Your complete guide to UK customs clearance when importing
As the sixth-largest global economy1, the UK market has a well-developed infrastructure.
Government statistics show that, from June 2023 to June 2024, UK imports reached a total value of £893.4 billion2: an astonishing figure that’s set to rise as the year progresses.
Intrinsic to the UK’s thriving economy is its stringent customs procedures. Policed by agencies like HMRC and the NCA, customs clearance is the declaration of goods subject to conditions.
For inexperienced importers, navigating the complexities of customs can be challenging. It is a multifaceted process that requires specific knowledge of essential paperwork and regulations.
Learn more about the process and what you need to prepare with Freight Broker’s complete guide to UK customs import clearance.
Government statistics show that, from June 2023 to June 2024, UK imports reached a total value of £893.4 billion2: an astonishing figure that’s set to rise as the year progresses.
Intrinsic to the UK’s thriving economy is its stringent customs procedures. Policed by agencies like HMRC and the NCA, customs clearance is the declaration of goods subject to conditions.
For inexperienced importers, navigating the complexities of customs can be challenging. It is a multifaceted process that requires specific knowledge of essential paperwork and regulations.
Learn more about the process and what you need to prepare with Freight Broker’s complete guide to UK customs import clearance.
What is HMRC’s role in customs clearance?
HM Revenue & Customs (HMRC) is the authority responsible for managing UK customs.
HMRC’s role (broadly speaking) is to process customs declarations for goods entering the UK. However, as a non-ministerial department, its duties extend beyond just tax collection.
Political changes, particularly Brexit, have drastically altered the UK customs landscape. To align with the country’s new status outside the EU, HMRC has been at the forefront of implementing new customs procedures.
They have established protocols like the Border Target Operating Model3, which categorises imports based on risk levels.
HMRC has also created the Customs Declaration Service (CDS)4 to replace older systems, which were essential for adapting to new trade realities.
These events show how, in times of political flux, HMRC’s role extends to making sure UK businesses are up-to-date with regulations.
HMRC’s work in customs clearance is reliant on collaboration with other entities, both within and outside the UK.
Domestically, it partners with agencies like the Border Force and National Crime Agency (NCA) to enforce laws against illicit trade. Internationally, HMRC coordinates with customs bodies in other countries to facilitate compliant trade.
As a law enforcement agency, HMRC intercepts illegal imports and exports.
They conduct audits in collaboration with other enforcement agencies and apply controls on goods deemed high-risk, such as controlled substances, dangerous chemicals, and counterfeit products.
HMRC’s role (broadly speaking) is to process customs declarations for goods entering the UK. However, as a non-ministerial department, its duties extend beyond just tax collection.
1. Managing the effects of political events
Political changes, particularly Brexit, have drastically altered the UK customs landscape. To align with the country’s new status outside the EU, HMRC has been at the forefront of implementing new customs procedures.
They have established protocols like the Border Target Operating Model3, which categorises imports based on risk levels.
HMRC has also created the Customs Declaration Service (CDS)4 to replace older systems, which were essential for adapting to new trade realities.
These events show how, in times of political flux, HMRC’s role extends to making sure UK businesses are up-to-date with regulations.
2. Collaborating with other entities
HMRC’s work in customs clearance is reliant on collaboration with other entities, both within and outside the UK.
Domestically, it partners with agencies like the Border Force and National Crime Agency (NCA) to enforce laws against illicit trade. Internationally, HMRC coordinates with customs bodies in other countries to facilitate compliant trade.
3.Combating illegal imports/exports
As a law enforcement agency, HMRC intercepts illegal imports and exports.
They conduct audits in collaboration with other enforcement agencies and apply controls on goods deemed high-risk, such as controlled substances, dangerous chemicals, and counterfeit products.
What does the UK customs clearance process look like?
At a glance, the UK customs clearance process can be broken down into the following steps:
1. Preparation of documents
All importers should start by preparing documents like the commercial invoice, packing list, and bill of lading.
You may also need specific licences or certificates, especially if importing restricted goods. Even minor inaccuracies in your paperwork can lead to delays or penalties.
2. Customs assessment
Once documents are submitted, HMRC reviews the shipment to determine the applicable duties, taxes, and VAT based on the goods' value and classification.
3. Tax and duties payment
After the customs assessment, importers must pay any duties, taxes, or VAT before the goods are released. The rates vary depending on the type of goods, their value, and any relevant trade agreements.
