TL;DR
  • Customs clearance = declaring imports to HMRC, having duty + import VAT assessed, and getting goods released into free circulation.
  • You need a GB EORI number and a customs declaration via CDS, usually filed by a customs broker or freight forwarder.
  • The duty rate depends on correct HS classification and customs valuation.
  • Special procedures save cash: customs warehousing and inward processing relief defer or suspend duty and VAT.
  • VAT-registered? Account for import VAT via Postponed VAT Accounting, not cash at the border.
On this page

What is customs clearance?

Customs clearance is the set of steps every consignment of imported goods must complete before it can legally enter the UK market. At its core it means: declaring the goods to HMRC, having any customs duty and import VAT assessed, paying or accounting for those charges, and obtaining release of the goods into free circulation.

For ecommerce sellers importing stock, clearance usually happens behind the scenes: your freight forwarder or courier files the declaration and bills you for the duty, VAT and their handling fee. But understanding the moving parts helps you control cost, avoid delays, and choose the right reliefs.

The UK customs clearance process, step by step

  1. Get a GB EORI number. You cannot make a customs declaration without one. See the EORI guide, it is free and quick.
  2. Classify the goods. Each product needs the correct commodity (HS) code, which sets the duty rate.
  3. Establish the customs value. Usually the price paid plus freight to the UK border, per HMRC valuation rules. This is the base for duty and import VAT.
  4. File the declaration via CDS. HMRC's Customs Declaration Service is the platform all UK import/export declarations now go through. A customs broker or forwarder normally does this for you.
  5. Pay or account for duty and VAT. Duty is paid (or deferred); import VAT is normally handled via Postponed VAT Accounting for VAT-registered importers.
  6. Goods are released into free circulation, or placed under a special procedure (below).

Customs guides

Detailed guides for each part of the process:

Customs

CDS (Customs Declaration Service)

HMRC's customs platform, what it is, how declarations work, and what sellers need.

Customs

Customs Broker UK

What a customs broker does, when you need one, and typical fees for ecommerce importers.

EORI pillar

EORI Number: What It Is and How to Get One

The full EORI guide: who needs one, GB vs XI, the format, and how to apply free.

Duty pillar

Import Duty UK: How It Works

Rates, the UK Global Tariff, import VAT, the £135 and £9 thresholds, preferential rates.

HS pillar

Harmonised System Code (HS Code)

What an HS code is, how the 6 digits work, and how it becomes a UK commodity code.

Duty + VAT

VAT on Imported Goods

How import VAT works on goods brought into the UK, rates, thresholds and reclaiming.

Duty reliefs and special procedures

You do not always have to pay duty and import VAT the moment goods arrive. Special procedures let you defer or avoid charges in specific situations, which can be a major cash-flow advantage for ecommerce importers:

Customs

Customs Warehouse

Store imported goods without paying duty/VAT until they leave, the cash-flow play.

Customs

Inward Processing Relief (IPR)

Import, process or repair, then re-export with duty and import VAT suspended.

Customs

Outward Processing Relief (OPR)

Export goods to be processed/repaired abroad, re-import paying duty only on the value added.

Customs

Returned Goods Relief (RGR)

Re-import previously exported goods free of duty and import VAT, the relief for returns and unsold stock.

Customs warehousing defers duty/VAT while goods are stored; inward processing suspends charges on goods you import to process and re-export; outward processing charges duty only on the value added when you send goods abroad to be processed and bring them back; and returned goods relief lets previously exported goods (returns, unsold stock) come back free of duty and import VAT. Most require HMRC authorisation and records, an ecommerce accountant or customs specialist can advise which fit your model.