A practical guide for importing goods from China

As a customs broker, I look at UK clearance as one simple question: can HMRC see exactly what’s arriving, what it’s worth, where it’s from, and that all taxes and controls are in order?
Everything in this article flows from that.

 

The key players and systems

When you import from China to the UK, you’ll typically deal with:

1. • You (the importer / consignee) – legally responsible for the declaration, even if an agent files it.
   • Your supplier in China – provides documents and ships the goods.
   • Freight forwarder / carrier – books and moves the cargo.
   • Customs broker / agent – submits the UK customs declaration on your behalf.
   • HMRC & UK Border Force – check declarations, collect duty & VAT, enforce prohibitions/restrictions.

All UK import declarations now go through CDS (Customs Declaration Service).

 

What you must have in place before importing

UK EORI number

You cannot import commercially without an EORI number starting GB.
Apply online with HMRC; it’s usually issued quickly.

VAT position

1. • VAT‑registered business – you can normally use Postponed VAT Accounting (PVA) to declare import VAT on your VAT return instead of paying it at the border.
   • Not VAT‑registered – import VAT is payable at clearance and becomes a cost to you.

Check if your goods are controlled

From China to the UK, some items need extra licences or certificates, for example:

1. • Food, plants, animals, certain wooden packaging
   • Medicines, chemicals, fertilisers
   • Weapons, military/dual‑use goods
   • Some textiles, steel or products subject to trade remedies

Check the UK tariff and relevant government guidance before you place the order. If a licence is required and not in place, the goods will be delayed or even seized.

Choose Incoterms and who does what

Agree clearly with your Chinese supplier:

1. • EXW / FOB – you control freight and usually handle UK customs through your own agent.
   • CIF / CFR – supplier covers freight; you still usually arrange UK clearance.
   • DDP – supplier is responsible for UK import formalities (often messy when they don’t understand UK rules).

For smooth control and compliance, most UK importers prefer FOB or similar terms.

 

The information UK customs want

Every UK import declaration for Chinese goods must include:

Commodity code (10 digits)

1. 1. • Determines duty rate, any trade defence measures, licences, etc.
      • Use the UK Integrated Online Tariff; if in doubt, seek a Binding Tariff Ruling from HMRC.

Customs value
Typically based on the CIF value to the UK port:

1. 1. • Invoice price
      • Plus freight and insurance (to the UK border)
      • Plus certain commissions, assists, packaging, royalties where applicable.

Country of origin

1. 1. • Normally China (non‑preferential origin).
      • There is no UK–China free trade agreement, so standard UK Global Tariff duty rates apply.
      • Misdeclaring origin to avoid duty is a serious offence.

Description, quantity, weight

1. 1. • Plain English description (not just model codes).
      • Net and gross weight; number of packages/pieces.

Parties involved

1. 1. • Importer (you), exporter (Chinese supplier), declarant (broker if applicable).

 

Step‑by‑step: how a typical import from China clears UK customs

Step 1 – Placing the order

You confirm:

1. • Commodity codes and any import restrictions
   • Incoterms, price, and who pays what
   • Required documents (invoice, packing list, certificates, licences, test reports, etc.).

Step 2 – Supplier prepares documents

For sea or air freight from China to the UK, you normally need:

1. • Commercial invoice (seller, buyer, detailed description, HS code if known, terms, currency, value)
   • Packing list (packages, weights, dimensions)
   • Transport document – bill of lading, air waybill
   • Certificates / licences if needed (e.g., health certificates, phytosanitary, licence numbers)
   • Product conformity evidence (e.g., test reports, Declarations of Conformity for electricals, toys, PPE, etc.).

Step 3 – Safety & security declaration

For most commercial shipments, a safety & security (ENS/Entry Summary) declaration must be lodged before arrival.
This is usually handled by the carrier or their agent, not by you, but it uses data from your documents.

Step 4 – Customs declaration pre‑lodged in CDS

Your broker will:

1. Enter all data into CDS.
2. Attach or reference licence numbers and document codes where necessary.
3. Use either:

Inventory‑linked clearance (common for deep‑sea container ports and air cargo)

Pre‑lodgement via GVMS (mainly for RoRo movements).

You’ll be asked to confirm:

1. • That the data is correct.
   • How duty/VAT will be paid (see below).

Step 5 – Duties and VAT calculation

Import duty

1. 1. • Duty % = from the UK Global Tariff for your commodity code.
      • Duty amount ≈ customs value × duty rate.

Import VAT (usually 20%, some items reduced/zero)
VAT is normally calculated on:
Customs value + duty + UK inland transport & certain other costs.

