Exporting guide to Mongolia

Overview

Mongolia, situated in east and central Asia, is more than 6 times the size of the UK. Mining is a large economic sector for Mongolia, and the renewable energy sector is also expanding. The overall business environment is improving.

Trade statistics

£272.0 million total UK exports to Mongolia for the four quarters to the end of Q1 2022

(Source: ONS UK total trade: all countries, seasonally adjusted
Last updated: July 2022)

93rd largest UK export market

(Source: ONS UK total trade: all countries, seasonally adjusted
Last updated: July 2022)

less than 0.1% of total UK exports for the four quarters to the end of Q1 2022

(Source: ONS UK total trade: all countries, seasonally adjusted
Last updated: July 2022)

Natural resources

Mongolia has large mineral deposits including gold, copper and coal. Much of the country is still to be surveyed. There’s potential for British companies in mining exploration, extraction and production, supplying mining equipment and technologies and providing related research and consultancy services.

Renewable energy opportunities

Mongolia has abundant solar and wind power resources, along with some hydropower opportunities. British companies can get involved in this sector by using their expertise and knowledge to provide new technologies and services.

Top five UK goods exported to Mongolia, in the four quarters to the end of Q1 2022

Goods Value (£million)
Aircraft 6.0
Specialised machinery (capital) 1.4
Cars 1.3
Iron & steel 0.9
Miscellaneous foods 0.9

Source: ONS Trade in goods: country-by-commodity exports
Last updated: July 2022
Download the latest trade and investment factsheet for Mongolia.

Mongolia: at a glance

Economic growth

1.4%

Actual figure (IMF, 2021)
The UK is 7.4% (IMF, 2021, projected figure)

GDP per capita

$3,965

Actual figure (IMF, 2020)
The UK is $41,127 (IMF, 2020, projected figure)

Currency

Tögrög

Business language

Mongolian

You are likely to need a translator

Time zone

GMT +8

Want to see more on Mongolia? Sign up for additional market data, content specific to your product or sector and to compare Mongolia side by side with other markets.

Opportunities for exporters

There are opportunities for UK companies across a broad range of industries. Our trade advisers in Mongolia have identified particular opportunities for UK businesses in the following sectors:

Check for trade barriers

Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. Check for any issues that may impact your business when exporting.

See current trade barriers

See resolved trade barriers

Check duties and customs

Find information on how to export goods from the UK. View the duties, rules, restrictions, and the documents you need for your products.

See current duties and customs procedures

Doing business in Mongolia

Preparing to export

Tax

The UK and Mongolia have signed a double taxation agreement, meaning the same income is not taxed twice.

VAT

VAT is 10% on goods and services, and on imports into Mongolia. You’ll need to register as a VAT-paying company if your turnover reaches 10 million tögrög (around £2,900).

If you’re registered for VAT, it may be possible to zero-rate the goods you export to Mongolia, provided certain conditions are met.

Regulations

The Mongolian Agency for Standardization and Metrology (MASM) (website in Mongolian) has responsibility for standards. Labelling in English or Russian is acceptable. For medicine, you must include instructions in Mongolian.

Trade barriers

Check for any reported barriers to trading with Mongolia.

Report any trade barriers that are affecting your business so we can help fix them.

Operating in Mongolia

Intellectual property

Intellectual property (IP) rights are territorial. Rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.

The Intellectual Property Office’s International IP Service provides practical information to help you protect, manage and enforce your IP abroad. Further support can be accessed through the service’s network of IP attachés. Based in key UK export markets, they provide guidance to British businesses on local IP matters.

Payment terms

Mongolians use cash and electronic payments to conduct trade. Although the tögrög is the official currency for all domestic transactions, dollars may be used for some exchanges. These payments can be in hard currency or through wire transfers into and from Mongolian bank accounts.

Letters of credit remain hard to obtain due to weaknesses in banking supervision and difficulties in collecting defaults. Get more information on methods of payment in Mongolia.

Considerations

UK companies entering into agreements in Mongolia should get professional legal advice. See a list of lawyers and translators in Mongolia.

Next steps

DIT can advise you on doing business abroad, and help put you in touch with other people who can help such as lawyers and distributors.