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
If you are 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.
Use this guide to learn how to reduce, suspend, or remove customs duty depending on the type of movement. You must meet the conditions for the relevant customs facilitations, reliefs or procedures.
Learn more about how to bring goods into Northern Ireland from Great Britain without paying duty.
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.
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 the UK Internal Market Scheme (UKIMS), for eligible goods that are ‘not at risk’ of moving to the EU
If your goods are ‘at risk’ you may be able to:
- claim preference under the UK-EU Trade and Cooperation Agreement (TCA)
- claiming preference under the UK–EU Trade and Cooperation Agreement (TCA)
- claim preference under UK trade agreements
- use customs special procedures and reliefs
- use 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.
- 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 3: Look up your commodity code on the relevant tariff tool to find the duty rate that applies.
Step 4: Identify which option may apply to your movement:
- if your goods are ‘not at risk’, see Option 1 (UK Internal Market Scheme)
- if your goods are ‘at risk’, see Options 2 to 5 to find out if you can reduce, remove or delay customs duty
Step 5: Check that you meet the conditions for the duty reduction, removal, or delay option you want to use. Make sure you have any evidence needed 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.
If your goods are in free circulation in Great Britain, you do not pay EU customs duty when you declare them as ‘not at risk’ under your UKIMS authorisation.
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.
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.
Understanding rules of origin
You will need to understand the rules of origin 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.
The Northern Ireland Online Tariff 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.
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 mattress manufacturer in Birmingham, moves a consignment of spring mattresses to a retailer in Belfast. The mattresses are declared ‘at risk’ of moving to the EU, so the EU duty would normally apply.
The manufacturer can demonstrate that the mattresses 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 (known as authorised use in Great Britain)
Find out more about suspending duty through special procedures and how to use them.
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 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.
As the finished goods are exported to the United States rather than released into free circulation in Northern Ireland, no duty becomes due when the procedure is discharged.
Option 4: Customs reliefs
Customs reliefs provide either full or partial relief from the amount of customs duty and/or import VAT you must pay on goods moved into Northern Ireland. There are different reliefs available and which one you can claim depends on the type of goods and their intended use, and whether you meet the relevant conditions of that relief.
Examples of goods reliefs include:
- Returned goods relief allows goods that have been previously exported to be re-imported without payment of duty, subject to conditions being met
- Onward Supply Relief 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 to identify the customs procedure the goods are entering,
- include the specific Additional Procedure code 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 ‘C-Series' Additional Procedure Code 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. No customs duty is payable on re-import, provided the conditions of the relief are met, including that the goods are returned within 3 years and have not been altered.
The trader can also claim relief from import VAT, if the exporter and importer are the same person.
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 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
- cannot meet rules of origin requirements
- 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 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. Goods are automatically considered ‘at risk’ where the applicable EU rate of duty is more than the applicable UK rate of duty and the difference is 3 percentage points or more. In these cases, the applicable EU rate of duty applies.
Step 2: Identify whether the Northern Ireland or UK tariff 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 3: Look up your commodity code on the relevant tariff tool to find the duty rate that applies.
Step 4: Identify which option may apply to your movement:
- if your goods are ‘not at risk’, see Option 1 (UK Internal Market Scheme)
- if your goods are ‘at risk’, see Options 2 to 5 to find out if you can reduce, remove or delay customs duty
Step 5: Check that you meet the conditions for the duty reduction, removal, or delay option you want to use. Make sure you have any evidence needed 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’ under UKIMS, EU customs duty does not apply. Instead, the applicable UK duty may apply.
To qualify, goods must be:
- brought for sale or final use by end consumers into Northern Ireland
- be imported by a trader authorised under the UK Internal Market Scheme and meet the requirements to be declared 'not at risk' of moving to the EU
- not be subject to EU trade remedies
Learn more about declaring goods brought into Northern Ireland from the RoW as ‘not at risk’.
Find out how to apply for the UKIMS authorisation.
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 Northern Ireland retailer imports spring mattresses from China to sell to customers in Northern Ireland. The EU duty rate is 3.7%, and the UK duty rate is 2%.
The EU duty rate is higher, but the difference is less than 3 percentage points, so the goods are not automatically ‘at risk’.
The retailer is authorised under UKIMS.
