Importing Goods From EU to the UK - Complete Business Guide

Interested in importing goods from the EU? If your business is setting up links with international suppliers based in Europe, you’ll need to understand how the importing process works.

Unfortunately, importing goods from the EU to the UK has become more complicated since Brexit. Depending what you’re bringing into the country, there are new customs declarations and changes to taxes and duties to be aware of.

To help make it just a little easier for UK businesses, we’ve put together a complete guide on how to import goods to the UK from the EU. We’ll run through the step-by-step process, including everything you need to know along the way.

We’ll also show you a cost-saving way to pay your EU suppliers in their own currency - using a Wise Business account.

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📝 Table of contents:

Import goods to UK from EU - FAQs How to start an import business in the UK What goods does the UK import from the EU? How to import goods from the EU to the UK after brexit? What is the import duty from the EU to the UK? What is the difference between import VAT and import duty? Import goods to UK from EU - Step-by-Step Finding and choosing an European supplier Negotiating payment terms Arrange transport from EU Preparing customs declarations Pay European suppliers with Wise Business

Import goods to UK from EU - FAQs

Let’s start with the answers to some frequently asked questions about importing goods from European countries into the UK.

How to start an import business in the UK?

If you’re starting from scratch, you’ll need to set up your import business by completing the following steps:

1. Conduct market research to gain insight into your target market and competition, as well as the opportunities for importing goods from the EU.
2. Develop a business plan, which will provide a roadmap for your new company and how it will operate.
3. Choose your business structure and register it with Companies House. You’ll also need to register with HMRC and register for VAT (if applicable).
4. Get an EORI number. This stands for Economic Operators Registration and Identification number, and is a requirement for anyone moving goods between the UK and another country.¹ Find out more and apply for an EORI here.
5. Research the correct classification for the goods you’ll be importing. This will determine customs duties and taxes. You may also need to apply for import licences or certificates for certain restricted goods. For example, for chemicals, animal products, plant products, medicines and and weapons.¹ Find out how to get an import licence in the UK here.

What goods does the UK import from the EU?

Looking for inspiration on what goods to import, or want to find a gap in the market? Here’s a short list of the most commonly imported goods from the EU to the UK (in 2022):²

• Machinery and transport equipment (36%)
• Chemical products (16.8%)
• Foodstuffs, beverages, and tobacco (8%)
• Base metals (5.8%).

How to import goods from the EU to the UK after brexit?

Importing goods from the EU to the UK after Brexit has unfortunately become slower, more complicated and potentially more costly too.

Here’s a quick overview of the changes (although it’s recommended to do further reading, as some of the new rules can be complicated):³

• Goods can continue to be imported tariff and quota free, but only if they pass ‘Rules of Origin’ requirements. This establishes the origin of the goods as an EU country, with the aim of preventing goods from third countries being routed through the EU/UK in order to avoid tariffs.
• Customs declarations are required for all imported goods.
• Importers must pre-notify for certain imports, such as animals, plants and some other products. Some of these goods may also require health certificates and checks.

There may also be additional changes on the horizon. The UK Government is planning to roll out requirements for full SPS (sanitary and phytosanitary) checks on EU imports in April 2024, and Safety and Security declarations for EU imports in October 2024.³

What is the import duty from the EU to the UK?

Import duty is another term for customs charges, which are paid when bringing goods of a certain value into the UK from overseas.

In the UK, import duties are payable on most goods with a value of £135 or more.⁴ To calculate how much you’ll need to pay, the first step is to look up the right commodity codes for the goods you’ll be importing. The UK Government has a handy tool you can use for this here.

Once you have your commodity codes, there are a few different methods for calculating import duties. You’ll find full guidance on these here.

It’s important to note that import duty is different to import VAT for EU to UK goods. We’ll run through this in more detail next.

What is the difference between import VAT and import duty?

Alongside import duty, you may also have to pay something called import VAT when you import from the EU to the UK.

Import VAT is a tax paid on goods brought into the UK from another country. It’s charged on all goods, except for gifts worth £39 or less. It’s also useful to know that VAT is payable on the full package value, including postage, packaging, insurance and any customs duties owed. It is charged at the VAT which applies to the category of goods.⁴

Import VAT is usually charged alongside import duties, so importing businesses are likely to have to pay both. However, it may depend on your business model, turnover and contracts.

