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What Are the Requirements to Import Products into the UK?

Written by E-PickPack Team | Oct 17, 2024 9:46:59 AM

For eCommerce brands looking to expand into new markets, the UK represents a promising opportunity.

With a robust online shopping culture and access to customers across Europe, many brands aim to enter the UK market and ship products there.

However, understanding the import requirements is essential to navigating the complexities of customs, duties, and regulations.

This guide will break down the fundamental requirements for importing products into the UK.

By understanding the process, your eCommerce business can avoid costly delays, remain compliant, and successfully scale within the UK market.

Understanding UK Import Laws and Regulations

The first step to importing products into the UK is to become familiar with the country's import laws and regulations.

The UK has specific requirements for various product types, particularly when it comes to health, safety, and quality standards.

Key Regulatory Bodies

  • HM Revenue and Customs (HMRC): This is the primary government agency responsible for overseeing customs and import taxes in the UK. You’ll work with HMRC on most aspects of importing, from declaring goods to paying duties.
  • Department for Business, Energy & Industrial Strategy (BEIS): This department regulates consumer products to ensure they meet UK safety and environmental standards.
  • Product-Specific Regulatory Agencies: Certain products, such as food, pharmaceuticals, and electronics, are subject to additional regulations from agencies like the Food Standards Agency (FSA) and Medicines and Healthcare Products Regulatory Agency (MHRA).

Being aware of these agencies and understanding which ones apply to your products can help ensure a smooth import process.

Obtain an Economic Operator Registration and Identification (EORI) Number

An EORI number is essential for any business importing goods into the UK. This number is used by customs authorities to track and manage shipments entering the country. Without it, you won’t be able to clear goods through UK customs.

How to Get an EORI Number

To apply for an EORI number, you’ll need:

  • A VAT number (if you’re VAT registered)
  • Details about your business, including legal entity type and business address
  • Information about your planned imports

The application process is typically quick, and you can expect to receive your EORI number within a few days.

For businesses based outside the UK, it’s essential to apply for a UK EORI number, even if you already have an EORI for other countries in the EU.

Determine if You Need a License or Certificate

Certain products require licenses or certificates to enter the UK. If you’re importing goods such as controlled drugs, hazardous materials, or certain types of food and drink, additional documentation is needed to ensure compliance.

Commonly Required Licenses and Certificates

  • Import Licenses for Restricted Goods: If your products are on the restricted list (e.g., firearms, some agricultural products, etc.), you’ll need a specific import license.
  • Health and Safety Certificates: For items like food and medical products, certification is often required to verify compliance with UK health standards.
  • Product Certifications: Items such as electronics, toys, and machinery may need CE or UKCA (UK Conformity Assessed) markings, showing they meet UK safety and quality standards.

Checking product-specific requirements before importing can help you avoid delays at customs and ensure your goods meet UK regulatory standards.

Calculate and Understand Import Duties and Taxes

Import duties and taxes are a crucial part of importing products into the UK. As an eCommerce business, you need to be aware of these costs, as they can impact pricing and profitability. Import duties vary depending on the product type, origin, and the value of the goods.

Types of Import Taxes

  • Customs Duty: This is a tax imposed on imports based on their value and product classification. Customs duties can range from 0% to over 10% depending on the type of goods.
  • Value Added Tax (VAT): The standard VAT rate in the UK is 20%, although some goods may qualify for reduced or zero VAT rates. VAT is calculated based on the total value of the goods, including shipping, customs duty, and other costs.

To determine the precise import duty rates and VAT requirements for your products, you can use the UK Trade Tariff tool on the UK government’s website.

Additionally, you may consider using a customs broker or working with a fulfilment provider like E-PickPack, which can assist you in calculating import duties and managing the entire import process.

Correctly Classify Goods with Commodity Codes

Every product entering the UK needs a commodity code (also known as a Harmonised System Code or HS Code). This code identifies the type of goods and helps customs determine the appropriate duty rate, regulations, and import requirements.

How to Find the Right Commodity Code

  • Use the UK Government’s Trade Tariff Tool: The UK government provides an online tool where you can search for and identify the correct commodity code for your products.
  • Seek Help from a Customs Broker: Customs brokers are experienced in identifying commodity codes, especially for complex products.

Selecting the correct commodity code is crucial because it affects the duties and taxes applied to your shipment. Misclassification can lead to delays, fines, or even seizure of goods by customs.

Prepare Documentation for Customs Clearance

To clear customs in the UK, you must have all necessary paperwork and documentation in order. Proper documentation helps facilitate a smooth customs process and ensures your goods can be released without issues.

Key Documents for Importing into the UK

  • Commercial Invoice: This should include details such as the value, description, and quantity of the goods.
  • Packing List: A document that outlines the contents of each package, making it easier for customs officers to assess and inspect.
  • Bill of Lading or Airway Bill: This serves as a receipt of shipment and provides information about the mode of transport.
  • Certificates of Origin: Required for some goods, particularly if you’re claiming reduced duty rates under trade agreements.
  • Other Relevant Licenses or Certificates: As mentioned earlier, any necessary import licenses, health certificates, or product-specific certifications should be included.

Ensuring accurate and complete documentation can prevent delays at customs, allowing your goods to move through the process quickly and reach customers on time.

Arrange Shipping and Decide on DDP vs. DDU

Once your goods have been imported into the UK, if you then require to deliver to customers internationally, you need to decide between Delivered Duty Paid (DDP) and Delivered Duty Unpaid (DDU) terms.

  • DDP (Delivered Duty Paid): Under DDP, the seller is responsible for all duties, taxes, and customs fees, creating a seamless experience for customers who won’t need to pay any additional costs upon delivery.
  • DDU (Delivered Duty Unpaid): With DDU, the buyer is responsible for paying the import duties and taxes upon arrival in the UK. While DDU can be more cost-effective for sellers, it may result in additional customer costs and delays in delivery.

Selecting DDP terms can enhance customer satisfaction by eliminating unexpected costs, but it also involves higher upfront expenses for the seller.

Choose the shipping terms that best align with your business model and customer service goals.

Consider Working with a UK Fulfilment Provider

For eCommerce brands, partnering with a UK-based fulfilment provider can simplify the import process and streamline last-mile delivery. Fulfilment providers like E-PickPack offer comprehensive import and distribution services, including:

  • Customs Clearance Support: We handle all necessary paperwork and manage the customs process on your behalf.
  • Warehousing and Inventory Management: Store your goods in our secure facilities, ready for quick dispatch to UK customers.
  • Integrated Shipping Solutions: Leverage our partnerships with top carriers for fast and affordable shipping across the UK and internationally.

By outsourcing fulfilment, you can focus on growing your brand while ensuring that your customers enjoy reliable and timely delivery.

Conclusion

Understanding the requirements to import products into the UK is essential for fast-growing eCommerce brands.

From obtaining an EORI number and calculating import duties to managing documentation and selecting the right fulfilment provider, each step plays a crucial role in successful imports.

At E-PickPack, we offer expert support for eCommerce brands navigating the complexities of UK imports.

With our fulfilment services, you can streamline the import process, meet regulatory requirements, and deliver an exceptional customer experience.

Contact us today to learn more about how we can help your business expand into the UK market with ease and efficiency.