Depending on the terms of trade (e.g., Delivered Duty Paid), the importer or another party may be responsible for covering these costs.
4. Inspections and checks
In some cases, UK customs may select shipments for physical inspection.
These checks are usually based on risk assessment. They are conducted to verify that the goods match the declared information and comply with regulatory standards.
Inspections are more likely for high-risk goods, and while they can add time to the process, having all your paperwork in order can reduce the likelihood of delays.
5. Final clearance and the release of goods
Once all the above steps are completed and customs clearance is granted, the goods are officially released. They can then be transported to their final destination.
What electronic system does the UK use for customs declarations?
In September 2022, the Customs Declaration Service (CDS) was announced as the replacement system for HMRC declarations.
Over a year later, in March 2024, it retired the old Customs Handling of Import and Export Freight (CHIEF) to become the UK’s sole system for all customs declarations.
Businesses were required to transition to the CDS by June 4, 2024, before declarations could no longer be accepted5.
Over a year later, in March 2024, it retired the old Customs Handling of Import and Export Freight (CHIEF) to become the UK’s sole system for all customs declarations.
Businesses were required to transition to the CDS by June 4, 2024, before declarations could no longer be accepted5.
Customs Declaration Service (CDS)
Compared to the previous CHIEF system, the CDS is a more user-friendly platform.
It is entirely digital (the CHIEF system also accepted paper forms). The CDS also offers greater functionality, such as more detailed data fields (referred to as "Data Elements" instead of the traditional "Boxes" in CHIEF).
Businesses can use multiple forms of payment with the CDS (e.g., immediate cash payments and new cash accounts), and it’s better streamlined to accommodate the growth of international trade.
What documents are essential for clearing UK customs?
How long it takes goods to clear UK customs will vary depending on the risk level of the imported goods, the chosen transport method, and whether there are any issues with paperwork.
Shippers waiting for their goods should consult government estimates for a general idea of customs clearance times. Ideally, freight travelling by road or air should take no more than two hours to be cleared6.
Goods shipped by ocean freight, however, can take anywhere from days to weeks to be processed. One element essential to clearance, irrespective of transport, is the complete and accurate submission of paperwork.
To find out more about the documentation requirements for shippers importing into the UK, consult the table below:
Shippers waiting for their goods should consult government estimates for a general idea of customs clearance times. Ideally, freight travelling by road or air should take no more than two hours to be cleared6.
Goods shipped by ocean freight, however, can take anywhere from days to weeks to be processed. One element essential to clearance, irrespective of transport, is the complete and accurate submission of paperwork.
To find out more about the documentation requirements for shippers importing into the UK, consult the table below:
| Document | Description |
|---|---|
| Certificate of Origin | A document verifying the country where the goods were produced. It is essential for determining if products qualify for preferential trade agreements or reduced duties. |
| Import/export licence | A mandatory authorisation for the import or export of controlled goods, such as firearms, chemicals, or animal products. |
| Company EORI number | An Economic Operator Registration and Identification number used by UK businesses for customs declarations. Each EORI is unique to the business or individual. |
| Bill of Lading/Air Waybill | A receipt issued by the carrier acknowledging receipt of goods for transport. It includes details like the type, quantity, and destination of the shipment. |
| C88 Form | The Single Administrative Document used for import/export declarations, primarily within the EU. It serves as proof of authorisation for customs clearance. |
| Commercial Invoice | An invoice detailing the transaction value, description of goods, and payment terms. |
| Packing List | A document listing the detailed contents, weight, and dimensions of each package. |
| Goods Movement Reference (GMR) | A reference number required for goods moving via ports using the Goods Vehicle Movement Service (GVMS), used primarily for road freight. |
| IPAFFS Health Certificate | A certificate needed for importing certain animal and plant products to ensure compliance with sanitary and phytosanitary standards. |
| Dangerous Goods Declaration | A form certifying that hazardous materials in a shipment comply with regulations and are correctly labelled and packed. |
| Deferment Approval Number (DAN) | A reference number allowing businesses to defer payment of import duties and VAT, typically used by companies with regular imports. |
How much does customs clearance cost in the UK?
Businesses looking to import goods into the UK must account for several outstanding customs charges. The government applies these fees for a range of purposes, but mostly to keep competition fair and fund public services.
