Let's be honest: UK import duties and customs are one of the most confusing — and most expensive — parts of running a product-based business that sources from Asia. Between the UK Global Tariff, HMRC's Customs Declaration Service, EORI numbers, postponed VAT accounting, and the end of the £135 low-value threshold, the rules have shifted considerably since Brexit. Get them wrong and you're looking at delayed shipments, unexpected tax bills, and potential HMRC penalties.
This guide is for UK small business owners, founders, and brand operators who import — or plan to import — physical products from China, Vietnam, or elsewhere in Asia. Whether you're placing your first order of 500 units or you're scaling to container-level volumes, understanding how UK import duties and customs actually work is non-negotiable.
At Epic Sourcing, we've helped hundreds of UK businesses navigate the sourcing-to-customs pipeline. We've seen what goes wrong when importers skip the duty research, underestimate landed cost, or fail to get an EORI number before their cargo arrives at Felixstowe. This guide consolidates what we know.
UK import duties are taxes levied by HMRC on goods brought into the United Kingdom from countries outside the UK, calculated as a percentage of the customs value of the goods. They are separate from VAT (which is also payable on import) and are set out in the UK Global Tariff — the UK's independent tariff schedule, maintained by HMRC since Brexit took full effect in January 2021.
The UK's trade environment in 2026 is meaningfully different from what it was even two years ago. Post-Brexit, the UK now operates its own independent tariff schedule — the UK Global Tariff — which diverges from the EU's Common External Tariff in several important categories. The UK has also been quietly updating commodity codes and rates as it negotiates new trade agreements and responds to domestic industry lobbying.
UK-China trade reached approximately £87 billion in 2024, with UK imports from China running at around £71 billion for the April 2024 to March 2025 period. That's a staggering volume — and the vast majority of that is physical goods passing through UK customs. Meanwhile, the UK-Vietnam trade relationship is growing fast, driven partly by UKVFTA preferences, with trade reaching approximately £9.6 billion in 2024. For UK small businesses, this is the context: your competitors are sourcing from Asia at scale, and understanding the duty landscape is how you compete effectively.
One of the most significant recent developments was the planned removal of the £135 low-value import threshold for B2C goods — the rule that previously meant VAT on imports under £135 was collected at point of sale rather than at the border. Changes to how this applies to B2B importers and marketplace sellers have created genuine confusion. Staying on top of these shifts isn't optional; it's business survival.
The UK Global Tariff is a living document. Rates change as HMRC updates the schedule, trade agreements come into force, and commodity codes are revised. Always check the UK Trade Tariff immediately before placing an order — not 12 months earlier when you were first researching.
When your goods arrive in the UK — at Felixstowe, Southampton, London Gateway, or any other port of entry — HMRC assesses duty based on three variables: the customs value of the goods, the commodity code (which determines the applicable duty rate), and the country of origin. Get any of these wrong and you either overpay or, worse, underpay and face a compliance issue later.
Customs value is typically the transaction value — what you actually paid for the goods — plus the cost of shipping and insurance to the UK's port of entry. This is known as the CIF (Cost, Insurance, Freight) method and is what HMRC defaults to. So if you paid £10,000 for goods from your Chinese supplier, and paid £1,200 in sea freight to Felixstowe, the customs value is typically £11,200 — that's what duties are calculated on.
Some importers use FOB (Free on Board) pricing and add UK freight separately on their commercial invoice. Under HMRC's rules, you still need to include the cost of getting the goods to the UK port in the customs value, even if you're using FOB incoterms. This is a common area of confusion that can lead to artificially low customs declarations — which HMRC takes a dim view of.
Duty rates in the UK range from 0% (common for goods not made domestically, like certain electronics components) to 12% or more for some textile and footwear categories, and up to 20%+ for certain agricultural and processed food products. Most manufactured consumer goods from China attract rates in the 2%–8% range, but there are important exceptions. The rate you pay is determined entirely by the commodity code — the 10-digit code in the UK Trade Tariff that classifies your product.
