As a small business owner who regularly imports goods from China, one of the most confusing parts at the beginning was understanding how UK import tariffs work. Here’s how I calculate them now—and what you should look out for.
The import tariff is typically made up of:
- Product duty rate – based on the HS code (commodity code)
- VAT – currently 20% in the UK
- Shipping costs – included in the VAT base
Example Calculation
Let’s say I import £1,000 worth of LED lights from China:
- Duty rate: 4.7% → £47
- Shipping from China to UK price: £150
- VAT base = £1,000 + £47 + £150 = £1,197
- VAT = 20% of £1,197 = £239.40
Total tax to pay: £47 (duty) + £239.40 (VAT) = £286.40
Shipping from China to UK Price
In 2025, shipping prices vary by method:
- Air freight: £5–£8 per kg
- Sea freight (FCL): £1,200–£1,800 per 20ft container
- Cheapest shipping from China to UK: LCL sea freight or consolidated air cargo
Always include shipping costs in your tariff calculations, since they affect VAT.
Cheapest Shipping from China to UK
For me, the cheapest method has been:
- Sea freight (LCL) for bulk items
- Using a freight forwarder who consolidates shipments
Also, DDP (Delivered Duty Paid) is convenient—although it may seem more expensive, it simplifies the whole process and reduces surprise fees.
People Also Ask (PAA)
1. How do I find the correct HS code for my product?
You can search by product description on the UK government’s Trade Tariff tool or ask your supplier or customs broker for the correct HS code.
2. Is VAT charged on imported goods from China to the UK?
Yes. VAT is charged on the total value of the goods, including shipping and any applicable duty.
3. Do I need an EORI number to import from China?
Yes, businesses in the UK must have an EORI number to clear goods through customs.
4. What’s the cheapest way to ship goods from China to the UK?
Typically, sea freight via LCL is the most economical option for heavier or bulkier goods.
5. Can I avoid paying import duty from China?
Only if the goods are below the duty-free threshold, are part of a trade agreement, or are considered duty-exempt. Most commercial shipments will incur duty and VAT.