Key Takeaways
- UK import duty applies to most goods entering the country, with rates ranging from 0% to over 25% depending on the product and its country of origin
- The UK Global Tariff replaced the EU Common External Tariff on 1 January 2021, giving the UK an independent tariff schedule with around 16,000 declarable commodity codes
- Goods valued below £135 are exempt from customs duty (though not from import VAT), but the government has confirmed this threshold will be removed by March 2029
- Trade agreements such as the EU-UK TCA can reduce duty to 0%, yet only around 52% of eligible UK imports currently claim preferential rates — meaning businesses are paying duty they do not owe
- Duty relief schemes including Inward Processing, customs warehousing, and Postponed VAT Accounting offer significant savings that many importers overlook
What is import duty?
Import duty is a tax charged by HMRC on goods brought into the UK from abroad. It is calculated as a percentage of the goods’ customs value and must be paid before goods are released from customs control — unless you hold a deferment account or use one of the relief schemes covered later in this guide. To import goods, you will first need a valid EORI number.
The terms “import duty”, “customs duty”, and “import tax” are often used interchangeably. Strictly speaking, customs duty refers to the tariff charged on the goods themselves, while import tax can also encompass import VAT (charged at 20% on top of the goods’ value plus duty) and excise duty on products such as alcohol, tobacco, and fuel. For most importers, the practical concern is the same: what is the total cost of getting goods through the UK border?
The UK collected £4.8 billion in customs duty revenue in 2023/24, processing 84.6 million customs declarations — 63.3 million of which were for imports. These are not small numbers, and getting duty calculations right matters.
Do you have to pay import duty?
Not always. There are thresholds and exemptions that determine whether duty applies.
The £135 de minimis threshold. Consignments of non-excise goods with an intrinsic value of £135 or less are exempt from customs duty (though import VAT still applies). This threshold has been in place since January 2021, but the government confirmed in late 2025 that it will be removed by March 2029 at the latest. E-commerce sellers importing low-value goods should plan for this change.
Gifts. Personal gifts sent to the UK worth up to £630 are eligible for duty relief. Between £135 and £630, a flat-rate duty of 2.5% applies if the recipient does not want to use the full tariff classification.
EU to UK. There is no automatic duty exemption for goods from the EU. Since Brexit, EU imports are treated the same as those from the rest of the world. However, the EU-UK Trade and Cooperation Agreement (TCA) provides 0% preferential duty rates on qualifying goods — provided rules of origin are met and properly claimed. This is a critical distinction that many businesses still get wrong. Understanding incoterms is also essential, as they determine who is responsible for duty payment.
Excise goods. Alcohol, tobacco, and fuel attract excise duty in addition to any customs duty and VAT, regardless of value.
UK import duty rates
Duty rates vary significantly by product. The UK Global Tariff (UKGT) schedule contains around 16,000 declarable end-lines, each with its own rate. Here are typical ranges for common categories:
| Product Category | Typical MFN Rate | With EU-UK TCA |
|---|---|---|
| Electronics and consumer technology | 0–4.7% | 0% |
| Clothing and textiles | 6.5–12% | 0% |
| Footwear | 3.5–17% | 0% |
| Food and agricultural products | 0–50%+ | 0% (if origin rules met) |
| Machinery and industrial equipment | 0–6.5% | 0% |
| Vehicles | 6.5–22% | 0% |
| Chemicals | 0–6.5% | 0% |
| Furniture | 0–5.6% | 0% |
MFN (Most Favoured Nation) rates apply when no trade agreement preference is claimed. The difference between paying MFN and a preferential rate can be substantial — 12% on a £500,000 textiles shipment is £60,000 in avoidable duty.
To find the exact rate for your goods, use the UK Trade Tariff service. You will need your goods’ commodity code. If you are unfamiliar with commodity code classification, read our guide to UK commodity codes.
How to calculate import duty step by step
Step 1 — Determine the customs value
The customs value is normally the transaction value: what the buyer pays the seller, plus any costs not already included. The UK uses CIF (Cost, Insurance, Freight) as the basis, meaning your customs value includes:
- The price paid for the goods
- Shipping costs to the UK port of entry
- Insurance costs
For example, if you buy goods for £10,000, pay £800 for shipping, and £200 for insurance, your customs value is £11,000.
Step 2 — Find your commodity code
Every product imported into the UK must be classified under a 10-digit commodity code from the UK Trade Tariff. This code determines the duty rate, any restrictions, and whether preferential rates are available. Getting this wrong is one of the most common — and costly — import mistakes.
Step 3 — Look up the duty rate
Search the UK Trade Tariff service using your commodity code. The result will show the MFN rate and any preferential rates available under trade agreements. Make sure you check whether a preference applies to your goods’ country of origin.
Step 4 — Calculate duty and import VAT
Apply the duty rate to the customs value, then calculate import VAT on the combined total.
Worked example — importing electronics from China:
- Goods value: £20,000
- Shipping and insurance: £2,000
- Customs value (CIF): £22,000
- Commodity code: 8471.30 (portable computers)
- MFN duty rate: 0% (covered by the Information Technology Agreement)
- Duty owed: £0
- Import VAT: 20% × £22,000 = £4,400
- Total landed cost: £26,400
Worked example — importing clothing from Bangladesh:
- Goods value: £15,000
- Shipping and insurance: £1,500
- Customs value (CIF): £16,500
- Commodity code: 6204.62 (women’s trousers, cotton)
- MFN duty rate: 12%
- DCTS rate (Bangladesh is an LDC): 0%
- Duty owed (claiming DCTS): £0
- Duty owed (without DCTS): £1,980
- Import VAT: 20% × £16,500 = £3,300
- Total landed cost with DCTS: £19,800
- Total landed cost without DCTS: £21,780
The difference between claiming and not claiming the DCTS preference is £1,980 — on a single shipment.