These are not the same thing. Country of origin is where the goods were actually manufactured or substantially transformed — it determines which duty rate applies. Country of export is simply where the goods were dispatched from. A product made in Vietnam but transshipped via Singapore is still Vietnamese origin. This matters enormously because some UK trade agreements (like UKVFTA) only grant preferential duty rates for goods that genuinely originate in the preference partner country.
The UK Trade Tariff online tool (trade-tariff.service.gov.uk) is your go-to resource for finding the correct commodity code for your product. Every physical product imported into the UK must be assigned a commodity code — a 10-digit classification number that HMRC uses to determine the duty rate, any VAT reliefs, and any import controls or licensing requirements.
The system is based on the Harmonised System (HS), a globally standardised classification framework. The first 6 digits are international; the last 4 are UK-specific. Most importers classify their goods at a high level and miss the nuances — subcategories that attract very different duty rates. For example, a textile bag might be classified differently depending on whether it has wheels, whether it's designed for specific sports, and whether it's made of woven or knitted fabric.
If you're importing a new or unusual product, or if the classification isn't clear-cut, you can apply to HMRC for an Advance Tariff Classification. This gives you legal certainty on the correct code and protects you from disputes for three years. It takes 30 days and is free to apply for via the HMRC advance rulings service.
| Product Category | HS Chapter | Typical UK Duty Rate | Notes |
|---|---|---|---|
| Electronics / Consumer devices | Ch. 84–85 | 0%–3.7% | Many are zero-rated; check sub-classifications |
| Clothing & Apparel | Ch. 61–62 | 12% | Higher rates; UKVFTA can reduce for Vietnam origin |
| Furniture | Ch. 94 | 0%–5.7% | Varies significantly by material and type |
| Plastic housewares | Ch. 39 | 3.5%–6.5% | Kitchen goods, storage, containers |
| Gym / Fitness equipment | Ch. 95 | 2.7%–4.7% | Depends on type |
| Bags & Luggage | Ch. 42 | 2.7%–9.7% | Material composition affects rate significantly |
| Toys | Ch. 95 | 0%–4.7% | Also requires UK Toy Safety compliance |
| Health & Wellness products | Ch. 33, 38, 90 | 0%–6.5% | Regulated products may require MHRA registration |
This table is indicative only — always verify the current rate on the UK Trade Tariff website before placing orders. Rates listed are Most Favoured Nation (MFN) rates applicable to imports from countries (like China) that don't benefit from a UK preferential trade agreement.
Understanding the customs process end-to-end means you won't be surprised by delays, unexpected charges, or HMRC queries. Here's what actually happens when your shipment arrives at a UK port.
Before your goods arrive, your customs broker (or you, if you're self-declaring) needs to prepare and lodge an import declaration with HMRC's Customs Declaration Service (CDS). This declaration contains all the critical information: commodity codes, customs value, country of origin, the EORI number of the importer, and any applicable licence or permit references.
Key documents you or your freight forwarder will need include: the commercial invoice from your supplier, the packing list, the bill of lading (for sea freight) or airway bill (for air), the certificate of origin (if claiming preferential duty rates), and any product compliance certificates required for your product category.
The vast majority of sea freight from China and Vietnam to the UK arrives at Felixstowe (the UK's largest container port, handling around 50% of the country's container traffic) or Southampton. Goods arriving at these ports are held in a temporary storage facility until a customs declaration is lodged and any duties are paid or secured. Most declarations are cleared electronically in minutes; a small percentage are selected for physical examination by HMRC, which can delay release by 24–72 hours.
Once the declaration is accepted, HMRC calculates the customs duty owed. This is typically paid immediately via your customs broker's duty deferment account or directly. Once duty is paid, your goods are released to free circulation — meaning they can move freely within the UK. Import VAT (20%) is typically deferred using Postponed VAT Accounting.
Most small UK importers use a customs broker or freight forwarder to handle CDS declarations — and we'd recommend this approach for anyone new to importing. A good broker typically charges £40–£150 per customs entry depending on complexity and volume. Given that errors in customs declarations can result in penalties and delays, this is money well spent.
