The cheapest savings often come from checking what you already import: the commodity code, the origin and the customs value.
Key takeaway
You can legally reduce import duty in the UK by using the correct commodity code, claiming preferential rates on goods that meet the rules of origin, declaring the right customs value, using duty suspensions and quotas, and using a relief scheme that fits what happens to your goods. Duty you have already overpaid can be claimed back from HMRC within 3 years.
Paying the lowest legal rate of duty is part of managing imports well, in the same way as negotiating with suppliers or planning freight. The rules that make it possible are set by HMRC and the government, and they are there to be used. Since leaving the EU, the government has created over 300 duty suspensions alone to help UK businesses stay competitive.
Most savings come from two places: getting the basics of each declaration right, and choosing the right customs procedure for your goods. This guide covers both, starting with the checks that cost least and often save most.
Ways to reduce import duty at a glance
Start with the first three rows. They apply to almost every importer and only need a review of what you already bring in.
| Way to reduce duty | Best for | What it takes |
|---|---|---|
| 1. Check your commodity codes | Every importer | The right code on every customs declaration, with a binding ruling where a code is uncertain |
| 2. Claim tariff preferences | Goods from the EU and other trade agreement countries | Goods that meet the rules of origin and valid proof of origin |
| 3. Get the customs value right | Importers with freight, finance or commission costs | Costs shown separately on the invoice and left out of the declared value |
| 4. Use duty suspensions and quotas | Manufacturers and food importers | Goods on the suspension or quota list, claimed on the declaration |
| 5. Use a relief scheme | Goods stored, processed, used temporarily or exported | HMRC authorisation for most schemes, see our relief schemes guide |
| 6. Reclaim overpaid duty | Anyone who may have used the wrong code, value or rate | A claim to HMRC within 3 years, or our duty reclaim service |
| 7. Reclaim duty on rejected goods | Goods that arrive faulty or not as ordered | A claim within 1 year, before the goods are exported again or destroyed |
| 8. Account for import VAT on your VAT return | VAT registered importers | Postponed VAT accounting on each declaration, handled every time with monthly customs management |
1. Check your commodity codes
The commodity code on each declaration sets the rate of customs duty and import VAT you pay. Similar products can sit under codes with very different rates, so a code chosen years ago, or copied from a supplier's paperwork, is worth checking against the UK tariff.
Example: an importer brings in £400,000 of goods a year under a code with a 6% duty rate. If the correct code carries 2%, that is £16,000 a year less duty, and past overpayments can be claimed back too.
For certainty, an Advance Tariff Ruling is a legally binding decision from HMRC on the code to use. It is generally valid for 3 years, and HMRC aims to reply within 30 to 120 days.
2. Claim tariff preferences on the origin of your goods
The UK has trade agreements with more than 70 countries and territories, plus the EU. Goods that meet the rules of origin in an agreement can be imported at a reduced or zero rate. What counts is where the goods were made under the agreement's rules, which is not always where they were shipped from.
You need valid proof of origin before you claim, and the goods must genuinely qualify. An Advance Origin Ruling gives you a legally binding decision on origin for 3 years. For a real case of how origin decisions play out, read the Morrisons rules of origin ruling.
Goods from developing countries may also qualify for lower or zero rates under the UK's Developing Countries Trading Scheme.
3. Get the customs value right
Duty is usually charged on the price paid for the goods plus the cost of transport and insurance up to the UK border. Some costs can be left out of the customs value, as long as they are shown separately from the price of the goods:
transport costs after the goods arrive in the UK
UK duties and taxes
interest under a financing arrangement
buying commission
work done after import, such as assembly, installation or maintenance
Example: a £10,000 UK delivery charge wrongly included in the value of goods at 8% duty adds £800 of duty that was never due. For regular or complex imports, HMRC also offers Advance Valuation Rulings, legally binding for 3 years.
4. Use duty suspensions and tariff quotas
Duty suspensions remove or reduce duty on named goods, mostly materials and components used in UK production that are not made in the UK in enough quantity. They apply to imports from any country. The Department for Business and Trade runs the scheme and opens application windows for new suspensions from time to time.
Tariff quotas let you import a set quantity of certain goods at a lower rate of duty. Most work on a first come, first served basis, and you claim them by entering the quota order number on the import declaration.
