First-Time Importer UK: How to Clear Goods Through Customs Step by Step

Getting Started as a First-Time UK Importer

Importing goods into the United Kingdom for the first time can feel overwhelming. While many of the core principles — classifying goods, paying duties, clearing customs — apply globally whether you're importing to the UK, US, EU, or Australia, this guide focuses specifically on the UK process. Between EORI numbers, customs declarations, duty rates, and VAT accounting, there are dozens of moving parts — and getting any of them wrong can mean delays at the border, unexpected costs, or even goods being held by HMRC.

This guide walks you through the entire process, from registering as an importer to collecting your goods from the port. Whether you are importing a single pallet of product samples or your first full container load, the steps are the same.

Step 1: Get Your EORI Number

Before you can import anything into the UK, you need an Economic Operators Registration and Identification (EORI) number. This is a unique reference that HMRC uses to identify you as a trader.

How to apply:

• Apply online through the UK Government's EORI registration service at gov.uk
• You will need your company's VAT number (if VAT-registered), Companies House registration number, and Standard Industrial Classification (SIC) code
• If you are a sole trader, your National Insurance number is used instead
• Processing usually takes 5-10 minutes for VAT-registered businesses, but can take up to 5 working days for non-VAT-registered applicants

Your UK EORI number starts with GB followed by 12 digits. For VAT-registered businesses, it is typically GB followed by your 9-digit VAT number and 000.

Important: Since Brexit, a UK EORI number is separate from any EU EORI you may hold. If you also import through the EU, you will need an EU EORI as well.

Step 2: Classify Your Goods with the Correct Commodity Code

Every product you import must be assigned a commodity code (also called HS code or tariff code). This 10-digit code determines:

• The rate of customs duty you pay
• Whether any trade remedy measures apply (anti-dumping duties, quotas)
• Whether you need import licences or certificates
• The VAT rate applicable to the goods

You can look up commodity codes using the UK Trade Tariff tool on GOV.UK or use our HS Code Lookup to search by product description.

Getting the commodity code right is critical. Misclassification can result in overpaid or underpaid duty, delays at the border, and potential penalties from HMRC.

Step 3: Determine the Duty and Tax You Will Owe

Once you know your commodity code, you can work out how much you will pay. Understanding UK import VAT calculation and customs duty rates is essential for budgeting your first shipment:

• Customs duty — a percentage of the customs value (typically the CIF value: cost of goods + insurance + freight). Rates vary from 0% to over 20% depending on the product and country of origin. See our full guide to UK import duty rates 2026 for common product categories
• Import VAT — currently 20% for most goods (5% for some categories, 0% for others). This is calculated on the customs value plus duty plus any additional charges. Learn more in our UK import VAT calculation guide
• Excise duty — applies to alcohol, tobacco, and fuel products

Use the Duty & Tax calculator on LandedCost.co to estimate your total import charges before your goods ship.

Step 4: Decide — Customs Broker or Self-Declaration?

You have two options for making your customs declaration:

Option A: Appoint a Customs Broker (Recommended for First-Timers)

A customs broker (also called a customs agent or freight forwarder) handles the declaration process for you. They will:

• Prepare and submit the customs entry on your behalf
• Advise on the correct commodity code
• Handle duty and VAT payments (you reimburse them)
• Deal with any queries from Border Force or HMRC
• Arrange release and delivery of your goods

Cost: Typically $75 to $200 per entry for standard consignments. Complex shipments or those requiring additional documentation may cost more.

How to find one: Look for brokers registered with the British International Freight Association (BIFA). Ask for references and check they have experience with your type of goods.

Option B: Self-Declaration via CDS

If you are confident in the process, you can submit declarations yourself through HMRC's Customs Declaration Service (CDS). To do this:

• Register for a CDS account through your Government Gateway
• You will need compatible software (community system providers like CHIEF/CDS-compatible platforms)
• Submit your declaration using the correct procedure codes, commodity codes, and document references

Self-declaration requires a solid understanding of customs procedures. Most first-time importers start with a broker and move to self-declaration as they gain experience.

Step 5: Prepare Your Documentation

Before your goods arrive in the UK, make sure you have all the required documents. Missing or inaccurate documents are the single biggest cause of customs delays.