An EORI (Economic Operators Registration and Identification) number is a unique identifier issued by HMRC that you must have to import goods into the UK. Without an EORI number, your goods cannot be cleared through UK customs — full stop. UK EORI numbers start with "GB" followed by a 12-digit number.
Applying for an EORI number is free and takes 5–7 working days via the HMRC EORI application service. The critical point: apply for your EORI number well before your first shipment departs.
We've seen UK businesses wait until their goods arrive at Felixstowe before applying for their EORI number. The result: goods sit in port storage at a cost of £30–£100 per day while the number is processed. Don't make this mistake. Apply for your EORI number as soon as you decide to import, not when your goods are already on the water.
The Customs Declaration Service (CDS) is HMRC's primary electronic system for submitting import and export declarations. It replaced the older CHIEF system and became mandatory for all imports from October 2022. CDS declarations capture extensive data about each shipment: the importer's EORI number, commodity codes for each line item, customs values, country of origin, and references to any supporting documents.
If you're importing regularly, a Duty Deferment Account (DDA) allows you to defer customs duty payments until the 15th of the following month, rather than paying per shipment. This is a significant cash flow advantage for higher-volume importers. You'll need a bank guarantee or a cash deposit with HMRC to secure a DDA.
Import VAT is charged at 20% on the customs value of most goods entering the UK. However, for VAT-registered businesses, there's a very useful mechanism: Postponed VAT Accounting (PVA).
Postponed VAT Accounting allows UK VAT-registered importers to account for import VAT on their VAT return rather than paying it at the point of importation. Instead of paying 20% VAT upfront at the border (and then reclaiming it on your next VAT return, which could be months away), you simply declare and reclaim on the same VAT return — a net zero cash flow impact.
PVA is available to all UK VAT-registered businesses automatically. If you're VAT-registered and not using PVA, you're effectively lending HMRC a significant sum of money interest-free for up to 3 months.
If your business is below the VAT registration threshold, you'll need to pay import VAT upfront at the border and cannot reclaim it. For small importers, this import VAT becomes a real cost of goods. Factor in 20% import VAT on your landed cost if you're not VAT-registered.
Many small UK importers voluntarily register for VAT even before reaching the threshold, specifically to benefit from Postponed VAT Accounting and to reclaim import VAT. If you're planning to grow and import regularly, voluntary VAT registration from the start is often financially sensible. Speak with your accountant about the implications for your specific business.
This is where most UK small businesses go wrong. They see the unit price from their Chinese factory and think that's the cost. In reality, the landed cost — the actual total cost of getting that product into your UK warehouse — can be 40%–80% higher than the ex-works factory price, depending on the product and shipment method.
| Cost Component | Typical Range | Notes |
|---|---|---|
| Ex-Works factory price (goods) | Base cost | What you pay your supplier |
| Inland transport (factory to port) | £80–£250 | Per container, varies by factory location |
| Export customs clearance (China) | £50–£150 | Chinese customs broker fee |
| Sea freight (FCL or LCL) | £900–£2,800 (20ft), £1,400–£4,500 (40ft) | Highly variable; rates fluctuate seasonally |
| Marine insurance | ~0.3%–0.5% of cargo value | Strongly recommended |
| UK port handling (THC/BAF/surcharges) | £200–£600 | Terminal handling, bunker adjustment factors |
| UK customs broker / CDS entry | £60–£180 | Per customs entry |
| UK import duty | 0%–12%+ of customs value | Depends on commodity code and origin |
| Import VAT (if applicable) | 20% of (goods + freight + duty) | Reclaimable via PVA if VAT-registered |
| UK drayage (port to warehouse) | £300–£700 | Depends on distance from Felixstowe/Southampton |
| Warehousing / 3PL fees | Variable | Per unit storage and pick-and-pack |
The reality is: a product that costs £5 ex-works in Guangdong might cost £8.50–£10 landed in your UK warehouse before you've considered your own overhead. Build your landed cost model before you place your first order.
