Freight between the UK and France | Rates – Transit times – Duties – Taxes – Advices

How to calculate duties & taxes when importing from UK to France?

Understanding customs duties requires you to familiarize yourself with several important factors. Starting off, you'd need to absolutely have an idea about the country of origin. Digging deeper, the HS Code - a universal code set for different types of products - comes into play. You don't stop there, though. The value you've declared for customs - the Customs Value - has a significant role in calculating your share of duties. Furthermore, the Tariff rate that applies to your specific shipment and additional fees or taxes show up to the party to play their part in this rather complex calculation.

Ready to kickstart? The first milestone requires you to identify the country where your goods took their very first breath - the country where they were indeed birthed, manufactured or produced. This sets the foundation for your journey towards understanding and estimating how much you'll need to pay in duties and taxes when importing from UK to France.

Step 1 - Identify the Country of Origin

Understanding your product's country of origin sets the foundation for your import journey from the UK to France. Firstly, it determines the Harmonized System (HS) code, an international standard for categorizing traded products. The exact HS code, crucial for preparing your customs declarations, leans heavily on the origin.

Secondly, countries of origin are key in trade agreements. France and the UK have a Trade and Cooperation Agreement (TCA) established post-Brexit, impacting your duties. By revising the TCA provisions, you can figure out your exact obligations.

Thirdly, amiss details on origin could lead to sanctions or delays. Confirming the origin helps prevent this, saving both money and time.

Moreover, country-of-origin information guides you on any import restrictions; for instance, some agricultural goods face quotas.

Lastly, knowing the origin helps establish any preferential treatment under French customs rules, reducing your overall import costs.

Your product's origin is like the first domino to fall in your import process - it informs duties, taxes, and eases potentially challenging customs waters, so don't underrate it. Your French imports can be smooth sailing with these details on hand. Be a proactive sailor and avoid any unexpected waves!

Step 2 - Find the HS Code of your product

The Harmonized System (HS) Code is an internationally recognized system of names and numbers used to classify traded products. It is utilized globally by various customs authorities to identify products for the purpose of duty and taxes and is also used in freight logistics.

For many businesses, the most straightforward way to find the HS code for a product is to ask the supplier. These individuals are typically familiar with the products they deal with and are aware of the relevant trading regulations.

If for some reason this isn't feasible, you can determine the HS code yourself by following a simple step-by-step process.

First, access an HS lookup tool like the Harmonized Tariff Schedule. Here, you can simply input the name of your product into the search bar.

Next, once your product search results appear, look for the Heading/Subheading column. In this column, you'll find the HS code for your product.

Please note: accuracy is of paramount importance when identifying the HS code for your product. The wrong code could potentially lead to delays in shipping, increased costs, and even fines.

Here's an infographic showing you how to read an HS code.

Step 3 - Calculate the Customs Value

Getting your goods across the border involves understanding the concept of 'Customs Value'. This isn't quite the same as the price you pay for your products. In fact, it's a bit more. Customs Value is the CIF value - the Cost of the goods, Insurance, and Freight (transportation cost). Not just the sticker price, but how much you spent to buy, insure, and ship your goods to France from the UK.

For instance, if you purchase a product for $100, insure it for $10, and pay $50 for shipping, your Customs Value is $160. This is critical because the French customs authority uses this CIF value to calculate the customs duties and taxes you'll need to pay. It's a pivotal step to clear goods through customs without a hitch. Keep in mind, all the costs used in these calculations are in USD.

Step 4 - Figure out the applicable Import Tariff

Knowing the import tariff largely affects your shipping operations. In essence, an import tariff is a tax collected on imported goods. It varies depending on the goods and their country of origin. For businesses shipping from the UK, this tariff's determination becomes another critical aspect in the freight forwarding chain.

Let's take an example. Assume you're importing a bicycle (HS code 8712) from the UK to France. Visit the UK Global Online Tariff portal. After entering the HS code and the country of origin, check the duties and taxes applied to the product.

Expanded on this example, let's say the FOB cost of the bicycle is $500. Add insurance and freight costs (CIF), say about $50. The tariff rate for bicycles is say 10%. Applying it to the CIF value ($550), calculates the import duty as $55.

Being well-versed in applicable tariffs can save you unwanted surprises and unnecessary expenses. So, make sure to research thoroughly and apply accurate information to keep your shipping smooth and efficient.

Step 5 - Consider other Import Duties and Taxes

Beyond the standard tariff rate, you might also be required to pay additional import duties depending on your product's nature and its country of origin. One such expense could be the excise duty, typically imposed on goods like alcohol, tobacco, or energy products. For example, if you're importing whiskey, an excise duty of around $15 per liter might be applied (note, this is a hypothetical example and rates can vary).

Moreover, anti-dumping taxes may reflect in your final bill, especially if your goods are sold below the fair market value. These are applied to protect domestic industries from unfair foreign competition.

