Importing from China to the UK: duty, VAT and paperwork

Is there a trade deal?

The UK has no free trade agreement with China, so goods from China normally pay the third-country (UK Global Tariff) rate for their commodity code. China is not eligible for the UK's Developing Countries Trading Scheme.

Watch for trade remedies

Some products from China carry anti-dumping or countervailing duties on top of normal duty — for example certain steel and aluminium goods. These are listed against the commodity code in the UK Trade Tariff when you select China as the origin.

Low-value parcels

If the goods in a consignment are worth £135 or less, no customs duty is charged. VAT is normally charged by the seller at the point of sale instead of at the border. Excise goods such as alcohol and tobacco are excluded from this rule.

Working out the cost

Customs value is normally the price paid for the goods plus the cost of transport and insurance to the UK border.

Import VAT is charged on the customs value plus any duty. The standard rate is 20%, but some goods are reduced or zero-rated. VAT-registered businesses can usually account for it through postponed VAT accounting.

Duty vs VAT vs cash outlay

Illustrative example only (assumed 4% duty rate — check the real rate for your code): goods £1,000 + shipping £150 + insurance £10 = customs value £1,160. Duty 4% = £46.40. Import VAT 20% of (£1,160 + £46.40) = £241.28. Money you pay out: £1,447.68, plus any courier or broker fee. A VAT-registered business can usually reclaim the £241.28, so its final cost is about £1,206.40 — but the VAT is still paid up front unless it uses postponed VAT accounting.

Before you ship

Businesses importing into Great Britain need an EORI number starting with GB. You can apply for one on GOV.UK.

Check the commodity code carefully: the duty rate depends on it, and the declarant is legally responsible for the code used.

Official sources

• UK Trade Tariff — look up a commodity code
• Trade remedies notices (GOV.UK)
• Get an EORI number