UK Customs Terms — Plain-English Reference

A formal submission made to HMRC (via the Customs Declaration Service) declaring goods being imported into the UK. It records the commodity code, customs value, country of origin, and applicable duty/VAT. Most commercial imports require a full declaration, which must be lodged before or at the time of import. A customs broker or freight forwarder typically handles this on the importer's behalf.

A declaration submitted to HMRC for goods being exported from the UK. Required for goods leaving to non-GB destinations (excluding movements between GB and NI in some cases). Export declarations are used to obtain proof of export for VAT zero-rating and to comply with export controls.

The UK government's current customs IT platform for lodging import and export declarations, replacing the legacy CHIEF system (which was retired for imports in 2023). CDS is operated by HMRC and accessed by customs brokers and freight forwarders via approved software. Declarations on CDS use a structured data format based on the EU's Union Customs Code.

The paper form (C88) historically used to declare goods to customs across the EU and UK. While declarations are now largely electronic (via CDS), the SAD data set still underpins the structure of modern customs declarations. You may still encounter references to it in older guidance and legacy systems.

A simplified customs procedure allowing authorised importers to record goods in their own commercial records at the time of import, submitting a supplementary declaration to HMRC later. EIDR requires HMRC authorisation and is most suited to high-volume importers with robust record-keeping systems.

A tax applied to goods imported into the UK, calculated as a percentage of the customs value (typically the transaction value — what you paid for the goods). Duty rates vary by commodity code and country of origin. The UK Global Tariff sets standard rates; preferential rates apply under trade agreements with countries such as the EU, Japan, and Australia.

A customs duty expressed as a percentage of the goods' customs value. The most common form of import duty in the UK — for example, a 12% ad valorem duty on goods valued at £5,000 would result in £600 of duty payable.

A customs duty calculated on a specific unit of measure — per kilogram, per litre, or per item — rather than as a percentage of value. Common for excise goods such as alcohol and tobacco. Some tariff lines use a combination of ad valorem and specific duties.

VAT charged when goods are imported into the UK, currently at 20% for standard-rated goods (applied to the customs value plus any duty). VAT-registered businesses can reclaim import VAT as input tax on their VAT return. Since January 2021, Postponed VAT Accounting (PVA) allows businesses to defer the VAT payment rather than paying at the border.

A UK mechanism introduced on 1 January 2021 allowing VAT-registered importers to account for import VAT on their VAT return rather than paying it at the point of importation. PVA significantly improves cash flow — instead of funding VAT upfront, the business records it as both output and input tax in the same return period, with no net cost for fully taxable businesses.

The value declared to customs on which duty and import VAT are calculated. The primary method is the transaction value — the price actually paid for the goods. Where a transaction value cannot be established, HMRC prescribes alternative valuation methods. Customs value typically includes the cost of the goods plus any royalties, assists, or related costs, but excludes the cost of freight and insurance for most duty calculations (though these are added back for VAT).

Legal mechanisms allowing goods to be imported without paying the full rate of duty. Common reliefs include: Returned Goods Relief (goods re-imported after temporary export), Inward Processing Relief (goods imported for processing and re-export), and Temporary Admission (goods for temporary use). Each has specific conditions and HMRC authorisation requirements.

A numerical code used to classify goods for customs purposes. UK commodity codes are 10 digits long: the first 6 digits follow the international Harmonised System (HS), maintained by the World Customs Organisation; digits 7–8 are the Combined Nomenclature (CN) subheading; digits 9–10 are UK-specific. The code determines the applicable duty rate, VAT status, and any prohibitions or restrictions. Using the wrong code is a customs offence.

The country where goods were manufactured or substantially transformed. Origin is distinct from country of dispatch (where goods were shipped from). It determines which duty rate applies — preferential (lower) rates are available for goods originating in countries with which the UK has a trade agreement. Rules of origin can be complex for manufactured goods involving components from multiple countries.

A document certifying the country of origin of goods. Required in many trade lanes to qualify for preferential duty rates under trade agreements (e.g. UK–EU, UK–Japan). Can be issued by chambers of commerce, certain government bodies, or as a self-certified declaration by approved exporters. The format varies depending on the trade agreement.

The criteria used to determine where goods "originate" for trade agreement purposes. Under the UK–EU Trade and Cooperation Agreement, most goods must contain a minimum percentage of UK or EU content to qualify for zero duty. Rules of origin vary by product and agreement — they are one of the most complex areas of post-Brexit trade compliance.

An HMRC-approved facility where non-UK goods can be stored without paying import duties or VAT until they are released into free circulation, re-exported, or moved to another customs procedure. Duty and VAT are only paid when goods are removed for home use. Widely used for wines, spirits, tobacco, and high-value imported goods where cash flow management matters.

A customs procedure allowing goods to be imported into the UK for processing, manufacturing, or repair and then re-exported without paying import duties on the input materials. If the finished goods are released into the UK market instead of being exported, duties become payable. IP requires prior HMRC authorisation.

A customs procedure allowing goods to move between countries or customs territories without paying duties at each border, provided a guarantee covers the potential duty liability. T1 covers non-Union goods moving through the EU; T2 covers Union goods. The UK operates its own Common Transit Convention (CTC) procedures, which are critical for road freight moving between the UK and EU.

A status granted by HMRC to businesses that demonstrate high standards of customs compliance, security, and financial solvency. AEO status provides benefits including faster customs processing, fewer physical and documentary checks, and mutual recognition with some partner countries. Two types: AEOC (Customs Simplifications) and AEOS (Security and Safety).