Here is a simplified overview of the journey your goods take:
What is UK Customs Clearance? Everything You Need to Know
The UK customs clearance process is, for many importers and exporters, a daunting maze of paperwork, codes, and confusing terminology. And getting it wrong can lead to costly delays, unexpected fees, and seized shipments.
Fear not.
To understand the UK customs clearance process it’s important to cover the many steps, terms and systems that make up the process. That’s why we created a series of linked pages explaining the essential steps, defining the key terms, and showing you how to navigate the system efficiently. Whether you're a seasoned importer or shipping your first parcel, the answers are on these pages.
Step-By-Step
The UK Customs Clearance Process
Every shipment, from a single online order to a container of machine parts, must be cleared by His Majesty's Revenue and Customs (HMRC).
Customs clearance ensures that you:
- Meet all legal requirements.
- Pay all taxes due.
- Not import prohibited goods.
Goods Arrive at the Border
Your shipment reaches a UK port or airport.
Declaration Submitted
A customs declaration, containing all details about the goods, is submitted to HMRC's systems.
Documents Checked
The system (and sometimes an agent) reviews the paperwork. Accuracy is vital.
For a deep dive into the specific forms you'll need, from commercial invoices to certificates of origin, our detailed guide is essential reading.
Essential Customs Documents: From Commercial Invoices to Certificates of Origin
Duties & Taxes Calculated
Based on your declaration, HMRC calculates the fees owed.
Payment Made
All duties and taxes must be paid before the goods can proceed.
Goods Released
Once payment is confirmed and all checks are passed, your goods are cleared to enter the UK and continue to their final destination.
Understanding the Customs Declaration Process in the UK
What is an Import Customs Declaration?
Definition: it's a document that declares the details of the goods being imported.
Purpose: to inform customs authorities about what is being imported and to assess duties and taxes.
When do you need to make a Customs Declaration?
It's needed for all goods imported from outside the UK such as:
- Commercial Goods
- Personal purchases above a certain limit
What Key Information is needed?
Details about the goods: Description, Value, Quantity, Weight and Origin
Trader Information: Name, Address and EORI Number
How do you make a Customs Declaration?
You can make a declaration digitally using the UK Government’s CDS tool (Customs Declaration Service) or you can use a specialist customs agent. In many cases your freight forwarder may be able to support you
Is there anything else?
You may need specific documentation depending on the type of goods being imported such as: invoices, packing lists, certificates of origin, import licenses or permits. Regulations change periodically so it’s worth checking the requirements for your goods.
What about Duties & Taxes?
You will need to consider applicable duties: Customs Duty, VAT, Excise Duties
Costs are calculated based on: Commodity Codes, Value of Goods & Origin
What practical steps have to be taken?
- Register as a UK importer with HMRC VAT and EORI numbers required.
- Declare the import with HMRC direct with CDS or via an agent.
- Pay any duties and taxes due.
- Maintain declaration records for 6 years.
Understanding Duties, Tariffs & HS Codes
Most confusing (and worrisome) are duties and the codes used to calculate them. Getting this wrong is the fastest way to overpay or have your goods held up.
Customs Duties & VAT
These are taxes charged on imported goods. The amount you pay depends on the type of product and its value. This complex calculation often involves understanding tariffs, trade agreements, and the correct application of Import VAT.
HS Codes
The Harmonised System (HS) code is a globally recognised number that classifies your product. It tells customs officers exactly what you're shipping and determines the duty rate. Using the wrong code is a common and potentially costly mistake.
How to Further Improve Customs Efficiency
These additional procedures can improve import/export efficiency and reduce operational costs.
Duty Minimisation & Temporary Imports
Paying the correct duty is essential, but are you paying more than necessary? HMRC offers "special procedures" like customs warehousing and inward processing to legally suspend, reduce, or delay duty payments, improving cash flow. These are important strategies for businesses storing, processing, or temporarily importing goods.
eCommerce and High-Volume Shipments
eCommerce has introduced unique customs challenges. Online retailers must deal with high-volume, low-value shipments, direct-to-consumer delivery, and complex returns. Having a streamlined customs strategy protects margins and customer satisfaction.
Responsibility for Customs Clearance Fees
Are buyers or sellers responsible for customs clearance fees? The globally recognised Incoterms® - short for International Commercial Terms - define those responsibilities. To manage costs and risks, importers and exporters should understand key terms like Delivered Duty Paid (DDP) and Delivered at Place (DAP) and how they relate to specific procedures like Regimes 40 and 42 for EU supply.
Your Customs Clearance Questions Answered
Key Customs Terms
Rules of Origin: Criteria used to determine the country where a product was produced or manufactured, establishing its economic nationality for trade purposes.
Customs Duty: This is a tax on imports and exports, usually calculated based on a percentage of the goods’ total value (including shipping & packaging costs)
ATA Carnet: The ATA Carnet is a set of documents that are needed for goods that are exported on a temporary basis (e.g. to avoid having to pay extra duties).
EORI Number: An Economic Operators Registration and Identification number is a unique ID required for all businesses moving goods into or out of the UK.
Deferment Account: An account with HMRC that allows a business to pay customs duties and VAT on a monthly basis rather than per shipment.
Commodity Code: Another term for the HS Code used in the UK.
Tariff: A tax or duty to be paid on a particular class of imports or exports.
Get a free consultation
Take advantage of a free consultation. Find out at no cost what a Livingston Customs Clearance Specialist can do for you.
We specialise in:
- UK Import Declarations
- Deferment Account Management
- Specialised Authorisations (Including SCDP & BIRDS)
- E-commerce Customs Entries
- Duty Reliefs & Waivers
- UK Export Declarations
- Transit Documents (T1, T2)
- Post-Brexit Advisory
- CBAM Services
- Reporting & Data Management
Avoid delays, reduce costs and ensure full compliance. Even the biggest businesses overlook savings opportunities.
Contact us at europe@livingstonintl.com or call us at
- Europe: +44-0800-169-2930
- North America: 1-800-837-1063