One of the most significant financial levers available to UK importers right now is the UK–Vietnam Free Trade Agreement (UKVFTA), which came into force in January 2021. Under UKVFTA, goods that genuinely originate in Vietnam can enter the UK at preferential (often zero or near-zero) duty rates. This is a major competitive advantage — and many UK small businesses simply don't know about it.
When UKVFTA was ratified, it immediately eliminated tariffs on approximately 65% of UK-Vietnam trade, with the agreement scheduled to reach 99.2% tariff elimination over time. For categories like textiles, apparel, footwear, and furniture — where standard MFN rates from China can be substantial — sourcing from Vietnam can generate meaningful duty savings on every shipment.
| Product Category | UK MFN Rate (China) | UKVFTA Rate (Vietnam) | Saving on £50K Order |
|---|---|---|---|
| Woven clothing (Ch. 62) | 12% | 0%–5% | Up to £6,000 |
| Footwear (Ch. 64) | 3%–17% | 0% | Up to £8,500 |
| Furniture (Ch. 94) | 0%–5.7% | 0% | Up to £2,850 |
| Leather bags / handbags (Ch. 42) | 9.7% | 0%–4% | Up to £4,850 |
| Electronics (Ch. 85) | 0%–3.7% | 0% | Minimal (already low) |
A UK clothing brand importing £200,000 of product annually from Vietnam rather than China could save £12,000–£24,000 per year in duty alone. Sea freight from Vietnam to the UK takes approximately 28–35 days via Southampton.
To claim UKVFTA preferential rates, your goods must genuinely originate in Vietnam. For textiles and apparel, this typically means a double transformation rule: fabric must be woven in Vietnam from yarn, and the garment must then be cut and sewn in Vietnam. Simply having goods assembled in Vietnam from Chinese fabric does not automatically qualify. Your Vietnamese supplier should be able to provide a EUR.1 movement certificate or a declaration of origin.
Customs duty is only one side of the import equation. Product compliance is the other — and it's arguably more legally significant, because selling non-compliant products in the UK can result in product recalls, Trading Standards investigations, and personal liability for company directors.
UKCA (UK Conformity Assessed) marking is the UK's replacement for the EU CE mark. It applies to a wide range of product categories sold in England, Wales, and Scotland, including electrical equipment, toys, pressure equipment, construction products, and personal protective equipment. Northern Ireland continues to use CE marking under the Windsor Framework.
For most lower-risk product categories, self-declaration against applicable UK Technical Regulations is permitted. However, you must conduct a conformity assessment, compile a Technical File, and issue a UK Declaration of Conformity.
The UK Product Safety framework has been updated significantly. For importers, a key point is that you — the UK importer or UK responsible person — are legally responsible for the safety of products placed on the UK market, even if manufactured overseas. You need due diligence documentation from your supplier, product test reports to applicable UK standards, and records that can be produced to Trading Standards on request.
UK REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) is the UK's standalone chemicals regulation framework, maintained by the Health and Safety Executive (HSE). It applies to importers of chemical substances — including restricted substances in textiles, plastics, electronics, or coatings. Your supplier should be able to provide a REACH compliance statement.
At Epic Sourcing, we've seen these patterns repeated across hundreds of clients. The good news is that all of them are avoidable.
The wrong code means the wrong duty rate — you might be overpaying, or underpaying (which creates a compliance risk). Use the UK Trade Tariff tool carefully, and when in doubt, apply for an Advance Tariff Classification from HMRC.
Asking your supplier to mark down the commercial invoice value to reduce customs duty is customs fraud in the UK. HMRC is increasingly sophisticated at identifying it through data matching and risk profiling. Always declare the genuine transaction value.
Without an EORI number, your goods will be held at the port and accrue storage charges daily. Apply well in advance — ideally the same week you sign your supplier agreement.
UK product compliance (UKCA, safety testing, REACH) needs to be factored into your product development timeline. Some compliance testing takes 4–8 weeks. Build compliance into your pre-production checklist.
If you're sourcing from Vietnam, you should be claiming UKVFTA preference rates on every eligible shipment. Make sure your freight forwarder knows to claim UKVFTA when submitting your CDS declarations.
