Import duty

Import duty (customs duty) is a government tax on goods brought into a country. In the UK it is charged as a percentage of the customs value of the goods — typically the CIF value, meaning goods plus freight and insurance to the port of entry. The rate is determined by the commodity code and can range from 0% to well over 10% depending on the product.

The rate that applies depends on where the goods originate and whether any trade agreement or preference is in play. The default is the Most Favoured Nation (MFN) rate under the UK Global Tariff; a valid proof of origin under a trade agreement can reduce or remove it. Some goods carry extra duties, such as anti-dumping duty, on top of the standard rate.

Unlike import VAT, import duty is generally not recoverable — it is a permanent, sunk cost that goes straight into your cost base. That makes classifying goods correctly and checking for preferential rates genuinely worth the effort.