Since the end of the Brexit transition on 31 December 2020, every parcel moving between the United Kingdom and the European Union clears customs, and the Brexit shipping rules that now govern that trade set out what paperwork you need, what you pay, and what you cannot send at all.1House of Commons Library. Customs Rules for Trade With the EU Whether you are a business shipping inventory or an individual mailing a gift, the same framework applies: identify yourself to customs, classify the goods, declare their value, and settle the tax due before the package is released.
Paperwork You Need Before You Ship
Three documents do most of the work. Get them right and shipments move; get them wrong and parcels sit.
The first is an Economic Operator Registration and Identification number. Customs authorities use it to track every import and export, and commercial shipments without one are stopped at the border.2Taxation and Customs Union. Economic Operators Registration and Identification Number (EORI) Anyone moving goods to or from Great Britain needs an EORI number starting with GB, while shipments involving Northern Ireland may require a separate number beginning with XI.3GOV.UK. Get an EORI Number – Check Which EORI Number You Need Registration is free but takes several days, so apply well before your first shipment.
The second is the Harmonized System code for each product you send. The base code is six digits, expanded to ten by individual countries.4International Trade Administration. Harmonized System (HS) Codes The code sets the duty rate and triggers any regulatory checks. An incorrect classification can bring penalties from HMRC or EU customs and hold the shipment in a warehouse. The UK trade tariff tool and the EU’s TARIC database let you look codes up for free.
The third is the customs declaration itself. Postal parcels use a CN22 label for shipments valued under roughly £270 (about €300), and a CN23 form for anything above that, or any parcel containing more than three item types.5Post Office. CN22 Customs Form Guide6Royal Mail. How to Send Internationally Business-to-business shipments also carry a commercial invoice listing both parties’ full addresses, a clear description of the goods, and the total value. A digital copy attached alongside the physical one speeds processing.
What You Pay Shipping Into the UK
The UK splits imports at £135. For goods worth £135 or less, excluding excise products like alcohol and tobacco, the overseas seller collects 20% VAT at checkout and remits it to HMRC, and the buyer pays nothing on delivery.7GOV.UK. Tax and Customs for Goods Sent From Abroad This means overseas retailers selling directly to UK consumers must register for UK VAT.
Above £135, import VAT and any customs duty are charged at the border on the total value of the goods plus shipping and insurance. Duty rates depend on the product’s HS code and range from zero to double digits for common consumer goods. The recipient typically pays these charges to the courier before the parcel is released.
Personal gifts have their own thresholds. A gift sent by a private individual worth £39 or less carries no VAT. Above £39, VAT applies. Above £135, customs duty is added on top.7GOV.UK. Tax and Customs for Goods Sent From Abroad
What You Pay Shipping Into the EU
Until 30 June 2026, consignments valued at €150 or less entering the EU are exempt from customs duty, though import VAT still applies.8Taxation and Customs Union. E-Commerce – 150 EUR Customs Duty Exemption Threshold to Be Removed as of 2026 Sellers can simplify VAT collection on these low-value shipments through the EU’s Import One Stop Shop, charging VAT at checkout and filing a single monthly return rather than registering in every member state.9European Commission. VAT One Stop Shop
From 1 July 2026 the €150 duty exemption disappears. An interim flat-rate customs duty of €3 will apply to low-value parcels sent directly to consumers. Once the EU Customs Data Hub becomes operational, currently targeted for mid-2028, full classification-based duties tied to HS code and country of origin will apply to all goods regardless of value.8Taxation and Customs Union. E-Commerce – 150 EUR Customs Duty Exemption Threshold to Be Removed as of 2026 If you regularly ship goods from the UK to EU customers, that is the largest rule change since the original transition.
VAT rates across EU member states run from 16% in Luxembourg to 27% in Hungary, so the final cost to the recipient depends on the destination.10European Commission. VAT Rates
Who Actually Pays the Duty and VAT
The Incoterms in the sale or shipping agreement decide who settles the customs bill. These standardized terms allocate taxes, insurance, and risk between the parties at each stage of transit.11International Trade Administration. Know Your Incoterms
Two matter most in parcel shipping. Under Delivered Duty Paid (DDP), the sender covers all duties and VAT, and the recipient gets the package with nothing to pay. Under Delivered at Place (DAP), the recipient pays whatever is owed at the border.12business.gov.uk. Choosing the Right Incoterms for Your Goods If a DAP recipient refuses to pay, the courier typically returns the package and bills the sender for return shipping.
