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First Time Guides

Importing for the first time feels more complicated than it is — but it is more complicated than buying domestically. There are registrations to sort, numbers to know, and a customs process that will catch you out if you haven't prepared. This guide cuts through the jargon and tells you exactly what you need to have in place before your first shipment arrives.

This is written for UK businesses buying from overseas for the first time, whether that's a small retailer sourcing from a manufacturer or a sole trader buying stock from abroad. If you've already imported once, some of this will be familiar — but the sections on landed costs and common mistakes are worth a read regardless.

Should you actually do this?

Before getting into the how, it's worth asking the why. Importing directly gives you better margins and more supply chain control — but it comes with upfront complexity: minimum order quantities, longer lead times, currency risk, and customs admin. These aren't reasons to avoid it, but they are real costs that a domestic wholesaler doesn't impose on you.

If you're buying small quantities, a domestic wholesaler might be cheaper once you factor in your time, freight costs, and the learning curve of your first import. If you're buying at volume or building a product-based business, importing directly almost always makes sense — the margin improvement compounds over time and the process becomes routine. The honest answer is: run the numbers before you commit, not after the container is already on the water.

The five things you need before your first shipment

1. An EORI number — mandatory for importing into the UK. EORI stands for Economic Operators Registration and Identification, and it's the number HMRC uses to track your imports. Free to get, takes a few days. Apply via the HMRC website. You cannot clear goods through UK customs without one. Read the full EORI number guide if you haven't applied yet.

2. Your commodity code — the 10-digit number that determines your duty rate. Every product has one. Getting your commodity code right is the single most important step in the entire import process. Get it wrong and you either overpay duty or face an HMRC penalty. There's no grey area here — HMRC expects you to classify correctly.

3. A clear supplier agreement — specifically, agreement on Incoterms. Incoterms determine who pays for shipping, insurance, and — crucially — who handles customs. DAP (Delivered at Place) means your supplier delivers to your door and you handle import customs. DDP (Delivered Duty Paid) means the supplier handles everything, including customs, and hands you goods with all costs settled. Most first-time importers use DAP or EXW without realising what it means until the goods are sitting at a bonded warehouse and a customs agent is asking for £400 to release them. Read the Incoterms guide before you finalise any supplier agreement.

4. An understanding of what you'll actually pay — duty rate, import VAT at 20%, and the £135 threshold. Below £135 customs value, no duty applies — but import VAT still does. Above £135, duty applies from the first pound. UK import duties explained covers how the calculation works in full.

5. A customs agent or freight forwarder (for your first shipment) — strongly recommended. They handle the customs declaration, know what documentation is required, and catch mistakes before goods are held. Errors that cost you a week's delay and a £500 demurrage charge are routine without one. Your second shipment is much easier once you know the process. See the guide on how to find a freight forwarder in the UK.

What it actually costs

This is where most first-time importers get surprised. The product price is only part of your cost. The full landed cost — what you actually pay to get goods into your hands in the UK — includes all of the following:

• Product cost — the supplier invoice value
• International shipping — sea freight, air freight, or courier depending on volume and urgency
• Import duty — rate varies by commodity code and country of origin, applied to the customs value
• Import VAT at 20% — calculated on the total customs value (product + shipping + insurance), not just the goods price
• Customs handling fee — typically £15–£40 per shipment, charged by the courier or customs agent
• Storage or delivery costs at the UK end — if goods need to be held or transported onwards

Before you place your first order, run the numbers through ClearDuty. Enter your product description, country of origin, and shipment value and it'll calculate your duty rate, import VAT, and total landed cost so you know your real margin before you commit. It takes two minutes and has saved a lot of first-time importers from an expensive miscalculation.

What to do for your first shipment — step by step

1. Get your EORI number from HMRC if you don't already have one
2. Confirm your 10-digit commodity code using the UK Trade Tariff
3. Agree Incoterms with your supplier in writing — don't leave this ambiguous
4. Get a commercial invoice and packing list from your supplier — these are mandatory for customs clearance
5. Arrange a freight forwarder or customs agent if you're using DAP or EXW
6. Calculate your landed cost before the goods arrive so you're not surprised when the invoice lands
7. Pay import VAT on arrival — or use Postponed VAT Accounting if you're VAT registered, which lets you account for import VAT on your VAT return rather than paying at the border
8. Keep all documentation — commercial invoices, customs declarations, proof of payment — for at least four years. HMRC can audit historic imports.

What gets easier and what doesn't

It's worth being honest about this, because first-time importing has a genuine learning curve and then a genuine plateau.

What gets easier: once you've done it once, the process is familiar. Your freight forwarder builds knowledge of your goods and supplier. Commodity codes don't change once you've found the right one. Supplier relationships improve over time, which means better payment terms, more flexibility, and faster resolution when something goes wrong. The paperwork that feels overwhelming on the first shipment becomes routine by the third.

What doesn't get easier: currency risk doesn't disappear. Supplier quality control remains an ongoing challenge, especially at volume. Lead times are genuinely longer than domestic buying, and that has real inventory management implications. And duty rates can change — trade agreements are renegotiated, anti-dumping duties are added and removed, and tariff schedules are updated. Tools like ClearDuty help by always using current rates, but the underlying volatility is real.

Common mistakes that catch first-time importers out

• Getting the commodity code wrong — the difference between related codes can be several percentage points of duty. Finding commodity codes correctly is worth the time investment.
• Not understanding Incoterms — ending up responsible for customs when you assumed the supplier was handling it is a very common and very expensive surprise.
• Underestimating the total landed cost — product price is not your cost. Duty, VAT, freight, and handling together can add 30–60% to the invoice price depending on the goods and origin.
• Missing the import VAT — VAT-registered businesses can reclaim it, but it still needs to be paid upfront unless you're using Postponed VAT Accounting. Non-VAT-registered businesses cannot reclaim it at all, and it becomes a hard cost.
• Not keeping documentation — HMRC can request records for imports up to six years after the event. If you can't produce a commercial invoice or customs entry, you have a problem.
• Anti-dumping duties on certain goods from China — these are applied on top of standard duty rates and can be significant. Check before ordering. See the anti-dumping duty guide for which goods are currently affected.