Reducing customs duty on goods moved into Northern Ireland
Find out what options are available to reduce or pay no customs duty when moving goods into Northern Ireland, and how to apply them in your customs declaration.
Contents
- How duty is applied in Northern Ireland
- Options to reduce, remove or delay customs duty or import VAT
- Part 1: Goods moving from Great Britain to Northern Ireland
- Part 2: Goods moving from the Rest of the World to Northern Ireland
- If you have already submitted a declaration
When moving goods into Northern Ireland from Great Britain (England, Scotland, or Wales) or from countries outside the UK and the EU, customs duties may apply.
You may be able to reduce, suspend, or remove customs duty depending on the type of movement and whether the conditions for the relevant customs facilitations, reliefs or procedures are met.
Learn more about how to bring goods into Northern Ireland from Great Britain without paying duty (opens in a new tab).
How duty is applied in Northern Ireland
Goods moved into Northern Ireland can be subject to UK customs duty, or EU customs duty.
The applicable duty depends on whether your goods are treated as ‘at risk’ or ‘not at risk’ of moving to the EU.
| Risk status | Tariff that applies | Online Tariff |
|---|---|---|
| ‘at risk’ | EU duty | Northern Ireland Online Tariff (opens in a new tab) |
| ‘not at risk’ | UK duty | UK Integrated Online Tariff (opens in a new tab) |
Find out more about moving ‘not at risk’ goods into Northern Ireland (opens in a new tab) .
Options to reduce, remove or delay customs duty
There are different options to reduce, remove or delay customs duty or, where applicable, import VAT, when moving goods into Northern Ireland.
The options available depend on:
- the risk status of your goods
- where the goods are coming from
- whether the goods are in free circulation in Great Britain
- which tariff applies (EU or UK)
- whether specific conditions are met
You may be able to use one or more of the following options. Each option works differently and has specific conditions you must meet.
See the options you may use:
- the UK Internal Market Scheme (UKIMS)
- claiming preference under the UK–EU Trade and Cooperation Agreement (TCA)
- claiming preference under UK trade agreements
- using customs special procedures and reliefs
- a customs duty waiver (de minimis aid)
This guide is divided into two parts. Select the part that applies to your movement:
- Part 1: goods moving from Great Britain to Northern Ireland
- Part 2: goods moving from the rest of the world to Northern Ireland
Part 1: Goods moving from Great Britain to Northern Ireland
Before you start: Great Britain to Northern Ireland
See the steps you need to follow before using any options to reduce the duty.
Step 1: Decide if your goods are ‘at risk’ or ‘not at risk’ of moving onwards to the EU.
Step 2: Identify whether the Northern Ireland or UK tariff applies.
Step 3: Look up your commodity code on the relevant tariff tool to find the duty rate that applies.
- for ‘at risk’ goods use the Northern Ireland Online Tariff (opens in a new tab)
- for ‘not at risk’ goods use the UK Integrated Online Tariff (opens in a new tab)
Step 4: Check that you meet the conditions for the option you want to use and hold any required evidence to support your claim.
Option 1: Apply for the UK Internal Market Scheme (UKIMS) authorisation
The UK Internal Market Scheme (UKIMS) authorisation allows you to declare eligible goods entering Northern Ireland as ‘not at risk’ of moving to the EU.
By declaring goods as ‘not at risk’, EU customs duty does not apply. You may need to pay UK duty where applicable.
To qualify, goods must be:
- brought for sale or final use by end consumers into Northern Ireland or Great Britain
- meet UKIMS eligibility conditions
Learn more about the UKIMS (opens in a new tab) and how to apply for the UKIMS authorisation (opens in a new tab).
Using you UKIMS authorisation in the Trader Support Service
You must upload your UKIMS authorisation in the Trader Support Service when you receive it from HMRC.
The service will use this information to:
- enter your UKIMS authorisation in DE 2/3 (Authorisations)
- declare the goods as ‘not at risk’
- include any required supporting information
If you do not use the Trader Support Service, you or an intermediary must complete these in the customs declaration.
Learn how to upload your UKIMS authorisation in the Trader Support Service.
Example: goods moved from Great Britain to Northern Ireland using UKIMS
A retailer moves furniture from Manchester to Belfast for sale to customers in Northern Ireland. The retailer is authorised under the UK Internal Market Scheme (UKIMS) and declares the goods as ‘not at risk’ of moving to the EU.
As the goods are in free circulation in Great Britain and meet the UKIMS conditions, no customs duty is payable on the movement.
Option 2: Reduce EU duty by claiming preference under the UK–EU Trade and Cooperation Agreement (TCA)
When you use a trade agreement to reduce or remove duties on your movement, this is known as claiming preference.
