First-Time UK Importer Guide

Your unique importer ID

Every UK business importing commercial goods needs an EORI number (Economic Operator Registration and Identification). It's your unique customs ID — you can't clear goods without it. Apply free at gov.uk. If you're VAT-registered, your EORI is issued as GB + your VAT number + 000. If you're not VAT-registered, HMRC will issue one.

Apply as soon as you're serious about importing. It's usually issued within a few working days. Don't wait until the container's at sea.

Who pays for what — and where risk transfers

The Incoterm on your purchase order decides three things: who arranges freight, who insures the goods in transit, and where the risk transfers from seller to you. Get it wrong and you'll pay twice or, worse, be uninsured mid-ocean.

Common terms for first-time importers:

• EXW (Ex Works) — Avoid if possible. Puts you in charge of export clearance in the seller's country. Complex.
• FCA (Free Carrier) — Seller delivers to a named carrier or terminal. Best for air freight and cross-border road.
• FOB (Free On Board) — Seller delivers to the ship in their port. Standard for sea freight FCL. Recommended for first-time importers because you control the freight leg and see all the costs.
• CIF (Cost, Insurance and Freight) — Seller arranges ocean freight and insurance. Sounds attractive but see destination charges — you'll still get billed at the UK end.
• DAP (Delivered At Place) — Seller delivers to your address. You handle import clearance, duty, VAT.
• DDP (Delivered Duty Paid) — Seller does everything. Tempting but rarely priced honestly and can create UK VAT problems.

Rule of thumb: for sea freight, buy FOB origin port. For airfreight, buy FCA origin airport. Everything else has trade-offs.

Your logistics partner for the UK end

A UK freight forwarder arranges the ocean/air leg, handles the paperwork, submits the customs entry, and organises delivery. For a first-time importer, they are the single most important relationship to get right.

What to ask:

• Can they give you a landed-cost quote (freight + destination charges + clearance + duty + VAT + delivery), not just a freight rate?
• What are their destination charges — THC, doc fee, clearance fee, delivery order fee?
• Do they clear customs themselves, or subcontract to a broker? (Direct is better.)
• What free time do they get from the shipping line, and can they extend it?
• Do they use PVA and duty deferment, and can you use theirs on your first shipment?
• Do they have experience with your specific product category and origin country?

Get quotes from two or three forwarders and compare the whole invoice, not just the freight rate. The cheapest freight often carries the most expensive destination charges.

Build a full landed cost — not just goods + shipping

For a first shipment, budget for:

• Goods cost (per invoice).
• Ocean or air freight (if FOB/FCA, this is on you).
• Marine cargo insurance (approx 0.1–0.4% of CIF value).
• UK destination charges (£600–£1,000 for a 40' — see destination charges explained).
• Customs clearance fee (£45–£90).
• Import duty (product-specific — use our duty guide).
• Import VAT (20% of customs value + duty + inland freight — model with our VAT calculator).
• Haulage from port to your yard (£350–£700 typical for the Midlands).
• Any inspection fees (port health, DEFRA, IPAFFS).
• Contingency for demurrage / detention / storage.

Use the Landed Cost Calculator to sanity-check the total.

What you pay, when you pay it, and how

Import duty is charged on the customs value (usually the CIF value into the UK) at the rate for your HS commodity code. Rates range from 0% (many raw materials) to 20%+ (some finished goods). You can look up the rate on the UK Trade Tariff.

Import VAT is 20% on customs value + duty + UK inland freight to the first destination. Most VAT-registered importers use postponed VAT accounting (PVA) — VAT isn't paid at the border, it's accounted for on your next VAT return. Cashflow-friendly and free to opt in.

For duty, three payment methods:

• Duty deferment account — your account debited, HMRC direct-debits monthly. Requires a bank guarantee (or waiver for smaller amounts).
• Your forwarder's deferment — they pay HMRC, they invoice you. Fastest for beginners.
• FAS (Flexible Accounting System) — cash payment via the agent per shipment. Fine for occasional imports.

Don't ship uninsured

Under FOB, FCA, EXW, CFR and DAP terms, insurance is your responsibility. Marine cargo insurance is cheap (typically 0.1–0.4% of CIF value) and pays out for total loss, general average contributions, and (with the right cover) partial loss and damage.

Do not assume the shipping line's liability covers you. Under the Hague-Visby Rules, carrier liability is capped at roughly £500 per package or 2 SDR/kg — a fraction of most cargoes' value.

Arrange cover with a marine cargo broker or via your forwarder before the goods leave the origin port.

Set your supplier up to send you what you need

Before your supplier issues invoices or ships, brief them on what you need. Full checklist: UK Import Documents Checklist. Essentials:

• Commercial invoice showing your EORI, the Incoterm + named place, HS code, country of origin, and real transaction value.
• Packing list.
• Bill of lading with "telex release" or seaway bill (unless there's a specific reason for originals).
• Any preference certificate if you're claiming reduced duty.
• Any product-specific licence or certificate.

Don't promise stock too soon

For a first FOB China sea shipment, plan 10–12 weeks from PO to delivery in the Midlands (see FOB China timeline). Air freight is faster — 5–10 days from ready-to-ship — but 4–8× more expensive per kilo. Choose based on urgency and unit value.

If you're planning around Chinese New Year (late Jan – mid Feb) or Golden Week (early October), add 3–4 weeks buffer.