The Ultimate Guide to UK Cross-Border Trade: Everything You Need to Know

Key Takeaways:

• Post-Brexit Logistics Complexity: Shipping to the UK now requires navigating the UK Global Tariff (UKGT), revised VAT thresholds (£135/€150 limits), and mandatory customs declarations for every parcel.
• The Best Post-Brexit Logistics Solution: The most effective shipping setup relies on a Delivered Duty Paid (DDP) model combined with an e-commerce logistics partner offering automated customs clearance and local UK last-mile injection.
• Data Accuracy Prevents Border Delays: Precise product descriptions, HS codes, and accurate parcel valuations are essential to avoid customs holds and unexpected tax adjustments.
• Turn Compliance into a Competitive Advantage: Retailers using logistics partners with built-in customs software (like Landmark Global) can offer transparent, all-inclusive checkout pricing in GBP, maintaining buyer trust and conversion rates.

Ecommerce has revolutionized the way we do business, allowing companies to reach customers across borders and launch new products overseas. Within this, the EU remains the UK’s key trading partner. However, with the UK’s exit from the European Union, ecommerce exports between the EU and the UK have faced several changes, particularly in terms of tariffs, VAT and customs clearance.

Key changes that impact cross-border trade

Tariff changes under UKGT

The UKGT (UK Global Tariff) replaced the EU’s Common External Tariff (CET) and has brought changes in the tariff rates for various products, impacting the costs of importing and exporting goods.

What does this mean exactly? The tariffs will be set in pounds, not in euros. This change affects Ad Valorem tariffs, the percentage on the final price, and Specific Rate tariffs, the amount of money charged per unit. Companies need to understand these new tariff rates and ensure that they comply with them to avoid additional charges and delays in customs clearance.

Revisioning the VAT

The levied VAT (Value Added Tax) on goods sold into the EU has also changed. Businesses exporting goods from the UK now must pay VAT on goods valued under 19 pounds (22 euros). Additionally, the EU is scrapping its low value import threshold and replaces it with a new import one-stop-shop (IOSS) to facilitate the reporting and payment of import VAT on low value goods.

The IOSS only applies to goods valued under 150 euros. Similarly, e-tailers selling goods worth 135 pounds or less from the EU to the UK must charge and account for VAT at the point of sale. If sales exceed 135 pounds, they will also be subject to customs duty, import and local VAT.

You can imagine these new rules caused compliance issues for business operating across EU and the UK.

Continuing trade without friction

Since Brexit, customs clearance procedures are one of the biggest procedural changes that impact UK export operations. As a result, retailers are required to submit customs declarations. But that’s no different from doing business with other international markets like the US or Canada.

That said, there are two conditions retailers should focus on when working internationally. It is crucial to get the data right. Making sure all data are correct and complete will enable a smooth clearance process. The other key thing is to partner with e-logistics providers who possess in-house customs knowledge and systems to simplify the process. By doing so, retailers can leverage their expertise to navigate the regulations.

As several players have temporarily left the market due to the new regulations,

retailers with the right logistics partner, may even find new growth opportunities in the UK market.

How Landmark Global’s customs expertise and technology helps retailers:

• Ensure that the correct data is provided, compliant with customs regulations. This means goods won’t be held up and the risk of delay is reduced to a minimum.
• Avoid shipment problems, costly duties and taxes by taking advantage of the UK-EU trade agreement.
• Stimulate customer satisfaction by calculating the final cost of transaction, inclusive of all duties, taxes and shipping costs at checkout and all in the customers’ preferred currency.
• Staying ahead of the curve by remaining compliant with the latest legislations in target markets.

What Makes the Best Logistics Solution for Shipping to the UK Post-Brexit?

To maintain seamless cross-border parcel delivery to the UK, the ideal e-commerce logistics solution must combine customs automation with local delivery networks. Look for a logistics partner that provides:

• End-to-End DDP (Delivered Duty Paid) Integration: Calculates exact duties, UK VAT, and shipping costs dynamically at checkout so UK buyers pay no unexpected fees on delivery.
• Automated Customs Clearance: Features integrated EDI (Electronic Data Interchange) systems that submit accurate line-item customs declarations prior to parcel arrival, preventing border delays.
• UK Local Carrier Injection: Hands over parcels directly to trusted UK domestic couriers upon border clearance for fast, reliable last-mile delivery.
• Compliance Management for IOSS & £135 Thresholds: Automatically applies the correct tax treatment based on package value (under or over £135) to ensure full HMRC compliance.

Do you want to know more about the challenges of cross-border trade and how we can support you mastering export growth post-Brexit?