Importing can open up new suppliers, better margins and a wider product range. It can also look intimidating, especially for a small business doing it for the first time. Since Brexit, almost every commercial shipment arriving in Great Britain needs a customs declaration, although some exceptions and specific procedures may apply.
Importing successfully requires careful preparation. Common problems include missing paperwork, incorrect commodity codes and misunderstandings about VAT. This guide walks you through the whole process, step by step.
What Is Customs Clearance in the UK?
Customs clearance in the UK is the process of declaring your goods to HM Revenue & Customs (HMRC), accounting for any duty and VAT due, and meeting the applicable UK import requirements. Goods can be released once the necessary declarations have been processed and any required checks have been completed.
Understanding customs clearance in advance helps businesses manage costs, reduce delays and avoid unexpected problems at the border.
Step 1: Get an EORI Number
Before you can import goods into Great Britain, you will generally need an Economic Operator Registration and Identification (EORI) number beginning with “GB”. This number identifies your business during customs procedures.
Registration is free through GOV.UK. If you also trade with the EU, you may need an EU EORI number, depending on your activities. Check the requirements early to ensure the correct business details are used on your declaration.
Step 2: Find the Right Commodity Code
Every product traded internationally has a commodity code, also called an HS code or tariff code. This code helps determine:
- How much import duty you may pay.
- Whether licences or certificates are needed.
- Whether any restrictions or additional checks apply.
The code can be identified using the UK Trade Tariff, based on what the product is, what it is made of and what it is used for. An incorrect code can result in overpaid duty, delays, additional costs or HMRC queries. If your product could fit several codes, seek professional advice before shipping.
Step 3: Confirm the Origin and the Customs Value
Two important details influence your import costs.
Country of origin: The origin generally refers to where goods were made or produced, rather than simply where they were shipped from. Some countries have trade agreements with the UK. If your goods qualify, you may pay reduced or zero duty, subject to the relevant rules of origin and proof requirements.
Customs value: Import duty and VAT are calculated according to applicable valuation rules. Depending on the circumstances, the customs value may include the price of your goods and relevant transport, insurance and other costs. Check the valuation requirements carefully to avoid underdeclaring values and potentially facing penalties.
Step 4: Check Whether Your Goods Are Controlled
Some goods need additional permissions, documentation or inspections before they can enter the UK, including:
- Food, plants and animal products, which may need health certificates and inspections.
- Chemicals and medicines, which can be subject to specific controls.
- Electronics, toys and cosmetics, which must comply with relevant product safety and labelling rules.
- Excise goods such as alcohol, tobacco and fuel, which may be subject to additional duties and procedures.
Find out which rules apply before placing an order. Discovering a licence requirement while your shipment is waiting at the port can lead to delays and extra costs.
Step 5: Prepare Your Import Documents
Clear, accurate paperwork is essential for efficient customs clearance in the UK. A typical import may require:
- A commercial invoice with a full description of goods, quantities, values and terms of sale.
- A packing list showing what is in each package.
- A bill of lading or air waybill from the carrier.
- The importer’s EORI number.
- Proof of origin, if you are claiming a preferential duty rate.
- Licences or certificates, where required for your goods.
Make sure the details match across every document. Differences in values, descriptions, quantities or weights are common reasons for HMRC to hold a shipment for checks.
Step 6: Submit the Customs Declaration
The customs declaration tells HMRC what you are importing, its value, its classification and its origin. In the UK, import declarations are generally submitted through the Customs Declaration Service (CDS), which replaced the old CHIEF system.
To use CDS yourself, you need to meet the relevant registration requirements and use compatible software. The declaration is detailed and technical, and an incorrect entry can cause delays or additional costs. For this reason, many small businesses use a customs broker or agent to submit declarations on their behalf.
Businesses researching customs clearance services for importers may compare providers based on their experience, understanding of UK customs procedures, service requirements and fees. DCP Logistics Group is one example of a customs clearance provider operating in this area.
Step 7: Pay Duty and Import VAT
Once the declaration has been submitted and processed, you must account for any applicable charges:
- Customs duty: Based on factors such as the commodity code, origin and customs value.
- Import VAT: Generally charged at the applicable rate, with 20% applying to many goods unless a different rate or relief applies.
- Excise duty: Applicable to certain products, including alcohol, tobacco and fuel.
If you are VAT-registered, Postponed VAT Accounting (PVA) may help your cash flow. It allows eligible businesses to account for import VAT through their VAT returns rather than paying it upfront at the border. Check the applicable requirements before using this option.
You can also consider a duty deferment account, which may allow eligible customs charges to be paid to HMRC monthly instead of shipment by shipment. Approval and other conditions may apply.
After the necessary declarations, payments or accounting arrangements, and any required checks have been completed, HMRC can release your goods for onward movement.
Common Mistakes That Slow Down Customs Clearance in the UK
Small businesses often encounter the same problems:
- Using the wrong commodity code, which can lead to incorrect duty calculations and possible penalties.
- Underdeclaring value by leaving out relevant freight, insurance or other costs.
- Providing missing or inconsistent documents, causing delays at the port.
- Skipping the licence check for controlled goods.
- Ignoring VAT planning, which can put unnecessary pressure on cash flow.
- Leaving customs preparations until the goods are already in transit.
These issues can often be prevented with early preparation, accurate records and an understanding of the rules that apply to the goods being imported.
Frequently Asked Questions
Do I need a customs broker to import into the UK?
No. You can submit your own customs declarations if you meet the relevant requirements and have the necessary systems and knowledge. However, some businesses use a customs broker to help prepare declarations, classify goods and understand applicable customs procedures.
How long does customs clearance in the UK take?
The time required varies depending on the shipment, the accuracy of its documentation and whether additional checks are necessary. Straightforward shipments may be processed quickly, while missing paperwork, licensing issues or inspections can cause delays.
Can I avoid paying import VAT at the border?
If you are VAT-registered, you may be able to use Postponed VAT Accounting to account for import VAT through your VAT return instead of paying it upfront at the border. Eligibility and applicable requirements should be checked.
What happens if I make a mistake on my declaration?
Errors can lead to delays, storage charges, penalties or other enforcement action, depending on the circumstances. Review declarations carefully and follow the appropriate procedure to correct mistakes when they are identified.
Final Thoughts
Importing into the UK follows a clear sequence: obtain an EORI number, classify your goods, confirm their origin and value, check for import controls, prepare your documents, submit your declaration and account for applicable duty and VAT.
Taking each step in order helps small businesses understand their responsibilities, plan costs and reduce the risk of unnecessary delays.
Rules, tariff rates and import procedures can change, so always check the current requirements with HMRC or a qualified customs professional before your next shipment.
