Importing

Bringing goods in, and the duties and declarations that come with them.

What it means

Importing requires customs declarations, correct classification, and payment of duty and import VAT.

Why it matters

Import VAT and duty are real costs that must be in the landed cost calculation. A product costed on the supplier's invoice alone is costed wrongly.

What it looks like in practice

Postponed VAT accounting lets you account for import VAT on the return rather than paying it at the border, which is a cash flow benefit and has to be elected.\n\nA duty deferment account spreads duty payments.

What to watch out for

Commodity code classification. Getting it wrong changes the duty rate and is the importer's responsibility, not the agent's, and errors are recoverable for years.

Where to get proper advice

HMRC's imports and exports helpline, free. A customs agent, which most small importers use.