customs duties apply. It’s important to understand how this affects your pricing and tax obligations.
Q: What processes should I follow when it comes to handling customs in different markets?
A: As international experts, our team are on hand to ensure you are set up for any market you ship to with us. Here’s what we typically check:
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Confirm your product is allowed in the destination country
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Use the correct HS (Harmonised System) code
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Provide a clear and accurate product description
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Include valid IOSS details if applicable
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Ensure all data is complete and correctly formatted
Q: I’m confused about how to charge duties and taxes accurately to
my customers
It’s really important that you charge taxes and duties accurately to your customer at check-out. We support businesses with this through our Hurricane system and providing a landed costs calculator that makes the process seamless.
Q: How do I keep up with new legislation and stay compliant?
A: Working with an intermediary with a compliance team and international network of operational hubs and logistics partners can take some of the pressure away from small companies trying to do it themselves. Close relationships with postal services in key jurisdictions means our specialists are also in a good position to anticipate change on behalf of customers without their own eyes and ears on the ground.
Q: Should my business be worried about GPSR?
GPSR refers to the General Product Safety Regulation. It requires businesses to know exactly what’s in their products and to appoint a named EU representative. It’s designed to ensure accountability and product safety across borders, and restrictions vary by country and product type. This is not a requirement or responsibility of your shipper however we do advise international businesses to register to avoid fines.
Q: What does Spring GDS do specifically to help SMBs start trading internationally?
Spring GDS has two elements to help reduce barriers and provide smaller businesses with access to the same services we offer for huge global brands.
One of the biggest challenges when working with smaller businesses is ensuring collections are efficient, but with a direct injection model, SMBs local to our depots in London or Haydock can drop their shipments off to us. We offer various collection methods including daily collections (for larger volumes) as well as flexible drop offs, reducing costs for SMB’s and providing tailored, agile support.
Q: What’s the difference between DDP and DDU?
A: DDP (Delivered Duties Paid) means all duties and taxes are paid upfront by the sender, so the recipient doesn’t face additional charges. DDU (Delivered Duties Unpaid) means the recipient may have to pay duties upon delivery. Choosing the right model depends on your business and customer expectations.
Kelly van der Weg, UK MD at Spring GDS, said: ‘UK SMEs employ 60% of our workforce. And through geography and our history of being a ‘Nation of Shopkeepers’ Britain is still well placed for ambitious companies seeking to make their mark on the world stage. That is why Spring GDS opened a new facility in Heathrow in early 2025 and increased capacity in Haydock near Manchester just a few months ago. Also introducing AI solutions across our operations to help customers get a still more efficient service. However, now more than ever it is important that small businesses, who are new to export and with less margin for error, to get it right. Literally banking on hassle-free customers clearance, faster transit times, transparent pricing (including the same cost for returns) and local support and expertise’.
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