Let's be honest: UK import compliance has never been more complicated. Since Brexit, the UK has built its own customs regime from scratch — new tariff codes, new declaration systems, new VAT rules, and a swathe of incoming changes that are tripping up even experienced importers. If you're sourcing products from China, Vietnam, or anywhere outside the UK, getting compliance wrong doesn't just mean a fine. It means delays at Felixstowe, unexpected bills from your freight forwarder, and customs seizures that can kill a product launch.
This guide is for UK business owners, brand founders, and procurement managers who import physical goods — whether you've been doing it for years or you're placing your first container. We're going to walk through every key compliance pillar in 2026: EORI numbers, customs duties, import VAT and Postponed VAT Accounting, the Customs Declaration Service, the coming end of the £135 Low Value Import threshold, and how trade agreements like the UKVFTA can save you real money.
At Epic Sourcing, we've worked with hundreds of UK businesses importing from China and Vietnam. We've seen the same compliance mistakes made again and again — often at great cost. This handbook distils what we know into a reference you can actually use.
UK import compliance refers to the complete set of legal obligations that apply when bringing physical goods into Great Britain or Northern Ireland from overseas, including paying the correct customs duties and import VAT, making accurate customs declarations via the Customs Declaration Service (CDS), holding the correct documentation, and meeting all product safety and marking requirements. Non-compliance can result in delays, fines, seizure of goods, or deregistration as an importer.
Post-Brexit, the UK operates its own independent customs regime entirely separate from the EU. That means every shipment arriving in the UK — whether it's 10,000 units on a 40-foot container or 200 samples in a DHL box — is subject to UK-specific rules. HMRC has invested heavily in its Customs Declaration Service, and enforcement has tightened. Gone are the days when a lot of SMEs could muddle through with a helpful freight forwarder sorting most of the paperwork behind the scenes.
In 2026, there are several reasons compliance has become even more pressing for UK importers. First, HMRC has completed its full migration to the Customs Declaration Service — the old CHIEF system is gone, and anyone not properly registered is finding that their declarations simply can't be processed. Second, the government has announced the phased removal of the £135 Low Value Import duty-free threshold, which affects how small-volume and B2C importers are taxed. Third, the UKVFTA and CPTPP agreements have created real opportunities to reduce duty costs for businesses sourcing from Vietnam and other markets — but only if your customs entries are made correctly and you hold the right certificates of origin. Get any of this wrong, and you leave money on the table or face unexpected costs.
Northern Ireland operates under different rules to Great Britain due to the Windsor Framework. Goods moving from GB to NI, or from outside the UK into NI, may follow different customs and VAT procedures. This guide focuses on Great Britain (England, Scotland, Wales). If you're importing into or through Northern Ireland, speak with a customs agent familiar with the Windsor Framework arrangements.
The businesses that get compliance right gain a real competitive advantage: faster clearance, lower unexpected costs, and the ability to use duty relief schemes that competitors aren't claiming. The ones that don't tend to discover the problem when a container is sitting in Southampton and a £12,000 bill lands in their inbox.
Your EORI (Economic Operators Registration and Identification) number is your unique customs identifier in the UK. Without one, you cannot legally import goods into Great Britain. It's the foundation of everything else in this guide, and the good news is that getting one is free and relatively quick — but you do need to have it in place before your first shipment arrives, not after.
Any business or individual that imports goods into the UK (or exports from it) needs a GB EORI number. This includes sole traders, partnerships, limited companies, and charities. If you're based in the UK and registered for VAT, HMRC can sometimes generate your EORI number automatically — it typically follows the format GB followed by your 9-digit VAT registration number plus 000. However, you should verify this rather than assume.
If you're not VAT-registered, you'll need to apply separately via the HMRC online service at gov.uk/eori. Processing typically takes a few days for UK-based applicants. Non-UK businesses importing into the UK on their own account need a GB EORI too — though in practice, many use a UK-based customs agent or freight forwarder who handles declarations on their behalf.
An EORI number lets you import — but a Customs Duty Deferment Account lets you defer paying your customs duties for up to 30 days rather than paying at the point of entry. For businesses importing regularly, a deferment account dramatically improves cash flow. You'll need to apply separately and provide a financial guarantee (or use a freight forwarder's deferment account, usually for a small fee).
After Brexit, two EORI prefixes are relevant for UK businesses. GB EORI numbers are used for imports into Great Britain. XI EORI numbers are used for goods moving into or out of Northern Ireland. If you trade in both markets, you may need both. Most mainland UK businesses only need a GB EORI. Check your specific situation with a customs broker if you have any Northern Ireland trade flows.
