What is import customs clearance?
Import customs clearance is the process of declaring goods to HMRC when they arrive in the UK, paying any applicable import duty and VAT, and getting the official release of those goods so they can enter free circulation. Every commercial shipment crossing the UK border must go through this process. Without clearance, your goods cannot leave the port, the airport, or the freight station.
If you are new to importing, customs clearance is probably the part that feels most intimidating. There is a lot of jargon: EORI numbers, commodity codes, CDS, PVA, C88s. And the consequences of getting it wrong can be expensive. Goods held at Felixstowe or Dover while you scramble to fix a documentation error is not a situation anyone wants to be in.
This article breaks it down step by step. It explains what happens during import customs clearance, who is responsible for what, what documents you need, and how duty and VAT are calculated. It also covers how the system works post-Brexit. If you are just starting out, it will give you a clear map of the process. If you have been doing this for a while, it will fill in the gaps.
Import customs clearance is HMRC’s process for checking and authorising goods that arrive in the UK from overseas.
When a shipment arrives, whether by sea at Felixstowe, by air at Heathrow, or by truck through Dover, it does not automatically enter the UK. It sits under customs control until a declaration is filed, the goods are assessed, and any applicable duty and VAT are accounted for. Only then can the goods be released.
Clearance involves three things happening in sequence. First, the importer (or their customs agent) submits a customs declaration to HMRC through the Customs Declaration Service (CDS). Second, HMRC assesses the declaration and calculates any duty and VAT owed. Third, HMRC issues a release and the goods can move to their final destination.
The process is the same whether you are importing a single pallet of goods or a full 40-foot container. Some shipments clear in minutes; others face examinations or queries that can take days. But every commercial import follows this same fundamental sequence.
The importer of record is legally responsible for customs clearance. That is the business or individual named on the import declaration as the person bringing the goods into the UK.
In practice, most importers do not file their own declarations. They appoint a customs agent (also called a customs broker or freight forwarder) to file on their behalf. The agent acts either as a direct representative, filing in the importer’s name with legal liability remaining with the importer, or as an indirect representative, taking on joint liability for the accuracy of the declaration.
Either way, responsibility for providing the correct information sits with the importer. If the commodity code is wrong, if the declared value is understated, or if a required import licence is missing, the importer faces the consequences. An agent can file the declaration, but they depend entirely on the information you give them.
This is why understanding the process matters, even if you plan to use an agent. You need to know enough to give your agent accurate instructions and spot problems before they become expensive.
Here is what happens from the moment your goods leave the exporting country to the moment they arrive at your warehouse.
Step 1: Shipment departs the country of origin
The exporter sends the goods and issues the commercial invoice, packing list, and transport document (bill of lading for sea freight, airway bill for air freight). These documents travel with the shipment and are the foundation of your customs entry.
Step 2: Pre-arrival notification
For sea freight arriving at major UK ports, the carrier notifies HMRC before the vessel arrives. This is the Safety and Security declaration (ENS, Entry Summary Declaration). Your freight forwarder typically handles this. It gives HMRC advance intelligence on what is arriving.
Step 3: Goods arrive at the UK port or airport
The vessel, aircraft, or truck arrives and the goods are unloaded into a temporary storage facility: a Container Freight Station (CFS), a bonded warehouse, or a port compound. The goods are under customs control at this point. They cannot move until customs clearance is complete.
Step 4: Customs declaration is lodged on CDS
Your customs agent submits the import declaration through CDS, the Customs Declaration Service. This is the digital system HMRC uses to receive and process all import entries. The declaration includes the commodity code, customs value, country of origin, importer’s EORI number, and all other required data.
Step 5: HMRC processes the declaration
CDS processes the entry automatically in most cases. The system calculates the import duty owed based on the commodity code and customs value. It also calculates import VAT. If you are using Postponed VAT Accounting (PVA), the VAT is deferred to your VAT return rather than collected at the border.
Step 6: Duty payment
Import duty is collected at the border, either immediately or via a duty deferment account. A duty deferment account allows registered importers to pay duty in a single monthly payment rather than transaction by transaction. Your customs agent can advise on whether a deferment account makes sense for your import volumes.
Step 7: Risk assessment and route allocation
HMRC’s risk profiling system assesses every declaration. Most are routed to immediate release (Green Route). Some are routed to documentary checks, where HMRC requests supporting documents before releasing the goods. A small percentage are routed to physical examination, where the goods are inspected.
