The steps below are a guideline on calculating basic import duty and/or VAT.

1. CONVERT THE VALUE OF YOUR GOODS INTO GB POUNDS
Import Duty and/or VAT is calculated on the Commercial Invoice Value of the goods in Pound Sterling and is based on C.I.F or C&F Price Terms.
If the goods value is declared in Foreign Currency on the Commercial Invoice, the value must be converted into Pound Sterling by using the correct Customs Rate of Exchange. Each month UK Customs Publishes new Exchange Rates which needs to be used to convert Foreign Currencies declared on Commercial Invoices. (Visit the UK Customs website to check the monthly Rates by clicking (HMRC CURRENCY LIST) Exchange rates from HMRC in CSV and XML format – GOV.UK

TERMS MEANING: C.I.F (Cost of goods. Insurance. Freight Cost) C&F (Cost of goods and Freight Cost)

2. SHIPPING COSTS (DOOR TO DOOR)
If the Commercial Invoice States Ex Works or F.O.B Terms, then you MUST include any shipping Costs and/or Insurance costs connected with your goods, as Duty is based on (C.I.F or C&F) Terms.
Again, all cost must be declared in pound sterling by using the same Published Customs Exchange Rates, if all Cost are declared in Foreign Currency.
You need to add /or all the following which may apply:
-Collection/Delivery costs from the shipper to the port of export
-The cost of any specialised packaging
-Any additional Insurance is taken out to cover your goods during transit.

3. CALCULATING BASIC IMPORT DUTY (if applicable)
Now that you have got your total value of goods (including all the associated shipping costs) in GB Pounds, you next need to know what percentage of Duty has been allocated by UK Customs for your goods if any.

To do this you need to:
-visit the Trade Tariff: look up commodity codes, duty and VAT rates – GOV.UK (www.gov.uk) this should then allow you to find the commodity code (keep this code as you will need to ensure that your clearing agent uses this on the Customs entry) and the rate of Import Duty that’s applicable to your goods.
-Multiply your total value of goods by the Customs Duty rate.  This is the approximate amount of Import Duty that you may have to pay to UK Customs.

4. CALCULATING THE VAT (if applicable)
The rate of VAT in the UK currently stands at 20%.  So to calculate the VAT, you need to do the following:
-Add the amount of Duty (that you have just calculated) to the total value of your goods (including the shipping costs)
-Add all the UK charges, such as Customs clearance and delivery costs (from port of arrival/Bonded Warehouse through to your door).
-Multiply this total amount by 20% to give an approximate amount of VAT that you would have to pay to UK Customs.

5. You will require an EORI number,
Full details can be obtained from HM Revenue & Customs. visit:www.hmrc.gov.ukfor more details.
Please click this link to apply for EORI – www.gov.uk/eori?step-by-step

6. How to obtain a VAT number? 
Full details can be obtained from HM Revenue & Customs. visit:www.hmrc.gov.uk for more details. 
Click here for information on registering for VAT
Click here to apply online for VAT registration 

United Cargo Services Ltd is here to help If further assistance is required.