UK Import & Export Customs Guide Post-Brexit

Since 1 January 2021, the UK operates its own independent customs regime outside the EU Single Market and Customs Union. This guide explains how UK customs works post-Brexit — from commodity codes and duty rates to VAT on imports, rules of origin, Incoterms, and specialist customs procedures — for businesses importing into or exporting from the UK.

1. The UK Global Tariff (UKGT)

The UK Global Tariff (UKGT)is the UK's autonomous tariff schedule, applicable to imports from all countries that do not have a preferential trade agreement with the UK. It replaced the EU's Common External Tariff on 1 January 2021.

The UKGT is administered by HMRC via the UK Trade Tariff — an online tool (gov.uk/trade-tariff) where traders can:

• Look up commodity codes (8-digit for exports, 10-digit for imports)
• Find the applicable duty rate, VAT treatment, and any quotas or suspensions
• Access preferential tariff rates under UK free trade agreements
• Identify licences, certificates, or controls required for specific goods

The Customs Declaration Service (CDS)replaced HMRC's legacy CHIEF system for import declarations in November 2023. All import declarations are now submitted via CDS. Exporters can still use the National Export System (NES) / CHIEF for exports, though migration to CDS is planned. Traders must hold an Economic Operators Registration and Identification (EORI) number — issued free by HMRC — to import or export goods commercially.

Where the correct commodity code is uncertain, traders can apply for a Binding Tariff Information (BTI) ruling from HMRC, which provides legal certainty on classification for 3 years.

2. The Import Process

Importing goods into Great Britain involves several key steps:

1. Commodity code classification — determine the 10-digit import code and applicable duty rate
2. Customs declaration — submit an import declaration via CDS (or through a customs agent), either at the time of import (standard procedure) or using simplified frontier declarations followed by a supplementary declaration
3. Pay or defer duty — duty is payable immediately unless the importer holds a duty deferment account (DDA), which allows payment to be deferred to the 15th of the month following import. A DDA requires a financial guarantee (or a Simplified Customs Declaration Procedure authorisation from HMRC). This is a significant cash flow benefit for high-volume importers.
4. Customs checks — HMRC and Border Force conduct documentary and physical checks on a risk-assessed basis. Controlled goods (food, plants, animals, drugs, weapons) face higher rates of inspection.
5. Simplified procedures — authorised businesses can use Simplified Customs Declaration Procedures (SCDP) or Customs Freight Simplified Procedures (CFSP), which allow goods to be released from the border before the full customs declaration is finalised.

The C88 (or E2) entry acceptance advice is the electronic import entry. The E2 or C88 plus E8D constitutes the customs entry and duty assessment. Keep customs documentation for at least 4 years (HMRC may audit up to 4 years after the import date).

3. VAT on Imports

Import VAT is charged at the standard UK VAT rate (20% for most goods, 5% for reduced-rate goods, 0% for zero-rated goods) on the customs value of imported goods (duty-paid value plus freight and insurance to the UK port).

Postponed VAT accounting (PVA) — introduced 1 January 2021 — is the most significant change to import VAT since UK VAT was introduced. PVA allows UK VAT-registered businesses to account for import VAT on their VAT return rather than paying it at the point of import. This eliminates the cash flow disadvantage of paying VAT upfront and waiting up to 4 months to reclaim it.

How PVA works:

• On the customs declaration, enter your EORI and VAT registration number and select PVA
• No VAT is collected at import; instead, HMRC issues a monthly postponed import VAT statement via your HMRC online account
• Include the import VAT in Box 1 (output tax) and Box 4 (input tax) of your VAT return — if you are fully taxable, the net effect is nil
• The monthly statement replaces the C79 certificate that was previously used to evidence import VAT paid (C79 is still issued for VAT paid at import, relevant for non-PVA imports)

Non-VAT-registered businesses cannot use PVA and must pay import VAT at the point of import. Businesses importing low-value goods (under £135) from overseas sellers face different rules — see the UK's overseas goods VAT regime.