Step 8: Documentary checks (if applicable)
If HMRC requests documents, your customs agent submits the commercial invoice, packing list, and any other requested paperwork. HMRC checks that the documents match the declaration. This can take a few hours to a couple of days depending on HMRC’s workload.
Step 9: Physical examination (if applicable)
If the goods are selected for physical inspection, a Border Force officer or HMRC examiner inspects the container or consignment. This may involve opening the container and checking goods against the packing list. Examination adds time and, in some cases, cost.
Step 10: Release of goods
Once HMRC is satisfied, whether no exam was required or examination has passed, the goods are released from customs control. Your haulier or freight forwarder collects the goods from the port and delivers them to your nominated address. You receive a C88 (the customs entry document) confirming clearance.
Getting your documents right before the goods arrive is the single most effective thing you can do to avoid delays. Missing or incorrect documents are the most common cause of customs holds.
| Document | What It Is | Why It Matters |
|---|---|---|
| Commercial Invoice | Seller’s invoice showing goods description, quantity, unit price, and total value | Establishes the customs value — HMRC calculates duty and VAT from this |
| Packing List | Itemised breakdown of the shipment by package, weight, and dimensions | Allows HMRC to verify what is in the consignment |
| Bill of Lading (sea) or Airway Bill (air) | Transport document issued by the carrier | Proves the goods are in transit and who the consignee is |
| Certificate of Origin | Document confirming where the goods were manufactured | May reduce duty rate under a UK trade agreement (e.g. UK-EU TCA) |
| Import Licence | Government-issued permission to import certain goods | Required for controlled goods — food, plants, chemicals, weapons, CITES species |
| Phytosanitary / Health Certificate | Government-issued health certificate | Required for food products, live animals, and certain plant materials |
| EORI Number | Your UK business registration number for customs | Must appear on every customs declaration |
| Commodity Code (HS Code) | 10-digit tariff code classifying your goods | Determines the duty rate and any import controls |
A note on the commercial invoice: HMRC uses the commercial invoice to establish the customs value. The invoice must show the actual price paid for the goods, not an estimated or simplified figure. Undervaluing goods to reduce duty is a customs offence. Make sure your supplier’s invoice accurately reflects the transaction.
Import duty is a tax on goods imported into the UK. The amount you pay depends on two things: the commodity code and the customs value.
Commodity codes are 10-digit codes from the UK Global Trade Tariff. Every product has a code, and the code determines the duty rate. Some goods attract no duty at all (0%). Others face rates of 3%, 6%, 12%, or higher. Clothing and footwear often attract duty rates of 10–12%. Agricultural products can be much higher.
You can look up commodity codes on the HMRC Trade Tariff at https://www.trade-tariff.service.gov.uk.
Customs value is the value HMRC uses as the basis for calculating duty. For most imports, this is the transaction value: the price actually paid for the goods, adjusted to a CIF (Cost, Insurance, and Freight) basis. That means the price you paid to the supplier, plus international freight costs, plus insurance to the UK border.
The calculation:
Customs Value = Price paid to supplier + international freight + insurance
Import Duty = Customs Value x Duty Rate
For example: you import goods worth £10,000, freight costs £800, and insurance is £50. Your customs value is £10,850. If the duty rate is 6%, your import duty is £651.
Import duty is generally paid at the point of clearance. If you have a duty deferment account, you pay all duties arising in a calendar month in a single payment on the 15th of the following month. This improves cash flow for regular importers.
There is no duty on goods with a customs value below £135, but VAT still applies.
On top of import duty, most goods imported into the UK attract import VAT at 20%. This applies to virtually all commercial imports, regardless of whether the importer is VAT-registered.
Import VAT is calculated on a slightly different base than import duty. It is charged on the VAT value, which includes the customs value plus the duty paid:
The calculation:
VAT Value = Customs Value + Import Duty
Import VAT = VAT Value x 20%
Using the earlier example: customs value £10,850, import duty £651. VAT value = £11,501. Import VAT = £2,300.20.
For VAT-registered businesses, this is not a permanent cost. If you are importing goods for business use, you can reclaim import VAT on your VAT return, but only if you are VAT-registered and have the correct documentation. If you pay VAT at the border, your evidence is the C79 certificate. If you use Postponed VAT Accounting, your evidence is your Monthly Postponed Import VAT Statement (MPIVS).
