Shipping goods internationally from the UK can feel complicated, but it doesn’t have to be. Whether you’re sending parcels to customers overseas, exporting products, or arranging large freight shipments, understanding how international shipping works can help you avoid delays, unexpected charges, and rejected shipments.

Every shipment entering another country must pass through customs and this process applies to everything from small parcels and pallet deliveries, to freight shipments sent by air or sea.

In this guide we’ll cover how international customs works, what duties and taxes may apply to your shipment, and the critical documents you need when shipping anything abroad from the UK.

Understanding the International Shipping Process

When a shipment leaves the United Kingdom and travels to another country, it needs to go through the customs clearance process. Customs authorities exist to monitor the movement of goods across borders, ensuring that imports comply with national laws and that any applicable duties or taxes are paid.

When a shipment arrives in the destination country, customs officials review the accompanying documentation. This enables them to verify what the goods are, how much they are worth, where they originated, and whether they are allowed to enter the country.

Once the shipment has been inspected and the correct import charges have been calculated, customs will release the goods for delivery. However, if the documentation accompanying the shipment is incomplete or inaccurate, then the goods may be held until additional information can be provided. In some cases, the shipment might even be returned to the sender.

What Are Customs Duties?

Customs duties are taxes added to goods that are being imported into a country. They’re used by governments to regulate international trade, protect domestic industries, and generate revenue.The amount of duty that needs to be paid on an international shipment depends on a number of different factors. One of the most important ones is the type of product being imported as different goods fall under different tariff classifications.

These classifications are defined using Harmonised System codes (HS) which is an internationally recognised system used to categorise products for customs purposes.Another important factor is the declared value of the goods. Customs authorities use the value declared on the commercial invoice in order to calculate duties. The duty rate can also be influenced by the country where the goods were manufactured or produced, especially if trade agreements are in place to reduce tariffs on certain products.

A lot of the time, the recipient of the shipment is responsible for paying these customs duties before the goods are released. In some cases however, businesses ship using terms that sees the sender cover these costs in advance. Although this can simplify the delivery experience for customers, this method requires very accurate cost planning by the sender which is why some businesses avoid it.

Import VAT and Local Taxes

On top of customs duties, countries may charge import taxes on goods when they enter. Similar to VAT (value added tax) or sales tax, these charges are applied to the total value of the shipment.

Customs authorities often base the tax on the declared value of the goods as well as the cost of shipping and insurance. If customs duties have already been applied, they may also be included when calculating the final tax amount.

For those exporting from the UK, understanding how these taxes work is important for accurate product pricing and to manage the expectations of customers. If a customer isn’t aware of an import charge, the additional, unexpected fee at the point of delivery can cause complaints or even refused shipments.

Because of this, businesses that are shipping internationally on a regular basis may work closely with shipping brokers or logistics providers in order to make sure that any taxes and duties are correctly calculated before the shipment is dispatched.

Key Documents for International Shipping

Because documentation plays such a crucial role in calculating taxes and duties, among other things, every international shipment must include specific paperwork. This tells customs officials exactly what is being transported, how much it’s worth, and how it should be classified.

One of the most important documents needed is a commercial invoice. This is the primary source of information for customs officials when it comes to assessing a shipment and can help with calculating whether duties or taxes will apply. The commercial invoice includes the contact details for both the sender and the recipient, a description and quantity of the goods, the value, and which country they were produced in.

The sister document to the commercial invoice is the packing list. While the commercial invoice covers financial and product information, the packing list contains all of the logistics details, including the number of packages, and their weight and dimensions. This helps customs inspectors and freight handlers to verify the contents of the shipment and manage larger consignments efficiently.

Goods being sent internationally need a customs declaration. This confirms that the information provided about the goods is accurate and that the sender is complying with export regulations. And if they’re being sent via a freight service, then additional transport documents such as a bill of landing (for sea freight), or an air waybill (for air freight) will be required. These documents act as receipts for the goods and confirm the terms of transportation, serving as a contract between the shipper and carrier.

Depending on the contents of the shipment, additional documentation or export licenses might also be needed - especially if the items are controlled such as medical products or certain chemicals.

This is why it’s so important to check the export regulations before shipping anything so that you can ensure the shipment is compliant with both the laws in the UK and those in the destination country.

Shipments Delayed at Customs

Shipments getting delayed by customs is not uncommon. In many cases these delays happen not because of the goods that are being sent, but because information is missing or incorrect.

For example, if a commercial invoice doesn’t clearly describe the goods, or fails to list the correct value, officials might request further clarification before the shipment is released. Failing to include the correct HS code can also cause delays as this means that customs authorities can’t easily determine which duty rate needs to be applied.

In order to try to avoid some of the costs associated with shipping goods, some people may under declare the value of their goods. Because of this, if customs officials spot a value that seems unrealistic or unusually low, they may carry out additional checks or request supporting documents like purchase receipts.

Tips for Smooth International Shipping

Customs issues can be drastically reduced if the documentation is carefully prepared before the shipment leaves the UK. Product details should be as clear and accurate as possible as these allow customs officials to understand exactly what is being transported. Leaving the description vague such as ‘sample’ or ‘machine parts’ can lead to requests for clarification and additional inspections.

The value of the goods being shipped should be as accurate as possible. It may be tempting to declare a lower value to reduce taxes, but if customs officials suspect that this is the case then additional penalties can be applied, or the shipment might be confiscated entirely.

Finally, decide in advance who will be responsible for paying import duties and taxes. If the recipient is expected to pay these costs on delivery then they need to be given notice in advance so that the charges don’t come as a surprise.

International shipping can seem complex, especially when every country has different laws and duties, but with the right preparation it doesn’t have to be.

If you’re unsure about shipping internationally, then that’s where we can help. We’ve been helping people send shipments internationally for years and our friendly customer care team are more than happy to help with any questions you might have.

FAQs

Do I need a customs declaration when shipping abroad?

Yes. All international shipments require a customs declaration that outlines what the goods are, their value, and their origin so that authorities can accurately calculate duties and taxes.

Who pays customs duty on international shipments?

Usually the recipient is the one that pays customs duties and import taxes, however the sender might choose to work these charges into their pricing so that they’re paid upfront. This removes the need for the recipient to pay an additional fee upon delivery.

What documents are needed for international shipping?

As a general rule, every international shipment must include a commercial invoice, packing list, customs declaration, and any applicable transport documents such as an air waybill or bill of landing. It’s important to check that the goods being shipped don’t warrant further documentation, and that the destination country doesn’t have specific requirements.