UK Customs, Tariff Codes & Import Duty Basics

Tariff (commodity) codes

Every product crossing the border needs a commodity code from the UK Trade Tariff — usually 10 digits for imports. The code drives the duty rate, VAT treatment and any licensing requirements. Misclassification is one of the most common causes of clearance delays and retrospective duty bills; when in doubt, check the tariff on gov.uk or get a ruling.

Import duty and VAT

Import duty is calculated on the customs value (goods + freight + insurance) at the rate set by the commodity code and origin — preferential rates apply where trade agreements and rules of origin are met. Import VAT (usually 20%) is charged on the duty-inclusive value; VAT-registered importers typically use postponed VAT accounting to avoid cash-flow hits at the border.

Clearance, CDS and paperwork for drivers

Declarations go through HMRC's Customs Declaration Service, usually via a customs agent or forwarder. For accompanied freight, drivers need the movement reference (GMR via GVMS at RoRo ports) and should never board without confirmation the declaration is done — 'customs clearance completed' means the goods have been released, not just that paperwork was submitted.

Bonded (customs) warehouses let goods be stored duty-suspended until released to free circulation — useful for re-exports and cash flow.

Cabotage for UK and EU hauliers

Cabotage is domestic work done by a foreign-registered haulier. EU hauliers can currently perform limited cabotage in the UK after an international journey, and UK hauliers face equivalent limits in the EU (generally up to two additional movements after an international leg, within set time limits). Check current rules before planning multi-drop work abroad — the limits are enforced.