Both are commonly used by manufacturers, electronics and chemicals businesses, and food and drink importers.
5. Use a relief scheme that fits your goods
If your goods are stored, processed, used temporarily or sent abroad, a customs relief scheme can suspend or remove the duty:
Customs warehousing: store goods with duty and import VAT on hold until they sell in the UK, and pay no UK duty on goods exported again.
Inward processing (IPR): duty and import VAT on hold while you process, assemble or repair goods.
Temporary admission: full or partial relief for goods used in the UK and then sent back.
Outward processing: duty only on the value added when goods come back from repair abroad.
End use: reduced or zero duty for goods put to a specific use, such as aircraft or ship work.
Our guide to UK import duty relief schemes compares every scheme, with the HMRC rules for each.
6. Reclaim duty you have already overpaid
If duty was overpaid, for example through the wrong commodity code, a missed preference or the wrong customs value, it can be claimed back from HMRC within 3 years. After that, the money cannot be recovered. VAT registered businesses correct overpaid import VAT through their VAT return instead.
Readyset has recovered over £1 million in duty for clients through relief and preference audits. Our duty reclaim service reviews up to 3 years of your import history and makes the claim for you.
7. Reclaim duty on rejected goods
If imported goods turn out to be defective, were damaged before customs clearance, or do not meet the terms of the contract, you can claim back the duty when the goods are exported again or destroyed. The goods must not have been used beyond what was needed to find the fault.
Key rules: claim within 1 year, and send the claim at least 48 hours before the goods are packed for export or destroyed, so HMRC can inspect them if it wants to.
8. Account for import VAT on your VAT return
Postponed VAT accounting lets VAT registered businesses declare and recover import VAT on the same VAT return, instead of paying it at the border. It does not reduce duty, but it removes the cash flow cost of import VAT on every shipment.
Our recommendation
Pull your import data for the last 3 years and check three things on your highest value lines: the commodity code, whether a preference was claimed, and what went into the customs value. That one review usually shows both the savings going forward and any duty you can still claim back. Our customs data analysis does this for you.
Find out what you could save on duty. Readyset is a British customs consultancy working with importers across the UK and worldwide. We will review your import data and show you where the savings are, free of charge and with no commitment.
Book a free consultationFrequently asked questions
Can you legally reduce import duty in the UK?
Yes. Using the correct commodity code, claiming preferences on qualifying goods, declaring the right customs value, using duty suspensions and quotas, and using HMRC relief schemes are all legal ways to pay less duty.
What is the quickest way to reduce import duty?
Check the commodity codes and origin of your highest value imports. A wrong code or a missed preference can be fixed on your next declaration, and past overpayments can be claimed back within 3 years.
Can I get a refund of import duty?
Yes, in two main cases. Overpaid duty can be claimed back within 3 years. Duty on rejected goods that are faulty or not as ordered can be claimed within 1 year, before the goods are exported again or destroyed. Our duty reclaim service handles the claim for you.
Is there duty drawback in the UK?
For customs duty, the usual routes are to suspend duty in advance through a relief scheme such as IPR or customs warehousing, or to claim back duty that was overpaid or paid on rejected goods. Excise duty drawback still exists for excise goods, such as alcohol and tobacco, that are not consumed in the UK.
How long does an Advance Tariff Ruling take?
HMRC aims to reply within 30 to 120 days. The ruling is legally binding and generally valid for 3 years.
Is there import duty on goods worth £135 or less?
Currently, no customs duty is charged on non excise goods worth £135 or less, although VAT still applies. The government has announced this relief will be removed by March 2029 at the latest.
Does postponed VAT accounting reduce import duty?
No. It lets VAT registered businesses account for import VAT on their VAT return instead of paying it at the border. It helps cash flow, but customs duty is still due.
Sources (checked October 2026): GOV.UK, Finding commodity codes · GOV.UK, Apply for an Advance Tariff Ruling · GOV.UK, Apply for an Advance Origin Ruling · GOV.UK, Valuing imported goods (method 1) · GOV.UK, Duty suspensions and tariff quotas · GOV.UK, Notice 375: tariff quotas · GOV.UK, Refunds and waivers on customs debt · GOV.UK, Excise Notice 207 · GOV.UK, Postponed VAT accounting · GOV.UK, Low value imports reform · HMRC, UK AEO presentation to the WTO (2025)
