What Is Customs Clearance?
Customs clearance is the official process of submitting declarations to HMRC so that goods can legally enter or leave the United Kingdom. Whether you are importing raw materials from overseas or exporting finished products to international markets, every shipment must pass through this process.
Without proper customs clearance, goods will be held at the border, incurring storage charges and causing delays that can disrupt your supply chain.
Why Is Customs Clearance Necessary?
The UK government requires customs declarations for several important reasons:
- Revenue collection — Import duties and VAT are collected on incoming goods
- Trade statistics — Accurate records of goods crossing UK borders
- Safety and security — Preventing prohibited or restricted goods from entering the country
- Trade policy enforcement — Applying tariffs agreed under trade deals and sanctions
Since the UK left the EU Customs Union in January 2021, customs declarations are now required for all goods moving between Great Britain and the EU — not just non-EU countries.
The Customs Clearance Process Step by Step
1. Document Preparation
Before any declaration can be submitted, the correct documents must be gathered:
- Commercial invoice
- Packing list
- Bill of lading or airway bill
- Certificate of origin (where required)
- Import licences or permits (for restricted goods)
2. Commodity Code Classification
Every product crossing a UK border must be assigned an HS (Harmonised System) commodity code. This code determines:
- The applicable duty rate
- Whether any licences or restrictions apply
- How the goods are treated for VAT purposes
Getting the commodity code wrong can result in underpayment of duties (leading to penalties) or overpayment (costing your business money unnecessarily).
3. Declaration Submission via CDS
The Customs Declaration Service (CDS) is HMRC's platform for submitting import and export declarations. All UK customs declarations must now be submitted through CDS. A licensed customs agent submits the declaration on behalf of the importer or exporter.
4. Duty and Tax Payment
Once the declaration is processed, HMRC will calculate any applicable import duty and VAT. These must be paid before goods can be released. Businesses with a Duty Deferment Account (DDA) can defer payment to the end of the month.
5. Goods Released
After payment and any required inspections, HMRC issues confirmation that goods are cleared. They can then be delivered to the importer or collected from the port or airport.
Common Customs Clearance Mistakes
Incorrect commodity codes — One of the most common and costly errors. Always verify commodity codes carefully.
Missing or incomplete documentation — Delays often occur because a commercial invoice is missing required information such as the correct value, country of origin or description of goods.
Not having an EORI number — Every business that imports or exports must have an EORI number. Without one, goods cannot be cleared.
Failing to declare the correct customs value — The customs value must reflect the true transaction value of the goods, including certain costs such as freight and insurance.
Do I Need a Customs Agent?
While it is technically possible to submit your own customs declarations, most businesses — particularly those that are new to importing or exporting — choose to use a professional customs agent or broker.
A licensed customs agent:
- Knows the correct commodity codes for your products
- Understands the documentation requirements
- Has access to CDS and can submit declarations quickly
- Takes responsibility for the accuracy of declarations
- Can advise on duty reliefs and special procedures
How We Can Help
At Custom Clearance, we handle the entire process on your behalf. From document review and commodity code classification to CDS submission and duty payment management — we ensure your goods clear UK customs as quickly and smoothly as possible.
We are available 24/7 and offer full bilingual support in English and Turkish, making us the preferred choice for Turkish businesses trading with the UK.
Contact us today for a free consultation.