4. The Export Process

Exporting goods from the UK involves:

1. Export declaration — submitted via the National Export System (NES) or CDS, before or at the time of export. Most traders use a customs agent or freight forwarder. The export declaration generates a Movement Reference Number (MRN).
2. Proof of export— essential for zero-rating the supply for UK VAT purposes. Acceptable evidence includes: official customs computer records (ESS/ECS), shipping documents (bill of lading, airway bill), freight forwarder's certificate, and commercial invoices showing the export destination.
3. Zero-rating VAT on exports: Goods exported from the UK to a non-UK destination are zero-rated for VAT under section 30 VATA 1994, provided the exporter holds satisfactory evidence of export within 3 months of the date of supply. Without adequate proof of export, HMRC can assess the full VAT as output tax due.
4. Export licences: Certain goods require an export licence — strategic goods (military, dual-use), cultural goods, endangered species (CITES), and food products to specific markets. Check the Export Control Joint Unit (ECJU) strategic export licensing system (SPIRE) and the UK Trade Tariff for applicable controls.

5. Rules of Origin

Rules of origindetermine the "economic nationality" of goods — whether they qualify as UK-origin or EU-origin — for the purposes of claiming preferential (zero or reduced) tariff rates under the UK-EU Trade and Cooperation Agreement (TCA) and other UK free trade agreements.

The TCA came into force on 1 January 2021 and provides zero tariffs and zero quotas for goods that meet the applicable product-specific rules of origin. These rules vary by commodity code and typically require either:

• Wholly obtained: The goods are entirely grown, extracted, or produced in the UK or EU (e.g., UK-caught fish, UK-grown crops)
• Sufficient processing: The goods undergo substantial transformation in the UK or EU, tested by a change of tariff classification (the HS code changes at heading or chapter level), a maximum non-originating content (value-added) percentage, or specific manufacturing operations
• Cumulation: Under the TCA, UK and EU content can be combined (cumulated) when calculating origin — goods partially produced in the UK and partially in the EU can qualify using bilateral cumulation

To claim preferential origin, exporters must have a supplier declaration confirming the origin of materials, and either a statement on origin (for any exporter on consignments up to €6,000) or a REX statement on origin (for REX-registered exporters on consignments above €6,000). Incorrect origin claims expose traders to retrospective duty assessment and penalties.

6. Incoterms 2020

Incoterms (International Commercial Terms) — published by the International Chamber of Commerce (ICC) — are standardised trade terms that define the obligations of buyer and seller in international transactions, including who is responsible for transport, insurance, customs clearance, and duty payment.

The most commonly used Incoterms 2020 rules:

• EXW (Ex Works):The seller's only obligation is to make goods available at their premises. The buyer bears all costs and risks from collection. Rarely suitable for international trade as the buyer must export the goods — which requires UK export authorisation.
• FOB (Free on Board): The seller delivers goods onto the vessel at the named port of shipment. Risk passes to the buyer on loading. The buyer pays freight, insurance, and import costs. Used for sea and inland waterway transport.
• CIF (Cost, Insurance and Freight): The seller pays freight and arranges minimum insurance to the named port of destination. Risk passes to the buyer on loading (same as FOB). Used for sea freight. Note: CIF customs value at import includes insurance and freight charges.
• DAP (Delivered at Place): The seller bears all costs and risks to the named destination. The buyer is responsible for import clearance, duty, and VAT. Post-Brexit, many EU sellers quote DAP to UK buyers — buyers must factor in the cost of import duty and VAT.
• DDP (Delivered Duty Paid): The seller bears all costs including import duty, VAT, and customs clearance at destination. The seller must be able to act as UK importer of record (i.e., have a UK EORI number). For UK buyers, DDP provides the simplest, all-in landed cost — but sellers may price this premium in.

Always state the applicable Incoterms version (Incoterms 2020) and the named place precisely in your contract. The Incoterms rule does not determine the transfer of title or the place of payment.