The mattresses are for sale to end consumers in Northern Ireland and are not subject to EU trade remedies. This means they can declare the goods as ‘not at risk’ under UKIMS and pay the UK duty rate of 2%.
Option 2: Reduce UK customs duty by claiming preference under a UK trade agreement
Use this option when:
- moving ‘not at risk’ goods into Northern Ireland from rest of the world (excluding EU), where a UK trade agreement applies to your goods
- moving ‘at risk’ goods into Northern Ireland from rest of the world (excluding EU), where an EU trade agreement applies to your goods
‘Not at risk’ goods: using a UK Free Trade Agreement
For goods moved into Northern Ireland from outside of the UK or the EU declared as ‘not at risk’ UK customs duty applies rather than EU duty. You can reduce the UK duty by claiming preference if applicable.
You can claim preference if your goods meet all of the following conditions:
- goods are ‘not at risk’ of moving to the EU
- there is a trade agreement between that country and the UK
- goods meet the rules of origin set out in the trade agreement
- you hold evidence to prove the origin of the goods
Learn more about claiming preference under a Free Trade Agreement.
Find about preferential duty rates and rules of origin.
UK trade agreements
The UK has the following types of trade agreements:
- bilateral: between the UK and another country
- multilateral: between the UK and a group of nations
- unilateral schemes, such as the Developing Countries Trading Scheme (DCTS) where the UK grants preference to developing countries
Find what trade agreements are in place on GOV.UK
Example: claiming UK trade agreement preference on a RoW to NI movement
A food importer brings a consignment of fresh blueberries from Canada into Northern Ireland. The goods are declared 'not at risk', so UK duty applies rather than EU duty.
The importer checks the UK Integrated Online Tariff and confirms that a preferential rate is available under the UK-Canada trade agreement for this commodity code. The blueberries are wholly obtained in Canada, meeting the rules of origin.
On the declaration, the trader:
- selects the correct preference code shown in the UK Integrated Online Tariff
- completes the ‘Country of Preferential Origin’ with country code CA (Canada)
- includes the appropriate document reference to evidence Canadian origin
- uses the correct document status code to confirm they hold the evidence
As a result, the UK duty rate is reduced under the UK–Canada trade agreement.
How to claim preference in your declaration
To claim preference, check the commodity code in the UK Integrated Online Tariff. The tariff shows which preference code, document codes, and document status codes to use.
Complete the following steps for each goods item:
- select the correct preference code based on the commodity code and the preference shown in the UK Integrated Online Tariff
- complete ‘Country of Preferential Origin’
- include appropriate document references based on the type of origin evidence you have to support your claim
- use correct document status codes
Preference mismatch
A preference mismatch may happen where either the United Kingdom or EU tariff may apply to the same goods in Northern Ireland.
This can happen when:
- goods are imported directly into Northern Ireland from the rest of the world
- goods are moved from Great Britain into Northern Ireland that were not in free circulation in Great Britain
A mismatch occurs where a preferential rate is available under one tariff but not the other. When this happens, you’ll need to declare this using the Additional Information code EUPRF.
Find more about this on the EUPRF – Preference mismatch on Northern Ireland declarations guide.
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.
Find out about paying less or no duty on goods you store, repair, process or temporarily use.
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 and their instructions for using the procedure code.
Example: using Inward Processing
A manufacturer in Northern Ireland buys raw materials from China to process into finished goods that will be exported to Canada. The goods are ‘at risk’ because they are not for sale to, or final use by, end consumers in Northern Ireland, 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 their Inward Processing authorisation to suspend customs duty and import VAT while the goods are being worked on.
As the finished goods are exported to Canada rather than released into free circulation in Northern Ireland, no customs duty or import VAT becomes due. When the goods are exported, they are discharged from the Inward Processing procedure.
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 allows goods that have been previously exported to be re-imported without payment of duty, subject to conditions being met
- Onward Supply Relief 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 to identify the customs procedure the goods are entering
- include the specific Additional Procedure code 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 ‘C-Series' Additional Procedure Code 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.
The trader can also claim relief from import VAT, if the exporter and importer are the same person
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: Samples of goods of negligible value imported for trade promotion purposes’, 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 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
- cannot meet rules of origin requirements
- 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, over a 3-year rolling period, depending on the business sector.
Check the conditions for claiming a duty waiver 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 a country with no trade agreement or preference scheme with the UK or EU.
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