Since 1 January 2021, the UK has applied its own tariff schedule — the UK Global Tariff (UKGT) — to imports from countries without a trade agreement. For most businesses importing from China, this is the tariff that applies. The UKGT was largely based on the EU's Common External Tariff but with some reductions and simplifications.
Customs duty is calculated as a percentage of the customs value of your goods. The customs value is typically the transaction value — what you actually paid for the goods, including the cost of packaging — plus any insurance and freight costs to the point of entry into the UK (known as the CIF or CIP value, depending on your Incoterms). It is not simply the FOB factory price.
Every product imported into the UK needs a commodity code (also called a tariff code or HS code). This is a 10-digit number from the UK Trade Tariff, accessible at trade-tariff.service.gov.uk. The first 6 digits follow the global Harmonised System (HS) — shared with most countries worldwide — while the last 4 digits are UK-specific. The commodity code determines your duty rate, any additional duties, and what documentation is required.
| Product Category | Typical UK Duty Rate (from China) | Notes |
|---|---|---|
| Clothing & Apparel | 10–12% | Varies by fabric and construction |
| Footwear | 8–17% | Upper material determines rate |
| Electronics (consumer) | 0–3.7% | Many electronics are zero-rated under ITA |
| Furniture | 0–6.7% | Wooden furniture may attract higher rates |
| Gym & Fitness Equipment | 2.7–3.7% | Weight equipment often zero-rated |
| Toys & Games | 0–4.7% | Safety compliance critical alongside duty |
| Plastic Housewares | 3–6.5% | Function determines sub-heading |
| Health & Beauty Products | 0–6.5% | Cosmetics, supplements attract different rates |
Using the wrong commodity code is one of the most common — and costly — import compliance mistakes. It can mean underpaying or overpaying duty, and HMRC has powers to audit your declarations going back three years. Always verify your codes with a licensed customs agent or broker. The UK Trade Tariff tool has a search function, but interpretation of codes for novel products often requires expert guidance.
Beyond standard UKGT rates, some products imported from China are subject to anti-dumping duties or countervailing duties, applied on top of the standard tariff. The UK Trade Remedies Authority (TRA) maintains a register of active measures. Common categories include certain steel products, solar panels, ceramic tiles, and some chemical compounds. Always check the UK Trade Tariff for additional measure codes (Section 3 of the tariff) before pricing your landed costs.
This is where many UK importers — particularly those who are VAT-registered — can reclaim a significant cash flow advantage. Understanding import VAT correctly can make a meaningful difference to your working capital, especially when you're importing large volumes.
When goods arrive in the UK, they are subject to import VAT at the standard rate — currently 20% for most goods, 5% for some categories (e.g., certain health products, children's car seats), and 0% for a small number of exempt items. Import VAT is calculated on the customs value of the goods plus any customs duty payable. So if you have £10,000 of goods with 5% duty, the customs duty is £500, and import VAT is 20% of £10,500 = £2,100.
If you're VAT-registered in the UK, you can reclaim this import VAT on your VAT return — but only if you have the right evidence. That evidence comes in the form of your import VAT certificate (C79) (under the old system) or via your Customs Declaration Service statements (under PVA).
Since January 2021, UK VAT-registered businesses can use Postponed VAT Accounting (PVA) for all imports into Great Britain. Instead of paying import VAT at the point of entry (and waiting to reclaim it on your next VAT return, potentially 1–3 months later), PVA allows you to account for the import VAT on your VAT return in the same period it arises — meaning the VAT is declared and simultaneously reclaimed in the same box, with zero net cash flow impact for most businesses.
| Scenario | Without PVA | With PVA |
|---|---|---|
| Import VAT payment timing | Paid at port/border before goods released | Deferred to VAT return period |
| Cash flow impact | Can be 1–3 months before reclaim | Same-period, effectively nil |
| Evidence required | C79 monthly certificate | Monthly PVA statement from HMRC online account |
| Who can use it | Any VAT-registered GB importer | Any VAT-registered GB importer |
| How to enable | N/A (default if not using PVA) | Request on each customs declaration (box 47e = E) |
If you use a freight forwarder to handle your customs declarations, ask them to confirm they're applying Postponed VAT Accounting on every declaration (method of payment code "E" in the CDS). Many forwarders apply it by default, but some charge a nominal extra fee. Access your monthly PVA statements via your HMRC online VAT account — you'll need them to complete your VAT return correctly.