For businesses that are not VAT-registered, import VAT is a real cost with no mechanism for recovery. This is an important factor when calculating the landed cost of imported goods.
Postponed VAT Accounting (PVA) is one of the most useful tools available to UK importers. If you are VAT-registered, it allows you to account for import VAT on your VAT return rather than paying it at the border.
Without PVA, you pay import VAT when the goods clear customs, cash out the door immediately. With PVA, the VAT is deferred. You account for it on your next VAT return, where you also reclaim it (assuming the goods are for business use). The net result is often zero cash impact. But the timing benefit, keeping that VAT in your account for weeks rather than paying it at the border, can be significant for businesses with high import volumes.
How to use PVA:
PVA is available by default to all VAT-registered UK importers. You do not need to apply for it separately. But your customs agent needs to know you want to use it. Make sure they include the PVA indicator on every import declaration.
One important point: if you forget to elect for PVA on an import entry and VAT is collected at the border instead, you can still reclaim it, but you will need the C79 certificate as your evidence. Do not discard C79 certificates.
The Customs Declaration Service (CDS) is the digital system HMRC uses to receive, process, and record all UK customs declarations. It replaced the previous system, CHIEF (Customs Handling of Import and Export Freight), which was decommissioned for import declarations in 2023.
If your customs agent files import entries on your behalf, they are filing through CDS. You do not need to interact with CDS directly; that is what the agent is for. But understanding what the system does helps you understand the process.
Every import declaration submitted through CDS includes:
Once submitted, CDS processes the entry and routes it: immediate release, documentary check, or physical examination. For entries that clear immediately, the electronic release message is generated within minutes in many cases.
You can access your CDS account through HMRC’s Government Gateway. Your customs agent should also provide you with a copy of the completed entry and the C88 once clearance is obtained. Keep every C88. They are your official evidence of clearance for each import.
HMRC and Border Force examine a small percentage of import consignments. The exact rate is not published, but it is generally a low single-digit percentage of all entries, though this varies by commodity type, country of origin, and importer profile.
Why goods are selected for examination:
Examinations are risk-based. HMRC’s profiling system looks at a range of factors, including:
What happens during an examination:
Border Force or an HMRC officer inspects the consignment. This can range from a document check at the examination facility to a full physical inspection where a container is opened, goods are counted, and descriptions are verified against the packing list. In some cases, samples are taken for laboratory analysis. This is common with food products or goods where the tariff classification depends on composition.
Costs and timing:
Examinations take time. A routine exam might be completed in a few hours. A full inspection with lab analysis can take several days. Examination fees, covering the cost of the examination facility, container movements, and any re-stuffing, are typically charged to the importer. Costs can range from a few hundred pounds to over £1,000 depending on the port and the complexity of the work.
You cannot avoid being selected for examination. What you can do is make sure your documentation is complete and accurate so that when your goods are examined, they clear quickly.
A customs hold means HMRC has placed your goods under a formal hold pending further action. Your goods are in the port, they cannot move, and storage charges are accumulating.
Common reasons for a customs hold:
How to resolve a customs hold:
Contact your customs agent as soon as you are told the goods are on hold. They will find out what HMRC requires. The resolution depends on the reason:
Respond to queries promptly. Every day the goods sit in the port adds storage costs. Port storage at Felixstowe or Southampton can run to £50–£200 or more per container per day, and these charges fall entirely on the importer.
The UK has a £135 de minimis threshold for customs duty. Goods with a customs value below £135 are not subject to import duty. But this does not mean they are free from all customs requirements.
What the £135 threshold means in practice:
For goods sold directly to UK consumers by overseas sellers, the rules changed significantly from January 2021. Overseas sellers with UK sales above £70,000 per year must register for UK VAT and account for it on goods sold to UK consumers at the point of sale, rather than at the border. This applies to goods sold through online marketplaces as well.
For B2B imports, a UK business importing from an overseas supplier, the standard import process applies even for low-value goods. You still need a customs declaration and still need to account for VAT correctly.
Practical implications for small importers:
If you regularly import low-value sample shipments or test orders, do not assume they are customs-free. The duty saving may be real, but you still need a compliant customs entry filed through CDS, and you still need to account for VAT. A customs agent can usually handle low-value entries quickly and at low cost.
