This free guide from our Portishead team explains exactly how to calculate UK import duty and import VAT yourself, with worked examples for goods from China, the USA and the EU. No sign-up required. For a confirmed figure tied to your specific goods, contact our team. We respond within 1 working hour.
How to Calculate UK Import Duty and VAT Yourself.
Working out your landed cost before you place an order takes 3 numbers and 1 lookup. Here is the calculation broken into clear steps.
Step 1: Find Your Commodity Code
Every product imported into the UK is assigned a commodity code under the UK Trade Tariff. This 10-digit code determines your duty rate. If you don’t know yours, search it at trade-tariff.service.gov.uk using your product description.
Step 2: Work Out Your Customs Value
Your customs value is the price you paid for the goods, plus insurance and freight costs to the UK border. This is known as the CIF value (Cost, Insurance, Freight). It is not just the product price, freight and insurance must be added in.
Step 3: Apply the Duty Rate to Your Customs Value
Look up the duty rate for your commodity code (this ranges from 0% to 12% for most goods, with some categories higher). Multiply your customs value by that percentage to get your import duty amount.
Step 4: Add Import VAT at 20%
Import VAT is charged at 20%, but not just on the goods value. It’s charged on the customs value PLUS the duty you calculated in Step 3. This catches a lot of first-time importers out, since it compounds on top of duty rather than being calculated separately.
Step 5: Add Duty and VAT Together for Your Total Liability
Duty amount + VAT amount = your total customs liability, payable (or deferred via PVA, see below) before your goods are released.
Worked Example.
Here’s the full calculation using real numbers, so you can see exactly how it flows through.
Scenario: Importing goods from China with a customs value of £10,000, commodity code carrying a 6% duty rate.
| Step | Calculation | Amount |
| Customs Value (CIF) | Given | £10,000 |
| Import Duty (6%) | £10,000 × 6% | £600 |
| Import VAT (20%) | (£10,000 + £600) × 20% | £2,120 |
| Total Customs Liability | Duty + VAT | £2,720 |
This is an indicative example only. Your actual duty rate depends on your specific commodity code, and trade agreement eligibility can change the rate entirely.
UK Import Duty Rates by Country of Origin.
The duty rate that applies to your goods depends on both the commodity code AND where the goods originate. Here’s how that varies by common UK import lane.
China
Goods of Chinese origin are subject to the UK Global Tariff standard rate for their commodity code. There is no UK-China free trade agreement. Typical duty rates on Chinese-origin goods range from 0% to 12% depending on the product category.
USA
Goods of US origin are subject to the UK Global Tariff standard rate for their commodity code. There is no UK-USA free trade agreement currently in force. Our Portishead team calculates the applicable duty rate at the quotation stage for every USA import enquiry.
European Union
Goods of EU origin may qualify for zero tariff under the UK-EU Trade and Cooperation Agreement where they meet the applicable rules of origin requirements. Our Portishead team assesses rules of origin eligibility and claims the preference on your customs entry where applicable.
Contact our team for customs coordination
India, UAE and Other Origins
Goods from countries with a UK trade agreement may benefit from reduced or zero duty rates where the relevant rules of origin are met. Our Portishead team checks trade agreement eligibility at the quotation stage for every import enquiry regardless of origin.
Import VAT and Postponed VAT Accounting (PVA).
Import VAT at 20% applies to all commercial imports into the UK. It is charged on the customs value of your goods plus the applicable import duty as shown in the worked example above. For businesses importing regularly or in high value, paying this at the point of importation has a significant negative effect on cash flow.
UK VAT-registered businesses can use postponed VAT accounting (PVA) to account for import VAT on their VAT return rather than paying it at the point of UK customs clearance. This defers the import VAT liability by up to the length of your VAT accounting period, providing a material cash flow benefit.
Our Portishead team applies postponed VAT accounting to every eligible import consignment we coordinate via our dedicated 3rd party agents at Felixstowe. If you are not currently using PVA, contact our team and we will confirm your eligibility.
Important: This Guide Provides Indicative Figures Only.
The calculation method and worked example above help you estimate and budget your landed cost. They are not a substitute for a confirmed customs duty calculation from our Portishead team.
Actual import duty rates depend on the precise commodity code classification of your goods, any applicable anti-dumping measures or trade policy measures, the correct customs value declaration and the country of origin determination. All of these factors are assessed by our Portishead team as part of every freight and customs enquiry.
For a confirmed, all-in figure covering import duty, import VAT and customs coordination costs, contact our Portishead team directly. We respond within 1 working hour.
Frequently Asked Question
UK import duty is calculated as a percentage of the customs value of your goods. The applicable percentage is determined by the commodity code of your goods under the UK Global Tariff and the country of origin. Use the step-by-step calculation above for an indicative figure. For a confirmed calculation, contact our Portishead team.
Import duty is a government charge based on the commodity code and origin of your goods. Import VAT at 20% is charged on the customs value of your goods plus the import duty amount. Both are payable at the point of UK customs clearance unless postponed VAT accounting is applied for the VAT element.
Import duty rates on Chinese-origin goods range from 0% to 12% under the UK Global Tariff, depending on the commodity code of your goods. Some product categories are subject to higher rates. There is no UK-China free trade agreement, so all Chinese-origin goods are subject to the standard UK Global Tariff rate.
Yes. UK VAT-registered businesses can use postponed VAT accounting to account for import VAT on their VAT return rather than paying it at the point of importation. Our Portishead team applies postponed VAT accounting to every eligible import consignment we coordinate as standard.
The customs value is typically the transaction value of your goods plus the cost of insurance and freight to the UK border, known as the CIF value. It is the figure on which import duty and import VAT are calculated. The customs value is declared on your CDS import entry and must reflect the true commercial value of the goods.
Goods of EU origin that meet the rules of origin requirements under the UK-EU Trade and Cooperation Agreement can enter the UK at a zero tariff rate. Goods that do not meet the rules of origin requirements are subject to the UK Global Tariff standard rate for their commodity code. Our Portishead team assesses rules of origin eligibility at the quotation stage.
