The UK Global Tariff explained

The UK Global Tariff (UKGT) is the standard rate of import duty the UK charges on goods from any country, unless a trade agreement, a preference scheme, a quota, a duty suspension or a relief gives a lower rate. You find the rate by classifying the goods to a commodity code and checking that code, with the country of origin, in the Trade Tariff tool. Trade remedy duties and import VAT are charged on top and work separately.

What is the UK Global Tariff and where does it come from?

The government announced the UKGT on 19 May 2020 as the UK’s own most favoured nation (MFN) tariff, replacing the EU Common External Tariff from 1 January 2021. Rates are set in pounds rather than euros, and the government removed the EU’s Meursing table for processed foods, which had produced thousands of separate rate variations.

The legal structure is short. Section 8 of the Taxation (Cross border Trade) Act 2018 requires the Treasury to make regulations setting up a customs tariff that classifies goods, gives them codes, sets the rate of import duty for each code and contains rules for working out the amount of duty. The Treasury did this through the Customs Tariff (Establishment) (EU Exit) Regulations 2020 (SI 2020/1430). Regulation 2 builds the tariff from four elements:

• a classification of goods into sections, chapters, headings and subheadings (the Goods Classification Table);
• the commodity codes attached to those classifications;
• the standard rate of import duty for each code (the Tariff Table); and
• the general rules for calculating the duty.

Regulation 3 gives legal effect to the rules of interpretation and the section and chapter notes, which decide which code goods most appropriately fall into. Those rules, not the product name on an invoice, settle classification disputes.

How is a duty rate expressed?

Section 8(3) of the 2018 Act allows duty to be set by reference to the value of the goods, their weight, volume or other quantity, or both. In practice that gives three kinds of rate:

• ad valorem: a percentage of the customs value;
• specific: a fixed amount per unit, such as the UKGT rate of £280 per tonne that the government says applies to raw cane sugar for refining; and
• compound: a mix of the two.

An ad valorem rate is applied to the customs value, which normally starts with the price paid and adds transport and insurance up to the point where the goods enter the UK. The rules for that are covered in how customs value is worked out. Import VAT is then charged on a value that includes the duty, so a duty error also produces a VAT error.

How do you look up the rate for a commodity code?

Start with the commodity code. HMRC points out that only the first 6 digits are common worldwide and that product specific decisions differ between countries, so a code supplied by an overseas seller needs checking against the UK tariff. On a Customs Declaration Service (CDS) declaration the first 8 digits go in data element 6/14 and are mandatory on most declarations; digits 9 and 10 go in data element 6/15 on imports and can change the duty or the measures that apply.

Then use the Trade Tariff tool:

1. Find the code by searching or browsing the chapters, reading the section and chapter notes as you go.
2. Select the country the goods originate from, which is not always the country they are shipped from.
3. Read the standard UKGT rate and any preferential rate, quota or suspension listed against the code.
4. Check the other measures shown, such as licences, anti dumping duties and additional codes.

The government says the tool shows the tariff rate applied at the border but does not cover other import charges such as VAT or the precise detail of trade remedy measures. If classification is genuinely uncertain, an Advance Tariff Ruling gives a legally binding answer. The wider classification process is explained in customs duty and commodity codes.

When does a trade agreement rate replace the UKGT?

Section 9 of the 2018 Act lets the Treasury give effect to lower rates agreed with other countries. A preferential rate applies only to goods that originate in the partner country under that agreement’s rules of origin, and you need the type of proof of origin the agreement allows. HMRC’s guidance stresses three points:

• check origin every time you claim, because a change of materials or supplier can change it;
• if you do not claim, or no preference exists, the normal rate applies; and
• keep the declaration, the proof of origin and supporting cost and production records for at least 4 years.

If you paid the full rate and later obtain valid proof of origin, you may be able to claim back some or all of the duty. The UK and EU agreement is covered in detail in rules of origin under the UK and EU trade agreement.

What about goods from developing countries?

