Import tax and customs declarations: Your guide to international shipments

Navigating import tax and customs duties can feel overwhelming. Which declarations do I need to complete? Do I need to pay import tax and customs duty? Finding information on clunky government websites doesn’t always make things clearer. That’s why we’ve created this guide to fees and declarations for international shipments.

Jump links

• Breakdown of common terms
• How does import tax affect you?
• What are customs declarations?
• Top tips for ensuring smooth international deliveries
• How Speedel simplifies international shipping

Custom duty, import fees, import tax. What’s the difference?

With so many terms, some used interchangeably and some changing depending on the country, it’s no wonder it’s so confusing. So what do they mean? We break them down below.

What is customs duty?

Customs duty (also called import duty) is a tax paid to the government when an item arrives in the country. How much you pay is normally based on the value of the item, what it is, and where it has come from.

What is import tax?

Import tax is a broader term that encompasses customs duty, as well as other charges, such as tariffs or VAT.

What are tariffs?

Tariffs are charges applied to certain goods that have been imported, often calculated as a percentage of the item’s value. They’re normally used to raise the cost of imports to protect domestic industries.

You can find summaries of these and other common international shipping terms in the table below.

How does import tax affect you?

If you need to make a delivery overseas, whether that’s a consignment of stock or a single item, you may need to arrange a customs declaration or pay some form of import tax.

In most cases, exports leaving the UK are not subject to UK customs duties or export taxes.

However, imports into the destination country may still be subject to local import duties, VAT, or customs charges depending on the destination country’s regulations.

If you’re going to pay import taxes, this is going to drive up the cost of the shipment and needs to be factored into your pricing

Exactly how this will work varies by country. For example, if you’re sending a commercial item valued over 150 euros to France, there may be an import tax of 20% VAT and customs duties of up to 22%, depending on the item, potentially increasing the cost significantly.

Who is responsible for paying?

Normally, the importer is responsible for paying import fees. But depending on your business, if you’re sending goods to another branch of your business, or don’t want the receiving end to have to pay, you may want to pay yourself.

These two approaches are called Delivery Duties Unpaid (DDU) and Delivery Duties Paid (DDP):

• Delivery Duties Unpaid - When the parcel reaches its destination country, customs will approach the recipient to collect any necessary charges. Once paid, the parcel is released by customs for delivery.
• Delivery Duties Paid - The sender pays all costs required to bring the parcel into the destination country. Nothing is required from the recipient.

What fees will I have to pay when importing into the UK?

If you’re receiving goods in the UK, you will normally have to pay:

• Import duty - based on the country of origin and the type and value of the goods.
• VAT - at a standard rate of 20%
• Excise duty - charged on products like fuel, tobacco and alcohol.

Customs will assess delivery declarations and calculate the relevant fees. Once these have been paid, the shipment will be released.

What are customs declarations?

Customs declarations are documents that provide customs authorities with information about a consignment, such as where it came from, what it contains and how much it’s worth. This helps them decide whether to allow it into the country, the relevant fees, and how much they should charge. Regardless of whether you’re paying import taxes, you’ll need to complete a declaration for your shipment.

For example, a T1 transit declaration allows an importer to receive goods from Great Britain to the EU while only having to pay customs duties in the final destination country, rather than in every country the shipment passes through.

It’s very important that these are filled out accurately so your consignment is charged the correct amount of tax and moves smoothly through the customs clearance process without being held up or delayed.

Top tips for ensuring smooth international deliveries

We’ve compiled some top tips to help make your overseas deliveries as smooth as possible.

Who’s paying?

Ensure it’s clear who is responsible for paying any fees ahead of time so there’s no delay or confusion when the shipment reaches customs.

Accurate customs declarations

Make sure you have all the relevant information needed for your customs declarations. This includes:

• The correct commercial values
• Clear product descriptions
• Commodity/HS codes where available
• Country of origin information
• Importer/exporter details
• VAT or EORI numbers

Providing accurate information upfront helps avoid customs delays, inspections, or unexpected clearance issues.

Customs regulations

Understand the customs duty and import tax for the country you’re sending/exporting to. It’s vital you’re aware of the costs so that you can factor them into your goods. You can find a good breakdown of rules and restrictions, costs and prohibited items on the GOV website.

Prohibited items

Ensure that the items you’re sending aren’t prohibited in the destination country. This sounds obvious, but the rules are often more complex. It’s not just illegal items. Countries can have very strict and specific rules around the import of certain goods, and you can face seizure of your goods and hefty fines if these rules aren’t followed.

There’s a lot riding on getting all of this right. An honest mistake can result in big penalties or your delivery being held at customs - an unacceptable outcome.

To ensure your important international deliveries arrive safely, use an experienced international courier like Speedel. We have a wealth of experience delivering to and from Europe and internationally with our On Board Courier Service for small, high-value or confidential items.

Not only will we ensure your delivery reaches its destination as quickly as possible, we’ll also streamline the entire process for you - guiding you through the declaration process so you can rest assured your delivery won’t have any holdups.

How Speedel simplifies international shipping

With a huge amount of experience behind us and an efficient, professional team, we can support you with customs processes for both imports and exports, including import, export and transit declarations.

Our process is completely transparent. When you book with us, we’ll provide you with fixed pricing for standard import and export declaration services. T1 declarations vary based on the shipment value, but we’ll provide you with full, open pricing.

Here’s how we can help with:

Exporting from the UK to Europe

Europe is a popular destination for UK-based businesses looking to expand their operations. Our European courier service provides one-off or regular delivery shipments to and from Europe 24/7, 365 days a year across the continent.

We’ll manage the UK export declaration process and raise the T1 transit declaration for you. The consignee/importer of record in the destination country will then be responsible for managing the import declaration and the discharge of the T1 upon arrival.

Shipments to the Republic of Ireland

Shipments moving through Ireland often require additional customs and transit processes, including PBNs (Pre-Boarding Notifications). Speedel will handle these to help ensure smooth transit and compliance.

Importing into the UK

For shipments imported into the UK, the sender or exporter should arrange the export declaration in the origin country. Once it arrives in the UK, Speedel will manage the import declaration process and ensure swift, efficient delivery to its destination.

International deliveries

We can deliver worldwide with our On Board Courier service. Rules and regulations vary by country, so we’ll work with you on an individual basis to ensure your delivery is as smooth and straightforward as possible.

Speedel: International delivery experts

Speedel are experts in international delivery. When you work with us, we’ll ensure your consignment gets where it needs to go, as quickly and efficiently as possible. We’re open and transparent, and we’ll support you to make your international deliveries simple.

Book a dedicated courier for deliveries to or from Europe or an On Board Courier service today, or chat to us to find out more.