How is the UK landed cost calculated for goods from China?

UK landed cost = Product Cost + Freight + Insurance + Customs Duty + Import VAT + Broker Fees. Customs Duty = CIF Value × UKGT Rate. Import VAT = 20% × (CIF Value + Customs Duty). VAT-registered UK businesses can reclaim Import VAT on their quarterly VAT return, making it cost-neutral.

What is the UK Global Tariff (UKGT) rate for goods from China?

UKGT rates vary by commodity code. Most manufactured goods from China attract 0–12%. Common rates: electronics 0–3.7%, clothing 12%, footwear 12%, furniture 0–5.7%, toys 0–4.7%. Find your exact rate by commodity code at trade.gov.uk/tariff-stop.

Does Import VAT apply to all UK shipments from China?

Yes — for commercial shipments. The £135 threshold only applies to customs duty, not VAT. All commercial goods imported to the UK attract Import VAT regardless of value. VAT-registered businesses recover it; non-registered importers pay it as a permanent cost.

What UK customs clearance costs should I budget for?

Typical costs per shipment: Customs broker entry fee £120–250, UK import VAT (recoverable if VAT-registered), UKGT duty (0–12% of CIF), any port handling/drayage. For a £10,000 CIF shipment at 5% duty and 20% VAT: duty = £500, VAT = £2,100 (recoverable), broker = ~£150.

🏛️ Import Duties & Taxes

UK Landed Cost Calculator — China to UK Total Import Cost

Use our uk landed cost calculator to calculate the total landed cost of goods shipped from China to the UK. Includes UKGT customs duty, 20% Import VAT, freight, and insurance in GBP.

Updated: 2026-04-14

Planning Reference

Rates Last Reviewed April 2026

Reference Basis

Based on published HTS, CBP, USTR, and other official tariff guidance in effect at the last review date.

Planning Note

Use this for planning. Final duty liability depends on HTS classification, origin, exclusions, non-stacking rules, and customs review.

Primary opportunity

uk landed cost calculator
Medium SERP difficulty

Product Cost (FOB or EXW) GBP Factory or supplier price in GBP. If priced in USD, convert at the current GBP/USD rate.

International Freight to UK Port GBP Ocean or air freight cost from China to UK port of entry (Felixstowe, Southampton, etc.).

Cargo Insurance Rate % Standard all-risk marine cargo insurance is 0.25–0.50% of CIF value. Leave at 0.35% if unsure.

UK Global Tariff (UKGT) Duty Rate % Find your commodity code duty rate at trade.gov.uk. Most manufactured goods from China: 0–12%.

Import VAT Rate Most goods from China attract 20% Import VAT. VAT-registered businesses can reclaim this.

Customs Broker Fee GBP UK customs clearance via a licensed agent typically costs £120–£250 per shipment.

What Is UK Landed Cost?

UK landed cost is the total cost of getting goods from a Chinese factory to your UK warehouse or delivery point. It goes well beyond the supplier invoice price — covering international freight, cargo insurance, UK customs duty (UKGT), Import VAT, customs clearance fees, and domestic delivery.

[!IMPORTANT]
2026 Update: This calculator is updated with current UK Global Tariff (UKGT) rates and reflects the latest Postponed VAT Accounting (PVA) and CDS migration guidelines for April 2026.

For UK importers buying from China, the three major cost components are:

UKGT Customs Duty — assessed on the CIF value (product + freight + insurance) at your commodity code's duty rate
Import VAT (20%) — assessed on the CIF value plus the customs duty. VAT-registered businesses reclaim this in full
International Freight — ocean freight from Chinese ports to Felixstowe, Southampton, or other UK ports

How to Use This Calculator

Enter your product cost in GBP (convert from USD or CNY at the current rate)
Add your freight quote from your forwarder for the China–UK leg
Set the UKGT duty rate for your commodity code (find it at trade.gov.uk)
Select your VAT rate (20% applies to most goods)
Click Calculate to see your full UK landed cost breakdown

Understanding UK Import VAT

Import VAT is charged at 20% on most goods from China. Unlike customs duty, it is fully recoverable for VAT-registered UK businesses — you claim it back on your quarterly VAT return as input tax. This means the true cost of Import VAT is £0 for registered businesses, though it does tie up cash between payment and recovery.

For non-VAT-registered businesses (trading below the £90,000 registration threshold), Import VAT is a permanent cost that must be built into your landed cost model.

UK Customs Duty Rates for Common Product Categories

Product Category	Typical UKGT Rate
Electronics / computers	0% – 3.7%
Clothing and apparel	12%
Footwear	12%
Furniture	0% – 5.7%
Toys and games	0% – 4.7%
Machinery	0% – 4.3%
Steel products	0% – 12%

Always verify the exact rate for your specific commodity code at the UK Trade Tariff tool.

UK Landed Cost Example

Scenario: Importing 500 units of electronics from Shenzhen to the UK.

FOB price: £8,000 (approx.)
Ocean freight (Shenzhen to Felixstowe): £700
Insurance (0.35%): £31
CIF value: £8,731
UKGT duty (3.7%): £323
Import VAT base: £9,054
Import VAT (20%): £1,811 (recoverable if VAT-registered)
Customs broker fee: £150
Total landed cost (ex-VAT recovery): £10,015
Total landed cost (VAT-registered, post-recovery): £8,204

Real-World Planning Notes

When does air freight become worthwhile for UK imports? Air freight from China to the UK costs 4–7× more than sea freight per kg, but reduces your supply chain cycle from 35–40 days to 7–10 days. For high-value goods (electronics, luxury items), the working capital saving and faster time-to-market often justify the premium.

Postponed VAT Accounting (PVA): UK VAT-registered importers can use PVA to defer Import VAT payment to their VAT return, improving cash flow. This removes the need to pay VAT upfront at the border and wait for recovery.

Brexit impact: Since January 2021, all goods from China enter the UK under UK customs procedures (not EU). UK commodity codes may differ slightly from EU CN codes. Always use the UK Trade Tariff, not the EU TARIC database, for UK duty rates.

Frequently Asked Questions

Tips for China Importers

Look up your HS code first. Your HTS/HS code determines your duty rate. Use hts.usitc.gov (US), trade.gov.uk/tariff (UK), or cbsa-asfc.gc.ca (Canada) — not your supplier's guess.
Check for Section 301 exemptions. Some products have granted exclusions at ustr.gov. These can eliminate the additional 7.5–25% tariff entirely. Verify before every order.
First Sale Valuation can lower your duty base. If buying through a trading company, CBP may allow you to declare the factory price (not the middleman price) as the dutiable value — ask your customs broker.
Get a Binding Ruling for anything uncertain. CBP can issue a written classification ruling at no charge through its binding-ruling process. It can help when your product classification is unclear.
Keep import records for 5 years. CBP can audit any entry up to 5 years post-import. Store your commercial invoices, packing lists, and entry summaries.