Key Considerations when Importing Stock into the UK

Whether you’re importing goods from the EU or further afield, understanding the UK customs clearance process, documentation requirements and associated costs is essential to avoid delays and unexpected charges.

This guide covers the key considerations when importing stock into the UK, helping you plan effectively and keep your supply chain moving.

Jump to:

• Where Are You Sourcing Your Products From?
• Set Up Your EORI Number in Good Time
• Choosing the Right Freight Option
• Understanding Duty, Taxes and Commodity Codes
• How a Logistics Partner Can Help
• FAQs

Where Are You Sourcing Your Products From?

The process of import and customs clearance differs depending on where you are sourcing your products from as it has a direct impact on shipping costs, customs requirements and transit times.

Since Brexit, the UK treats goods imported from the EU in the same way as non-EU imports, meaning they are subject to customs declarations. Most manufacturers will provide pricing ‘ex works’, which means you’re responsible for:

• Freight
• Insurance
• Customs clearance
• Import duties and VAT

The further the goods have to go, the higher the cost will likely be, so it’s important to balance price, quality and logistics when selecting suppliers.

Set Up Your EORI Number in Good Time

An EORI number is required when importing goods to the UK and aren’t just exclusive to trade involving European countries, you’ll need one to import or export goods with any country.

This number will be required by Customs when the goods arrive in the UK, then HMRC will use it to process customs declarations, calculate duties and taxes and invoice your business for import charges that might be levied.

EORI numbers are free to set up but this needs to be done in good time, ready for your first import. The set-up can take some time, so make sure you set the process in motion as soon as possible so you have the number ready when the goods arrive. If there are any delays to the clearance process, you are likely to start incurring storage fees after a period of 24 hours.

Read our in-depth guide to EORI Numbers to find out more.

Choosing the Right Freight Option

It’s important to consider the speed with which your goods can be imported versus the cost. As you might expect, the faster methods cost more, so with good forward planning you can opt for slower shipping and save money.

Here’s a quick guide to freight type with associated speed and cost:

• Air Freight – fastest but most expensive
• Sea Freight – cost-effective for large or heavy consignments, but slower (minimum volumes apply)
• Courier services – convenient for smaller shipments

Check lead times from your manufacturers so you can plan ahead and are not forced into using the fastest, most expensive transport option.

Understanding Duty, Taxes and Commodity Codes

When goods arrive in the UK they will be required to go through customs clearance. Each product is classified under a commodity or tariff code.

HMRC uses this code to determine the level of duty applicable and invoice accordingly. In addition, you will be required to pay any VAT, which is usually charged on the value of the goods, shipping and insurance costs and any applicable duty. You can find an explanation of how the customs charges are calculated on the HMRC website.

Incorrect commodity codes or missing documentation account for some of the most common causes of customs delays so making sure you have all the right data and are prepared is essential.

How a Logistics Partner Can Help

Importing stock to the UK can feel complex, but with the right logistics partner, it doesn’t need to be. At ILG we have many years of experience in freight transport and customs clearance and can help you with all the advice you need to make your import of stock a smooth operation every time.

If you have any questions about importing stock into the UK or our warehousing and fulfilment services, get in touch with our team today.

FAQs

Do I need an EORI number to import goods into the UK?

Yes. If you are importing goods into the UK for commercial purposes, you must have a UK EORI number. Most businesses will need a GB EORI to import into Great Britain. Without an EORI number, your goods may be delayed at the border and incur storage charges.

Do I need to pay VAT when importing goods into the UK?

In most cases, import VAT is payable when goods enter the UK. However, VAT-registered businesses can usually use Postponed VAT Accounting (PVA), which allows import VAT to be declared and reclaimed on the VAT return instead of paying it upfront. This can significantly improve cash flow.

Are goods imported from the EU still subject to customs clearance?

Yes. Since Brexit, all goods imported from the EU into the UK require customs declarations, just like goods from non-EU countries. This includes providing commodity codes, customs values and the correct import documentation.

What is a commodity code and why is it important?

A commodity code (also known as a tariff code) classifies your product for customs purposes. HMRC uses this code to determine:

• The rate of import duty
• Any restrictions or licences required
• VAT treatment

Using the wrong commodity code can result in delays, fines or overpayment of duty.

How much duty will I pay when importing stock into the UK?

The amount of import duty depends on:

• The commodity code
• The country of origin
• The value of the goods

Visit the HMRC website for further details.

What documents are required to import goods into the UK?

Typical import documentation includes:

• Commercial invoice
• Packing list
• Bill of lading or airway bill
• Commodity codes
• EORI number

Additional documents may be required depending on the type of goods and country of origin.