Before you start importing
Importing goods into the UK requires preparation before your first shipment arrives. You need an EORI number, must understand commodity codes, and should set up your customs and payment arrangements in advance.
This journey takes you through each step from registration to your first declaration and ongoing record-keeping requirements. It applies to imports into Great Britain — Northern Ireland follows a separate regime under the Windsor Framework.
Why there are three border liabilities, what TCTA 2018 and SI 2018/1248 do, and where the (EU Exit) suffix comes from
Why this matters before you start
Customs duty, import VAT, and excise (where it applies) are three separate liabilities at the border, each with their own rules. The Taxation (Cross-border Trade) Act 2018 charges import duty; the Customs (Import Duty) (EU Exit) Regulations 2018 set the day-to-day rules. Knowing the framework prevents conflating duty with VAT later.
Import duty is charged automatically on goods imported into the United Kingdom. The legal framework sits in two layers: the Taxation (Cross-border Trade) Act 2018 sets the perimeter and the powers, and the Customs (Import Duty) (EU Exit) Regulations 2018 (SI 2018/1248) set the operational rules.
Section 1 of the 2018 Act imposes the charge. Section 2 defines “chargeable goods” as, broadly, goods that are not domestic goods — in practice, goods imported from outside the UK customs territory. Section 8 sets the amount of duty by reference to the customs tariff in force. Section 9 allows a lower (preferential) rate where the goods satisfy the relevant rules of origin under a UK trade agreement.
There is no separate duty assessment step. Liability crystallises on importation; the customs declaration submitted to the Customs Declaration Service (CDS) is the mechanism by which the importer accounts for the duty owed.
Import duty is one of three concurrent border liabilities, alongside import VAT (under the Value Added Tax Act 1994) and, for alcohol, tobacco and fuel, excise duty. The three are separate charges with separate rules — paying customs duty does not discharge import VAT or excise duty.
Charging provision
Section 1, Taxation (Cross-border Trade) Act 2018
Definition of chargeable goods
Section 2, Taxation (Cross-border Trade) Act 2018
Amount of duty (tariff)
Section 8, Taxation (Cross-border Trade) Act 2018
Preferential rate (rules of origin)
Section 9, Taxation (Cross-border Trade) Act 2018
Operational regulations
Customs (Import Duty) (EU Exit) Regulations 2018 (SI 2018/1248)
Enforcing regulator
HMRC
Geographic scope
Great Britain (Northern Ireland operates under the Windsor Framework)
Register for an EORI number - required before you can import any goods
Why you need an EORI
You cannot import goods without an EORI (Economic Operators Registration and Identification) number. Apply before your first shipment - it's free and most applications are processed immediately.
When needed
Moving goods between Great Britain or the Isle of Man and any other country, or between Great Britain and Northern Ireland
Exemption
Goods that are both not controlled and for personal use only
Prefix
GB for Great Britain; XI may be needed for Northern Ireland movements
Processing time
Immediate unless HMRC needs checks; up to 5 working days if it does
Get an EORI number (opens in a new tab)
Import and export requirements
EORI numbers, customs declarations, and trading internationally. Pure data reference.
EORI number
Unique identifier required for all import/export customs clearance
Customs declarations
Required for all goods moving to/from UK
Government Gateway ID
Needed to access Customs Declaration Service (CDS)
Simplified procedures
Available for regular importers to declare limited information upfront
Get an EORI number (opens in a new tab)
Getting commodity codes right
Every import needs a 10-digit commodity code. Getting this wrong is the most common customs error - it determines what duty you pay, what licences you need, and what restrictions apply.
Declaration code
First 8 digits of the commodity code
Worldwide codes
Only the first 6 digits are used worldwide
Responsibility
You must find the right code for goods you import or export
Tool
UK Trade Tariff at www.gov.uk/trade-tariff
An overseas supplier's commodity code may not match the UK code, because only the first 6 digits are used worldwide. Check how much of the code applies in the UK before you use it.
UK Trade Tariff tool (opens in a new tab)
The Customs Declaration Service
CDS is the UK's single platform for all customs declarations. Subscribe to make declarations yourself. If a customs agent makes them for you, the agent cannot act without your authorisation.
Mandatory use
All UK customs declarations go through CDS (CHIEF closed December 2024)
Government Gateway required
Need a Government Gateway account to subscribe
EORI number required
Must have a GB EORI number before subscribing
Agent authorisation
Must authorise customs agents through CDS before they can act on your behalf
CDS replaced the old CHIEF system. The most common mistake is assuming your agent has handled subscription and authorisation - you must do this yourself, even if your agent makes the declarations.
Subscribe to the Customs Declaration Service (opens in a new tab)
Understand the benefits and costs of using a customs broker
Calculate what you'll pay and understand your payment options
What you'll pay
You'll pay customs duty based on your goods' commodity code and origin, plus import VAT on the total value including duty. Understanding your payment options can significantly improve cash flow.
VAT rate on imports
Standard UK VAT rate (20%) on goods value plus shipping and duty
Customs duty threshold
Payable on goods over £135 (non-excise items)
EORI number
Required - must start with 'GB' to import into Great Britain
Postponed VAT Accounting
Account for import VAT on your VAT return instead of paying upfront - major cash flow benefit
Record keeping
Keep all import documents for at least 6 years
Look up commodity codes and duty rates (opens in a new tab)
Set up deferment accounts and PVA to improve cash flow
Optimise your cash flow
Regular importers should set up duty deferment and Postponed VAT Accounting (PVA). Deferment consolidates duty payments monthly; PVA eliminates the cash flow gap on import VAT entirely.
