Customs Clearance Service & Support

How long does customs clearance take?

Planning is the key to this, sharing information in advance and making sure all the correct permissions are in place before the goods are ready to move can save a lot of time. Communication is key and making sure everyone knows the plan and is kept updated will save time. 90% of all customs declarations are cleared in an hour. Some take longer as customs may want to ‘investigate’ the paperwork supplied further or even physically examine the good.

How are custom charges calculated?

Duty: There’s no fixed duty figure, as it depends on the product and if there is a trade agreement between two countries or a group of countries (such as the EU).

VAT: This rate varies around the EU and the UK. VAT is applied at a standard rate normally, in the UK and France it is 20%, in Germany it is 19%, other countries vary. The lowest in Europe is Luxembourg at 17% and Hungary at 27%.

Some products will have reduced rates of VAT; for example, in the UK children’s clothes have a zero rate of VAT. Different countries will have different products that attract a reduced rate.

Additional costs: Some products; alcohol, tobacco and certain oil products attract excise duty.

Anti-dumping duty: This charge may be applied to selected products from a certain country, or a company or group of companies within a country. There also might be a quota system in place, with a limit on the number of tonnes allowed to be imported in each period. Any imports over this amount will be taxed, usually at significant rates.

How do you pay customs charges?

Many exporters and importers hire a customs clearance broker to prepare declarations for them. Brokers are experts and will ensure that declarations are compliant and that any VAT and duty is declared correctly.

VAT is now accounted for on a postponed basis in the UK if the importer decides this option is for them – so VAT is paid on the periodic VAT return the importer completes. VAT can still be paid on import if the importer wishes, but any other duty and tax needs to be paid before customs clearance is completed.

Importers will often have an account with customs to pay VAT and duties – these vary from country to country – in the UK they are called deferment accounts.

With the new P&O Freight Customs Clearance Service, we can assist you with all port import and export operations, including DeepSea, LOLO feeder, and RORO customs clearance. You’ll have access to Safety and Security data input, declarations, and UK Port Platforms. Payment of custom fees and completion of transit forms duties are also available, subject to your contractual agreement.

Can customs duties be claimed back?

Some custom fees can be refunded, but others cannot. If you’re part of a VAT-registered company or organisation, you can claim VAT (20% in the UK) back on all imports. Check out the HMRC website for more information on the custom rates in the UK and how to claim your VAT import tax back.

Can I avoid customs charges?

Depending on the products you’re transporting, what it will be used for, and the origin country, you may be eligible for a duty relief scheme. This might remove or discount your custom duty fees, so you only pay a percentage of the original cost.

You can find out whether you are legally exempt on the Trade Tariff website, where you can cross-check the goods you’re transporting across the list of commodity codes.

Other duty exemptions in the UK include:

Temporary admission: UK-bound goods designed for short term use, such as a music event.

Bonded warehousing: Certain warehouses have measures in place to store highly taxed goods with no fees until they can be transported, such as beer or wine.

Inward processing: For non-UK products being processed within the UK before exportation.

Outward processing: For items being exported outside of the UK for repairs or further production before being transported back to the UK.

Duty suspensions: A reduced fee on unlimited quantities of items to be imported into the UK.

Tariff quotas: A reduced fee on limited quantities of products to be imported.

Book customs clearance with P&O Freight Services and let us manage the details

Working together, we can ensure your goods are correctly declared and compliant of UK and international trade legislation. Not only will this eliminate unnecessary complications and costs, but it will enable you to continue sailing smoothly across borders.

Which items require a licence?

Some goods will need a special import/export license for cargo clearance and to be allowed across the borders. These might include:

• Animals products
• Medication and drugs
• Blood
• Security, firearms, and ammunition
• Chemicals and nuclear materials