Import Duty UK and Customs Duty Explained by Independent Experts
Bringing goods into the UK, or sending them out, often means an unexpected charge landing on your invoice. Import duty UK and customs duty UK can catch businesses and individuals off guard, especially when the rules change or a shipment crosses a threshold you didn’t know existed.
Backed by the same independent customs expertise behind our brokerage and consultancy services, Intelclear helps you understand exactly what you owe, why, and how to plan for it
Whether you’re a business importing stock, an online seller shipping internationally, or an individual who’s been asked to pay customs charges from UK deliveries, this guide breaks down how UK customs duty actually works.
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Understanding Import Duty UK
Import duty and customs duty are often used interchangeably, but the charges you face depend on the direction of travel, the value of your goods, and where they’re coming from or going to. Getting this wrong can mean delayed parcels, unexpected bills, or – for businesses – costly errors on customs declarations.
Import duty is a tax charged by HMRC on goods brought into the UK from abroad. It sits alongside import VAT, and together they make up the bulk of what’s often referred to generally as “customs charges.”
If you’re importing commercially, the courier or your customs broker will usually contact you directly with the amount owed and a payment deadline – typically within a few weeks of arrival, after which unpaid parcels can be returned to sender.
Whether UK customs duty applies to your shipment (and how much) depends on three things:
- The type of goods, identified by a commodity or HS code
- The customs value of the shipment
- Where the goods originate.
Goods from countries with a UK trade agreement may qualify for a reduced or zero rate; goods without preferential origin are assessed under the UK Global Tariff.
Customs duty is calculated as a percentage of your goods’ customs value, normally the CIF value (Cost, Insurance and Freight), meaning the price of the goods plus the cost of getting them to the UK border. Once your commodity code identifies the applicable duty rate, that rate is applied to the CIF value to give the duty owed. Import VAT is then calculated on top of the combined value of the goods, shipping and the duty itself, not just the goods alone.
For example: goods valued at £15,000 with £7,000 in freight and insurance give a customs value of £22,000. At a duty rate of 4.5%, UK customs duty would come to £990. VAT is then calculated on £22,990 (goods + freight + duty), not on £22,000 – a step that catches many first-time importers out. Getting the commodity code right at the outset is the single biggest factor in an accurate calculation.
Not every customs question is about goods coming in; many people search for “custom charges from UK” because they’re sending goods out of the UK and want to know what the recipient will owe.
When you export from the UK, your shipment becomes an import in the destination country, meaning that country’s own customs duty, VAT and thresholds apply, not the UK’s.
The rate and rules vary significantly depending on the destination. For example, EU countries apply their own de minimis thresholds and VAT rules for parcels arriving from outside the EU, and the same is true of the US, Australia and other major markets.
For businesses shipping internationally, this creates real complexity: getting commodity codes, valuations and documentation right for every destination market, not just for arrivals into the UK. This is where independent customs consultancy support becomes valuable; reviewing your outbound shipping processes to reduce the risk of delays or disputed charges at the other end.
Not all shipments attract full UK customs duty. Under current rules, goods valued at £135 or below are exempt from customs duty, though import VAT may still apply depending on how the sale was made. Genuine gifts – sent person-to-person for an occasion such as a birthday, and declared as such – benefit from a reduced duty rate between £135 and £630, and are exempt below £135. Commercial samples used solely to secure future orders, rather than for resale, may also qualify for relief, subject to value limits.
Good to know: the UK government has confirmed its intention to remove the £135 relief altogether, with the current threshold guaranteed until at least the end of 2026 and full removal expected by March 2029 at the latest. If your business relies on low-value shipments, this change is worth planning for well ahead of time. Speak to our team about how the transition may affect your customs costs.
Import duty is a tax charged by HMRC on goods brought into the UK from abroad. It sits alongside import VAT, and together they make up the bulk of what’s often referred to generally as “customs charges.”
If you’re importing commercially, the courier or your customs broker will usually contact you directly with the amount owed and a payment deadline – typically within a few weeks of arrival, after which unpaid parcels can be returned to sender.
Whether UK customs duty applies to your shipment (and how much) depends on three things:
- The type of goods, identified by a commodity or HS code
- The customs value of the shipment
- Where the goods originate.
Goods from countries with a UK trade agreement may qualify for a reduced or zero rate; goods without preferential origin are assessed under the UK Global Tariff.
Customs duty is calculated as a percentage of your goods’ customs value, normally the CIF value (Cost, Insurance and Freight), meaning the price of the goods plus the cost of getting them to the UK border. Once your commodity code identifies the applicable duty rate, that rate is applied to the CIF value to give the duty owed. Import VAT is then calculated on top of the combined value of the goods, shipping and the duty itself, not just the goods alone.
For example: goods valued at £15,000 with £7,000 in freight and insurance give a customs value of £22,000. At a duty rate of 4.5%, UK customs duty would come to £990. VAT is then calculated on £22,990 (goods + freight + duty), not on £22,000 – a step that catches many first-time importers out. Getting the commodity code right at the outset is the single biggest factor in an accurate calculation.
Not every customs question is about goods coming in; many people search for “custom charges from UK” because they’re sending goods out of the UK and want to know what the recipient will owe.
When you export from the UK, your shipment becomes an import in the destination country, meaning that country’s own customs duty, VAT and thresholds apply, not the UK’s.
The rate and rules vary significantly depending on the destination. For example, EU countries apply their own de minimis thresholds and VAT rules for parcels arriving from outside the EU, and the same is true of the US, Australia and other major markets.
For businesses shipping internationally, this creates real complexity: getting commodity codes, valuations and documentation right for every destination market, not just for arrivals into the UK. This is where independent customs consultancy support becomes valuable; reviewing your outbound shipping processes to reduce the risk of delays or disputed charges at the other end.
Not all shipments attract full UK customs duty. Under current rules, goods valued at £135 or below are exempt from customs duty, though import VAT may still apply depending on how the sale was made. Genuine gifts – sent person-to-person for an occasion such as a birthday, and declared as such – benefit from a reduced duty rate between £135 and £630, and are exempt below £135. Commercial samples used solely to secure future orders, rather than for resale, may also qualify for relief, subject to value limits.
Good to know: the UK government has confirmed its intention to remove the £135 relief altogether, with the current threshold guaranteed until at least the end of 2026 and full removal expected by March 2029 at the latest. If your business relies on low-value shipments, this change is worth planning for well ahead of time. Speak to our team about how the transition may affect your customs costs.
Take the Guesswork Out of UK Import Duty
Customs duty and import tax shouldn’t be a surprise on delivery day. As an independent customs broker and consultancy, Intelclear helps businesses and individuals understand exactly what they’ll owe before goods reach the border, not after.
We promise to make UK Import Duty simple, accurate and predictable
Our teams operate around the clock across the UK, Europe, North America and Asia Pacific, so you’re never left guessing about a UK customs duty charge or a shipment stuck at the border.
From commodity code classification to CIF valuations and origin rules, our specialists bring hands-on experience calculating and managing UK import duty across every type of shipment.
UK customs policy is changing, including the phased removal of the £135 low-value threshold. Our teams track regulatory change continuously, so your business isn’t caught out.
As an independent customs broker, we have no ties to any freight forwarder. Our guidance on UK customs duty and customs charges is based solely on what’s accurate and in your interest.
UK Import Duty FAQs
Have any questions about import duty tax in the UK? Get straightforward answers below.
