Understanding Tariffs: A How-To Guide

To get a tariff breakdown for UK exports, you must first determine the export destination and find the correct commodity code for your product. Then, use the relevant country’s online tariff tool to find applicable import duties, like the UK’s online trade tariff for imports, or visit the website of the destination country for their specific rules. Tariffs vary by product, country, and trade agreements, so checking these details is crucial for accurately calculating costs and understanding trade requirements.

What Are Commodity Codes?

• Otherwise known as HS codes, commodity codes are unique reference numbers for specific products for import/export declarations.
• You will be able to use the trade tariff GOV.UK link provided above to find out the code for your item by typing in what your item is.
• They can be used for import to the UK or export from the UK, with tariff information provided on countries worldwide.
• For example, the code for Iron Granules is 72 05 10 00 00. All codes should be 10-digits long.

Trade Agreements

Check online if there is a Free Trade Agreement (FTA) existing between the UK and the country you are trading with, as it can mean reduced or zero tariffs.

Factors to Consider

Rules of Origin

To benefit from preferential tariff rates under an FTA, goods must meet specific Rules of Origin (RoO) to prove their economic nationality.

Additional Duties

Be aware of potential additional duties, such as those on goods originating in Russia and Belarus. When exporting/importing steel, you need to declare goods do not come from these two countries.

Export Tariffs

Export tariffs are distinct from import tariffs and are set on goods being sent abroad.

VAT

Remember that tariffs are separate from Value Added Tax (VAT), which will also apply to most imported goods.

For any questions and enquiries you may have, contact our friendly freight forwarder team on 01634 818344. We’ll be happy to talk you through and provide quotations.