UK import duty calculator

Our UK import duty calculator is designed to help individuals and businesses estimate the import duties and taxes they may have to pay when importing goods into the United Kingdom. The calculator accounts for various factors such as the type of goods, their value, country of origin, and any applicable trade agreements or preferential rates to provide an estimate of the customs duties, value-added tax (VAT), and other charges that may be levied on imported items.

Page written by Chris Godfrey. Last reviewed on December 5, 2024. Next review due April 6, 2025.

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The data relies on the UK Trade Tariff Public API V2. Swoop is not responsible for misinterpretation, errors, or omissions from the displayed information.

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How to calculate UK import duty

Calculating UK import duty involves several steps, and the specific method depends on the type of goods, their value, and other factors. Here’s a general overview of how to calculate UK import duty:

  1. Determine the commodity code:Every product has a specific commodity code that classifies it for customs purposes. You can find the appropriate code using the UK Trade Tariff, which is available on the UK government’s official website. The code is essential for determining the correct duty rates.
  2. Determine the customs value: You need to know the customs valueof the imported goods. This means the total cost and it typically includes the price of the goods, shipping fees, and insurance premiums. Ensure that the value is in the correct currency and includes all costs up to the point of entry into the UK.
  3. Check for preferential rates: Depending on the country of origin and any trade agreements in place, you may be eligible for preferential duty ratesor exemptions. Ensure that you have the necessary documentation to prove the origin of the goods. Learn more about preferential duty rates and if you can claim them here.
  4. Calculate the import duty: To calculate the import duty, multiply the customs value of the goods by the applicable duty rate. Duty rates can vary widely, so refer to the UK Trade Tariffor consult with a customs expert for the precise rate.
  5. Calculate value-added tax (VAT): In addition to import duty, most imported goods are subject to VAT. Calculate the VATby multiplying the customs value (including any applicable import duty) by the current VAT rate in the UK.
  6. Other charges: Consider other charges that may apply, such as excise duties for certain products like alcohol, fuel and tobacco.
  7. Total cost: Add the import duty, VAT, and any other applicable charges to determine the total cost of importing the goods.
  8. Payment and customs declaration: Pay the import duty and VAT to UK Customs and declare the goods correctly on the customs declaration form. Ensure that you have all the required documentation, including invoices, certificates of origin, and shipping documents.

Important tip: Import duty rates can change at short notice and customs regulations continue to evolve, so it’s crucial to consult with UK Customs or a customs expert for the most up-to-date information and to ensure compliance with all import requirements. Additionally, this calculator is available to help simplify the process, but it should only be used as a reference and not a substitute for professional advice when dealing with complex import scenarios.

What’s the difference between import duty and excise duty?

Import duties are tariffs paid on goods entering (or occasionally leaving) the UK. Excise duties are paid on the domestic sale of certain goods and activities, such as alcohol, tobacco, motor fuel, and betting. Excise duties may be charged on products and services manufactured or delivered in the UK as well as on imported goods. Note that on excise products from outside the UK you must pay both import duty and excise duty.

Is import duty the same as customs duty?

Yes. Technically, taxes levied on products entering the UK are called customs duty, but importers often refer to these taxes as import duty or import tax. 

Is customs duty always required?

Not always. You’ll only be charged customs duty on all goods sent from outside the UK (or the UK and the EU if you’re in Northern Ireland) if they’re either:

  • excise goods
  • worth more than £135 

If you’re charged customs duty, you’ll need to pay it on both:

  • the price paid for the goods
  • shipping and insurance

How do I calculate import duty on goods from the US or China?

Since 31st January 2020 when Brexit became official, all goods entering the UK are subject to import duty regardless of where they come from. (Unless you’re in Northern Ireland which has special rules for imports and exports to the EU).

The rate you pay is determined by the value and the type of goods you import. Country of origin only impacts import duty when there is an active preferential trade agreement in place. Currently, the US and China are the only two countries in the UK’s top 25 export markets with which the UK does not have a special trade agreement.

To calculate the import duty on goods from either US or China follow the 8-step guide above.

Can I avoid paying import duty?

Unfortunately, there’s no real way to avoid import duty on goods coming into the UK if they’re due. What you have to pay – and how much – depends on the goods, whether their value comes under or above the £135 threshold, and what you intend to do with them. 

However, you might be able to pay a reduced customs tax or even pay none at all if you import goods temporarily including:

  • Samples
  • Professional equipment (such as film equipment or musical instruments)
  • Exhibition or demo goods

Or you may be able to claim relief from customs taxes on certain goods including:

  • Educational and cultural goods 
  • Printed or promotional goods

Can I get a business loan to pay for imported goods or services?

Yes. Trade finance is a type of business loan that’s designed to help UK businesses buy the goods or services they need from overseas suppliers. Borrow up to 100% of the cost of the goods or services and repay from 30 days up to a year. 

Other business loans for importers:

  • Invoice financing: Instead of waiting 30, 60, 90 days or more to get paid, receive up to 95% pf invoice value within 48 hours of raising the bill.
  • Asset finance: Buy major assets that are critical to the successful running of your business, such as machinery and vehicles. Borrow up to £10 million over periods as long as seven years, with interest rates starting from as low as 3%.

How Swoop can help

Interest rates and terms and conditions for trade finance and other business loans can vary significantly, so it is important to shop around for the best deal. This is where Swoop can really help. Contact us to discuss your borrowing needs, get help with your application and to compare high-quality business loans from a choice of lenders. Buy the goods and services you need without putting strain on cashflow. Register with Swoop today.

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