The vast majority of UK importers use a customs agent to handle their clearance. A small number file their own entries directly through CDS. Both approaches are legitimate. The right choice depends on your volume, complexity, and appetite for learning a specialised system.
Using a customs agent:
A customs agent is a specialist who files import declarations on your behalf through CDS. Most freight forwarders offer customs brokerage as part of their service. Independent customs brokers also operate across the UK.
Costs vary, but a typical customs entry fee is £40–£120 per entry, depending on complexity. Some agents charge additional fees for examination attendance, document handling, or out-of-hours work.
The advantage is expertise and speed. A good customs agent knows the tariff, understands the compliance requirements for your specific goods, and can resolve queries faster than an importer working through the process for the first time.
The risk is dependency. If your agent makes an error, for example classifying the goods with the wrong commodity code, you as the importer are still legally responsible. You need to understand enough about the process to sense-check what your agent is doing.
DIY customs clearance:
Filing your own declarations requires you to register for CDS access, understand the UK Trade Tariff, and be able to complete a customs entry accurately. HMRC provides guidance, and there are software providers that support self-filing. But the learning curve is steep, particularly for importers dealing with multiple commodity types.
DIY clearance works best for importers with consistent, simple shipments: always the same goods, the same supplier, and the same commodity code, and who are willing to invest time in learning the system properly.
For most importers, particularly those new to importing, using a customs agent is the right call. The cost per entry is modest compared to the cost of getting it wrong.
Brexit changed UK import customs clearance in fundamental ways. Before 31 December 2020, goods moving between the UK and EU were not subject to customs declarations. From 1 January 2021, they were.
Great Britain (England, Scotland, Wales):
All goods arriving in Great Britain from the EU now require full customs clearance, the same as goods arriving from anywhere else in the world. This means import declarations through CDS, commodity codes, customs value assessments, duty calculations, and VAT accounting. There are no exceptions for EU goods.
The duty rates that apply depend on whether the goods qualify under the UK-EU Trade and Cooperation Agreement (TCA). Goods originating in the EU can enter the UK at 0% duty if they meet the TCA’s rules of origin requirements. But “originating” means the goods were substantially made in the EU, not just shipped through. Your supplier must provide a statement on origin or a EUR.1 movement certificate to support a 0% duty claim.
Northern Ireland:
Northern Ireland operates under different rules to Great Britain. Under the Windsor Framework, Northern Ireland remains aligned with EU single market rules for goods. Goods moving from the EU to Northern Ireland are not subject to the same full customs checks as goods moving to Great Britain.
But goods moving from Great Britain to Northern Ireland that are “at risk” of moving onward into the EU face customs procedures. The Windsor Framework introduced the UK Internal Market Scheme (UKIMS) to simplify movements for businesses trading within the UK domestic market. The rules are complex, and specialist advice is strongly recommended for businesses operating across GB and NI.
For Northern Ireland customs declarations, HMRC uses a separate EORI prefix: XI rather than GB. If you are based in Northern Ireland and trade with the EU, you may need an XI EORI in addition to any GB EORI you hold.
UK businesses exporting to the EU:
UK businesses exporting to the EU now face EU customs clearance on the EU side of the border. This is typically handled by the EU buyer or their customs agent. But if you are selling under DDP (Delivered Duty Paid) Incoterms, you are responsible for EU import clearance. That means you need either an EU EORI number or an EU-based customs representative acting on your behalf.
Post-Brexit customs compliance has added cost and complexity for UK-EU trade. Build these costs into your pricing and allow extra time for clearance, particularly for time-sensitive shipments through Dover or Folkestone.
Here is a realistic scenario for a UK importer bringing a container from China through Felixstowe.
The importer: Brightfield Home, a UK-based homeware retailer, placing a seasonal order with a manufacturer in Guangzhou. Goods: ceramic mugs and storage jars, 500 cartons, shipped in a 20-foot container.
The shipment: The goods leave Guangzhou by sea. Transit time to Felixstowe is around 28–30 days. Total invoice value: £18,000. International freight: £1,800. Marine insurance: £90.
Customs value calculation:
Customs Value = £18,000 + £1,800 + £90 = £19,890
Commodity code: 6912 00 50 (ceramic tableware, other than of porcelain or china). Duty rate under the UK Global Trade Tariff: 12%.