If your business is not VAT-registered (either because you're below the £90,000 registration threshold or you sell exempt goods), you cannot reclaim import VAT. It becomes an irrecoverable cost — effectively an additional 20% on top of your goods and duty costs. This is a significant factor for startups and small-volume importers. If you're approaching the threshold, the import VAT saving alone can be a compelling reason to register voluntarily.
The Customs Declaration Service (CDS) is HMRC's current platform for lodging import and export declarations. It fully replaced the old CHIEF (Customs Handling of Import and Export Freight) system in 2024. If you or your freight forwarder were still working on CHIEF-era muscle memory, it's time to update your knowledge.
In most cases, you won't interact with CDS directly. Your freight forwarder or customs broker submits declarations on your behalf using your EORI number and the information you provide: commodity codes, values, weights, country of origin, and the relevant procedure codes for your import type (standard import, inward processing relief, customs warehouse, etc.). However, you are legally responsible for the accuracy of the declaration, even when a third party lodges it. If your forwarder makes an error based on information you supplied, HMRC will come to you — not them.
For businesses that import regularly and want more control, it is possible to become a direct CDS trader and lodge your own declarations. This requires registration on the CDS system and knowledge of the declaration formats. Most SMEs find it more cost-effective to use a licensed customs agent, but understanding the basics helps you check your own paperwork and spot errors before they become problems.
Your CDS account is also where you manage duty deferment and PVA statements. To access it, you'll need to enrol via HMRC's CDS portal using your business Government Gateway credentials. From there, you can view your import declarations, download your monthly PVA statements, manage guarantee accounts, and authorise customs agents to act on your behalf. Setting this up before your first shipment arrives saves significant headaches.
This is arguably the biggest structural change to UK import rules in the pipeline, and it affects a wide range of businesses — particularly those buying directly from overseas suppliers in small batches, or those competing with overseas sellers who ship directly to UK consumers.
Currently, goods valued at £135 or less are exempt from UK customs duty (though import VAT still applies). This threshold was inherited from the pre-Brexit regime and has remained in place since 2021. It was particularly significant for B2C e-commerce — under the current rules, overseas sellers (including those on platforms like Amazon, eBay, and direct from Alibaba) collect VAT at the point of sale for orders under £135, removing the need for customs duty assessment on arrival. Above £135, standard import procedures apply.
The UK government has signalled its intention to reform or remove the £135 de minimis threshold for customs duty relief, with the goal of levelling the playing field between UK-based retailers and overseas sellers who can currently ship low-value goods into the UK at a structural cost advantage. The precise timeline has shifted several times — the most recent government position points to reforms being introduced by 2027–2029, with consultation ongoing as of mid-2026.
Even if the change doesn't hit in 2026, the direction of travel is clear: the duty-free relief for low-value imports is going away. If your business model relies on importing small batches at sub-£135 values, or if you're an e-commerce seller competing with Temu, Shein, or direct-from-China platforms, this change will materially affect your cost structure. The smart move is to model your landed costs now under a scenario where the £135 threshold no longer exists, and build your pricing accordingly.
First, audit your import volumes. If a significant proportion of your shipments fall below the £135 threshold — either as samples, small test orders, or individual units in a B2C fulfilment model — you need to understand the additional duty cost those shipments will attract once the threshold is removed. Second, review your supplier invoicing. Some importers have historically split large shipments into multiple sub-£135 parcels to claim the duty relief — this is already technically unlawful (it's called transaction splitting) and will become unenforceable once the threshold goes. Third, speak to a customs agent about how your declaration and duty processes will need to change.
Since leaving the EU, the UK has been building its own network of trade agreements — and for UK importers sourcing from certain countries, these agreements represent genuine, significant duty savings. The two most relevant for businesses sourcing from Asia are the UK-Vietnam Free Trade Agreement (UKVFTA) and the UK's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The UKVFTA came into force on 1 May 2021 and covers trade between the UK and Vietnam. Under the agreement, 65% of tariff lines on Vietnamese-origin goods were immediately set to zero, rising progressively to 99.2% of all tariff lines over the implementation period. For UK businesses sourcing clothing, furniture, footwear, electronics assemblies, or homeware from Vietnam, the duty savings versus China-origin goods can be substantial.
| Product Type | Standard UK Duty (from China) | UKVFTA Rate (from Vietnam) | Saving on £100k Order |
|---|---|---|---|
| T-shirts / Cotton clothing | 12% | 0% | £12,000 |
| Footwear (leather upper) | 8% | 0% | £8,000 |
| Wooden furniture | 5.7% | 0% | £5,700 |
| Ceramic tableware | 12% | 0% | £12,000 |
| Bags / Leather goods | 3.7% | 0% | £3,700 |
To claim UKVFTA duty rates, your goods must genuinely originate in Vietnam — this is determined by the Rules of Origin provisions in the agreement, not just the fact that your supplier is based in Vietnam. For most goods, "sufficient processing" in Vietnam is required: the product must be substantially manufactured there, not just assembled from Chinese components. Your supplier must provide a valid EUR.1 movement certificate or a Statement on Origin for shipments above the relevant threshold. Without this documentation, HMRC will apply the standard UK Global Tariff rate — so always request origin documentation before your goods ship.
