Customs Duties

HMRC has a useful online tool to help UK business owners check how to import or export goods. This online tool can be used by businesses, the self-employed and agents acting on behalf of a business.

Using the online tool you can obtain information on:

• the commodity codes (reference numbers) you need to classify goods for import and export declarations;
• paying the right VAT and duties for your goods;
• which licences and certificates you will need for your goods; and
• how to move goods into a specific country.

There are many special procedures to be aware of when importing or exporting goods to / from the UK. Following the end of the Brexit transition period, the process for importing / exporting goods to / from the EU effectively mirrors the process for all other international destinations. There are different rules if you are moving goods in or out of Northern Ireland under what is known as the Windsor framework.

The online check can be a useful tool for smaller businesses and the self-employed to familiarise themselves with the necessary requirements and work accordingly. Businesses can make customs declarations themselves or hire a third party such as a courier, freight forwarder or customs agent to do the paperwork.

All businesses can now move their export declarations to the Customs Declaration Service (CDS), HMRC has confirmed.

Businesses who have yet to move their export declarations to CDS will have a transition period to move across, until 4 June 2024. After this date, customs declarations cannot be submitted through the Customs Handling of Import and Export Freight (CHIEF) service.

CDS is replacing CHIEF and provides businesses with a more user-friendly, streamlined system with greater functionality. It has been running since 2018 for import declarations and more than 100 million customs declarations have already been submitted through CDS, including more than 30% of all export declarations.

Paying duties and VAT

To make an import declaration you need to choose how to pay duties, VAT or excise.

The Customs Declaration Service allows you to manage your customs financial accounts and download statements. You can also give authority to others to use your accounts.

Check how to import or export goods

You can check how to import and export goods using the GOV.UK online service at https://www.gov.uk/check-how-to-import-export.

Using this facility you can get information on:

• the commodity codes (reference numbers) you need to classify goods for import and export declarations
• paying the right VAT and duties for your goods
• which licences and certificates you’ll need for your goods
• how to get goods into a specific country

You will also need to know the approximate date when the goods will arrive at or leave the UK border.

If your business does offer customs services, did you know that HMRC could offer you a free listing on their published lists.

HMRC do not vet, approve or recommend individual firms. Information is simply provided to HMRC by customs agents and fast parcel operators and listed as presented.

However, many businesses that need the services of an agent to manage their customs requirements, will likely be accessing the government listings.

To add your business to the government lists you are requested to:

Email customsagentstrainingproviders@hmrc.gov.uk with:

• the name of your business
• your contact telephone number, email address and business website address
• if you would like to be listed as an agent, a fast parcel operator, or both

You can also advise HMRC if you:

• are available to take on new clients
• can function as a direct representative or indirect representative, or both
• provide services for smaller traders
• can help move goods subject to sanitary and phytosanitary checks
• offer customs clearances using advance fixing certificates, roll on roll off port, or common transit
• offer customs services:
  • with a duty deferment account
  • using simplified declarations
  • for shipments of personal goods
• provide an advisory or consultancy service (for example, advice on supply chains, moving goods and trading terms)
• want to be signed up for the monthly Customs Intermediaries Bulletin — which gives you the latest HMRC news for customs agents and fast parcel operators
• offer an out of hours service (outside of usual business hours which are Monday to Friday 9am to 5pm)
• can facilitate or assist with the movement of goods through pre-lodgement ports, using the Goods Vehicle Movement Service (GVMS)
• offer services for completing entry summary declarations for goods imported into Great Britain (England, Scotland and Wales) using the Safety and Security GB (S&S GB) service
• offer services to facilitate movements using Customs Declaration Service

You can ask for your company name or other details to be removed at any time.

The UK and Scottish governments have jointly announced that Inverness and Cromarty Firth Green Freeport and Forth Green Freeport have been successful in their bids to establish two new Green Freeports in Scotland. Each of these Freeports will be granted up to £26 million in funding over the next few years, primarily to address infrastructure gaps which are currently holding back investment.

Freeports are a special kind of port where normal tax and customs rules do not apply. Rather, there are simplified customs procedures and duty suspensions on goods. This announcement builds on the UK Government’s successful Freeport programme in England, where there are currently eight operational Freeports with a further five sites recently being granted final government approval.

After designation, businesses in Freeport tax sites are able to benefit from various tax reliefs including:

• an enhanced 10% rate of structures and buildings allowance;
• an enhanced capital allowance of 100%;
• full relief from Stamp Duty Land Tax;
• business rates relief on certain business premises within freeport tax sites; and
• employer National Insurance contributions relief, subject to Parliamentary process and approval.

The Customs Declaration Service (CDS) is a customs IT platform designed to modernise the process for completing customs declarations for businesses that import or export goods from the UK. A phased launch of the service started in August 2018 and was due to be completed by 31 March 2023. The CDS covers export declarations of goods sent from the UK. This phase has now been delayed until 30 November 2023, an 8-month delay. 

