Introduction
Since the UK left the EU's single market on 1 January 2021, importing goods into the UK from Europe — or anywhere else in the world — requires a formal customs declaration submitted to HMRC. For many businesses making their first imports, this process can feel daunting. This guide breaks it down into clear, manageable steps.
What Is an Import Declaration?
An import customs declaration is an official document submitted electronically to HMRC that describes the goods you are importing, their value, their origin, and the customs procedure you want to apply. In the UK, all import declarations are submitted through the Customs Declaration Service (CDS) — the government's central customs IT platform.
When your declaration is accepted, HMRC assigns a Customs Entry Acceptance Number (C88/E2), which is your legal record of the import and the basis for any duty or VAT assessment.
Do You Need an EORI Number?
Before you can import goods, you must have a UK EORI number (Economic Operator Registration and Identification). This is a unique identifier assigned by HMRC that links all customs activity to your business. Applying for an EORI number is free and usually takes around 5 working days.
Without an EORI number, your goods cannot be cleared through customs and will be held at the port or airport.
Understanding Commodity Codes
Every product you import must be assigned a commodity code (also called a tariff code or HS code). This 10-digit number determines:
- The duty rate payable on your goods
- Any import licensing requirements
- Whether any trade remedies (such as anti-dumping duties) apply
- Eligibility for preferential duty rates under trade agreements
Getting your commodity code right is critical. Incorrect classification can result in underpayment of duty (leading to HMRC penalties and back-payments) or overpayment (unnecessarily increasing your costs).
Calculating Import Duties and VAT
Once you have the right commodity code, you can calculate the duty payable using the UK Global Tariff. The duty is calculated as a percentage of the customs value of the goods, which is generally the transaction value (what you paid) plus any transport and insurance costs to the UK port of entry (CIF basis).
In addition to customs duty, most goods are subject to import VAT at 20%. However, UK VAT-registered businesses can use Postponed VAT Accounting (PVA), which allows you to account for import VAT on your VAT return rather than paying it at the point of importation — a significant cash flow benefit.
Goods from the EU: Rules of Origin and Preference
Goods that originate in the EU may qualify for zero duty under the UK-EU Trade and Cooperation Agreement (TCA). However, to claim this preference, you must:
- Ensure the goods genuinely originate in the EU (meet the Rules of Origin)
- Obtain a valid proof of origin from your EU supplier (a supplier's declaration, REX statement, or EUR.1 certificate)
- Declare the preference claim on your import declaration
If you cannot provide a valid proof of origin, UK customs duty applies at the standard (MFN) rate.
The Role of a Customs Agent
Many businesses — particularly those new to importing — work with a customs agent (also called a customs broker or freight forwarder). A customs agent acts on your behalf to prepare and submit customs declarations, classify your goods, calculate duties, and manage the clearance process.
Working with an experienced customs agent reduces the risk of errors and delays, and ensures you remain compliant with HMRC requirements.
Key Documents for Import
When importing goods, you will typically need:
- Commercial invoice — showing value, seller, buyer, and description of goods
- Packing list — showing quantities and weights
- Bill of lading or airway bill — transport document
- Certificate of origin — if claiming preferential duty rates
- Import licence — for certain controlled goods (food, plants, chemicals, etc.)
Summary
Import declarations are a legal requirement for all commercial goods entering the UK. Getting them right requires accurate commodity code classification, correct valuation, and knowledge of applicable duty rates and trade agreements. If you are new to importing or want to ensure full compliance, working with a professional customs agent is the most reliable approach.
Ready to get started? Contact EU Customs Declaration for a free consultation.