UK Duty

How much import duty you will pay will depend upon the value and type of goods being imported as every product has a different duty percentage rate. In order to calculate the percentage of duty payable you can ask your UK freight agent or work it out yourself using the online tariff from the  UK government website . Much will depend on how the goods are classified and described so you will need a detailed description of the product and must take the time to allocate them to the correct tariff heading. Failure to get this right can result in costly fines and penalties. These tariff codes are often referred to as HS Codes.

How do HS Codes work?

Whenever any goods are imported to the UK, a HS code needs to be used so that you can work out how much the percentage of duty will be. As the importer, you are legally bound to ensure that this is noted correctly. You will need a detailed description of the products to work out which category of tariff your goods fall into. With this in hand, you can calculate the correct UK duty and VAT.

Calculating UK Duty and VAT

Here is a simple example to show you how to work out the costs of both UK duty and VAT:

Goods purchased from outside of EU (converted from USD to UK£) £5000.00
UK Duty at 3.5% £ 175.00
Cost of shipping to UK £ 500.00
SUB TOTAL £5675.00
VAT @ 20% on sub-total £1135.00

So in this example, the total of UK duty and VAT (tax) payable to import these goods to the UK is £175 + £1135 which is £1310. The real figure you pay may sightly different because the there is a VAT adjustment in the custom entry.