If your business plans to import goods to the UK from abroad, you’ll need to make sure you meet the UK Government’s import control rules. One of the first things to check is whether or not you need a UK import licence.
In this handy guide, we’ll cover all the essential information you need to know about UK import licences. This includes the goods they cover, who needs to get an import licence and how to apply for import licence in the UK. Plus, we’ll touch on Wise Business as a perfect partner for import businesses, with easy ways to pay your suppliers overseas with low fees and the mid-market rate.
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What is an import licence?
Before you start importing into the UK you’ll need to check if you need any licence or certificates, based on the types of goods you intend to bring in.
Import licences are designed to regulate and control certain types of goods entering the UK’s borders1.
They’re mainly issued by the UK Government’s Department for International Trade, at its Import Licensing Branch. However, some types of import licence are issued by other bodies. For example, the Department of Health for licences to import certain medicines. If you import goods into the UK, it’s your responsibility to keep yourself informed about import controls, restrictions and licences. Fail to get the right licence and you could face customs delays or goods seizures, fines or other penalties.
Do I need a licence to import goods into the UK?
There’s a full list of the types of goods which require a licence available on the UK government’s website for reference. Generally, licences are needed for dangerous goods, and things like foods and medicines which are subject to UK safety regulation2.
Here are a few of the types of goods which may require a licence:
- Animals and animal products
- Plants and plant products
- Some types of food
- Medicines and controlled drugs
- Many types of chemicals
- Nuclear material
- Firearms, knives, swords and other weapons
In some cases you may need more than one licence or certificate to import goods into the UK. If you’re considering starting a UK import business you’ll need to research early on to check the full suite of paperwork that’s needed, and to give yourself the time to get everything lined up before you launch your business.
How to get an import licence in the UK?
The exact process, fee and timeline to get an import licence for the UK will depend on exactly what you want to import, and from where3. The initial steps you need to take are more or less the same no matter what you’re importing:
1 Find the correct commodity code for your goods, based on the UK government Trade Tariff tool
The Trade Tariff4 tool lets you search for the type of item you’re planning to import, and see if you need to pay any duty or if you need any licence - including an import licence.
2 Gather the documents needed to support your import licence application
If you discover you need an import licence you can then find which paperwork is needed to complete your application. If you’re unsure you can reach out to the body which manages the import of the particular type of item you’re bringing into the UK.
3 Submit your licence application on the Department for International Trade’s import case management system (ICMS)
Your application is processed through the ICMS5 once you have completed your application and paid any fees that are due. Be aware that case processing times may vary depending on the type of items you’re considering importing, and the specific licence that you need.
4 Once you gave your licence, check the company you’re buying from has all their export paperwork lined up too
Don’t forget, the business you’re buying from may also need a licence of their own to export the goods you’re buying.
Because importing goods into the UK can be a fairly complicated process, many companies prefer to use shipping companies and customs agents to support this process. It’s worth weighing up this option - there are fees involved, but it can mean that importing into the UK can be done more quickly and with far less administrative burden.
Importing licence in the UK - FAQs
Why do you need an import licence?
Import licences are issued to control the import of goods into the UK. In some cases this is for safety reasons, or because of global or local sanctions. Not all import businesses need import licences - this very much depends on what you plan to bring into the UK, and from where.
Do I need to register for VAT to import?
You may not need to register for VAT unless your business needs to register due to its size and turnover. However, if you choose not to register for VAT and import goods to the UK, you might not be able to reclaim any VAT that’s payable on your import. As tax can be complicated, you’ll need to take specific advice on this point if you’re unsure about how VAT rules apply to your own business.
Do I need a licence to import food into the UK?
Some foods need an import licence for the UK. However, whether or not a licence is needed will depend a bit on what you’re planning to import. Generally any food seen as high risk will need a licence - but checking the full list over on the UK government’s website is a good idea, so you can be sure. Use the Trade Tariff tool to get all the information you need.
Which goods require an import licence in the UK?
The types of goods which need an import licence for the UK can include:
- Animals and animal products
- Plants and plant products
- Some types of food
- Medicines and controlled drugs
- Many types of chemicals
- Nuclear material
- Firearms, knives, swords and other weapons
This isn’t an exhaustive list, so you’ll need to check for your specific import items, to avoid hassle at the port, delays or fines.
Pay international suppliers with Wise Business
If you have an import business in the UK, and need to pay suppliers overseas, check out Wise Business for ways to send money to bank accounts in global-claim-send_to_countries countries with the mid-market exchange rate and low fees from 0.33%.
The mid-market rate is the rate you’ll see when you use a currency converter tool or Google search - but it’s not always the rate banks and other providers offer for cross border payments. Instead, it’s common to find out that a markup - a fee - is added to the mid-market rate, which can push up costs and makes it tricky to really know what you’re paying for international transfers.
Wise is different, using the mid-market rate with no markup, and splitting out the costs of your payment so you can easily check and compare your options.
With Wise Business you can also hold and exchange 40+ currencies and get paid like a local with bank details for 8+ currencies, plus you’ll be able to get business debit and expense cards for you and your team.
There are no ongoing fees after paying the one time £60 account opening charge, with low, transparent fees for the services you use. See how Wise Business can help you connect more easily with suppliers, customers, contractors and team members around the world.
Get started with Wise Business 🚀
After reading this guide, you should have a better idea of whether or not your business needs a UK import licence. We’ve covered the categories of goods requiring a licence, how to apply and where to find more information. However this article provides general information about the topic and should not be taken as advice. You should consult with an expert if anything is unclear to you.
Just remember to do your homework before giving your import plans the green light, as it could save you a lot of hassle later on. Good luck!
Sources used in this article:
- UK government - import controls
- UK government - goods where import is controlled
- UK government - starting to import
- UK government - commodity codes
- Department for International Trade - ICMS
Sources last checked 17/06/2024
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