UK Import Duty: What You Pay, How It's Calculated, How to Reduce It
UK import duty is calculated as a percentage of the customs value (goods price + freight + insurance), with the rate set by the 10-digit commodity code in the UK Global Tariff. Import VAT of 20% is then charged on that value plus the duty. Legal ways to pay less: preferential origin under trade agreements (EU, Turkey, Vietnam, Japan, Australia), the DCTS scheme for developing countries, correct classification, and inward processing for goods you re-export.
What Carrgo handles
- Route and freight mode planning for UK importers and exporters.
- Customs readiness, documentation checks and port release support.
- Sea, air, road, rail, container and door-to-door freight options.
- Clear quote handling and monitored shipment handover.
Freight option comparison
| Option | Best for |
|---|---|
| Sea freight | Lower-cost container and bulk shipments. |
| Air freight | Urgent cargo and time-critical shipments. |
| Road freight | European pallets, groupage and full loads. |
| Customs support | Documentation, duty checks and release planning. |
What happens next?
- Send Carrgo your shipment details.
- Carrgo reviews route, freight mode and customs requirements.
- You receive clear freight quote guidance and next steps.
- We monitor the shipment and keep you updated throughout.
Freight forwarding FAQs
How do I find the duty rate for my product?
Look up the commodity code in the UK Integrated Online Tariff. The hard part is classification - similar products can sit in codes with very different rates (a finished garment vs fabric, a complete machine vs parts). Classification is also where importers most often overpay for years without realising; we review codes on every new product line.
Is import VAT a real cost or do I get it back?
If you are VAT registered, import VAT is recoverable - and with postponed VAT accounting you never pay it out in cash at all; it nets off on your VAT return. For non-VAT-registered importers it is a real 20% cost on the duty-inclusive value, which changes the maths on whether registering is worthwhile.
Can I really get 0% duty with trade agreements?
Yes - if the goods genuinely originate in the partner country and the invoice carries the required origin statement or certificate. EU, Turkish, Vietnamese, Japanese and Australian goods all have routes to zero duty. The catch is origin rules: goods merely shipped from a partner country but made elsewhere do not qualify, and HMRC audits origin claims.
What is the most common duty mistake importers make?
Calculating duty on the goods price alone. UK customs value is CIF - cost, insurance and freight to the UK border - so duty applies to your shipping cost too, and VAT applies on top of the duty. Quotes that ignore this understate landed cost by several percent, which is exactly the margin many products live on.