On top of any government tax, the delivery company charges its own customs handling fee. Royal Mail charges £8 per parcel on standard products and £12 for Parcelforce items, with £25 for goods valued above £900 that need a full customs declaration.13Royal Mail. Pay a Fee Private couriers such as DHL, UPS, and FedEx set their own brokerage fees, often higher and often tied to the declared value. These fees are what most often surprise recipients, because they sit on top of the duty and VAT rather than replacing them.
Qualifying for Zero Tariffs Under the TCA
The UK-EU Trade and Cooperation Agreement allows zero tariffs and zero quotas on goods that meet its rules of origin.14European Commission. EU-UK Trade and Cooperation Agreement The goods must have been substantially manufactured or processed within the UK or the EU. A product assembled in the UK from Chinese components may not qualify unless enough value was added during UK manufacturing.
To claim the zero tariff, the exporter includes a statement on origin with the shipment or on the commercial invoice, self-declaring that the goods meet the TCA’s criteria.15GOV.UK. Introduction to Rules of Origin and Claiming Duties When Trading Between the UK and EU Without it, customs authorities apply the standard Most Favoured Nation tariff rates, which can add real cost.
Northern Ireland Follows Different Rules
Northern Ireland is not covered by the same customs regime as the rest of the UK. Under the Windsor Framework, it effectively remains within the EU’s single market for goods. Movements from Great Britain to Northern Ireland still go through customs checks, but the UK Internal Market Scheme lets traders declare eligible goods as “not at risk” of entering the EU, using a simplified data set and paying no duty. Goods destined for onward movement into the EU may face full customs processes and EU duty rates, with a Duty Reimbursement Scheme available to refund duties on goods later shown to have stayed in Northern Ireland. If you are shipping into or through Northern Ireland, check whether an XI EORI number applies before assuming the GB rules cover you.
What You Cannot Send
Some items cannot cross the border no matter how the paperwork reads. The UK bans imports of controlled drugs, offensive weapons, self-defence sprays such as pepper spray, endangered animal and plant species, rough diamonds, and indecent materials, along with personal imports of meat and dairy from most non-EU countries.16GOV.UK. Bringing Goods Into the UK for Personal Use – Banned and Restricted Goods The EU maintains a broadly similar list, with variations by member state.
Restricted items sit in the middle. Firearms and ammunition require special licences. Counterfeit clothing and pirated media are routinely seized. Items protected under CITES include some that catch senders off guard: certain wooden musical instruments, exotic leather goods, and some traditional medicines.16GOV.UK. Bringing Goods Into the UK for Personal Use – Banned and Restricted Goods
Lithium batteries are classified as dangerous goods under international air transport rules. Each battery needs short-circuit protection, rigid outer packaging, and cushioning against movement. Devices containing batteries must be fully powered off and unable to activate in transit. Damaged or defective batteries should not be shipped at all.
Meat, Dairy, Plants, and Other SPS Goods
Agricultural and biological products need an export health certificate signed by an authorized official veterinarian or inspector before they leave the country.17GOV.UK. Get an Export Health Certificate The Animal and Plant Health Agency inspects shipments at designated border control posts, and consignments that fail can be destroyed or seized on the spot.18GOV.UK. Border Control Posts and Charges Arrange the certificate and inspection before shipping; there is no way to fix it later.
Claiming Back Overpaid Duty or VAT
If you were charged too much because the wrong HS code was used or the goods were incorrectly valued, you can claim a refund. The time limits are three years for overpayments, one year for rejected imports, and 90 days if you are withdrawing an import declaration entirely.19GOV.UK. How to Claim a Repayment of Import Duty and VAT if You Have Overpaid
How you claim depends on who you are. If you have an EORI number and the declaration was filed through the Customs Declaration Service, you apply through the CDS portal using the original Movement Reference Number. Private individuals, non-VAT-registered importers, and anyone without an EORI use HMRC’s online form C285. Parcels delivered by Royal Mail or Parcelforce use a separate form, BOR286.19GOV.UK. How to Claim a Repayment of Import Duty and VAT if You Have Overpaid VAT-registered businesses adjust import VAT through their VAT return rather than filing a separate claim.
Where goods shipped from the UK to the EU (or the other way) come back, Returned Goods Relief prevents you from being taxed twice. To qualify, the goods must return in the same condition, must have been in free circulation before export, and must be re-imported within three years. The exporter and importer must be the same person to claim relief on the import VAT.20GOV.UK. Pay Less Import Duty and VAT When Re-Importing Goods to the UK Exceptions to the three-year limit exist for long-term hire equipment, exhibition goods, and personal property of UK residents. Keep proof of the original export after delivery; without it, the relief is out of reach.