Understanding Tariffs: What You Need to Know in 2025
- UK Fulfilment
- Jun 19
- 2 min read
As the UK continues to evolve in a post-Brexit landscape, businesses using fulfilment services—especially those involved in cross-border e-commerce—must stay sharp on tariff rules, duties, and VAT. Whether you’re an overseas seller shipping to UK customers, or a UK-based brand importing stock from abroad, understanding how tariffs affect fulfilment is essential for managing costs and compliance.
Here’s what you need to know about UK fulfilment tariffs in 2025.
What Are Tariffs, Exactly?
Tariffs are taxes imposed on imported goods. In the UK, they are set by HMRC and typically apply when goods enter the country from non-UK sources. The amount of duty charged depends on:
The type of product (classified under commodity codes)
The country of origin
The customs value of the goods
Why Tariffs Matter for Fulfilment
Fulfilment centers often receive, store, and ship goods on behalf of clients—many of whom source inventory from outside the UK. If you're not factoring in tariffs and import duties, your landed cost per product can increase unexpectedly, affecting your margins.
Key Tariff Considerations for UK Fulfilment Clients
1. Country of Origin Rules (Post-Brexit Trade Impact)
If you’re importing goods from the EU, you may still be liable for tariffs unless you meet the UK-EU Rules of Origin. That means you’ll need evidence that the product was manufactured in the EU to qualify for tariff-free access.
2. Using a Fulfilment House: You May Need to Register
If you're a non-UK business storing goods in a UK fulfilment centre, you must register for the Fulfilment House Due Diligence Scheme (FHDDS). This is to ensure that VAT and customs regulations are followed.
3. Customs Duties vs. VAT
Customs duty varies by product type (use the UK Global Tariff tool to check exact rates).
Import VAT (usually 20%) is charged on the customs value + duty + shipping. If you're VAT-registered in the UK, you can reclaim this, but it affects cash flow.
4. De Minimis and Low-Value Goods
If you’re shipping small or low-value items (under £135), special rules apply.
For instance:
No customs duty is typically charged on goods under £135.
Import VAT is still due, but for B2C orders, it must be collected at point of sale and paid via the UK VAT registration.
5. Consider Delivered Duty Paid (DDP)
If you want to ensure a frictionless delivery experience for customers, using DDP terms means you handle all customs charges ahead of time—nothing for the buyer to pay on arrival.
How to Keep Costs in Check
Use the UK Trade Tariff tool to look up commodity codes and duty rates
Plan shipments to reduce frequency of customs clearance charges
Store bulk quantities in the UK to fulfil domestically and avoid repeated tariffs
Tariffs are a key cost component in your fulfilment supply chain. Whether you’re a DTC brand importing skincare from China, or a US Amazon seller fulfilling UK orders, understanding and managing tariffs will protect your margins and keep your business compliant.
Looking for a fulfilment partner that understands international logistics?
Choose a provider with tariff expertise, customs brokerage partnerships, and flexible storage options — so your focus stays on growth.
Need help navigating tariffs and fulfilment in the UK?
Let’s talk. We’ll help you get clear on your landed costs
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