EU to UK Import Duty Calculator

# EU to UK Import Duty Calculator: Post-Brexit Rules of Origin & TCA

Since the end of the Brexit transition period on January 1, 2021, shipments entering Great Britain from European Union member states (such as Germany, France, Italy, Poland, and the Netherlands) are treated as full international imports. EU-origin merchandise is no longer automatically duty-free under intra-EU free movement rules. Instead, duty-free clearance requires qualifying under the UK-EU Trade and Cooperation Agreement (TCA). Importers must understand the TCA Rules of Origin, possess valid Statements on Origin, and account for Post-Brexit 20% Import VAT and CDS filing overheads.

The UK-EU Trade and Cooperation Agreement (TCA) Framework

Under the UK-EU TCA, eligible goods trade between the EU and UK at 0% Basic Customs Duty and 0% Quotas, provided strict rules of origin are satisfied:

1. Foreign Goods Manufactured in EU: Product undergoes qualifying processing inside EU member states.
2. Meets TCA Rules of Origin: Satisfies product-specific origin rules (PSRs) such as tariff shift or value-add threshold.
3. Statement on Origin Issued: Exporter includes official origin declaration on commercial invoice.
4. 0% UKGT Tariff at CDS: Importer claims 0% preferential duty on CDS customs entry.

Key TCA Compliance Rules:

• Preferential Tariff Rate: 0% Customs Duty applies ONLY if goods qualify as "originating" in the EU or UK.
• Non-Originating Goods Penalty: Goods manufactured outside the EU (e.g. in China or the US) that are imported into an EU warehouse and subsequently re-exported to the UK without substantial transformation do NOT qualify for 0% TCA duty. Standard UK Global Tariff (UKGT) rates apply.
• Import VAT Still Applies: The TCA waives customs tariffs (duty), but does NOT waive 20% Import VAT. All commercial EU imports attract 20% UK Import VAT unless zero-rated domestically.

Rules of Origin & Statement on Origin Requirements

To claim 0% TCA preferential duty at CDS, importers must hold legal origin documentation:

1. Statement on Origin (Supplier Invoice Declaration):

The EU exporter must add the following standardized text to the commercial invoice:

"The exporter of the products covered by this document declares that, except where otherwise clearly indicated, these products are of EU preferential origin." (Including the exporter's REX number for EU businesses).

2. Importer's Knowledge:

Importers can claim preferential treatment based on their own documentation proving the product's manufacturing breakdown meets product-specific origin rules (PSRs).

Worked Landed Cost Comparison: EU-Origin vs. Non-EU Origin Consignment

Let us compare the landed cost for two €10,000 EUR industrial shipments imported from a distribution warehouse in Rotterdam, Netherlands to a UK business:

Shipment A: German-Manufactured Machinery (Qualifies for 0% TCA)

• CIF Invoice Value: €10,000 EUR (£8,500 GBP)
• TCA Tariff Duty Rate: 0.0% (Valid Statement on Origin provided)
• Customs Duty: £0.00 GBP
• Import VAT (20%): £8,500 × 20% = £1,700.00 GBP (Accounted via PVA)
• Net Out-of-Pocket Duty Outlay: £0.00 GBP

Shipment B: Chinese-Manufactured Goods Re-exported via EU (Fails TCA)

• CIF Invoice Value: €10,000 EUR (£8,500 GBP)
• TCA Tariff Qualification: FAILED (Non-originating Chinese merchandise)
• UKGT Standard Duty Rate: 6.5%
• Customs Duty: £8,500 × 6.5% = £552.50 GBP
• Import VAT Base: £8,500 + £552.50 = £9,052.50 GBP
• Import VAT (20%): £9,052.50 × 20% = £1,810.50 GBP
• Net Out-of-Pocket Duty Outlay: £552.50 GBP (Non-refundable expense)

Financial Takeaway: Ensuring foreign suppliers provide valid TCA Statements on Origin saves £552.50 in duty and £110.50 in extra VAT.

How to Calculate EU to UK Import Duties in Our Tool

Using our specialized Post-Brexit EU-to-UK calculator:

1. Input the CIF Invoice Amount in EUR or GBP.
2. Select your product's 10-Digit UK Commodity Code.
3. Toggle whether your EU supplier provides a valid TCA Statement on Origin.
4. View the itemized output comparing 0% TCA preferential rates against standard MFN UKGT rates.
5. Account for Postponed VAT Accounting (PVA) to optimize cash flow.

Frequently Asked Questions

Do I need an EORI number to import goods from the EU into the UK?

Yes. UK businesses must hold a valid UK EORI number starting with "GB" to file declarations on CDS for imports from EU member states.

What is the REX number required on EU invoices?

Registered Exporter (REX) number is a unique identification number assigned to EU exporters by their national customs authorities, allowing them to issue Statements on Origin for consignments exceeding €6,000.

What are Returned Goods Relief (RGR) rules for EU shipments?

Goods originally exported from the UK to the EU that are returned re-imported within 3 years without being altered qualify for Returned Goods Relief (RGR), waiving both duty and VAT.

Does Northern Ireland follow the same EU-to-UK import rules?

Under the Windsor Framework, goods moving directly between Great Britain and Northern Ireland follow specialized "Green Lane" rules if designated "not at risk" of entering the EU market.

Are freight charges between France/Germany and the UK subject to VAT?

International transport costs are included in the Customs Value for border VAT calculation. Freight forwarders zero-rate the international freight invoice for UK VAT.

Post-Brexit Sanitary and Phytosanitary (SPS) Rules & Border Controls

Importing agri-food, plant, or animal products from the EU into Great Britain requires navigating the UK's Border Target Operating Model (BTOM):

• Health Certificates (EHC): Food products and animal origins require Export Health Certificates issued by official EU veterinarians prior to departure.
• IPAFFS Pre-Notification: Importers must pre-notify UK authorities via the Import of Products, Animals, Food and Feed System (IPAFFS) at least 24 hours prior to border arrival.
• Border Control Post (BCP) Physical Inspections: Medium and high-risk SPS goods entering Dover, Folkestone, or Holyhead are subject to physical inspection and laboratory sampling at UK BCP facilities, incurring additional inspection fees.

Practical Checklist for UK Importers Sourcing from the EU

To ensure seamless, duty-free clearance for shipments arriving from EU suppliers:

• Verify EU Supplier REX Registration: Confirm whether your EU exporter holds a valid Registered Exporter (REX) number for consignments exceeding €6,000.
• Obtain Invoice Statement on Origin: Ensure the exporter includes the mandatory TCA origin clause directly on the commercial invoice before dispatch.
• Confirm Non-EU Content Limits: Review product-specific origin rules (PSRs) to verify that non-EU/non-UK raw materials do not exceed permitted percentage thresholds (typically max 45%–50% non-originating content).
• Enable Postponed VAT Accounting: Provide your freight forwarder with your GB EORI number and standing PVA instruction to prevent paying 20% Import VAT upfront at Dover or Holyhead.

Post-Brexit Goods in Transit & Transshipment Compliance

When shipping EU-manufactured goods through non-EU countries prior to UK arrival:

• Continuous Customs Control: Goods must remain under customs supervision during transit through non-EU territories to retain 0% TCA preferential origin status.
• Non-Manipulation Certificate: If cargo is stored in a non-EU transit hub, customs officers require proof that the goods underwent no processing or alteration during transit.