Section 10 of the 2018 Act allows a unilateral trade preference scheme for developing countries, and requires any such scheme to give a nil rate to all goods originating in a least developed country except arms and ammunition. The UK’s scheme is the Developing Countries Trading Scheme (DCTS), which sorts countries into three tiers: Comprehensive Preferences for least developed countries, Enhanced Preferences and Standard Preferences. It does not apply to countries classed as upper middle income for 3 consecutive years or to countries (other than least developed countries) that have their own trade agreement with the UK. As with any preference, the goods must meet the scheme’s own rules of origin.

How do quotas and duty suspensions lower the rate?

A tariff rate quota lets a limited quantity of a product in at a zero or reduced rate; once the quota is used up, the higher rate applies. Some quotas are open only to goods from a named country. Section 11 of the 2018 Act provides for them.

A duty suspension, under section 12, removes or reduces duty on specific goods, usually inputs to UK production, for a set period and with no limit on quantity. An autonomous tariff quota does the same for a limited volume. Both apply on an MFN basis, so goods from any country can use them. The government’s guidance notes that:

• suspensions granted from the 2021 and 2023 application windows are due to expire on 31 December 2026, and the government is considering extending them to 31 December 2028;
• new suspensions from the 2025 to 2026 window were expected to take effect on 5 August 2026 and run to 31 December 2028; and
• the raw cane sugar autonomous tariff quota rose to 325,000 tonnes from 1 January 2026.

Suspensions do not remove VAT or trade remedy duties. Where more than one concession could apply, the guidance says importers should make sure the goods are entered at the most advantageous rate.

What can push the duty above the UKGT?

Section 13 of the 2018 Act allows additional duties to counter dumped or subsidised goods and sudden surges in imports. The Trade Remedies Authority investigates these cases, and the resulting anti dumping, countervailing or safeguard duties are charged in addition to the UKGT. The government also lists additional duties on goods originating in Russia and Belarus. These measures attach to particular codes, and often to particular producers through additional codes, so they need checking line by line.

Separately, reliefs can reduce or suspend duty because of what you do with the goods rather than what they are, for example end use relief or the customs special procedures.

How does this work for one consignment?

Illustration only. A UK manufacturer imports components with a customs value of £20,000. Suppose the UKGT rate for the code is 4%:

Situation	Rate applied	Duty
Origin country has no agreement with the UK	UKGT 4%	£800
Goods originate in an agreement partner and proof of origin is held	Preferential 0%	£0
Shipped from an agreement partner but made elsewhere, origin rules not met	UKGT 4%	£800
A duty suspension at 0% covers the code	Suspended 0%, any origin	£0

In every case import VAT is charged on the customs value plus any duty, and any anti dumping duty on the code would still be due.

What are the common mistakes?

• Using the supplier’s export code without checking the UK tariff, especially digits 7 to 10.
• Treating the country of dispatch as the country of origin when claiming a preference.
• Assuming a quota rate is available when the quota has already been used up.
• Assuming a duty suspension also removes anti dumping duty or import VAT.
• Not keeping proof of origin for 4 years, which leaves the claim open to reversal on a check.
• Forgetting that a suspension can expire; several are due to end on 31 December 2026 unless extended.

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Related Accountapedia entries

• Advance tariff rulings
• Global accounting for second hand goods
• Who owns an accountant’s working papers
• When a client company becomes insolvent
• Acting for a client who lacks mental capacity

Sources

• GOV.UK: Government announces uk global tariff
• legislation.gov.uk: Act 2018 c. 22, section 8
• legislation.gov.uk: SI 2020/1430
• GOV.UK: Duty suspensions and tariff quotas
• GOV.UK: Finding commodity codes for imports or exports
• GOV.UK: Using commodity codes and related additional codes in the customs decl
• GOV.UK: Tariffs on goods imported into the uk
• legislation.gov.uk: Act 2018 c. 22, section 9
• GOV.UK: Import and export goods using preference agreements
• legislation.gov.uk: Act 2018 c. 22, section 10

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 24 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.