Essential documents for every import:

• Commercial invoice — from your supplier, showing the goods description, quantity, unit price, total value, currency, Incoterms, and the buyer and seller details. You can generate professional invoices using the Invoice Generator on LandedCost.co
• Packing list — details of how the goods are packed, including carton count, weights (gross and net), and dimensions
• Bill of lading (sea) or air waybill (air) — the transport document issued by the carrier confirming the goods are on board
• Certificate of origin — may be required to claim preferential duty rates under a UK free trade agreement

Additional documents (depending on product type):

• Health certificates (food, animal products)
• Phytosanitary certificates (plants, wood products)
• CE/UKCA marking declarations (electronics, machinery, toys)
• Import licences (textiles from certain countries, firearms, controlled substances)
• Conformity assessment documents

Step 6: The Import Entry Process

When your goods arrive at a UK port or airport, the import process follows these stages:

6a. Goods Arrive and Are Reported

The shipping line or airline reports the arrival of cargo to HMRC. The goods are held in a temporary storage facility at the port.

6b. Customs Declaration Is Submitted

Your broker (or you, if self-declaring) submits a customs declaration via CDS. The declaration includes:

• Your EORI number
• Commodity code for each product
• Customs value (calculated according to the correct valuation method)
• Country of origin and country of dispatch
• Procedure codes indicating the customs regime (e.g., free circulation, inward processing)
• Document references (invoice number, transport document number, any licences)

6c. HMRC Risk Assessment

CDS runs your declaration through an automated risk assessment. Your shipment will be assigned one of three routes:

• Route 1 (Green) — cleared immediately. No further checks needed
• Route 2 (Orange) — documentary check required. HMRC reviews your paperwork before release
• Route 3 (Red) — physical examination. Border Force inspects the goods at the port

Most routine imports from trusted suppliers clear on Route 1. First-time importers may see more Route 2 checks initially.

6d. Duty and VAT Payment

Once your declaration is accepted, the duty and VAT become due. Payment methods include:

• Duty deferment account — a monthly account with HMRC (requires a bank guarantee). Most regular importers and all brokers use this
• Immediate payment — pay by bank transfer, BACS, or CHAPS before goods are released
• Customs credit card — available for smaller amounts

6e. Goods Are Released

Once payment is confirmed (or deferred) and any checks are complete, HMRC issues a release message. You or your haulier can then collect the goods from the port.

Step 7: Postponed VAT Accounting (PVA)

Since January 2021, UK importers can use Postponed VAT Accounting instead of paying import VAT at the border. This is a significant cash flow benefit.

How it works:

• Instead of paying import VAT when goods arrive, you account for it on your next VAT return
• You declare the import VAT in both Box 1 (output tax) and Box 4 (input tax) of your VAT return
• The net effect is zero — you do not physically pay the VAT, provided you can reclaim it
• You need a monthly postponed import VAT statement from CDS, which you must retain as evidence

Who can use PVA:

• Any VAT-registered UK business
• You do not need to apply — simply instruct your broker to use PVA on the customs declaration
• The correct Additional Procedure Code (1042) must be entered on the declaration

PVA eliminates the need to fund import VAT at the border, which for large shipments can be tens of thousands of pounds. This is especially valuable for businesses that are cash-flow sensitive.

Common First-Time Mistakes to Avoid

1. Not checking if your product needs a licence or certificate. Some goods require import licences, health certificates, or conformity assessments. If these are not in place before the goods arrive, they will be held at the port — and storage charges add up quickly.

2. Using the wrong commodity code. This affects everything: duty rate, VAT treatment, licensing requirements. If you are unsure, get a Binding Tariff Information ruling from HMRC.

3. Not having proper commercial invoices. The invoice must show accurate values. Undervaluing goods to reduce duty is illegal and will result in penalties.

4. Forgetting about storage charges. You typically get a few free days at the port. After that, container demurrage and port storage charges accumulate daily. Clear your goods promptly.

5. Not claiming preferential duty rates. If your goods originate from a country with which the UK has a free trade agreement, you may qualify for reduced or zero duty. But you must have the correct proof of origin documentation.

Costs to Budget For

Use the Duty & Tax calculator to estimate your total costs before committing to an order.

Next Steps for First-Time UK Importers

Once your first shipment clears successfully, the process gets easier. You will learn which documents your specific products need, how long clearance typically takes, and where you can optimise costs.

For your next import, consider:

• Setting up a duty deferment account if you import regularly
• Reviewing whether trade agreements can reduce your duty bill
• Using the Import Calculator to compare suppliers, shipping methods, and sourcing countries on a true total-cost basis
• Understanding how to calculate landed cost so you price your products profitably from day one

Importing to the UK is highly regulated, but it is manageable once you understand the steps. Take the time to get your first shipment right, and you will have a solid foundation for everything that follows. To understand the hidden costs of importing that catch beginners off guard, read our guide on 12 Hidden Import Costs That Eat Into Your Profit Margins.