IX. BUSINESS TRAVEL BUSINESS CUSTOMS The traditional rigidity of the British social class structure has been diminished by social and economic developments over the last two decades. Government grants have permitted universal access to higher education and have thus enhanced social mobility. Increased liberalization of the marketplace and the greater competition induced have rewarded enterprise, and a new generation of professionals schooled in U.S. management, marketing and finance techniques are increasingly taking the helm of British business. The significance of being "British" has evolved in recent decades as immigration progressively altered the ethnic mix. Minorities, which now constitute over five percent of the population, are growing. British business contacts might well be individuals who are ethnically Indian, Pakistani, Arab, African or other descent; they bring a welcome vitality to the business culture. Business Etiquette: U.S. exporters should be aware that the relative ease of communication with British clients may disguise the fact that there are some fundamental cultural differences. While variances in pace and style will be most noticeable, exporters should avoid making quick assumptions concerning business relationships until on-the-ground experience has been gained. As in most overseas markets, there is no substitute for sustained personal contact with potential business partners. The most important characteristics of British business etiquette are punctuality and courtesy. Prompt acknowledgement of the receipt of letters is expected, for example. Delivery terms, as well as appointment schedules, are expected to be maintained. Titles, when known, should be used in all correspondence. For expeditious handling of correspondence, airmail or fax should be used. It is advisable to address commercial solicitations to the firm, rather than individuals. British company executives will communicate more often by writing letters, telexes, and fax messages than do most U.S. executives, who tend to rely more on the telephone. British executives are far less likely to seek legal advice and guidance than their U.S. counterparts. Only as a last resort will the UK executive consult a solicitor, while the American may use an attorney as a business advisor. "Working" breakfasts are far less common in the United Kingdom than in the United States. Luncheons are more appropriate as a form of business meetings. Developing relationships with UK executives that extend beyond business matters into social affairs will take time and is not guaranteed. Only after appropriate familiarization would a UK business executive expect to be invited to a dinner or social function in an American's home, or invite a U.S. executive to a similar function in his own residence. Under such circumstances, the business aspects of the relationship would be completely subordinated to the social elements. Gift giving or exchanging is not a normal business custom. Business Hours: Business hours in the United Kingdom correspond closely to those in the United States. Banking hours are generally 9:30 a.m. to 3 p.m., Monday through Friday, except on Thursday when banks stay open later. Offices are open from 9 a.m. until 5 p.m., while stores are open from 9 a.m. to 5:30 p.m. In the vacation months of July and August, many British executives are not available except by advance appointment. Standard and Daylight Savings Time: The United Kingdom is on Greenwich Mean Time (GMT). London changes to daylight savings time on the last Sunday of March and reverts back to standard time on the last Sunday of October. London is five hours ahead of Eastern Standard Time. Scotland, Wales, and Northern Ireland are on the same schedule. TRAVEL ADVISORY AND VISAS Entrance Requirements: Every U.S. citizen entering the United Kingdom must have a valid American passport. No visas, entry permits, or vaccinations are required of U.S. citizens entering the United Kingdom. Three months after their arrival--unless the immigration officer has endorsed their passports upon arrival--U.S. citizens over 16 years of age should register with the local British police, except in the Metropolitan District of London, where they register at the Aliens Registration Office, 10 Lamb's Conduit Street, London WC1. U.S. citizens planning to visit the United Kingdom may obtain passports on application through the clerk of any U.S. federal or state court authorized by law to naturalize aliens. Current regulations governing the admission of visitors will be modified soon, and proposed changes may restrict the ability of some foreign nationals, including American citizens, to reside in the United Kingdom. The headquarters of the State Department's Passport Office is located at 1424 K Street, NW., Washington, D.C. 20524; telephone: (202) 523-1673. Americans interested in being employed in the United Kingdom should consult the British Consulate in New York to inquire about a work permit. The employment of aliens in the United Kingdom is controlled by the Home Office and the Department of Employment. U.S. citizens wishing to extend the length of stay to obtain employment, paid or unpaid, or to set up any business or profession, must obtain permission from the Under Secretary, Home Office, Immigration and Nationality Department, Princeton House, 371 High Holborn Street, London WC1. Directors and employees of British subsidiaries of U.S. firms have, in general, encountered little difficulty in obtaining permission to enter and remain in the