Import goods to UK from EU - Step-by-Step

Now, let’s turn to the actual process of buying goods from the EU and importing to the UK. Below, you’ll find a step-by-step guide covering what to expect, and what you’ll need to do as an importing business based in the UK.

Finding and choosing an European supplier

One of the first things you’ll need to do is research, which includes finding, choosing and negotiating with European suppliers.

There are a few different ways to find potential suppliers, including trade fairs, online B2B marketplaces, trade associations and sourcing agents. You can also use recommendations from other importers working within the same markets.

It’s crucial to ensure that any suppliers you work with are properly set up to export to the UK. They may need a licence or certificates to send goods to the UK, along with needing to make export declarations in their own country.

You’ll need to do your due diligence when it comes to the quality of goods, starting with requesting sample products. Suppliers you work with should be able to provide the required documentation for their goods.

You should also assess suppliers on their communication, commitment to meeting delivery schedules and reputation within the wider market.

Negotiating payment terms

Once you’ve found your suppliers, the next step is to negotiate prices. With that settled, you’ll need to agree on payment terms. Some of the most common payment terms when importing to the UK include the following:⁵

• Open account
• Letter of credit
• Bank collection
• Advance payment.

You’ll also need to choose a payment method that works for both parties.

For importers, a Wise Business account could be the ideal solution. It’s a powerful multi-currency account that lets you pay suppliers in their own currency, whether it’s euros, Swiss francs or Polish zloty.

Any required currency conversions are carried out using Wise’s mid-market exchange rate. This, combined with low, transparent fees, could make Wise a cheaper option than using your bank to pay overseas suppliers.

🌍 Pay EU suppliers easily with Wise Business

Arrange transport from EU

Before you can finalise your first order with your new EU supplier, you need to arrange transport from the EU to the UK.

Available options include air freight and sea freight. Air freight is the fastest, although it can be the most expensive. Sea freight is slower but more affordable.

Depending where in Europe you’re importing from, you’ll also have the option of importing by rail or road. These offer flexibility and potential cost savings, although of course it depends on the route, along with rail and road networks.

You can also work with a freight forwarding service, who can handle the process for you.

Preparing customs declarations

To get ready for customs at the UK border, you’ll need to do the following:

• Decide if you’ll be making customs declarations yourself, or if a freight forwarder, customs agent or other third party will do it
• Find out the commodity codes and work out the value of your goods. This will help you calculate customs duties and identify if any goods require certificates or licences.
• Check the labelling and marking rules for your goods
• Arrange for the goods to be inspected (if applicable)
• Submit and manage your import declaration
• Pay the required import duty and VAT.

Pay European suppliers with Wise Business

Importing and customs processes for the UK may be a little complex, but paying your EU suppliers doesn’t have to be.

Open a Wise Business account and you’ll be able to pay suppliers in their own currency. You can send euros or 40+ other currencies in just a few clicks. You can easily make batch payments when paying multiple suppliers at once, and even automate the process using the Wise API to save even more time.

Wise payments are fast and fully secure (even for large amounts). Best of all, you’ll only pay low, transparent fees and always get mid-market exchange rates.

This is the rate that banks use to buy and sell currency, and is widely considered the fairest rate you can get. When banks carry out currency conversions on behalf of customers, they usually add a mark-up or margin to the exchange rate. This makes it more expensive for you, as less of your money reaches your recipient.

Please see theTerms of Use for your region or visitWise fees & pricing for the most up-to-date information on pricing and fees.

Get started with Wise Business 🚀

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And that’s it - your comprehensive guide to importing goods from the EU to the UK. We’ve covered it all, from finding suppliers to calculating import duty and completing customs declarations. This should be a good starting point for anyone looking to set up an import business in the UK.

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Sources used for this article:

1. GOV.UK - Import goods into the UK: step by step
2. European Commission - EU trade relations with the United Kingdom
3. UK Parliament House of Commons Library - New customs rules for trade with the EU
4. GOV.UK - Tax and customs for goods sent from abroad
5. Institute of Export & International Trade - Methods of Payment

Sources checked on 07-12-2023.