Facts about…Import Duty

Tracey Renshaw Import Export Support (International Projects)

Import Duty

The amount of Duty paid is dependent on three things;

What the product is/is made of           Classification
Where the product is made                 Origin
How much it costs                               Valuation

  • If the goods you purchase originate (are made) outside the EU whether you import them directly or indirectly they will be subjected to import duty.
  • Duty is usually charged as a % rate based on the cost of importing the item
  • Duty Rates vary dependant on the type of good being imported i.e. the product Classification
  • The amount of duty paid can also vary dependant on the origin of the goods. Some Countries have agreements with the EU which give them preferential i.e. reduced or even zero duty rates
  • HMRC can go back 3 years to reclaim duty underpayments
  • HMRC can charge penalties for errors that are found on a per instance basis

Once goods have been imported into the UK and the customs duty VAT paid those goods are deemed to be ‘in free circulation’. This means that they can move freely throughout the EU member states without incurring any further duty charges. This rules excludes excise goods which are subject to additional in-country excise-tax when entering another member state.

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