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.
Freight forwarder Mercator has an experienced and professional team with the ability to complete the UK customs clearance of most cargoes at the majority of UK sea freight ports and airports.
Our team has many years of experience of handling UK imports and completing customs clearance entries. Our import team will be able to assist with VAT and duty calculations and guide you with any documents that may be required for import into the UK.
UK import customs clearance will generally be the responsibility of the consignee in the UK. There are a few situations where the shipper at origin will be responsible, this is all dependant upon which Incoterm you have agreed with the shipper (the company you are purchasing the goods from). You can read more about INCOTERMS here.
As a UK importer, you will need an EORI number, which usually links to your VAT number (if you have one). Apply for an EORI number here.
Our team work closely with shipping companies, dock operators, warehouses and hauliers on a daily basis, so we have strong connections to handle customs clearance and the onward journey to door in an efficient manner.
We have direct links with HMRC at Felixstowe, Southampton, Liverpool and London Gateway to name a few. This gives us the ability to efficiently customs clear part and full loads arriving via sea freight into the UK.
We handle HMRC VAT and duty payments on a daily basis for our customers. We manage the payments highly effectively in order to ensure a fast turnaround and therefore swift release by UK Customs.
UK customs clearance is an important part of the shipping process. Make sure you choose a reputable customs clearance expert such as Mercator who will be able to handle the process efficiently for you. To discuss your UK customs clearance requirements, contact our team by calling +44 2392 756 575, emailing sales@mercatorcargo.co.uk, or by filling in the form below and a member of our team will be in touch.
The shipping vessel Zim Rotterdam, made a stop at London Gateway last week. The vessel holds over 10,000 TEU (the equivalent of 20 foot shipping containers) and is said to be the largest ship to enter the River Thames. Situated on the north bank of the Thames, the UK’s new sea freight port isn’t meant to officially open until later this year.
The shipping vessel was on its transit from Asia, and was heading to Felixstowe. A fire on board prompted the unexpected stop at the new London sea freight port for repairs and to discharge its shipping container loads.
When the sea port London Gateway opens in November, it is predicted that the terminal will handle over 3.5 million TEU per year. This is almost on par with Felixstowe port, which handled 3.7 million TEU in 2012, which accounts for almost 40% of all container traffic in the UK.
London Gateway is expected to become a popular calling sea freight port for many shipping vessels for the UK because of its proximity to one of Europe’s largest logistics parks. Container traffic will be able to travel to here where there are options for warehousing, distribution and assembly, along with onward transit options (including sea, air and road freight). This idea aims to reduce unnecessary mileage of empty containers and reduce costs for distributors.
Mercator will be offering services into and out of London Gateway once the sea port has officially opened. We can arrange full sea freight options, or arrange for your cargo to travel to the port, or arrange for customs clearance and delivery via road or rail to you in the UK.
Call Mercator Cargo if you are looking for an experienced freight forwarder to handle your UK import or export via sea freight – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.
Mercator Cargo has been running for over twenty years now and is still run and managed by the same founding family. Mr Paul (our MD) has been in the industry for almost forty years, and our imports and exports team have extensive knowledge of the freight forwarding industry.
Mercator Cargo is an independent freight forwarder. But what does this mean to you as the import or export customer? Traditionally, independent freight forwarders have had the means and the advantage of offering their customers a high quality personal service.
An independent freight forwarding outfit has excellent capabilities of being flexible with their customers, and the ability to be agile and respond quickly to their customers’ need for convenience. By having this valuable service, good rapport with customers, and formed links with other independent freight forwarders (via a global network), independent freight forwarders have the ability to offer just as comprehensive freight forwarding service, if not a better service than larger logistics companies.
The advantage of an independent freight forwarder being a part of a global network, is also something which can set apart one forwarder from another. Mercator Cargo is a founding partner of the independent freight forwarder network Marco Polo Line. The global network is made up of other independent freight forwarders from all around the world. The advantage of being part of this network includes having personal contacts in almost every country in the world, local knowledge around the globe, ability to offer door-to-door services in most countries, and tried and tested worldwide partners.
Independent freight forwarders, such as Mercator Cargo, have traditional strengths of innovative and bespoke premium services, teamed with the added value of thorough knowledge of their clients businesses and service.
If you’re looking for a reliable service from an independent freight forwarder, then call us today to discuss your shipping needs – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.
Shipping containers have been used since the 1950s when they were invented by an American trucking businessman. Since then, freight forwarders, importers and exporters have used shipping containers for the transit of all kinds of goods.
Prior to freight forwarders using 40 foot or 20 foot containers, ships hulls were loaded manually by dock workers, box by box, piece by piece. This is a time consuming job, and sometimes these big shipping liners spent more time at the docks than they did at sea.
Now, using shipping containers, freight forwarders can get their cargo off the shipping liners within hours, rather than weeks. Their uniformed sizes mean that they can be easily transferred from ship to dockside, to truck, to train, and so on.
These rather simple developments in freight forwarding have dramatically decreased costs involved in importing and exporting goods.
If you have a full container load, or even a less than container load, of cargo to be exported or imported, then get in touch today to discuss our freight forwarding services available – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.