You may be able to claim preference under the UK–EU Trade and Cooperation Agreement if:
- your goods originate in the UK by meeting the rules of origin requirements under the agreement
- you hold valid evidence of UK origin to support the claim
Find out more on how to claim preference under the Trade and Cooperation Agreement (opens in a new tab).
Understanding rules of origin
You will need to understand the rules of origin (opens in a new tab) to be able to use this agreement.
Origin refers to the country where goods are made or produced. Goods are considered UK originating under the UK–EU TCA if they are wholly obtained, or produced exclusively from originating materials, or sufficiently worked or processed in the UK. Find out more about how goods qualify as originating (opens in a new tab).
The Northern Ireland Online Tariff (opens in a new tab) can help you to identify the rules of origin that apply to a specific commodity code under the UK–EU Trade and Cooperation Agreement (TCA).
Learn about the UK-EU TCA Rules of Origin. Understand product specific rules (opens in a new tab).
How to claim preference under the UK–EU TCA in the Trader Support Service
To claim preference on your declaration:
- select the correct preference code (opens in a new tab) (for example 300), based on the commodity code and the preference shown in the Northern Ireland Online Tariff
- complete the appropriate origin field – ‘Country of Origin’ or ‘Country of Preferential Origin’ depending on the preference code selected
- include appropriate document references (for example U116, U117, U118) based on the type of origin evidence you have to support your claim
- use correct document status code (opens in a new tab) to show whether you hold the document referenced
Example: Claiming TCA preference on a Great Britain to Northern Ireland movement
A furniture manufacturer in Birmingham, moves a consignment of wooden chairs to a retailer in Belfast. The chairs are declared ‘at risk’ of moving to the EU, so the EU duty would normally apply.
The manufacturer can demonstrate that the chairs were made in the UK using UK origin timber, meeting the product specific rules of origin under the TCA. They also hold the required evidence of UK origin including a statement on origin.
On the declaration, the trader:
- selects preference code 300
- completes the ‘Country of Preferential Origin’ field with GB
- includes document code U116 with the reference number of the statement on origin
- uses the appropriate document status code to confirm they hold the document
As a result, the EU duty rate is reduced to 0 under the TCA preference.
Option 3: Customs special procedures
Customs special procedures allow you to suspend or defer the payment of customs duty or import VAT on goods moved into Northern Ireland if you meet certain conditions.
Examples of special procedures include:
- Inward processing
- Customs warehousing
- Temporary admission
- End-use procedure
Find out more about suspending duty through special procedures (opens in a new tab) and how to use them (opens in a new tab).
How to use a customs special procedure
You need to use the appropriate 4-digit procedure code which identifies the procedure the goods are being entered to.
See the list of procedure codes available for a customs declaration (opens in a new tab) and their instructions for using the procedure code.
Example: using Inward Processing
A manufacturer in Northern Ireland buys raw materials from Great Britain to process into finished goods that will be exported to the EU. The materials are ‘at risk’ of moving to the EU, so EU duty would normally apply when they enter Northern Ireland.
The manufacturer enters the goods into Inward Processing, which suspends customs duty and import VAT while the goods are being worked on.
The manufacturer must then discharge the Inward Processing procedure in line with the conditions of the authorisation.
Duty only becomes payable if the finished goods are released into free circulation in Northern Ireland rather than exported as planned.
Option 4: Customs reliefs
Customs reliefs allow you to reduce or remove the amount of Customs duty and/or import VAT you must pay on goods imported into the UK. What relief you can claim depends on the goods and their intended use and only applies if you meet certain conditions.
Examples of goods reliefs include:
- Returned goods relief (opens in a new tab) allows goods that have been previously exported to be re-imported without payment of duty, subject to conditions being met
- Onward Supply Relief (opens in a new tab) is a VAT simplification for goods imported into Northern Ireland and immediately supplied onward to an EU VAT registered customer, allowing import VAT to be declared on the EU VAT return instead of paid at import.
How to use a customs relief
To claim a relief, you must:
- declare the goods using the appropriate Procedure Code (opens in a new tab) to identify the customs procedure the goods are entering,
- include the specific Additional Procedure code (opens in a new tab) for the relief being used
There are other additional procedure codes that may also provide relief for customs duties dependent on the circumstances of your movement.
These include the ‘Additional Procedure Code C-Series codes’ (opens in a new tab) used for certain relief claims.
Example: using Returned Goods Relief
A trader based in Northern Ireland sends exhibition equipment to Great Britain for a trade show. When the equipment is returned to Northern Ireland, the trader claims Returned Goods Relief. Provided the conditions of the relief are met, including that the goods are returned within 3 years and have not been altered, no customs duty is payable on re-import.
