The United Kingdom has one of the most deregulated systems of trading in the world with a view to encourage international trade. There are also precise laws and regulations regulating the import and export of goods. The Single Market agreement has rendered the trading between European Union countries, including the UK, the least regulated amongst all. There are no duties to be paid on cross-border EU transactions and excise duty is only paid upon hydrocarbon oils, tobacco and cigarettes. The European Union is entrusted to implement duty-free and quota-free access for all exports from the Least Developed Countries. Moreover, there are special trading arrangements of the EU with a number of countries. Many imported goods are subject to Value-added tax (VAT) which can be reclaimed by registered business purchasers. Import of foodstuffs and children’s clothes, are exempt from VAT. The duties of import on goods from nations outside the European Union vary according to the country or origin and the nature of the products. The European and World Trade Directorate of the Department for Business, Enterprise and Regulatory Reform (BERR) in concert with Her Majesty's Revenue and Customs (HMRC) advise and deal with a range of trade policy, regimes, procedural issues governing imports into the UK. The Export Control Act, 2002 was enacted with an aim to replace the Import, Export and Customs Powers (Defence) Act of 1939 on strategic export controls and to provide for a more transparent framework and increased Parliamentary accountability. The Export Control Act, 2002 also grants powers to the government to extend the present controls. A Secondary legislation has been introduced by the Government which consolidated the previous secondary legislation and imposed a new range of export controls.