Perhaps the most significant potential extra cost is the Value Added Tax (VAT), which in France is typically 20% but can vary depending on the product. To calculate the VAT, you'd add the customs value, shipping costs, any duty payable, and then apply the VAT rate. For instance, if the customs value is $1000 and shipping cost we add is $200, with a duty of $100, the total value becomes $1300. Applying a 20% VAT would then add an extra $260 to your costs.

Remember, these examples help to grasp the subject and might differ from real-life situations. Always keep an eye on these additional charges as they can significantly impact your import costs. It's essential to precisely calculate your goods' total landed cost to avoid any unpleasant surprises. Understanding extra taxes or duties can assist you in effectively budgeting your import expenses.

Step 6 - Calculate the Customs Duties

In customs clearance, calculating the Customs Duties forms a critical step. This taxing formula depends on your goods' customs value, VAT, and various duties such as anti-dumping and excise.

1) Primarily, if you're importing goods valued at $1000 with a custom duty rate of 5%, you would be charged $50 with no VAT included.

2) For a scenario involving VAT, consider your shipment is worth $2000 with a duty rate of 4%. Here, you'd pay $80 in customs duty. Now, add the VAT, which in France is 20%, calculated on the total value plus duty: $2000 + $80 = $2080 x 20% = $416. Therefore your total charges would be $496.

3) When dealing with additional duties like anti-dumping taxes and Excise Duty, the equation grows more complex. Suppose your $1200 shipment falls under both the anti-dumping tariff (let's say 10%) and Excise Duty of $0.2 per unit with 100 units. The initial customs duty at 3% will be $36. Add the anti-dumping of $120 (10% of $1200) and Excise Duty of $20 (100 units x $0.2), the total becomes $176. Plus the VAT ($259.2), your final customs bill is $435.2.

But why hassle? DocShipper's customs clearance services handle all steps of your worldwide customs clearance, ensuring you're never overcharged. Reach out for a free quote within 24h! Calculating customs duties doesn't have to be taxing!

Bill of Lading

Navigating the UK-France shipping realm, you'll encounter the vital Bill of Lading, a stepping-stone in your goods' journey. It acts like a passport for your package, declaring ownership switch and setting sail for smooth transit. An intriguing facet is the telex release, where electronically transmitted Bill of Ladings speed up the process, beating the traditional snail's pace. Air cargo isn't left behind; the AWB (airway bill) plays a similar role here.

Imagine bypassing hours of manual paperwork and prioritising speedy delivery to your French counterparts with these digitised solutions! Practical tip: Hunt down a reliable freight forwarder who can efficiently handle your Bill of Lading needs- it could make the difference between a frustrating bottleneck and a thriving goods trade.

Packing List

Navigating the shipping route from the UK to France? You must create an accurate Packing List - it's your golden ticket to a smooth freight forwarding experience. This document details everything you're shipping, from the quantity, description, and type of goods, to weight, dimensions, and even internal packages like pallets or crates. If you've got 50 boxes of books sailing via sea or 200 car parts flying, every single item must be listed.

Why? Two reasons: Customs officials on both sides of the Channel use it to verify your shipment against its declared contents. Additionally, carriers leverage it to calculate chargeable weight for shipping costs. Misrepresented items can spell delays, penalties or worse – impounded goods. Succeeding in international shipping is all about accuracy, transparency, and detail. Your Packing List, if done right, ensures these. Remember, it's not just a list, but a tool for credibility in your UK-France shipping journey.

Commercial Invoice

The Commercial Invoice is vital when shipping from the UK to France. This detailed breakdown, including the description, quantity, and value of goods, serves as the primary reference for customs officials. Accurate, consistent information across all your shipping documents smooths your customs clearance process.

For instance, if you're exporting a batch of craft beers, details like the brew type, number of cases, and their market price should be in perfect sync across your Commercial Invoice, Packing List, and Letters of Transport. Potential inaccuracies or mismatches could cause delays or even fines. So, pay particular attention to this document—it's an essential tool for sailing smoothly through customs.

Certificate of Origin

Ready to ship goods between UK and France? You'll certainly need a Certificate of Origin (CO). This document declares the 'birthplace' of your goods and it’s crucial for customs clearance—it’s the legal necessity that everyone skims over but regrets later when their shipment is held up!

Why all this focus on birthplaces? Simply put, customs uses this info to apply any preferential duty rates. Let’s say you've made thermoses in the UK. With a CO showcasing that 'Made in UK' badge, you might just enjoy reduced—or even zero—duties under certain trade agreements. So, don't forget to mention the country of manufacture in your CO. Now, who wouldn't prefer that little extra saving to boost their bottom line?

Certificate of Conformity (CE standard)

Shipping between the UK and France requires a Certificate of Conformity to the CE standard. This document is your product's passport to the European market, signifying it adheres to safety, environmental, and health regulations. Unlike quality assurance that ensures operational efficiency, CE marking guarantees regulatory compliance.

Although the UK has transitioned to the UKCA marking after Brexit, CE marking remains valid for certain products until 1st January 2023. While similar to the US's FCC mark, they aren't interchangeable. So, if your product is destined for France, assure its compliance with CE standards and obtain the certificate. This will smooth your customs process. Anchor your strategy around these practices for ease in global trade.