How to reduce import duty legally
Trade agreements and preferential rates
The UK has trade agreements in force with dozens of countries, offering reduced or zero-rate duty on qualifying goods. The most significant are:
- EU-UK TCA — 0% duty on goods meeting rules of origin. Requires a statement on origin or EUR.1 movement certificate. This covers the UK’s largest trading partner.
- DCTS (Developing Countries Trading Scheme) — Replaced the GSP in June 2023. Provides duty-free or reduced-rate access for imports from developing countries across three tiers. More generous than the old EU GSP for many products.
- Other FTAs — Japan, Australia, New Zealand, Canada, South Korea, Singapore, Norway, Iceland, and others. Each has its own rules of origin requirements.
Around 52% of eligible UK imports currently use preferential rates. That means nearly half of all eligible importers are paying more duty than they need to. If you import regularly from a country with a UK trade agreement, check whether your goods qualify.
Duty relief schemes
Beyond trade agreements, HMRC offers several duty relief and suspension schemes:
- Inward Processing Relief (IPR) — Suspend duty on goods imported for processing and re-export. Useful for manufacturers who import raw materials.
- Outward Processing Relief (OPR) — Partial relief when UK goods are sent abroad for processing and re-imported.
- Returned Goods Relief — Relief on UK-origin goods being re-imported within three years.
- Temporary Admission — Full or partial duty suspension for goods temporarily imported for exhibitions, samples, or testing.
- Customs Warehousing — Store imported goods in an approved customs warehouse without paying duty until they are released for free circulation.
- Freeports — The UK’s ten freeports and green freeports offer duty suspension and other benefits for goods stored or processed within their boundaries.
Postponed VAT Accounting
Since January 2021, UK VAT-registered importers can account for import VAT on their VAT return rather than paying it at the border. This is Postponed VAT Accounting (PVA), and it eliminates the cash flow hit of paying 20% VAT upfront on every import.
PVA is available to all VAT-registered businesses at no cost. Despite this, many smaller importers still pay VAT at the border because they are unaware of the option. If you are importing regularly and not using PVA, you are tying up working capital unnecessarily.
Common import duty mistakes
Wrong commodity code. Misclassification is the single most common error. It can lead to overpaying duty, underpaying duty (risking penalties and back-charges from HMRC), or triggering unnecessary licensing requirements. Use the UK Trade Tariff service carefully, and consider getting a Binding Tariff Information (BTI) ruling for products you import regularly.
Not claiming preferential rates. If your goods qualify under a trade agreement, you must actively claim the preference on your customs declaration. It is not applied automatically. Ensure you have the correct proof of origin documentation before your goods ship.
Incorrect customs valuation. The customs value must reflect the actual transaction value including all relevant adjustments. Understating the value is fraud; overstating it means paying too much duty. Common errors include omitting royalty payments, assists (moulds or tooling provided to the supplier), or commission payments that should be included in the customs value.
Ignoring duty relief schemes. Many businesses qualify for IPR, customs warehousing, or other relief schemes but never apply. If you import raw materials for manufacturing or re-export, investigate IPR. If you hold stock before onward distribution, customs warehousing could save you from paying duty on goods that might be re-exported.
Paying VAT at the border. If you are VAT-registered and not using Postponed VAT Accounting, you are paying import VAT months before you need to. Switch to PVA and reclaim that cash flow.
What changed in 2025–2026
Several regulatory changes affect import duty in 2025 and 2026:
- Safety and security declarations for EU imports became mandatory in January 2025. Entry Summary (ENS) declarations are now required for all goods arriving from the EU.
- The £135 de minimis threshold will be removed by March 2029. The threshold remains in place through at least 31 December 2026, but the direction of travel is clear.
- BTOM physical checks on medium-risk fruit and vegetables from the EU have been postponed to 31 January 2027.
- Tariff amendments continue through The Customs (Tariff and Miscellaneous Amendments) Regulations 2026, reflecting updated duty rates and classification changes.
Frequently asked questions
How much is import duty in the UK? Rates range from 0% to over 25%, depending on the product’s commodity code and country of origin. Many goods from trade agreement countries attract 0% duty if preferential rates are claimed.
What is the UK import duty threshold? Goods valued at £135 or less are exempt from customs duty. This threshold is scheduled for removal by March 2029.
Do I pay import duty on goods from the EU? Potentially, yes. Since Brexit, EU goods are subject to the same tariff as goods from anywhere else. However, the EU-UK TCA offers 0% duty on goods that meet rules of origin requirements.
What is the difference between import duty and VAT? Import duty is a tariff charged based on the product type and origin. Import VAT (20%) is charged on the customs value plus any duty owed. They are separate charges, both collected by HMRC.
Can I get a refund on import duty? Yes, in certain circumstances. If you overpaid duty due to a classification error, incorrect valuation, or failure to claim a preference, you can apply to HMRC for a repayment within three years of the original payment. Use form C285.
How do I find the commodity code for my goods? Use the UK Trade Tariff service or read our commodity codes guide for step-by-step classification help.
Need Help with Duty Calculations?
For detailed calculations, worked examples, and rate tables covering all common product categories, see our UK Import Duty Calculator Reference Guide — a comprehensive toolkit for importers and customs professionals.