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Import duty from China to the UK: how it works

Import duty is the tax charged on goods brought into the UK, set by the commodity code and the goods' value. This guide is for UK businesses importing from China. It explains how duty and import VAT are worked out and what affects them, and how we include them in landed cost.

Goods imported from China to the UK can attract customs duty, import VAT and, for some products, extra trade remedy duties. The amount depends on the commodity code, the customs value and the origin of the goods. This guide explains how it is worked out.

By Matt Buckley · Updated

Step 1: find the commodity code

Every product has a commodity code in the UK Global Tariff [1]. The code sets the duty rate. Getting it wrong is the most common cause of paying too much or facing penalties later.

Step 2: work out the customs value

Duty is usually charged on the value of the goods plus the cost of transport and insurance to the UK border. That means your Incoterms matter: an FOB price needs freight and insurance added. See Incoterms explained.

Step 3: apply the duty rate

China has no free trade agreement with the UK, so the standard UK Global Tariff rate applies [1]. Rates range from zero for many goods to much higher for some textiles, footwear and food. Check the current rate on GOV.UK.

Import VAT

Import VAT is usually charged at 20% on the customs value plus duty [2]. VAT-registered businesses can use postponed VAT accounting to account for it on their VAT return rather than paying at the border, which helps cash flow.

Low-value goods

For consignments valued at £135 or less, VAT is normally charged at the point of sale rather than at import, and customs duty is not usually charged. Most business imports are above this level.

Trade remedies

Some Chinese goods carry anti-dumping or countervailing duties on top of standard duty [3]. These can be significant, so check before placing orders. Our China sourcing agent service includes duty in every landed cost model.

Frequently asked questions

How much is import tax from China to the UK?

It depends on the commodity code. You pay customs duty at the UK Global Tariff rate on the customs value, then import VAT, usually 20%, on the value plus duty. Some goods also carry trade remedy duties.

Can I reclaim import VAT?

VAT-registered businesses can usually recover import VAT, and postponed VAT accounting lets you account for it on your VAT return instead of paying at the border.

References

Numbered citations link to the sources below. Illustrative examples and calculations are identified separately in the article.

  1. Look up commodity codes, duty and VAT rates: GOV.UK
  2. VAT on goods from outside the UK: GOV.UK
  3. Trade remedies investigations and measures in force: Trade Remedies Authority, GOV.UK

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