As of August 2024, UK customs charges are set at the following rates:
If you need to pay import duties on a package, your chosen courier will notify you with instructions on how to complete the payment. Generally, you’ll have up to three weeks to settle the charges before the parcel is returned to the sender.
You may be liable for VAT, customs duties, or excise duties on packages arriving from non-EU countries: this also applies to gifts or goods sent from within the EU if their value exceeds the above threshold.
To determine the exact amount owed, you’ll need the relevant tariff or HS code. If VAT is applicable, it will be calculated based on the total value of your items, which includes the import duties.
Customs duties
As of August 2024, UK customs charges are set at the following rates:
| Type and Value of Goods | Rates |
|---|---|
| Any goods under £135 | No charge |
| Gifts worth £135-£630 | 2.5% (lower for some goods) |
| Gifts above £630 and any other goods above £135 | It depends on the type of goods and the country of export. Check the HS code of the goods to get the exact rate.7 |
If you need to pay import duties on a package, your chosen courier will notify you with instructions on how to complete the payment. Generally, you’ll have up to three weeks to settle the charges before the parcel is returned to the sender.
You may be liable for VAT, customs duties, or excise duties on packages arriving from non-EU countries: this also applies to gifts or goods sent from within the EU if their value exceeds the above threshold.
To determine the exact amount owed, you’ll need the relevant tariff or HS code. If VAT is applicable, it will be calculated based on the total value of your items, which includes the import duties.
How are customs charges calculated in the UK?
VAT rate UK 2024
The standard VAT rate in the UK for 2024 remains at 20%, applicable to most goods and services.
However, reduced rates of 5% apply to certain items like energy-saving materials, while some essential goods, such as children’s clothing and most food items, are zero-rated or exempt8.
What is Excise Tax?
Excise taxes are charges levied on particular goods like alcohol, tobacco, and fuel9. They are designed to either control the consumption of certain products or generate additional revenue from goods deemed harmful or luxury items.
Excise duty is calculated differently from VAT and applies in addition to other customs duties.
What is an Anti-Dumping duty?
An anti-dumping duty is imposed on imported goods that are sold below their normal market value, which can harm local industries10.
The UK government uses this tax to protect domestic businesses from unfair competition by foreign exporters who "dump" products at low prices to gain market share.
What goods are banned from entering the UK?
UK legislation prohibits the import of certain items entirely to protect public health and safety.
Authorities have the legal power to seize these items under various regulations, including the Customs and Excise Management Act of 197911 and the Firearms Act of 196812. Some goods are entirely banned, while others are restricted.
However, to avoid legal issues and financial penalties, importers must have a detailed understanding of these restrictions13.
The following goods are prohibited from entering the UK under any circumstances and will be seized by customs authorities:
Authorities have the legal power to seize these items under various regulations, including the Customs and Excise Management Act of 197911 and the Firearms Act of 196812. Some goods are entirely banned, while others are restricted.
However, to avoid legal issues and financial penalties, importers must have a detailed understanding of these restrictions13.
Prohibited goods
The following goods are prohibited from entering the UK under any circumstances and will be seized by customs authorities:
| Prohibited/Restricted Goods | Description |
|---|---|
| Pirated/Counterfeit goods | Items that are fake versions of branded goods, often including clothing, electronics, and accessories. Importing counterfeit goods violates intellectual property rights and is illegal in the UK. |
| Offensive Weapons | Weapons classified as dangerous, such as flick knives, knuckle dusters, and certain self-defence sprays like pepper spray, are prohibited from entering the UK. These items are restricted under laws like the Offensive Weapons Act 201914. |
| Rough Diamonds | Importing rough diamonds into the UK is strictly controlled under the Kimberley Process15, an international certification scheme designed to prevent trade in "conflict diamonds" that fund violence. |
| Unlicensed Drugs | Controlled drugs such as heroin, cocaine, and unlicensed pharmaceuticals are strictly banned unless specifically authorised by the Home Office. |
| Indecent and Obscene Material | Material classified as obscene, such as certain pornographic content or publications that promote violence or discrimination, is prohibited. |
What goods are restricted from entering the UK?
While some goods are banned, others are restricted from entering the UK unless they meet specific conditions, such as holding the appropriate licences or following specific import regulations.