Example: using C-series additional procedure code
A business moves low-value commercial samples into Northern Ireland. Before completing the declaration, the trader checks the Additional Procedure Code C-Series to see if any relief is available.
They notice that code C-30 provides relief from customs duty, and that their goods meet the conditions to use it.
The declarant enters code C-30 on the customs declaration to claim relief from customs duty.
Option 5: Use a customs duty waiver (de minimis aid)
If none of these options apply you may be able to claim a duty waiver (opens in a new tab) under the Customs Duty Waiver Scheme if your goods are ‘at risk’ of moving to the EU.
It may be a suitable option if you:
- move low volumes of goods into Northern Ireland
- are not eligible for UK Internal Market Scheme authorisation (opens in a new tab)
- cannot meet rules of origin requirements (opens in a new tab)
- cannot demonstrate that goods are ‘not at risk’
- know that goods are ‘at risk’ of entering the EU
For small businesses, this can be a practical way to reduce duty costs without needing an UKIMS authorisation.
The waiver is provided under de minimis state aid rules, and is subject to a maximum allowance of €300,000, depending on the business sector.
Check the conditions for claiming a duty waiver (opens in a new tab) including sector specific limits and how to calculate your allowance.
Find information on how to claim a duty waiver on Trader Support Service.
Example: claiming a duty waiver
A small retailer in Northern Ireland regularly moves small volumes of clothing from Great Britain to Northern Ireland.
The goods are 'at risk' of moving to the EU and the retailer does not hold UKIMS authorisation and cannot claim TCA preference.
Rather than paying full EU duty on each movement, the retailer claims the customs duty waiver. Provided the total waiver claimed does not exceed the de minimis allowance for their sector, no duty is payable.
Part 2: Goods moving from Rest of the World to Northern Ireland
When moving goods into Northern Ireland from countries outside the UK and the EU, customs duty may apply. You may be able to reduce, suspend, or remove customs duty depending on whether the conditions for the relevant customs facilitations, reliefs or procedures are met.
Before you start: Rest of the World (RoW) excluding EU, to Northern Ireland
See the steps you need to follow before using any options to reduce the duty.
Step 1: Decide if your goods are ‘at risk’ or ‘not at risk’ of moving onwards to the EU.
Step 2: Identify whether the Northern Ireland or UK tariff applies.
Step 3: Look up your commodity code on the relevant tariff tool to find the duty rate that applies.
- for ‘at risk’ goods use the Northern Ireland Online Tariff (opens in a new tab)
- for ‘not at risk’ goods use the UK Integrated Online Tariff (opens in a new tab)
Step 4: Check that you meet the conditions for the option you want to use and hold any required evidence to support your claim.
Option 1: Apply for the UK Internal Market Scheme (UKIMS) authorisation – RoW (excluding EU) to Northern Ireland
The UK Internal Market Scheme (UKIMS) authorisation allows you to declare eligible goods entering Northern Ireland as ‘not at risk’ of moving to the EU.
By declaring goods as ‘not at risk’ of moving to the EU under UKIMS, EU customs duty does not apply. You may need to pay UK duty where applicable.
To qualify, goods must be:
- brought for sale or final use by end consumers into Northern Ireland
- meet UKIMS eligibility conditions
Learn more about the UKIMS (opens in a new tab).
Find how to apply for the UKIMS authorisation (opens in a new tab).
Using you UKIMS authorisation in the Trader Support Service
You must upload your UKIMS authorisation in the Trader Support Service when you receive it from HMRC.
The service will use this information to:
- enter your UKIMS authorisation in Documents produced, certificates and authorisations, additional references
- declare the goods as ‘not at risk’
- include any required supporting information
If you do not use the Trader Support Service, you or an intermediary must complete these in the customs declaration.
Learn how to upload your UKIMS authorisation in the Trader Support Service.
Example: goods moved from RoW to Northern Ireland
A retailer imports furniture from China into Northern Ireland for sale to customers in Northern Ireland. The retailer is authorised under UKIMS and declares the goods as 'not at risk' of moving to the EU.
Where the applicable EU duty is higher than the applicable UK duty rate, the UKIMS authorisation allows the goods to be treated as ‘not at risk’ and the UK duty rate to apply.
Option 2: Reduce UK customs duty by claiming preference under a UK trade agreement
Option 3: Customs special procedures
Customs special procedures allow you to suspend or defer the payment of customs duty or import VAT on goods moved into Northern Ireland if you meet certain conditions.
Examples of special procedures include:
- Inward processing
- Customs warehousing
- Temporary admission
- End-use procedure
Find out more about suspending duty through special procedures (opens in a new tab).
Find out about paying less or no duty on goods you store, repair, process or temporarily use (opens in a new tab).
