What Is UK Import Duty?
When goods are imported into the UK, they may be subject to customs duty — a tax applied by HMRC based on the type and value of the goods. The rate of duty depends on the commodity code of the goods and their country of origin.
In addition to customs duty, most imports are also subject to import VAT (currently 20% for most goods).
How Is Import Duty Calculated?
Import duty is calculated as a percentage of the customs value of the goods. The customs value is typically the transaction value — the price you paid for the goods — plus freight and insurance costs to the point of entry into the UK.
Example:
- Goods cost: £5,000
- Freight + insurance: £500
- Customs value: £5,500
- Duty rate (e.g., 5%): £275
- Import VAT (20% of £5,500 + £275): £1,155
The UK Global Tariff
The UK's standard import duty rates are set out in the UK Global Tariff (UKGT), which replaced the EU Common External Tariff after Brexit. Some commodity categories have seen duty reductions compared to EU rates.
To find the duty rate for your goods, use the UK Trade Tariff tool on GOV.UK and search by commodity code or product description.
Preferential Duty Rates
Many countries have trade agreements with the UK that allow goods to be imported at a reduced or zero duty rate, provided the goods meet rules of origin requirements.
Key UK trade agreements include:
- UK-EU Trade and Cooperation Agreement (TCA) — zero duty on goods of UK or EU origin
- UK-Turkey trade relationship — the UK replicates most EU preferences with Turkey
- CPTPP — the UK's agreement with Pacific economies
- Various bilateral agreements with countries including Japan, Australia, and South Korea
To claim a preferential rate, you must provide evidence of origin (e.g., a supplier declaration or movement certificate).
Postponed VAT Accounting (PVA)
Most UK VAT-registered importers now use Postponed VAT Accounting (PVA), which allows import VAT to be declared on the VAT return rather than paid at the point of import. This significantly improves cash flow.
To use PVA, the importer's EORI and VAT number must be correctly stated on the import declaration.
How We Help
We calculate the correct duty liability for your imports, identify applicable preferential rates, and ensure your declaration correctly states the customs value and origin. We also advise on PVA and duty deferment options.
Contact us for a tailored consultation.