If you are new to importing or exporting from the UK, you may be wondering what a freight forwarder does, what their role with your company should be, what they can offer, and what the responsibilities of the importer/exporter (i.e. you) versus the freight forwarder are.
To cut the jargon, the freight forwarder (the person or company that you appoint to handle your shipment) will do just that – they will handle your shipment for you. Freight forwarders oversee the worldwide movement of goods from country to country, and can offer services such as packing, documentation and customs clearance on behalf of exporters and importers.
Your freight forwarder should be able to offer any kind of level of service you require. For example, if you are completely new to importing and exporting your goods, you may wish your freight forwarder to arrange all aspects of your shipment. This might include a door-to-door delivery (i.e. arrange the collection of goods, and delivery of goods to the door for your chosen destination), insurance, customs clearance, and all services required to deliver goods from one country to the next. However, you may decide that you only wish for a delivery from door to port, or from port to door, and so on. Mercator can offer either a fully comprehensive freight forwarding service, or arrange smaller aspects of your shipment.
So what kind of role do you wish your freight forwarder to have with your company? Again, this entirely depends on your needs and the needs of your business. If you are a first time importer, or exporter, you may wish to make initial contact with your freight forwarder before committing to any international trade with other companies. Mercator Cargo can offer you advice on buying terms from abroad, provide quotes for exports from the UK so you can inform your buyers, and also advise what you can or cannot import from country to country. Our experienced team of freight forwarders can offer as much “hand holding” as you require.
What are your responsibilities, and what are our responsibilities? In a nut shell, our responsibilities are to get your goods to its destination for you as instructed, to inform you every step of the way of your shipment, and to provide reliable advice relating to your shipment. Your responsibilities as an importer or exporter vary from shipment to shipment. You are required to declare your goods accurately (i.e. if a declaration is made on your behalf as instructed, and it is not accurate, you are liable for this, not the freight forwarder), therefore it is essential you advise your freight forwarder of the accurate nature of your goods.
If you think that you might need the services of a freight forwarder, then give us a call, we will be happy to discuss your freight forwarding needs with you – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.
If you are looking to begin international trade: buying your goods outside of the UK and importing them, there are some terms of delivery which you will agree with your supplier that are important that you understand.
It is generally advised that you use ‘INCOTERMS’ when buying your goods internationally. INCOTERMS are a set of rules which have been issued by the International Chamber of Commerce. The terms outline both the buyer’s and the seller’s obligations and risk under given terms of delivery. The precise nature of these terms and their definitions can prevent misunderstandings between the buyer and seller and their obligations.
The following are the main terms used for delivery (there are many others, but generally these are the ones to know about).
EXW – Ex Works. The buyer is responsible for the door to door transport costs, destination taxes and duties, and marine insurance. It is the buyer’s risk from door to door.
FOB – Free on Board. The seller is responsible for charges up to and over the ‘ship’s rail’ (the ship’s rail being the point where the container is lifted off the quay and over the side of the ship). It is the seller’s risk up to and over the ship’s rail.
The buyer is responsible for the shipping costs from the port of departure to the place of delivery, marine insurance from the port of loading and destination duties and taxes.
CFR – Cost and Freight. The seller is responsible for the FOB charges and ocean freight up to the named port of destination. It is the seller’s risk up to the FOB.
The buyer is responsible for unloading from the ship, duties and taxes, and local delivery to the destination and marine insurance from the FOB.
CIF – Cost Insurance Freight. Same as CFR (above), but the seller arranges and pays for the marine insurance up to the buyer’s door.
We can offer all levels of service, from arranging every single aspect for you (e.g. door to door delivery, insurance, customs clearance, VAT & Duty payments, and so on), or just one part of your shipment for you, for example the ocean freight.
If this has left you baffled and you’re not sure what to do next, then give us a call to discuss your shipment. We’d be happy to help you make sense of this and assist you with arranging your import into the UK – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.
If you haven’t dealt with international trade before, the business of importing your goods into the UK might seem like a bit of a challenge.
It is a good idea to appoint a freight forwarder with the required knowledge and experience to assist you with your shipments.
Not only can a good freight forwarder arrange the actual shipment for you from A to B, but they should be able to impart some useful advice when it comes to buying your goods abroad.
When buying your goods, here are some pointers that you may wish to think about before signing anything with a supplier:
– Ensure you know how much your goods are going to cost;
– Make sure you know how much it is going to cost to transport your goods to your warehouse;
– Make sure you investigate as to whether there are any restrictions on the goods you wish to import into the UK (an experienced freight forwarder will be able to advise);
– Ensure that your contract of purchase is sound;
– Make sure that you will get your goods once you have paid, or have legally agreed to pay.
These are just a few pointers to consider when looking to import into the UK. If you are at this stage, then it will be worth contacting a freight forwarder to obtain a quote for the importation of your goods. An experienced freight forwarder will be able to offer you a variety of different levels of shipping services – for example, a comprehensive service from door to door, including all insurance, customs clearance, VAT & Duty payments to HMRC etc, or just an aspect of your shipment, for example just the ocean freight.
If you’re looking to import goods into the UK, then contact Mercator Cargo today, our family-run business can offer you support and advice when it comes to importing for the first time – 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.