United Kingdom. In the case of technical employees, it is necessary to establish that British subjects with the necessary qualifications are not available. Work permits are usually readily issued for key personnel. Bringing technical personnel required to set up and operate the plant or business generally poses no problem. The British Government will soon modify current regulations governing the admission of visitors for business purposes and economic immigration to the United Kingdom. The proposed changes, outlined below, may restrict the ability of some foreign nationals, including American citizens, to reside in the United Kingdom. The categories of employees under the new immigration rules which will directly affect the business community are: businessmen and self- employed persons; retired persons of independent means; investors; and (short-term) business visitors. According to the modified regulations, persons establishing a new business must be investing at least US$300,000 of their own money in the company, or, alternatively, they can invest a similar amount in an outgoing concern. In either instance, the person must be occupied full- time in running the business. Simple property investment will not necessarily suffice to obtain resident status (indefinite leave to remain status) in the United Kingdom. Retired persons of independent means will have to be at least 60 years of age, and have control of at least US$375,000 or an annual income of at least US$37,500. Engaging in business or professional activity is prohibited. No age limit exists under current rules. The new investor category requires a US$1.5 million investment of which three-fourths must be in an active, trading UK registered company (and not simply property investment). The business visitor category will be more sharply defined. Currently, a person can be admitted solely by stating that the purpose of the visit is 'business'. Under the new regulations, entry may be denied to those who will perform 'productive service.' Thus, a consultant coming to the United Kingdom to do research for a UK firm and who will be paid by the firm qualifies as a business visitor only if the 'productive' portion of his work (i.e., writing the report itself) is done outside the United Kingdom. Writing the final report here would subject the person to the work permit regime. The determination of who may be admitted as a consultant will be decided on a case by case basis at ports of entry. The legal profession has been among the most active U.S. professional services sector in the United Kingdom. Its members actively travel in and out of the country for short-term business purposes. Lawyers coming to consult on foreign laws currently fall under an exemption to the normal work permit rules. Those travelling for specific short-term consultation will normally be admitted as business visitors. Those desiring to practice law or work as salaried employees in private practice, commerce, or industry must obtain entry clearance (similar to a visa) based on an exemption letter issued by the Law Society of England stating that the Society has no objection to the persons providing legal services. Additionally, the lawyer must demonstrate an ability to live in the United Kingdom without recourse to public funds. There is nothing in the proposed regulations which would alter this current exemption from the work permit scheme. Citizen Services: The American Citizen Services (ACS) section at the Embassy in London provides many services for U.S. citizens, including passport issuance, absentee voter registration and notarial services. The Passport Unit supplies travel advisory information on visa requirements, health concerns and political violence in countries around the world. For information on these and other issues, Americans should call the Embassy on (071)499 9000, or visit at 21-24 Upper Grosvenor Square in Mayfair. The Passport Unit is open 9:00-12:00 and 2:00-4:00 Monday through Friday, with the exception of Tuesday afternoon. Notarial services is provided 9:00-12:00 Monday through Friday and 2:00-4:00 on Wednesdays. The Embassy is closed for all American and British holidays. HOLIDAYS The following major holidays are observed by most businesses in the United Kingdom: England and Wales: Holiday Day New Year's Day January 1 Bank Holiday-Jan First Monday Good Friday Variable Easter Monday Variable May Day First Monday Spring Holiday-May Last Monday Summer Bank Holiday-Aug Last Monday Christmas Day December 25 Boxing Day Variable, first weekday after Christmas Scotland: Scotland observes the above except Easter Monday, Spring Holiday, and Summer Bank Holiday, and the following: Bank Holiday First Monday, January Spring Holiday First Monday, April Victoria Day Third Monday, May Bank Holiday First Monday, August Autumn Holiday Third Monday, Sep. Northern Ireland: In addition to the U.K.-listed holidays, the following are observed: St. Patrick's Day March 17 Easter Tuesday Variable Orangeman's Day July 12, 13 BUSINESS INFRASTRUCTURE Commercial Language: Some expressions and words have different meaning than those accepted in the United States; therefore, for clarity of meaning in correspondence, care should be given to use the appropriate terms. For physical infrastructure, see Section III -"Infrastructure Situation Re: Goods/Services Distribution." For transportation including: Sea Transport, Air Transport, Highways, Railroads, and the Channel, see Section III "Infrastructure Situation Re: Goods/Services Distribution."