The UK Global Tariff (UKGT), Explained

What is the UK Global Tariff?

The UK Global Tariff (UKGT) is the UK's Most-Favoured-Nation (MFN) tariff: the schedule of customs duty rates applied to goods imported into the UK from countries with which the UK has no preferential trade agreement. "Most-Favoured-Nation" is a WTO term meaning the standard, non-discriminatory rate a country offers to all trading partners that don't have a special deal.

It is published as a long list organised by commodity (HS) code: each code has its duty rate. Some are 0%; others run from low single figures to higher rates for protected categories (certain foods, textiles, vehicles).

How the UKGT replaced the EU Common External Tariff

While the UK was in the EU, it applied the EU's Common External Tariff to imports from outside the bloc. After Brexit, from 1 January 2021, the UK introduced its own tariff schedule, the UK Global Tariff, for imports from countries without a UK trade agreement.

The UKGT broadly took the inherited EU rates and simplified them. The government:

• Rounded awkward percentages to simpler figures.
• Removed many low "nuisance" tariffs (rates below 2%).
• Zeroed duties on a range of goods, particularly some inputs and products not made in the UK.

The net effect is that for many products the UKGT rate is the same as or lower than the old EU rate, though some protected categories retain meaningful tariffs.

How to look up a UKGT rate for your product

1. Identify the commodity (HS) code for your product, see the HS code guide. The 10-digit UK commodity code gives the precise rate.
2. Search the UK Trade Tariff tool at gov.uk/trade-tariff. Enter the code or a description and it returns the UKGT (third-country) duty rate, plus any VAT and other measures.
3. Check the duty rate shown against "third country": that is the UKGT/MFN rate that applies when no preference is claimed.
4. Note any preferential rates listed for specific origins, those apply only if the goods qualify and you have proof of origin.

The landed cost calculator applies these rates for the products and routes it covers, with the source cited, so you can sanity-check a figure quickly.

When a lower preferential rate applies instead

The UKGT is the default, not the only rate. If your goods originate in a country the UK has a free trade agreement with, and they meet that agreement's rules of origin, the importer can claim the agreement's preferential rate, which is usually lower than, often zero compared to, the UKGT rate.

Claiming the preferential rate requires proof of origin: an EUR1 certificate or an invoice origin declaration, depending on the agreement. Without that proof, the UKGT rate applies even if a preference theoretically exists.

Goods from countries with no UK agreement, such as the United States, always pay the UKGT rate; there is no preference to claim.

What the UKGT means for ecommerce sellers

• Your import duty cost depends on the UKGT rate for your products' HS codes, unless you source from an FTA partner and can prove origin.
• Sourcing decisions matter. The same product from a non-agreement country pays UKGT duty; from an FTA partner with valid origin it may be zero. Factor this into supplier choice.
• Classification accuracy is money. A wrong HS code means the wrong UKGT rate, over- or under-paying duty. See the HS code guide.
• Model your landed cost before committing to a supplier or price, using the calculator and duty method.

If duty is a material cost in your model, an ecommerce accountant can help with classification, origin planning and reliefs.