Since the UK voted to leave the European Union, there has been a lot of speculation about what will happen with customs rules. Many people are unsure about what changed and how it now impacts their shopping habits.
In this blog post, we will explain everything you need to know about UK customs rules after Brexit. We will cover the following topics:
- Customs duty,
- Import tax,
- Handling fee,
- How are these charges calculated.
We will also discuss the Rules of Origin and how shoppers can claim back any customs charges they have incurred.
What is Brexit, and what does it bring for online shoppers?
Brexit is the withdrawal of the United Kingdom from the European Union. It was originally scheduled to occur on 29 March 2019 but was delayed until February 1, 2020. The process of Brexit began with a referendum in 2016 in which 51.9% of voters favoured leaving the EU.
Ever since it occurred, it has had a significant impact on many industries in the UK, including online shopping. One of the most significant changes is the impact on delivery times. Brexit has resulted in delays for many online retailers struggling to adapt to the new procedures.
This has led to increased costs and frustration for customers who are used to receiving their orders promptly when buying online.
In addition, Brexit has also resulted in new taxes and duties on goods imported from the EU. This has made online shopping more expensive for many consumers, who are now faced with additional charges at checkout. As a result, Brexit has had a profound impact on how we shop online in the UK.
How did online shopping work in the UK before Brexit?
Besides lower prices offered to the online shoppers in the UK by businesses from European countries, the customers from Great Britain also didn’t have to worry about paying VAT or any other extra charges.
Customs duties were not charged for items bought in the EU, only on goods bought outside the EU. Moreover, import tax was paid upon purchasing (already included in the price), as the UK was a member of the EU VAT area, so there were no additional VAT and import charges once the goods arrived in the UK from the EU.
The same rule applied even for alcohol and tobacco, classified as excise duty. UK shoppers could easily bring these items into the UK, as long as they state that items are for their personal use. The retailer had to pay duty for these products, so buyers didn’t have to worry about any extra charges.
UK customs rules after Brexit
After the UK left the EU, new customs rules and regulations were put in place. These changes have had a significant impact on UK shoppers, that now need to pay VAT and additional charges when buying online.
Customs duty
Import duty is a tax levied on goods worth over £135 that are imported into the UK. The import duty rates are based on the value of the goods and classification according to the UK Trade Tariff and commodity codes, and imported goods must be declared to HMRC upon importing.
Once goods arrive in the UK, the postal service will pay customs duty on your behalf, take the package, and deliver it once you pay VAT and duty to them.
When it comes to gifts, you will have to pay customs duty if the value of the gift is over £39.
Import VAT
The rate of UK VAT on imports is 20% (the same rate as if you shopped from a UK retailer) and is applied to the total value of the goods, plus any payable import duty.
For example, if you were to import a jacket that cost £200, and the customs duty was £20, then the value-added tax (VAT) would be £40 (20% of £200).
Moreover, this fee has to be paid on gifts worth over £39.
Handling costs
Handling fees are a type of fee charged by a courier company for handling and processing an order, as well as for customs handling. The value of handling charges depends on the courier company – some couriers have a fixed amount. For example, if your items are delivered by Royal Mail, you will need to pay £8 for their services.
Another delivery company might ask you to pay either a minimum charge or 2.5% of duty and VAT, depending on which is higher.
| Courier company | Handling fee |
| DHL | £11 or 2.5% of duty+VAT, depending on which amount is higher |
| DPD | £5 |
| Parcelforce | £8 |
| Royal Mail | £8 |
| FedEx | £12.5 or 2.5% of duty+VAT, depending on which amount is higher |
| UPS | £11.50 or 2.5% of duty+VAT, depending on which amount is higher |
These fees also have to be paid for gifts, and they are non-refundable.
Every UK customer can refuse to pay customs charges, but that will result in not getting a package.
How to calculate customs charges?
All import charges will be stated on the customs declaration. If you think you have paid more than you should have, quickly check the duty rates with our Import Duty Calculator.
Before buying goods, you can also use our calculator to check how much you will need to pay for import taxes and duties.
Rules of origin
Customs rules and charges are governed by the rules of origin between the UK and the EU. These rules determine whether a product originated in the UK or in the EU and, therefore, whether it is subject to these rules and charges. The rules of origin are based on the location of the manufacturing process, the raw materials used, and the value-added to the product.
For consumers, the rules of origin can affect the price of goods when imported from EU countries. If the item is manufactured in the EU, you will only be charged import tax and handling fees.
However, if you are buying goods manufactured outside the EU from the EU retailer, you will also need to pay import duty.
Can I claim back customs charges?
In many circumstances, UK shoppers can get a refund of customs charges on items bought online in many circumstances.
If you have bought the goods for your own use, paid the charges, and then returned items because they were faulty or didn’t fit, you can claim back customs duty and import VAT. Even if you plan on returning only one item from the package, you can file a claim and receive a partial refund for the value of that item.
The only products on which you cannot claim a UK duty refund are alcohol and tobacco, as excise duty is charged for these, and special rules apply.
All claims are filed to HMRC, and UK shoppers can apply as individuals or through a freight forwarder or agent.
However, there is always a risk of filing the wrong form or incorrectly completing the form because customs declarations are often confusing. Moreover, it takes around six weeks to receive feedback from HMRC.
That is when Duty Refunds steps in!
Claim back customs charges with Duty Refunds
Duty Refunds is an online service that takes care of import duty refunds for shoppers. Instead of trying to decipher customs documents yourself and potentially incorrectly fill the claim, get help from our experts.
Our team understands customs rules and regulations, and we can help you get your refund quickly and without any hassle.
We know that dealing with customs can be confusing and frustrating, but with Duty Refunds, you don’t have to worry about it. We will take care of everything for you and get you your refund in just three weeks – all you need to do is sit back and relax.
Final thoughts
UK customers now face new customs rules and extra import charges when ordering from the European Union. These charges can be refunded in certain situations, but it’s important to understand the process and how to go about getting your money back.
If you have returned goods to the EU in the last 365 days or faced any extra charges on your recent orders, be sure to claim a customs duty and VAT refund with Duty Refunds. Our team is here to help make the process as easy as possible for you.