Tariffs go up. Margins get squeezed. But not all costs are out of your hands. Trump's new 10% tariff on UK exports is the latest reminder that international trade isn't getting any easier. And as FD, it lands in your inbox. Suddenly, your already tight margin forecasts are under threat. Most finance teams respond by reviewing input costs or freezing spending. But few look closer at the quiet, repeatable costs baked into their export process.

What if your export costs aren't as fixed as you think?

For many businesses, export costs are treated as overhead. The assumption is that paperwork, freight handovers, and compliance processes are just part of doing business. They get bundled into logistics or admin spend and rarely challenged.But these costs aren't fixed. They're habitual. And that makes them a prime target for review.

When external pressures increase, whether that's global tariffs, shipping costs, or compliance requirements, the internal response shouldn't be to slash budgets. It should be to rethink systems.

Start with your export operation. When was the last time you reviewed the actual cost of getting a product out the door and over the border? Not just freight. The full process. From document creation and validation to compliance checks, data re-entry, and shipment delays caused by admin errors.

Where things get expensive. Fast

Exporting isn't just about the cost of sending a pallet overseas. There are hidden costs in the admin, too. Using a customs agent or freight forwarder to generate paperwork can cost anywhere from £75 to £150 per shipment. That's just for documentation.

Then there's the time your internal teams spend chasing details, clarifying Incoterms, or correcting errors on commercial invoices. Every delay carries costs, like missed slots, rejected shipments, or lost goodwill with buyers. These issues rarely show up neatly in the P&L, but they slowly chip away at your margin.

Risk costs are another factor. If your export process is unpredictable, you'll build in buffer pricing or safety nets. That might be prudent. But it also suggests you don't trust your own system.

Why EXW might be costing more than you think

One area that deserves closer financial scrutiny is your choice of Incoterms. Many UK manufacturers still use EXW (Ex Works), where the buyer arranges everything from pickup to delivery. It seems simple: they handle the logistics, and you just provide the goods.

But in practice, EXW can introduce friction. Buyers unfamiliar with UK export procedures may struggle to arrange transport or customs clearance. That slows things down. It can lead to failed pickups or shipping disputes. It also limits your ability to build economies of scale with carriers.

Switching to FCA (Free Carrier) puts more responsibility on the seller to deliver goods to a named location, usually a local terminal. But it often results in smoother logistics, better buyer experience, and potentially higher pricing power. You can negotiate better deals with carriers. You control the timeline. And buyers get a simpler, more reliable transaction.

Margins aren't only protected by negotiating harder

It's easy to think that cost savings come from squeezing suppliers or freezing recruitment. But in export-heavy businesses, process redesign is one of the most effective financial levers.

Ask yourself:

Where is your team spending time that could be automated?
What parts of your export process rely on manual inputs or third-party availability?
How confident are you in the accuracy, speed, and compliance of every shipment?
The more control you have over your documentation, the less reliant you are on other people's systems and schedules. That means faster turnaround, fewer errors, and better use of your finance and ops teams.

Some FDs are already cutting export costs without slashing headcount

Across the UK, Financial Directors are starting to realise that their export operation is a source of hidden inefficiencies. And they're making small shifts to regain control.They're switching Incoterms to simplify logistics. They're digitising their document workflows. They're moving from agency-reliant processes to self-managed systems. Not to cut corners but to remove friction.

And when you remove friction, you protect your margins. You also gain the visibility to make smarter financial decisions going forward.

There are platforms that help with this.ExportDocuments.co.uk is one. It gives you complete control over your exportpaperwork, 24/7 access, and a fixed £29.50 per shipment fee. It's built toreduce export admin without compromising on compliance or visibility.If you're reviewing your cost base in light of new tariffs, your export process is a smart place to start.

Try ExportDocuments.co.uk and create your first export declaration in under 10 minutes. No contracts. Just clarity.

10 Apr 2025 at 6:09 pm

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