How to use a customs special procedure
You need to use the appropriate 4-digit procedure code which identifies the procedure the goods are being entered to.
See the list of procedure codes available for a customs declaration (opens in a new tab) and their instructions for using the procedure code.
Example: using Inward Processing
A manufacturer in Northern Ireland buys electronic components to process into finished circuit boards that will be exported to the EU. The materials are ‘at risk’ of moving to the EU, so EU duty would normally apply when they enter Northern Ireland.
However, as the goods are only entering temporarily to be processed, the manufacturer uses Inward Processing to suspend customs duty and import VAT while the goods are being worked on.
The goods are declared under Inward Processing, suspending customs duty and import VAT while the goods are being processed. Duty only becomes payable if the finished goods are released into free circulation in Northern Ireland rather than exported as planned.
Option 4: Customs reliefs
Customs reliefs allow you to reduce or remove the amount of Customs duty and/or import VAT you must pay on goods imported into Northern Ireland from Row.
What relief you can claim depends on the goods and their intended use and only applies if you meet certain conditions.
Examples of goods reliefs include:
- Returned goods relief (opens in a new tab) allows goods that have been previously exported to be re-imported without payment of duty, subject to conditions being met
- Onward Supply Relief (opens in a new tab) is a VAT simplification for goods imported into Northern Ireland and immediately supplied onward to an EU VAT registered customer, allowing import VAT to be declared on the EU VAT return instead of paid at import
How to use a customs relief
To claim a relief, you must:
- declare the goods using the appropriate Procedure Code (opens in a new tab) to identify the customs procedure the goods are entering
- include the specific Additional Procedure code (opens in a new tab) linked to the procedure to be able to claim the relief
There are other additional procedure codes that may also provide relief for customs duties dependent on the circumstances of your movement.
These include the ‘Additional Procedure Code C-Series codes’ (opens in a new tab) used for certain relief claims.
Example: using Returned Goods Relief
A trader based in Northern Ireland exports a consignment of machinery to a customer in the United States. The customer rejects the goods and returns to Northern Ireland.
When the goods are returned to Northern Ireland, the trader claims Returned Goods Relief. Provided the conditions are met, including that the goods are returned within 3 years and have not been altered, no customs duty is payable on re-import.
Example: using C-series additional procedure code
A business imports low-value commercial samples into Northern Ireland from China. Before completing the declaration, the trader checks the Additional Procedure Code C-Series to see if any relief is available.
They notice that code C-30 provides relief from customs duty, and that their goods meet the conditions to use it.
The declarant enters code C30 on the customs declaration to claim relief from customs duty.
Option 5: Use a customs duty waiver (de minimis aid)
You can claim a duty waiver (opens in a new tab) where your goods are at risk and no other option is available to you.
You can claim a duty waiver, so you do not have to pay duty on goods you bring into Northern Ireland from countries outside the EU.
It may be a suitable option if you:
- move low volumes of goods into Northern Ireland
- are not eligible for UK Internal Market Scheme authorisation (opens in a new tab)
- cannot meet rules of origin requirements (opens in a new tab)
- cannot demonstrate that goods are ‘not at risk’
- know that goods are ‘at risk’ of entering the EU
For small businesses, this can be a practical way to reduce duty costs without needing an UKIMS authorisation.
The waiver is provided under de minimis state aid rules, and is subject to a maximum allowance of €300,000, depending on the business sector.
Check the conditions for claiming a duty waiver (opens in a new tab) including sector specific limits and how to calculate your allowance.
Find information on how to claim a duty waiver on Trader Support Service.
Example: claiming a duty waiver
A small retailer in Northern Ireland regularly imports small volumes of clothing from Ethiopia.
The goods are 'at risk' of moving to the EU and the retailer does not hold UKIMS authorisation and cannot claim preferential rate of duty. The applicable EU duty rate is 12% and the applicable UK duty rate is 5%.
The retailer claims the customs duty waiver for the difference between the EU and UK duty rates. Provided the retailer has sufficient de minimis state aid allowance, the waiver covers the 7 percentage-point difference. The retailer remains liable for the applicable UK duty rate.
If you have already submitted a declaration
If you have submitted a declaration through the Trader Support Service and duty is owed, the declaration will show as Payment Pending.
If you realise that you could have used a duty relief before submitting the declaration, you may be able to amend it.
If the declaration is in Payment Pending status, you can recall the declaration to Draft in the Payment Overview page and make changes before resubmitting it.
Related content
Using a special procedure without a prior authorisation - GOV.UK
Using inward processing to process or repair your goods - GOV.UK
Pay less or no duty on goods you store, repair, process or temporarily use - GOV.UK
Check your goods meet the rules of origin - GOV.UK
Guidance for preferential rates of duty and rules of origin - GOV.UK