Importing Into The UK – A Guide

If you are new to the import/export business, it can be quite daunting. There are many rules for the movement of goods and they differ between countries, or even different parts of the same country. For the purpose of this article we will only be looking at the UK and EU. A really great source of import advice in the UK and EU is the IOE.

To begin with, movement of goods around the EU is remarkably easy. If the goods have been either cleared by EU customs already, or were manufactured inside the Eu boundaries, they can be freely moved around the EU with no charge. This policy is known as free circulation. Sometimes documentition will be required to prove the origin of the goods. This will usually be from the port or harbour authorities.

VAT/Duty

The amount of VAT charged by each country varies, although the idea of free circulation exisits in the EU. These figures vary from anywhere between 15-25%.

Your VAT rates will also be based upon which freight method is used to export or export your goods. For road, ship and airfreight, the ‘low value’ limit is £18.00. Anything under this value will not have taxes levied against it. For postal services, the duty bottom line has recently been raised to £135. However, VAT will still be levied on items over £18.00.

Import duty and/or VAT will be charged for all items over this price.

Other Points

Sadly, due to the new computerised logging systems, it is now no longer possible to clear your own goods. In smaller ports this used to be commonplace, but has been discontinued due to these new systems. Clearing agents must now be employed when dealing with any kind of international trade. It’s most likely you’ll benefit from their expertise, and many unexperienced importers have been saved time and money by them.

There are many other places that offer these customs clearance services, so you should feel no obligation to use any one company. It may be you can get an entire package with the freight forwarder.