The UK formally acceded to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in December 2024, joining 11 existing members including Japan, Malaysia, Vietnam, Singapore, Australia, Canada, and Mexico. CPTPP creates additional trade preferences for UK businesses trading with member countries — including Vietnam, which is in both CPTPP and UKVFTA, offering UK importers alternative routes to claim preferential duty rates depending on which agreement provides the better terms for a specific product.
For most UK importers currently sourcing from China, CPTPP doesn't directly reduce duties (China is not a member). But for businesses looking to diversify supply chains into Malaysia, Vietnam, or other Southeast Asian markets, CPTPP opens up preferential access that makes Asian diversification financially more attractive.
Customs compliance is only one half of import compliance. The other half — often forgotten until it's too late — is product safety and conformity. This is where UKCA marking comes in.
The UK Conformity Assessed (UKCA) mark is the UK equivalent of the CE mark used in the EU. It applies to a wide range of goods placed on the Great Britain market, including electrical equipment (low voltage, EMC), machinery, personal protective equipment (PPE), toys, measuring instruments, and medical devices. For most regulated product categories, goods must carry the correct conformity marking before they can legally be placed on the UK market — regardless of what they carry on the EU side.
| Marking | Market | Status in 2026 |
|---|---|---|
| UKCA | Great Britain (England, Scotland, Wales) | Required for regulated products |
| CE | EU / European Economic Area | Accepted in GB for some categories until 31 Dec 2027 |
| UKNI | Northern Ireland | CE marking typically accepted under Windsor Framework |
The UK government extended the transitional period allowing CE marking to be used on the GB market for most product categories until 31 December 2027. After that date, UKCA marking (or UK-accepted CE marking under specific conditions) will be mandatory. However, new products, or products from suppliers who have not previously been selling into the UK, should already be moving towards UKCA conformity.
The UK Product Safety and Metrology Bill (now in implementation) is updating the framework through which product safety rules are enforced in the UK. Key changes include expanded powers for Trading Standards, updated General Product Safety requirements, and new rules around online marketplaces (requiring platforms to ensure products sold via their sites comply with UK safety law). UK importers who are the first person to place goods on the GB market — whether or not they manufactured the goods — are legally the responsible person and carry all product liability obligations. This is non-negotiable.
At Epic Sourcing, we've seen these mistakes made by businesses of all sizes. They're entirely preventable once you know what to look for.
Classifying goods incorrectly — usually to minimise the perceived duty rate — is the most common compliance error and one of HMRC's primary audit triggers. Underpaying duty is a civil penalty offence and can lead to back-payment demands for up to three years. Always verify codes with a licensed customs agent.
Some suppliers, particularly in China, offer to write lower values on commercial invoices to reduce customs duty. This is customs fraud — both you and your supplier are breaking the law. If discovered, HMRC will reassess your full customs liability with interest and penalties. The risk is not worth it.
This one costs money rather than creating legal risk. VAT-registered businesses that pay import VAT at the border rather than using PVA are locking up cash unnecessarily for up to 90 days. Always confirm your freight forwarder is applying PVA on your declarations.
Businesses sourcing from Vietnam often miss out on UKVFTA duty savings because they don't request origin certificates from their suppliers in advance. By the time the goods are in Southampton, it's too late to claim the preferential rate on that shipment.
Some products require import licences, safety certificates, or phytosanitary certificates before they can enter the UK. Food contact materials, cosmetics, children's products, and certain chemicals all have documentation requirements that go beyond the standard customs declaration. Ignoring these can result in goods being refused entry and returned or destroyed at your cost.
On certain China-origin product categories, anti-dumping duties apply on top of standard tariff rates. These can be substantial — sometimes doubling or tripling the total duty cost. Check Section 3 of the UK Trade Tariff for any additional measures applicable to your commodity code.
UK customs law requires you to retain all records related to your import declarations for at least four years. This includes commercial invoices, packing lists, bills of lading, certificates of origin, and customs entries. HMRC can audit you at any time within this window. Many small businesses have no proper filing system for import documents — a risk that only becomes visible when an audit letter arrives.