Payment schedule
Pay by Direct Debit on the 15th of the month following import
Financial guarantee
Usually required from a bank or insurer to cover your deferment limit
Guarantee waiver
Possible up to £10,000/month for eligible businesses
Processing time
Several weeks for HMRC approval
A deferment account is essential for regular importers. It consolidates all import payments into one monthly Direct Debit, dramatically improving cash flow compared to paying duty on each shipment.
Apply for duty deferment (opens in a new tab)
Step-by-step CDS declaration: gather data, classify, value, calculate duty and VAT, submit, archive
Declaration timing and accuracy
Every import requires a customs declaration through CDS. Your declaration must be submitted before goods arrive or they'll be held at the border. The declaration carries the commodity code, customs procedure code, declared value, country of origin, and any preference claim.
Mandatory use
All UK customs declarations go through CDS (CHIEF closed December 2024)
Government Gateway required
Need a Government Gateway account to subscribe
EORI number required
Must have a GB EORI number before subscribing
Agent authorisation
Must authorise customs agents through CDS before they can act on your behalf
CDS replaced the old CHIEF system. The most common mistake is assuming your agent has handled subscription and authorisation - you must do this yourself, even if your agent makes the declarations.
Subscribe to the Customs Declaration Service (opens in a new tab)
The six WTO valuation methods in hierarchical order, with the regulation 130 additions you must include
Why valuation is the commonest error
Most importers default to the invoice price (transaction value, method 1) without considering the additions required by regulation 130 — royalties, selling commissions, freight to the GB frontier, and "assists" supplied free by the buyer. Missing these is the single most common cause of post-clearance amendments.
Part 12 of the Customs (Import Duty) (EU Exit) Regulations 2018 (SI 2018/1248) sets six methods for determining the customs value of imported goods. The methods must be applied in strict hierarchical order: each method may only be used where the preceding method cannot be applied. Method 1 covers approximately 95% of imports. Importers using methods 2 to 6 must evidence why method 1 is unavailable.
Method 1 - Transaction value
Price actually paid or payable for the goods when sold for export to Great Britain, adjusted under regulations 111 to 113. Default method for c.95% of imports.
Method 2 - Transaction value of identical goods
Customs value of identical goods sold for export to GB at or about the same time.
Method 3 - Transaction value of similar goods
Customs value of similar goods sold for export to GB at or about the same time.
Method 4 - Deductive value
Resale price of the imported goods (or identical or similar goods) in GB, less margins, commissions, transport and other deductions.
Method 5 - Computed value
Cost of materials and production, plus profit and general expenses typical for the class of goods.
Method 6 - Fall-back method
Reasonable means consistent with the WTO Valuation Agreement, derived from data available in GB.
Regulations 111 to 113 of SI 2018/1248 set out mandatory additions to the transaction value where not already included in the price paid or payable, including:
Royalties and licence fees the buyer must pay as a condition of sale
Commissions (other than buying commissions)
Cost of transport and insurance to the GB frontier
"Assists" - goods or services supplied free or at reduced cost by the buyer for use in producing the imported goods (for example tooling, dies, moulds, design work)
Packing costs and the value of containers treated as one with the goods
Importers commonly default to the invoice price without applying the regulations 111 to 113 additions, which can result in under-declared customs value and underpaid duty.
HMRC Notice 252: Valuation of imported goods for customs purposes, VAT and trade statistics (opens in a new tab)
Understand what records to keep, how long to keep them, and storage requirements
Record-keeping requirements
You must keep detailed import records for HMRC. Some records must be kept for 4 years, others for 6 years. Penalties for poor record-keeping can be significant.
Customs declarations and records
4 years
Preference documents (EUR1, ATR)
4 years
Customs warehousing and free zone stock records
4 years after the goods are removed
VAT records
At least 6 years
Commercial and transport documents
At least 6 years (part of your VAT records)
Excise records
At least 6 years
Intrastat supplementary declarations
6 years
Health, phytosanitary and similar certificates
At least 2 years
Certificates of conformity (fruit and vegetables)
At least 3 years
Where a criminal investigation is under way, HMRC can use records going back 10 years as evidence, so keep records for that period if you are told an investigation has started.
Archiving your trade documents (opens in a new tab)
C79 import VAT certificate
Who gets a C79 certificate, when it is available and how to use it to recover import VAT.
A C79 certificate shows the import VAT you have paid. You can get one if you paid import VAT using a duty deferment account. If you used postponed VAT accounting instead, you get a postponed import VAT statement. You can use your certificates to help you recover the VAT as input tax on your VAT Return.
Who gets one
Businesses that paid import VAT through a duty deferment account
Availability
Monthly, usually by the 10th working day, for the previous month
Access
Sign-in details linked to your EORI number
Time online
6 months from the date published, then archived
Your copy
Download and keep a copy of each certificate
Get your import VAT certificate (C79) (opens in a new tab)
Postponed VAT Accounting statements
When postponed import VAT statements are available, how long they stay online and where the figures go on your VAT Return.
Postponed VAT accounting lets you account for import VAT on your VAT Return instead of paying it at the border. Your monthly postponed import VAT statement shows the import VAT to include on the return.
Statement availability
Usually by the 10th working day of the month
Time online
6 months from the date published, then archived
Your copy
Download and keep a copy of each statement
Sign-in
The details you created when you registered for VAT
VAT Return box 1
Import VAT due on goods accounted for through postponed VAT accounting
VAT Return box 4
Import VAT reclaimed on the same goods
Members of a VAT group each import under their own EORI number and access their own statement, then send it to the representative member, who needs all the statements to complete the group's VAT Return. Guidance on accessing statements older than 6 months is on your Customs Declaration Service dashboard.
Get your postponed import VAT statement (opens in a new tab)
8-minute compliance verification for experienced GB importers — spot-check declarations, valuation, and historic exposure.