The different types of imports
There are a number of different ways to move your goods into the UK, depending on your circumstances. If you are moving goods between EU countries via the UK, you might want to consider using a T2 procedure. see the NCTS page for more information.
Permanent Import
Permanent Import is what most people think of when importing goods into the UK. Goods that have been permanently imported can move freely throughout the UK, be sold, processed, destroyed or re-exported entirely at will (this is known as Free Circulation).
Goods can be permanently imported directly from outside the UK, or if they are already under another procedure inside the UK they can be released for free circulation.
Inward Processing
If you are temporarily moving goods into the UK with the intention of processing or repairing them, then you would use Inward Processing. With the correct procedure and authorisation this allows you to bring goods into the UK with VAT and duty suspended. Once you re-export the goods the VAT and duty liabilities will end. If you do not re-export the goods before the authorisation period ends, or you want to bring the goods into free circulation, then you will be liable for the appropriate VAT and duty.
Temporary Admission
Goods can be temporarily moved into the UK for a specified period of time, before being re-exported. While the goods are under the temporary admission procedure, you will not be liable for VAT or duty.
The importer will normally need pre-authorisation for temporary admission, however under certain circumstances they can receive authorisation by declaration (i.e. authorisation is given the import declaration is made).
Apply to import goods temporarily to the UK
Entry to a Customs Warehouse
How to use a customs warehouse
Import taxes
Duty
Customs Duty is a charge on goods sent from abroad, and applies to individuals and businesses.
The amount can depend on a number of different factors, such as:
- the category of the goods (as defined by their commodity code)
- the commercial value - see Customs valuation of goods below
- the country of origin
- the amount of goods
There is not always duty to pay on imported goods, such as when the country of origin of the goods is from a country that the UK has a free-trade deal with.
VAT
VAT is payable when goods are purchased in another country and brought into the UK. It applies to individuals and businesses alike.
It is important to note that VAT is payable on the value of the goods plus any import duty that is due.
VAT can be paid using the same payment methods as for duty, or if a business is registered for VAT in the UK then it can be accounted for on it's VAT return using Postponed VAT accounting.
Excise goods
Excise duty is a type of tax that is payable on certain types of goods that are deemed harmful, such as alcohol, tobacco and types of oils. Excise duty is normally based on the volume and other specific factors such as alcohol by volume (ABV). Excise measures are clearly specified in the UK Integrated Online Tariff.
Personal goods
In general there is no difference in the taxes paid between importing goods as a business or as an individual. If you are moving household goods into the UK because you are moving to the UK, then you can claim relief from Duty and VAT.
Ports
There are three main categories of ports where you will complete import declarations: RoRo (roll-on roll-off), sea ports and airports.
RoRo transport is road vehicles that drive on and off either passenger ferries or freight ferries. These ports use the Goods Vehicle Movement Service (GVMS).
Sea ports transport containers, unaccompanied trailers and bulk goods. Operators of these ports use an "Inventory System".
Airports transport cargo in aeroplanes, typically inside "Unit Load Devices". Operators of these ports also use an "Inventory System".
GVMS / Non-inventory-linked ports
The Goods Vehicle Movement Service is a software service provided by HMRC, that is connected to CDS and NCTS which allows for faster clearance of goods travelling by road vehicle. The carrier is responsible for creating a Goods Movement Record (GMR) which contains all of the import/export/transit declarations, the vehicle reg and a few other pieces of information. The ferry operators usually require this to be completed before check in is permitted.
You can complete imports and exports at GVMS locations using ClearPort without any additional setup.
Inventory systems and badges
Sea and air freight terminals have different requirements to RoRo ports, and operate one of a number of 3rd party computer systems to manage the goods moving through their ports. In order to complete customs declarations at these ports, you will need to register with the inventory software provider and obtain a "badge". The badge helps the inventory system associate consignments to you.
Port Community Systems (MCP Plc) run Destin8
CNS run Compass
CCS UK run CCS
If you require assistance in purchasing a badge, please get in touch and we can explain the process to you.