HMRC’s Director of Border Change Delivery commented that:

'We have moved the deadline to enable us to spend more time working with industry in delivering and testing critical functionality as well as the support needed to help declarants move across to the new system. The extra time also allows businesses and stakeholders more time to prepare their customers and software products for the November deadline.'

When the transfer to the CDS is complete, the old Customs Handling of Import and Export Freight (CHIEF) service will close. The first stage of this withdrawal started on 30 September 2022 when the ability to make import declarations on CHIEF closed for the vast majority of users. From 1 December 2023, the ability to make export declarations using CHIEF will also be withdrawn.

HMRC has confirmed that they will provide further information about the exact timeline for CDS exports by the end of January 2023.

Businesses importing goods must submit import declarations from 1 October 2022 using the Customs Declaration Service (CDS). The CDS is a customs IT platform designed to modernise the process for completing customs declarations for businesses that import or export goods from and to the UK.

A phased launch of the service started in August 2018. The CDS is used for making import and export declarations when moving goods into and out of the UK.

The CHIEF system is being withdrawn in two stages. The first stage, 30 September 2022, saw the ability to make import declarations on CHIEF close. From 1 October 2022, businesses who did not move across to the CDS are now unable to import goods into the UK. The second stage will happen on 31 March 2023 when the CHIEF system will fully close. From this date, the ability to make export declarations using CHIEF will also be withdrawn.

Even businesses that use a customs agents need to ensure they take the following steps:

• subscribe to the CDS;
• choose a payment method;
• check their standing authorities are correctly set up; and
• give their customs agent customs clearance instructions.

HMRC’s Director of Programme and Operational Delivery for Borders and Trade said:

'Those concerned about moving across to the Customs Declaration Service should work with a customs agent who is ready to use the system and can make declarations on their behalf.'

The Customs Declaration Service (CDS) is a new customs IT platform that has been designed to modernise the process for completing customs declarations for businesses that import or export goods from the UK. A phased launch of the service started during August 2018. The CDS is used for making import and export declarations when moving goods into and out of the UK.

The closure of the old Customs Handling of Import and Export Freight (CHIEF) service is imminent. The CHIEF system is over 25 years old and has struggled to cope with complex reporting requirements that could not easily or cost-effectively be accommodated within the existing service. 

The complete closure of the CHIEF system is marked for 31 March 2023. However, the CHIEF system is being withdrawn in two stages. The first stage, on 30 September 2022, will see the ability to make import declarations on CHIEF closed. This is a critical date. Businesses that have not moved across to the CDS will be unable to import goods into the UK from 1 October 2022.

Even businesses that use a customs agents need to ensure they take the following steps:

• subscribe to the CDS;
• choose a payment method;
• check their standing authorities are correctly set up; and 
• give their customs agent customs clearance instructions.

The CHIEF system will fully close on 31 March 2023 when the ability to make export declarations will also be withdrawn. 

The Customs Declaration Service (CDS) is a new custom's IT platform that has been designed to modernise the process for completing customs declarations for businesses that import or export goods from the UK. A phased launch of the service started in August 2018. The CDS is used for making import and export declarations when moving goods into and out of the UK.

When the CDS is fully operational, the old Customs Handling of Import and Export Freight (CHIEF) service will be closed. The CHIEF system is over 25 years old and has struggled to cope with complex reporting requirements that could not easily or cost-effectively be accommodated within the existing service. 

HMRC has confirmed that ahead of the 31 March 2023 complete closure, services on CHIEF will be withdrawn in two stages:

• 30 September 2022: import declarations close on CHIEF
• 31 March 2023: export declarations close on CHIEF / National Exports System (NES)

The decision to introduce the CDS was system driven to provide a more secure and stable platform and predated Britain’s vote to leave the EU. Importers and exporters should by now be well aware of the CDS system, and they or their agent should be starting to prepare for the further rollout and eventual replacement of the CHIEF system. As the deadline approaches, HMRC is urging businesses to move to the CDS as soon as possible.

There are special procedures for importing goods into the UK. Following the end of the Brexit transition period on 31 December 2020, the process for importing goods from the EU effectively mirrors the process for all other international destinations.

A number of easements had been put in place to help ensure a smooth transition for goods coming from the EU. This included a delay in the requirement for full customs declarations and controls until the end of this year.

From 1 January 2022, businesses will no longer be able to delay making import customs declarations under the Staged Customs Controls rules that have applied during 2021. This will mean that most businesses will have to make declarations and pay relevant tariffs at the point of import.

However, the introduction of some declarations has been deferred until 1 July 2022. These include:

• requirements for full safety and security declarations for all imports
• new requirements for Export Health Certificates
• requirements for Phytosanitary Certificates
• physical checks on sanitary and phytosanitary goods at Border Control Posts