7. Customs Special Procedures

HMRC authorises several customs special procedures that suspend or reduce duty on goods used in specific circumstances:

• Inward Processing (IP): Allows goods to be imported from outside the UK, processed or repaired, and re-exported without paying import duty (or with duty refunded). Ideal for manufacturers who import components, add value, and export finished goods. IP requires HMRC authorisation and careful customs record-keeping (a Bill of Discharge to account for processed goods).
• Customs Warehouse: Allows non-UK goods to be stored in a HMRC-approved warehouse without paying duty or import VAT until they are either released for free circulation in the UK (duty paid) or re-exported. Improves cash flow for businesses holding import stock for redistribution.
• Temporary Admission: Allows specific goods to be imported temporarily — for exhibitions, demonstrations, professional use, or sporting events — without paying duty or VAT, provided they are re-exported within a set period (typically 24 months). Requires HMRC authorisation or use of an ATA Carnet.
• ATA Carnet: An international customs document for the temporary export and re-import of goods (samples, professional equipment, exhibition goods). Accepted in 87+ countries. Issued by the London Chamber of Commerce and Industry (LCCI) on behalf of the World Chambers Federation.
• Outward Processing (OP): Allows UK goods to be temporarily exported for processing or repair abroad, with duty relief on re-import calculated only on the value added overseas (not the full reimport value).

8. Controlled Goods

Certain categories of goods are subject to additional controls beyond standard customs duties:

• Dual-use goods: Items with both civilian and military applications (electronic components, chemicals, software with encryption) require an export licence from the Export Control Joint Unit (ECJU). The UK Strategic Export Control Lists define which goods require a licence.
• CITES (Convention on International Trade in Endangered Species): Trade in species listed on CITES Appendices requires permits from APHA (Animal and Plant Health Agency). This includes many tropical timbers, exotic leathers, and certain plants.
• Sanitary and phytosanitary (SPS) controls: Animals, animal products, plants, and plant products require health certificates, phytosanitary certificates, and/or pre-notification at designated border control posts (BCPs). Post-Brexit, EU exports of SPS goods to GB now face the same controls as other third countries — a significant change that added cost and complexity from October 2024 when full SPS checks were introduced.
• REACH: Chemicals imported into Great Britain must comply with UK REACH regulations (administered by UKCA) — separate from EU REACH since Brexit. Manufacturers and importers must register substances with the HSE.

9. Trade Remedies & Anti-Dumping Duties

The Trade Remedies Authority (TRA)is the UK's independent body responsible for investigating and recommending trade remedy measures — anti-dumping duties, countervailing duties (against subsidised imports), and safeguard measures — to protect UK industries from unfair or injurious import competition.

How trade remedies work:

• Anti-dumping duties are charged on imports sold below their normal value in the exporting country — i.e., where exporters are pricing below cost to capture market share
• Countervailing duties offset the effect of government subsidies granted to foreign producers
• Safeguard measures are temporary restrictions on imports that have increased sharply and caused serious injury to a domestic industry
• Trade remedy measures are product and country specific — check the UK Trade Tariff for any applicable measures before importing
• UK businesses that believe they are being injured by dumped or subsidised imports can apply to the TRA to initiate an investigation

Businesses importing goods subject to trade remedies must pay the additional duty on top of the standard UKGT rate. Trade remedy duties can be substantial — in some cases exceeding 50% of the customs value — and can significantly affect import viability.

10. UKEF Export Finance

UK Export Finance (UKEF)is the UK's export credit agency — a government department that provides financial products to help UK exporters win contracts and get paid. UKEF fills gaps in the private finance market, supporting exports that banks and commercial insurers are unwilling to finance alone.

Key UKEF products:

• Export Insurance Policy (EXIP): Covers UK exporters against non-payment by overseas buyers due to political events (war, sanctions, government action) or commercial default. Premium based on buyer country risk and contract value.
• Bond Support Scheme:UKEF guarantees bid bonds, advance payment bonds, and performance bonds issued by a bank on behalf of a UK exporter, freeing up the exporter's banking facilities. Useful for SME exporters tendering for large overseas contracts.
• Export Working Capital Scheme: UKEF guarantees up to 80% of a bank working capital facility, allowing exporters to take on contracts that would otherwise strain their cash flow.
• Direct Lending Facility: UKEF can lend directly to overseas buyers to purchase UK goods and services — bypassing the need for overseas buyer to arrange their own finance and making UK exporters more competitive.
• Supply Chain Discount: Allows smaller UK suppliers in an export supply chain to discount their invoices to an approved buyer at favourable rates, with UKEF support.

UKEF supports businesses of all sizes, including SMEs. Applications are made through UKEF's website or through a UKEF export finance adviser (a network of regional advisers available free of charge to UK exporters).

Key customs reference points