Business Glossary
How to Calculate UK Import Duty
UK import duty is a tax on goods imported into the United Kingdom. Since Brexit, it applies to goods from both non-EU and EU countries for many product categories. Accurate duty calculation is essential for correct landed cost.
The Formula
Import Duty = Customs Value (Purchase Price + Freight) × Applicable Tariff Rate
Worked Example — UK SME
A UK importer: 500 units from China, invoice £8,500, freight £620. Customs value = £9,120. Tariff rate 12%. Import duty = £1,094. Plus import VAT at 20% on (customs value + duty) = £2,043.
UK Benchmark
📊 UK tariff rates: 0% on electronics and many industrial goods, 5–15% on most finished goods from China, 10–12% on textiles, up to 35% on some food products. Check the UK Global Tariff on GOV.UK.
Common Questions
What is the customs value for UK import duty?
The transaction value (price paid) plus cost of freight and insurance to bring goods to the UK border. If your supplier quotes ex-works, you must add freight to arrive at customs value.
Do I pay VAT on imported goods?
Yes. Import VAT at 20% is charged on customs value plus import duty. VAT-registered businesses reclaim this on their VAT return. Non-registered businesses cannot.
How has Brexit changed import duty?
The UK now operates its own tariff schedule. Goods from EU countries previously entering duty-free now attract UK tariffs in many categories and require customs declarations.
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