Customs Tips

UK Import Duties Calculator: Everything You Need to Know

TariffGenius Team

# UK Import Duties Calculator: Everything You Need to Know

Post-Brexit UK import duties can be confusing. This guide explains exactly how to calculate what you'll pay when importing goods into the United Kingdom.

## What You'll Pay on Imports

When importing goods into the UK, you typically pay three types of charges:

### 1. Customs Duty (Tariff)

Based on:
- The HS code classification
- Country of origin
- Customs value (product cost + shipping + insurance)

Rates vary:
- 0% (many electronics, books)
- 3-12% (textiles, footwear)
- Up to 20%+ (certain agricultural products)

### 2. Import VAT

Standard rate: 20%
- Calculated on: (Customs value + Duty)
- Applies to most goods
- Some goods have reduced rates (5%) or zero-rated (0%)

### 3. Excise Duty

Only applies to:
- Alcohol
- Tobacco products
- Fuel

## Example Calculation

Product: Laptop worth £800
Shipping: £50
Origin: China

Step 1: Customs value = £800 + £50 = £850

Step 2: Customs duty (laptops = 0%) = £0

Step 3: VAT = (£850 + £0) × 20% = £170

Total to pay: £170

## Thresholds to Remember

- Under £135: VAT collected by the seller at checkout
- Over £135: You pay VAT and duty on entry
- Gifts under £39: No VAT or duty (from private individuals only)

## How to Reduce Import Costs

### 1. Check Trade Agreements

The UK has trade agreements with 70+ countries. Goods from these countries may have:
- Reduced tariff rates
- Zero-rated entry
- Special preferences

Requirements:
- Valid Certificate of Origin
- Proof of origin documentation
- Compliance with rules of origin

### 2. Use Correct HS Codes

Example:
- Plastic screws (3926.90) = 6.5% duty
- Steel screws (7318.12) = 3.7% duty
- Misclassification costs you money!

### 3. Consider Bonded Warehousing

For large shipments:
- Store goods in a bonded warehouse
- Pay duties only when releasing goods for sale
- Defer cash flow impact

## Common Mistakes

1. Undervaluing Goods
- HMRC can penalize you
- Must include actual transaction value
- Include royalties, licenses if applicable

2. Wrong Country of Origin
- "Made in China" vs "Made in EU" = different rates
- Origin rules are complex
- Get it certified if unsure

3. Ignoring Commodity Codes
- Generic codes may result in higher duties
- Be specific (10-digit codes)
- Use TariffGenius for accuracy

## Tools to Help

### TariffGenius HS Code Lookup
- Instant HS code classification
- AI-powered accuracy
- 18,808 codes database
- Try it free: [Sign up](https://tariffgenius.pro/signup)

### HMRC Resources
- UK Trade Tariff tool
- Customs Declaration Service
- Duty calculator spreadsheets

## Need Professional Help?

For complex imports:
- Consult a customs broker
- Consider AEO (Authorised Economic Operator) status
- Use freight forwarders with customs expertise

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TariffGenius Pro Tip: Always classify BEFORE you import. Getting it wrong costs time, money, and potential penalties.

Last updated: October 2025

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