← Back to blog

Customs & Compliance

Trade compliance isn't just for large corporations with dedicated customs teams. Every UK business that imports or exports goods — regardless of size — has legal obligations that must be met. The good news is that for most small businesses, the checklist is manageable once you understand what's required. Here is a practical guide to what you need to have in place.

Before You Import

☐ Obtain your GB EORI number
Every business importing goods into Great Britain needs an Economic Operator Registration and Identification (EORI) number. Apply free via GOV.UK — usually issued the same day. Without it, your customs declarations will be rejected and goods held at the border.

☐ Identify the correct commodity code
Your commodity code (10 digits for imports) determines your duty rate, any import controls, and eligibility for preferential rates. Use the UK Trade Tariff on GOV.UK. Getting this wrong affects every subsequent calculation and declaration.

☐ Check the applicable duty rate
Once you have the commodity code, look up the duty rate on the UK Trade Tariff. Check whether a preferential rate is available under a UK trade agreement if the goods originate in an FTA country. Calculate the full landed cost — including duty and import VAT — before committing to a purchase price.

☐ Understand your import VAT position
If you are VAT-registered, import VAT is reclaimable — but you still need to account for it. If you are not VAT-registered, it is a real cost. Know which applies to you.

☐ Set up Postponed VAT Accounting (if VAT-registered)
PVA eliminates the cash flow impact of import VAT for VAT-registered businesses. Ensure your customs agent applies PVA to your import declarations, and access your monthly import VAT statements from your HMRC online account.

☐ Appoint a customs agent if needed
If your import volumes are low or your goods are straightforward, your freight forwarder may handle the customs declaration. For more complex goods or high volumes, a dedicated customs broker adds value and reduces risk.

☐ Check for import controls and licences
Certain goods require an import licence or are subject to additional controls — agricultural products, chemicals, pharmaceuticals, endangered species products (CITES), and dual-use goods, among others. Check the UK Trade Tariff for any measures that apply to your commodity code.

☐ Put a record-keeping system in place
HMRC requires you to keep customs records for at least four years. This includes import declarations, invoices, proof of payment, and any correspondence with HMRC or your customs agent.

Before You Export

☐ Obtain your GB EORI number
Required for export declarations just as for imports. The same number covers both.

☐ Identify the commodity code for export declarations
Export commodity codes are 8 digits. You need this for your export declaration and it should appear on the commercial invoice.

☐ Agree Incoterms with your buyer
Incoterms determine who is responsible for shipping, insurance, and customs clearance at each stage. For most UK SME exports, DAP (Delivered at Place) puts import responsibility with the buyer in their home country — which is usually the cleanest arrangement. Avoid DDP unless you fully understand the implications of acting as importer of record in the destination country.

☐ Prepare compliant export documents
At minimum: a commercial invoice with all required fields (full description, commodity code, country of origin, value, Incoterms, buyer and seller details) and a packing list. Additional documents may be required depending on the destination and product type.

☐ Check rules of origin if your buyer wants preferential rates
If exporting to an FTA country and your buyer wants to claim a reduced duty rate, confirm that the goods genuinely meet the rules of origin under the relevant agreement. Include a correctly worded statement on origin on the commercial invoice if applicable. Register as a REX for EU shipments above £6,000.

☐ Check whether an export licence is required
Controlled goods — including military and dual-use items, certain chemicals, cryptography products, and some technologies — may require an export licence from the Export Control Joint Unit (ECJU). Exporting controlled goods without a licence is a criminal offence.

☐ Keep records for 4 years
Retain export declarations, commercial invoices, shipping documents, and any origin documentation for at least four years. For ClearDocs-generated export document packs, keep copies of all issued documents.

General Compliance

☐ Sanctions and restricted party screening
The UK maintains a list of sanctioned individuals, entities, and countries under the Office of Financial Sanctions Implementation (OFSI). Exporting to sanctioned parties is a serious legal breach. For most SMEs trading with established buyers in low-risk markets this is not a significant risk — but if you are entering new markets or working with unfamiliar counterparties, a basic screening check is good practice.

☐ Awareness of import and export prohibitions
Some goods cannot be imported into or exported from the UK at all — regardless of who you are or where they're going. Prohibited goods include certain weapons, counterfeit goods, and some animal products. Others are restricted rather than prohibited — they can be traded but only with the appropriate authority. If you're unsure whether your product is subject to any prohibition or restriction, check GOV.UK or speak to a customs broker.