UK Customs Duty Calculator

Complete Guide to UK Customs Duty After Brexit

The UK Global Tariff (UKGT) — Post-Brexit Import Framework

Since 1 January 2021, the UK has operated its own customs regime independent of the EU's Common External Tariff. The UK Global Tariff (UKGT) sets out the duty rates that apply to goods imported from countries with which the UK does not have a preferential trade agreement. In many cases, the UKGT rates are equal to or lower than the equivalent EU rates — the UK reduced or eliminated duties on hundreds of product lines at the point of departure from the EU system.

The UKGT operates on the basis of the Harmonised System (HS) commodity classification, maintained by the World Customs Organization. Every product imported into the UK must be classified using a 10-digit commodity code. The first 6 digits are internationally standardised; the UK adds 4 additional digits (known as the tariff item) to create the full 10-digit code used for UK customs purposes. Getting the commodity code right is the single most important step in determining your duty liability.

Understanding the CIF Basis for Customs Valuation

UK customs duty is assessed on the customs value of the goods, which is normally the CIF (Cost, Insurance, Freight) value — the total of the goods' invoice price, freight charges to the UK border, and insurance costs. This is different from the FOB (Free on Board) method used in some other countries. The CIF basis means you pay duty not just on what you paid for the goods, but also on the cost of getting them to the UK port of entry.

For example, goods worth £2,000 shipped with £300 freight and £20 insurance have a CIF value of £2,320. If the duty rate is 12%, you pay £278.40 in customs duty — £36 more than if duty were charged on the goods value alone. Always include accurate freight and insurance figures in your customs declaration to avoid under-declaration penalties.

The £135 De Minimis Threshold

Goods with a customs value at or below £135 are exempt from customs duty — but not necessarily from import VAT. This threshold refers to the intrinsic value of the goods themselves, excluding freight and insurance when assessing the threshold (though CIF is still used for calculating duty on goods above the threshold). The £135 threshold was introduced to streamline low-value imports and aligns broadly with the EU's equivalent threshold.

For B2C (business-to-consumer) sales of goods valued up to £135 by overseas sellers, import VAT was moved to the point of sale from January 2021, requiring overseas sellers to register for UK VAT and charge it at checkout. This means many individual consumers no longer face separate import VAT charges at the border for low-value purchases — the VAT is collected by the seller or online marketplace.

Import VAT — How It Is Calculated

Import VAT is charged at the same rate as domestic UK VAT — 20% for standard-rated goods, 5% for reduced-rated goods (such as children's car seats and domestic energy), and 0% for zero-rated goods (such as most food, books, and children's clothing). Critically, import VAT is calculated not on the goods value alone, but on the VAT value — the CIF value plus any customs duty paid. This means the duty itself is included in the VAT base, creating a "tax on a tax" effect.

Example: CIF value £1,110 + duty at 12% (£133.20) = VAT value of £1,243.20. Import VAT at 20% = £248.64. The total landed cost is therefore £1,110 (goods + freight + insurance) + £133.20 (duty) + £248.64 (import VAT) = £1,491.84 — a 34.4% increase over the basic goods value of £1,000.

Rules of Origin — Critical for Preferential Duty Rates

The UK has trade agreements with over 70 countries and territories, many of which provide preferential (reduced or zero) duty rates — but only for goods that genuinely originate in the partner country. Rules of Origin (RoO) determine whether a product qualifies as "originating" from a particular country and therefore eligible for the preferential rate. The rules vary significantly by product and by agreement.

Under the UK-EU Trade and Cooperation Agreement (TCA), goods can be traded at zero tariff — but only if they meet the relevant product-specific rules. For example, electric vehicles must contain a minimum percentage of battery cells manufactured in the UK or EU to qualify. A car assembled in the EU using a battery pack from China may not qualify for zero duty. Importers must obtain proof of origin documentation (typically a statement on origin or EUR.1 certificate) from their supplier to claim the preferential rate.

Post-Brexit, UK-origin goods imported back into the UK do not face duty — but goods of EU origin imported into the UK now attract UKGT duty (unless qualifying under the TCA). Similarly, goods passing through a third country may lose their preferential origin status depending on the degree of processing carried out there.

Customs Declaration Service (CDS) and Making Your Declaration

Since November 2023, all UK import declarations must be submitted through HMRC's Customs Declaration Service (CDS), which replaced the older CHIEF system. Most importers use a customs agent or freight forwarder to complete declarations, as the process is complex and requires knowledge of commodity codes, customs procedures, and HMRC systems.

The Customs Procedure Code (CPC) on a declaration determines how the goods are treated — for example, whether duty is suspended (such as for goods in a customs warehouse), immediately paid, or subject to a relief. Common CPCs include 40 00 000 (standard import for free circulation), 00 00 037 (returned goods relief), and 51 00 000 (inward processing relief).

For businesses with significant import volumes, a Customs Deferment Account (also known as a duty deferment account) allows you to defer payment of customs duty and import VAT to the 15th of the following month, rather than paying at the point of clearance. This provides valuable cash flow benefits. You must apply to HMRC for a deferment account number and provide a financial guarantee (typically via a bank guarantee or insurance).

Postponed VAT Accounting (PVA) for Import VAT

Postponed VAT Accounting is a UK-specific mechanism introduced on 1 January 2021 that allows VAT-registered importers to account for import VAT on their VAT return rather than paying it physically at the point of importation. This eliminates the cash flow disadvantage of paying import VAT upfront and waiting to reclaim it on the next VAT return.

To use PVA, you must be VAT-registered and select PVA on your customs declaration (by entering your EORI number and VAT number). HMRC then provides a monthly Import VAT Statement (MPIVS) via the CDS system, which details all PVA imports made in that period. You use this statement to complete boxes 1 and 4 of your VAT return — the VAT is recorded as both output tax (box 1) and input tax (box 4), resulting in no net VAT payment unless your input tax recovery is restricted.

Anti-Dumping Duties and Tariff-Rate Quotas

Beyond standard UKGT rates, some goods are subject to additional measures. Anti-dumping duties apply where HMRC has determined that goods are being imported below their normal market value from specific countries (dumping), potentially harming UK producers. These can add substantial additional costs — for example, certain steel products from China may attract anti-dumping duties of 30–60% on top of the standard rate.

Tariff-Rate Quotas (TRQs) allow a reduced or zero duty rate for a specified quantity of imports — once the quota is exhausted, the standard (higher) rate applies. TRQs are common in agriculture (beef, lamb, poultry, dairy) and some industrial goods. The UK inherited TRQs from its EU membership and has negotiated new ones as part of post-Brexit trade agreements. Quota management is handled by HMRC's quota allocation system, and timing your imports to capture the reduced rate can be commercially significant.