Understanding the compliance framework is one thing. Applying it consistently across a real supply chain — with real factories in China or Vietnam, real freight forwarders, and real HMRC deadlines — is another. This is where having an experienced sourcing partner makes a genuine difference.
At Epic Sourcing, compliance isn't an afterthought — it's built into how we work from day one. Here's what we bring to the table for UK importers:
For businesses importing established products with existing compliance documentation. We verify supplier compliance, review commercial invoices and origin documents, and ensure your goods are correctly presented at UK customs. Ideal for single-product importers buying at lower volumes.
See White Label Package →For businesses developing customised products that need UK-specific compliance from the outset. We work with your factory to ensure UKCA documentation, correct labelling, and proper origin declarations are in place before your first shipment leaves the factory — not when it's sitting in Felixstowe.
See Private Label Package →For larger-scale importers building complex supply chains with multiple SKUs, multiple factories, and multi-country sourcing strategies. Full compliance management across your supply chain, including UKVFTA origin certification management, anti-dumping duty reviews, and ongoing customs value monitoring.
See Secret Label Package →Before you buy, know who you're buying from. Our supplier verification service cross-references factory registration, export licences, compliance certifications, and on-ground checks via our China and Vietnam teams. Compliance starts at the supplier — not at the UK border.
See Supplier Verification →Book a free 30-minute consultation with our UK team. We'll review your current setup and flag the key risks — no obligation, no sales pitch.
Book Your Free ConsultationYes. There's no minimum shipment value below which an EORI number is not required for UK imports. Even if you're importing a small parcel of samples worth £50, the shipment still needs to be declared at UK customs using a valid EORI number. In practice, couriers like DHL and FedEx often clear small samples using their own EORI under an informal entry — but this doesn't make it optional. For anything beyond very occasional personal-scale samples, you should hold your own EORI number. It's free to obtain and takes only a few days.
Customs duty is a tax levied by HMRC on the value of goods being imported into the UK, at rates set by the UK Global Tariff (or preferential rates under trade agreements). It is generally not reclaimable and forms part of your landed cost. Import VAT, on the other hand, is the UK's standard VAT (currently 20%) applied at the point of importation — but if your business is VAT-registered, you can reclaim it on your VAT return, effectively making it a nil cost for most VAT-registered importers. The key distinction: customs duty is a cost; import VAT is typically a timing difference only for VAT-registered businesses.
For most regulated product categories, yes — until 31 December 2027, when the transitional period ends. After that date, you will need UKCA marking on goods placed on the Great Britain market. However, there are already some categories where CE marking is no longer accepted (e.g., certain construction products and pyrotechnics), and any new product category regulations introduced after Brexit require UKCA from the outset. The smart approach is to begin transitioning your product documentation to UKCA now, particularly for new products or new suppliers, rather than relying on the transition period and then rushing at the end of 2027.
Two conditions must be met. First, your specific commodity code must be included in the UKVFTA preferential tariff schedule at a zero (or reduced) rate — you can verify this using the UK Trade Tariff tool, selecting "Vietnam" as the country of origin. Second, the goods must meet the Rules of Origin requirements for that product category, meaning they must be sufficiently processed or manufactured in Vietnam (the exact test varies by HS chapter). Your supplier needs to provide either a EUR.1 movement certificate issued by Vietnamese customs authorities, or a Registered Exporter (REX) Statement on Origin, to allow you to claim the preferential rate on import. Without valid origin documentation, HMRC will apply the standard UK Global Tariff rate.
HMRC has the right to audit your import declarations going back up to three years (and sometimes longer in cases of suspected fraud). An audit typically begins with a written request for documentation — commercial invoices, packing lists, shipping documents, bills of lading, and certificates of origin — for a specified period. If HMRC determines that duties were underpaid (due to incorrect commodity codes, undervalued goods, or missing anti-dumping duties), they will issue a demand for the additional duty plus interest. Civil penalties may apply if the underpayment resulted from carelessness or deliberate action. The best protection is maintaining thorough records, using accurate commodity codes, and working with a reputable customs agent who carries professional indemnity insurance.
UK import compliance doesn't need to be a minefield. With the right setup — correct EORI, PVA in place, origin documentation sorted, and a sourcing partner who understands the UK regulatory environment — it becomes routine.
At Epic Sourcing, we've helped hundreds of UK businesses get this right from day one. Whether you're placing your first order from China or scaling up a multi-country supply chain, we can help you source smarter and land your goods compliantly.
Epic Supply Chains UK Ltd · 71-75 Shelton St, London WC2H 9JQ · hello@epicsourcing.co.uk
