The amount of import VAT and duty payable upon clearance into the UK is dependent on three factors. Firstly the percentage of import VAT and/or duty is dictated by the commodity code (sometimes also known as a tariff code) that the goods are being declared to UK Customs as.
The percentage for import duty is applied to the amount for freight, insurance (if any) and the value of the goods. The percentage for import VAT is applied to the CIF value, plus the duty amount, and a minimal amount added as an adjustment (known as a VAT adjustment charge). This calculation is dictated by HMRC. If you are feeling lost, do not worry, your customs clearance agent will do all the sums for you.
Generally, your supplier overseas will provide you with the tariff code for your import goods. If it is not on the commercial invoice, then you can ask them to provide it. Alternatively you can classify the goods using HMRC’s tariff.
This can also be checked on HMRC’s online tariff, simply enter the commodity code and the country that you are importing from. If there are special tariffs applicable due to a trade deal with that country (such as the UK-Australia and New Zealand trade deal), then the online tariff will reflect this.
If you are looking for a UK based customs clearance agent to handle a one-off clearance, or regular customs clearances for your company, then contact our import department. We will be glad to provide you with a quote for customs clearance, and onward delivery if required. Mercator has been in business for over 30 years, we have badges at the major ports which means we handle the clearances in house. Our import department are furnished with the latest software, up to date knowledge and relevant experience to handle customs clearances efficiently and accurately on behalf of our customers.
You can contact our import department by emailing sales@mercatorcargo.co.uk, calling (+44) 02392 756 575 (we are here 9-5 Monday-Friday), or complete the form below and someone will be in touch.
This checklist applies to import shipping into the UK. If you are unsure of what you are doing at any stage, you ought to seek clarification from your appointed UK freight forwarder – they are the experts.
This matters because an INCOTERM will set out who is responsible for the risk, organising and paying for which leg of the journey of your shipment. We could talk all day about this topic, see this post for more information if INCOTERM means nothing to you.
Now you have your buying term organised for your shipping, you have to decide whether your shipment should go via sea, air or road freight. Obviously the main difference between air and sea is transit time. If your shipment is urgent enough to warrant paying the extra, then opt for air freight. If you are lucky enough to have some time, or if your shipment is particularly bulky or heavy, sea or road freight are good options. You may think your shipment might be too small for sea freight – how will you fill a shipping container? That’s where LCL (less than container load) (or LTL if you are using road) shipping comes in. Your shipment is consolidated with lots of other shipments destined for the UK and loaded into one shared container. Discuss your transit options with your freight forwarder if you are still undecided, or call our team, we handle air freight and full and part container sea freight shipping.
In order to get an accurate quote for your import shipping you need to make sure the size and weight of your shipment are correct. Discrepancies can cause delays or changes in cost, particularly if you are shipping via LCL (less than container load) or air freight.
General rule of thumb is to ship your goods to your nearest port (or airport). This will keep costs down once your shipment has arrived and you need to organise the onward delivery to your door. Most sea freight routes have options for multiple UK ports, some are more limited. If you end up importing into a port a distance away from your UK base, your freight forwarder can arrange for part of your delivery leg to be made by rail (keeping costs and emissions down), this is only an option if you are importing a full container load. Our import team are well versed at balancing road and rail delivery options, contact them to discuss your requirements (or complete the form below).
Now we’re thinking about what to do once your shipment has arrived into the UK. Next up is customs clearance. You’ll ideally need a freight forwarder to complete the customs clearance of your import shipment. Mercator handles customs clearances at multiple UK ports and airports, we can also handle the onward delivery to your door, so complete the form below and we can put a quote together for you.
Speaking of customs clearance, you’ll need to get some paperwork together so that your freight forwarder can do this accurately on your behalf. Make sure you have a copy of the transport document (sea freight: bill of lading; air freight: airway bill; road freight: CMR), commercial invoice, commodity codes (usually on the commercial invoice), the INCOTERM, value of the shipment and the freight, UK port of arrival and your company’s EORI number. This looks like a long list, you should have all of this already, but you will need to make sure your freight forwarder has copies too to ensure smooth customs clearance and delivery.
That could be dangerous goods, or something that needs control when it arrives in the UK, i.e. foodstuffs. You’ll need to make sure your freight forwarder knows all of this before the shipment starts its journey, especially if it is dangerous goods. Dangerous goods need special handling and notifications. Not all freight forwarders can handle dangerous goods, make sure yours can – like Mercator!
Lastly, check your commodity codes and ensure you are aware of the levels of import VAT and/or duty you will be required to pay – you can have a look at the UK tariff here. Check with your accountant if you can make use of Postpone VAT Accounting (PVA), and find out whether you can reclaim any import VAT paid to HMRC. Appoint a freight forwarder who can handle payments to HMRC on your behalf, this will take out another level of administration for you.
If you need a freight forwarder to handle your import shipping to the UK, then get in touch with Mercator. We have been in the business for over 30 years and in that time helped hundreds of companies with their import shipping. Our expert import team have the knowledge and tools to make sure your import shipping is completed smoothly and simply. Don’t get in a muddle with it, just make sure you find an expert who can help you. Our team will be happy to assist: (+44) 02392 756 575; sales@mercatorcargo.co.uk; or complete the form below.
Are you about to embark on importing goods into the UK for the first time? Perhaps you are importing goods into the UK from a manufacturer abroad to sell on in the UK. Or you might be getting bespoke goods manufactured abroad and importing in them into the UK for distribution. Either way, you are probably looking for a freight forwarding partner. Look no further, Mercator Cargo is an experienced freight forwarder and we can help with your import logistics.
Importing goods into the UK might seem like a scary notion. And it may well be if you have not done this before. That is why it is a wise decision to look for a freight forwarding partner to arrange your import for you. At Mercator we offer a wide range of freight forwarding services for imports, from just arranging a sea freight shipment, to a full service of door-to-door deliveries and all necessaries when importing, such as customs clearance, VAT and duty payments, and documentation.
Mercator Cargo is an independent freight forwarder based in the UK. Founded in 1991, we are still run and owned by the same family. We have a highly experienced import department made up of freight forwarders, all with different experiences and knowledge. As we are independently run, we can offer a full ‘hand holding’ service, and advise on all matters related to importing goods into the UK.
So if you are unsure of what you are doing when it comes to importing into the UK and want to be guided through by the experts, then give us a call today and ask for the imports department – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.
10, St George’s Business Centre,
St Georges Square,
Portsmouth, PO1 3EZ, UK
Mercator is a family-run, UK based independent freight forwarder, offering highly effective sea, road and air freight services around the world.