Import duty:
Import Duty = £19,890 x 12% = £2,386.80
Import VAT (using PVA):
VAT Value = £19,890 + £2,386.80 = £22,276.80
Import VAT = £22,276.80 x 20% = £4,455.36
Because Brightfield Home is VAT-registered and has instructed their customs agent to use PVA, the £4,455.36 import VAT is deferred to their next VAT return. They account for it as both output and input VAT, the net cash impact is zero. The £2,386.80 import duty is paid through their duty deferment account, due by the 15th of the following month.
The clearance process:
The vessel arrives at Felixstowe on a Wednesday morning. Brightfield’s freight forwarder lodges the import declaration on CDS that afternoon. The entry is routed to immediate release. The release message is issued within two hours. The haulier collects the container on Thursday morning. Goods arrive at Brightfield’s warehouse in the East Midlands on Thursday afternoon.
Total landed cost breakdown:
| Item | Cost |
|---|---|
| Goods (invoice value) | £18,000.00 |
| International freight | £1,800.00 |
| Marine insurance | £90.00 |
| Import duty | £2,386.80 |
| Customs entry fee (agent) | £85.00 |
| Port handling and UK delivery | £620.00 |
| Total landed cost | £22,981.80 |
If something had gone wrong: A missing import licence, a wrong commodity code, or an incorrect customs value could have triggered a hold. A one-day storage delay at Felixstowe typically costs £120–£180 in port storage charges for a 20-foot container, plus any haulier rescheduling costs.
Getting the documentation right from the start is always cheaper than fixing it after the goods arrive.
What is the difference between customs clearance and customs examination?
Customs clearance is the full process of declaring goods to HMRC and getting their release. Customs examination is one possible step within that process, a physical check of the goods by Border Force or HMRC. Most shipments clear without a physical examination. When an examination is required, it extends the clearance timeline by anywhere from a few hours to several days.
How long does import customs clearance take?
For a straightforward entry routed to immediate release, clearance can be completed within an hour of the declaration being lodged. Documentary checks typically add one to three days. Physical examinations can add two to five days, or longer if lab testing is required. The biggest cause of delay is missing or incorrect documents. Having everything ready before the goods arrive is the best way to avoid problems.
Do I need an EORI number to import goods into the UK?
Yes. Every import declaration must include a valid EORI number identifying the importer. Without one, the declaration cannot be submitted and your goods will not be released. Apply for an EORI number via HMRC at https://www.gov.uk/eori. It is free and usually processed within three working days.
What happens if I pay too much import duty?
If you have overpaid duty, for example because the commodity code was incorrect and the correct rate is lower, you can apply to HMRC for a repayment using form C285. There is a time limit for making such claims (generally three years from the date of the import declaration), and you will need to provide evidence supporting the correct classification.
Can I import goods without a customs agent?
Yes. You can file your own import declarations through CDS if you have the necessary access and knowledge. But the UK Trade Tariff is complex, and errors in classification or valuation can result in underpayment of duty (a compliance risk) or overpayment (a real cash cost). Most importers, particularly those new to the process, are better served by using an experienced customs agent.
What is a commodity code and why does it matter?
A commodity code (also called an HS code or tariff code) is a 10-digit number that classifies your goods under the UK Global Trade Tariff. The code determines the duty rate, any import prohibitions or restrictions, and whether preferential rates apply under a trade agreement. Using the wrong code, even accidentally, can result in underpayment of duty, which HMRC may pursue with interest and penalties. Always verify your codes before your first import, and review them if your product specifications change.
What is a C88 and why do I need it?
The C88 is the UK customs entry document, the official record of your import declaration and its acceptance by HMRC. Your customs agent should provide you with a copy of the C88 for every import entry. Keep them. They are your evidence that the goods were properly declared and cleared. They are also relevant in VAT audits, duty repayment claims, and compliance reviews.
What does “entry into free circulation” mean?
When HMRC releases goods from customs control, those goods enter free circulation. This means they are fully released into the UK economy and can be sold, used, or moved without further customs restriction. Goods held in a bonded warehouse or under a special customs procedure are not yet in free circulation. They remain under HMRC control, and duty and VAT have not been finally paid.
This article is part of a learning path — return to explore more topics.
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