Payment options:

1. • Postponed VAT Accounting (PVA) – if you’re VAT registered, you don’t pay VAT at the border; you declare it later on your VAT return and can reclaim it in the same return (cash‑flow friendly).
   • Duty Deferment Account (DDA) – for frequent importers; allows monthly payment of duty/VAT/other charges.
   • Immediate payment – by card, bank transfer, or via the broker’s account.

Step 6 – HMRC checks and release

HMRC risk‑assesses every declaration:

1. • Green – automatic release, goods cleared.
   • Orange – document check; HMRC may ask for invoices, contracts, explanation of valuation.
   • Red – physical examination or sampling at port/airport.

If all is satisfactory and charges are accounted for, customs status changes to “released for free circulation” and the goods can enter the UK market.

Step 7 – After‑clearance obligations

Keep all records (invoices, transport documents, classification notes, correspondence) for at least 6 years.
HMRC can audit you later and demand extra duty, VAT, or impose penalties if they find errors.

 

Specific points for imports from China

Tariffs and trade remedies

1. • Standard UK Global Tariff rates apply to Chinese-origin goods.
   • Some products from China may attract anti‑dumping or countervailing duties (e.g., certain metals, bicycles, specific industrial products).
   • Always check the tariff for “additional duties” and trade defence measures.

Product safety and UKCA/CE marking

Many Chinese exports to the UK are regulated (electronics, toys, machinery, PPE, etc.). You must:

1. • Ensure the product meets UK product safety rules.
   • Have the correct UKCA or CE marking, where required (rules vary by sector and are evolving – always check current guidance).
   • Hold technical documentation and Declarations of Conformity.

Non‑compliant goods can be detained or destroyed and can create serious liability for you as the UK importer (you’re often treated as the “manufacturer” in UK law).

Intellectual property and brands

Branded goods from China are high‑risk for counterfeiting.
If the goods infringe trademarks, patents or design rights, Border Force can seize and destroy them.
Ensure you have written authorisation from the brand owner where relevant.

Packaging and wood

If you’re importing on pallets or in wooden crates, ensure they comply with ISPM 15 standards (heat‑treated, stamped). Non‑compliant wood can cause delays or destruction of packaging.

 

Clearance timing: sea vs air

1. • Air freight – transit times are short; customs clearance is typically completed within hours of arrival if documents and payments are in order.
   • Sea freight (FCL/LCL) – longer transit; clearance often prepared while the vessel is en route and completed shortly after landing, but port congestion, inspections or missing paperwork can easily add days.

To minimise storage and demurrage, give your broker full, correct documents before the shipment arrives.

 

 

Common mistakes when importing from China – and how to avoid them

Wrong or vague commodity codes
Leads to wrong duty, delayed shipments, and back‑dated assessments.
Solution: classify carefully; document your reasoning.

Under‑valuation or missing cost elements
“Free” tooling, moulds or design work provided to the supplier often belong in the customs value.
Solution: be honest and complete; HMRC has wide powers to challenge valuations.

Incoterms misunderstandings
DDP deals arranged by Chinese suppliers often result in broken UK VAT rules or surprise charges.
Solution: stick to terms where you or a trusted UK agent control import formalities.

Ignoring product compliance
Cheap but non‑compliant electronics or toys can be seized, plus you carry liability for safety issues.
Solution: verify certificates, test reports, and labelling before shipping.

Missing licences or certificates
Particularly for food, chemicals, plant products and restricted items.
Solution: check licensing requirements before you order; coordinate with your broker early.

 

Working effectively with a UK customs broker

A good broker can save you more than they cost. To work smoothly, they will typically need:

1. • Your EORI and VAT details
   • Full contact details and authorisation letter / agency agreement
   • Commercial invoice and packing list
   • Copy of bill of lading / air waybill
   • Any licences, certificates or declarations
   • Clear instructions on:
     • Who is paying duty & VAT
     • Whether you’re using PVA or a deferment account
     • Special procedures (e.g., inward processing, customs warehouse) if applicable.

Ask your broker to:

1. • Confirm the commodity codes and duty rates they are using
   • Explain any special measures (e.g., anti‑dumping) that apply to your products
   • Provide copies of the CDS import entry and C88 import declaration (or equivalent printout) for your records.

 

Conclusion

UK customs clearance is essentially about accurate data, correct classification and valuation, compliance with product and licensing rules, and proper payment of duty and VAT.
When importing from China, getting those basics right – and working closely with a knowledgeable customs broker – will keep your goods moving and your risk low.