Controlled goods
| Regulated Goods | Description |
|---|---|
| Produce/Plants | Importing plants, fruits, and certain agricultural products is heavily regulated to prevent the introduction of pests and diseases. A phytosanitary certificate is often required. |
| Firearms and Related Devices | Includes weapons such as guns, stun devices, and gas containers. |
| Radio Transmitters | Radio transmitters, especially those operating on unlicensed frequencies, are restricted. |
| Endangered Species | Products made from or containing parts of endangered species (e.g., ivory, certain types of wood) are regulated under CITES16 and require special permits. |
| Live Animals | The importation of live animals is subject to strict health and safety regulations. It often requires quarantine and health certificates to prevent the spread of diseases. |
Compare Freight Courier services with Freight Broker!
Customs clearance is an essential part of importing into the UK that, when done correctly, can open up a world of possibilities for your business. All you have to do is follow regulations and pay the correct fees.
To fully capitalise on these opportunities, why not minimise your shipping expenses with Freight Broker? Use our freight courier comparison service, and we’ll help you identify the most cost-effective options for your import needs!
To fully capitalise on these opportunities, why not minimise your shipping expenses with Freight Broker? Use our freight courier comparison service, and we’ll help you identify the most cost-effective options for your import needs!
FAQ
Can I clear my own goods through customs UK?
Yes, you can clear your own goods through customs if you understand the process well, including the correct documentation and regulations. You must make sure all customs declarations are correctly submitted and register for a unique EORI number.
However, many businesses prefer using a customs broker to avoid delays, especially when dealing with complex shipments.
However, many businesses prefer using a customs broker to avoid delays, especially when dealing with complex shipments.
Who pays for customs clearance?
Typically, the importer is responsible for covering customs clearance fees, including duties, VAT, and any handling charges.
However, depending on the trade terms (Incoterms) agreed with the seller (such as DDP, Delivered Duty Paid), the responsibility for these costs can be shared or shifted to the seller.
However, depending on the trade terms (Incoterms) agreed with the seller (such as DDP, Delivered Duty Paid), the responsibility for these costs can be shared or shifted to the seller.
How much can I import without paying duty in UK?
You can import goods worth up to £135 without paying customs duty. However, VAT is still payable on most goods, regardless of the value, unless they are gifts valued under £39.
What is the handling fee for imports in the UK?
Handling fees vary depending on the courier or postal service. For instance, Royal Mail charges an £8 handling fee for processing customs declarations, while private couriers may have their own charges.
These fees cover the cost of managing customs declarations on your behalf.
These fees cover the cost of managing customs declarations on your behalf.
What items need to be declared at customs in the UK?
You must declare all goods that exceed your personal allowance, restricted items, and any goods subject to duties or VAT.
These include alcohol, tobacco, and high-value goods like electronics. Even gifts above a certain threshold may need to be declared.
These include alcohol, tobacco, and high-value goods like electronics. Even gifts above a certain threshold may need to be declared.
References
[1]https://www.statista.com/topics/6500/the-british-economy/
[2] https://www.gov.uk/government/statistics/uk-trade-in-numbers/uk-trade-in-numbers-web-version
[3]https://www.gov.uk/government/publications/the-border-target-operating-model-august-2023
[4]https://www.gov.uk/government/collections/customs-declaration-service
[5]https://www.gov.uk/government/news/customs-declaration-service-is-open-for-all-export-migration
[6]https://www.gov.uk/guidance/national-clearance-hub-for-goods-entering-leaving-or-transiting-the-eu
[7]https://www.gov.uk/goods-sent-from-abroad/tax-and-duty
[8]https://www.gov.uk/tax-on-shopping
[9]https://www.gov.uk/government/publications/uk-trade-tariff-excise-duties-reliefs-drawbacks-and-allowances/uk-trade-tariff-excise-duties-reliefs-drawbacks-and-allowances
[10] https://www.gov.uk/government/collections/anti-dumping-duty-measures
[11]https://www.cps.gov.uk/legal-guidance/drug-offences
[12]https://www.legislation.gov.uk/ukpga/1968/27
[13]https://www.gov.uk/bringing-goods-into-uk-personal-use/banned-and-restricted-goods
[14]https://www.legislation.gov.uk/ukpga/2019/17/contents
[15]https://www.kimberleyprocess.com/
[16]https://www.gov.uk/guidance/cites-imports-and-exports