Businesses that price their retail product based on factory quotes without accounting for freight, duty, VAT, and logistics frequently end up with wafer-thin or negative margins once all costs are in.
At Epic Sourcing, we work with UK small businesses across every stage of the import journey — from identifying the right supplier and managing production, through to landed cost modelling, compliance guidance, and logistics coordination.
For UK brands that want to start selling quickly using proven, existing products with your own branding. We source from pre-vetted factories, handle the supplier communication, and help you build your landed cost model so you know your margins before you order.
Learn about White Label →For UK businesses ready to customise their product — materials, specifications, packaging, labelling — from a verified manufacturer in China or Vietnam. We manage the full supplier qualification process and provide compliance documentation guidance.
Learn about Private Label →Our full-service OEM/ODM offering for brands developing a genuinely unique product from the ground up. Includes factory identification, spec development, samples, compliance liaison, QC inspections, and full project management from concept to UK warehouse.
Learn about Secret Label →Already found a supplier? We'll verify them. Our on-the-ground team in China conducts factory audits, checks business registration, reviews production capability, and gives you a detailed report.
Learn about Supplier Verification →Book a free 30-minute consultation with our UK team. We'll walk through your product, likely duty rates, compliance requirements, and what sourcing approach makes most sense for your business.
Book Your Free ConsultationYes, import duty applies to virtually all commercial goods imported into the UK from China, regardless of shipment value. The rate depends on the commodity code of your product. Some goods — particularly many electronics — attract a 0% duty rate, meaning no duty is owed, but you still need to declare the shipment and file a customs declaration via CDS. Always check the UK Trade Tariff for the current applicable rate before ordering, as rates are updated periodically.
Most standard sea freight shipments are cleared through UK customs — typically at Felixstowe or Southampton — within 24–48 hours of arrival, assuming all documentation is in order. The Customs Declaration Service processes the majority of declarations electronically within minutes. However, a percentage of shipments are selected for physical examination, which can extend the clearance process by 2–5 working days. Errors on the customs declaration, missing documentation, or questions about product compliance can also cause delays.
Import duty and import VAT are two separate charges. Import duty is a tax on goods based on their commodity code and country of origin. Import VAT is a 20% tax on the customs value of the goods. If your business is VAT-registered, you can use Postponed VAT Accounting (PVA) to account for import VAT on your VAT return rather than paying it upfront — making it cash-flow neutral. Import duty is always payable immediately and is not reclaimable. Both charges apply, but for VAT-registered importers, import VAT is effectively a timing difference rather than a real cost.
Yes — in many cases, sourcing from Vietnam can significantly reduce or eliminate UK import duty on textiles, apparel, footwear, and other product categories covered by UKVFTA. Goods that genuinely originate in Vietnam can enter the UK at preferential duty rates, often 0%. The key requirement is that your goods must meet the rules of origin — for apparel, this typically means the double transformation rule (yarn to fabric to garment, all in Vietnam). Your Vietnamese supplier needs to provide a EUR.1 certificate or origin declaration. Epic Sourcing can help you assess whether UKVFTA preference is available for your specific product.
Whether you need a UKCA mark depends on your product category. UKCA marking is required for most categories that previously required CE marking — including electrical equipment, toys, pressure vessels, PPE, and medical devices. If your product falls within a regulated category, you must affix UKCA marking before placing it on the UK market. For lower-risk categories, you can self-declare conformity, but you must compile a Technical File, conduct a conformity assessment, and issue a UK Declaration of Conformity. Products without required UKCA marking can be seized by Trading Standards.
UK import duties, customs compliance, and landed cost modelling don't have to be a headache. Epic Sourcing works with UK businesses every day to navigate exactly this — from finding the right supplier in China or Vietnam, to making sure your first shipment clears Felixstowe without a hitch.
Book a free consultation with our UK team and we'll help you map out the duty landscape, compliance requirements, and sourcing strategy for your specific product.
Epic Sourcing UK — 71-75 Shelton St, London WC2H 9JQ
