Customs clearance is essential for goods importing or exporting to the UK. It can generate revenue and safeguard the economy, environment, and citizens.
But do you know what happens when your shipment reaches customs? This guide will demystify the UK customs clearance process and provide tips for seamlessly entering the United Kingdom.
Table of Contents:
UK customs clearance process overview
1. Assessment and verification
A customs officer reviews your documentation, including product codes, shipper information, the country of origin, etc. It’s essential that these documents, particularly the shipping label and commercial invoice, are accurate and complete.
Additionally, they will evaluate your shipment for compliance with UK regulations. It involves a detailed examination of the goods’ classification, which is crucial in determining the processing of your goods and the applicable tariffs.
2. Checking and applying duty and fees
The customs duties depend on the type of goods, their customs value, and the specific import regulations in the destination country.
These duties apply to goods exceeding the de minimis value, the minimum taxable threshold for imports.
For instance, the de minimis value in the UK is £135, meaning goods valued at £135 or less are exempt from import duties.
3. Payment for taxes and duties, if applicable
If your shipment surpasses the tax threshold, the customs officer will verify if the duties and taxes have been paid. Some restricted goods may incur charges regardless of their customs value.
In this situation, choosing between shipping with Delivered Duty Unpaid (DDU) and Delivered Duty Paid (DDP) becomes vital.
With DDP, the freight cost you should pay typically includes import fees and duties related to UK customs clearance.
Conversely, DDU means that import duties and taxes remain unpaid. And you may need to forward the shipment to an independent customs broker in UK to assist with the customs clearance.
4. Inspection and release
However, the customs authority will choose some shipments for a physical inspection. It is a routine procedure and, if requested, can add some time to the customs clearance process.
Once customs clearance is complete, your selected courier or trucking service will deliver the goods from customs to their final destination.
Documents required for clearing UK customs
The necessary documentation varies depending on the country. Generally, you may need to provide the below paperwork for shipping to the UK :
- Prime documentation: Commercial invoice, packing list, air waybill, bill of lading for sea freight, and a certificate of origin.
- Dangerous goods declaration: Necessary for hazardous material shipping.
- Import/export license: Required for trading specific items, such as animals, high-risk food, medicines, plants, etc.
- IPAFFS health certificate: Needed for certain imports from both EU and non-EU countries, replacing the EU’s TRACES system. It validates imports of live animals, animal by-products, high-risk food, feed, etc.
- Company EORI number: A unique identifier assigned to importers and exporters by HMRC, crucial for customs declarations and clearance for goods to or from the UK.
- Deferment approval number (DAN): An account number that allows businesses to defer payment of import duties and VAT for up to one month.
- Goods movement reference (GMR): Required for road freight arrivals into the UK from the EU, especially for ports using the Goods Vehicle Movement Service.
Ensure these documents contain all required information. Missing details can lead to delays in the United Kingdom customs clearance process.
How much does customs clearance cost in the UK?
In this section, we explore the duties and taxes involved in the UK customs clearance.
Customs duties
These charges can range broadly, typically from 0% to 25% of the goods’ value, except for gifts.
For example, gifts valued between £135 and £630 typically incur duties at a 2.5% rate or less, depending on the item.
VAT
This tax applies to most goods and services imported into the UK. The standard VAT rate in the UK is 20%, but there are exceptions. Some products, such as health-related items and heating fuel, are taxed at a reduced rate of 5%.
Additionally, essential items like most food, books, and children’s clothing are exempt from VAT. However, even exempt items must be reported in VAT returns, making accurate record-keeping crucial.
Anti-dumping and excise tax
Besides the standard duties and taxes, HMRC enforces two additional charges under specific conditions.
First, there is the anti-dumping duty, which is applied to products suspected of being sold in the UK below their normal value, especially when this practice harms or threatens local industries.
Second, the excise tax primarily pertains to items like alcohol and tobacco. The rates for these taxes vary based on factors such as the type and strength of the beverage.
With our ASLG DDP shipping services, you can avoid the hassle of calculating customs clearance costs.
Common pitfalls in UK customs clearance
Accuracy in declarations: One major challenge is ensuring the accuracy of information in customs declarations. Errors or omissions can lead to significant customs delays. Therefore, it is crucial to double-check thoroughly all entries.
Customs classification: Misclassifying goods is a frequent mistake. Using the correct commodity codes is essential for accurate duty assessments and compliance with UK customs regulations.
Valuation errors: Accurately valuing items for customs can be challenging, particularly with multiple transactions or self-produced goods. Ensuring the declared value represents the actual worth of the goods is essential for correct duty calculation.
Goods most frequently detained by UK customs
After learning about common errors that can cause delays, you may be curious about which items are often seized and destroyed by UK Customs. Here is a list of commonly detained goods:
- Medicines
- Hoverboards
- Electronic devices
- Intellectual property violations
- Mixed consignments
- Incorrectly labeled items
You should know that this list is not exhaustive. Many other items can get held by Customs, but these are some of the most frequent.
As a member of us, you can ship these products with a smooth and successful customs clearance. We are well-versed in the regulations and requirements applicable to these items, ensuring that your shipments comply with all necessary standards.
Simplifying UK customs clearance with ASLG
Feeling overwhelmed by the intricacies of the UK customs clearance process? Don’t worry—Airsupply is here to assist.
As seasoned experts in international shipping, we handle all the details to ensure your shipments pass through customs smoothly, without any delays or rejections.
Why choose us:
Customized solutions: We provide bespoke fulfillment and logistics services tailored to your unique needs, ensuring your business can scale effectively, regardless of its size.
Expert handling of complexities: Our experienced team expertly handles the minor details that can impact the customs clearance process.
Global reach, local expertise: With a presence in over 20 countries, including the UK, we can arrange international logistics while navigating local customs regulations.
FAQs about UK customs goods clearance
How long does UK customs clearance take?
The UK government states that customs clearance for air and road freight typically takes up to two hours, while sea cargo can be processed within three hours, as long as the necessary paperwork reaches the National Clearance Hub (NCH) between 8 am and 3 pm.
However, if there are issues with your document, the processing time could extend to 24 hours or even days or weeks.
Why do goods get held by customs? & what to do?
Goods can be detained by customs for several reasons, mainly concerning safety, compliance, or documentation issues.
At this point, you can promptly contact your freight forwarder to ascertain the specific cause of the hold and determine if additional information or certifications are necessary.
Do I need to pay customs?
Certainly yes. You must pay customs duty as long as you import goods valued over £135, whether for personal or commercial purposes.
When and how do I pay customs?
Customs clearance is required whenever goods cross a border or depart from a designated customs facility, such as airports, seaports, or tunnels on roadways.
As for payments, you can complete duties and VAT to customs via individual bank transfers, prepaid FAS accounts, or deferment accounts. VAT payments can also be postponed and managed through the company’s VAT return process.
How to avoid customs charges?
Generally, you can’t; Under-declaring goods with lower commodity codes or manipulating their values to evade duties and taxes are illegal practices.
But you can utilize Duty Relief Schemes to reduce duty payments. These schemes depend on factors such as the country of origin, type of product, and intended use, offering a legal way to manage customs duties effectively.
