Import Duty Calculator
This import duty calculator works out the duty, VAT and total landed cost when importing goods into the UK — the real, all-in price after customs, not just the item's sticker price. Enter the customs value and the applicable duty rate to see exactly what you'll owe, including how the new India-UK Free Trade Agreement changes the numbers for eligible goods.
The full cost of the goods plus shipping and insurance (CIF value) — not just the item price.
Your product's tariff rate — check the UK Trade Tariff tool for the exact rate. Enter 0% for goods that qualify duty-free under the new India-UK trade deal.
Total duty + import VAT
£688
What you'll actually pay on top of the goods themselves to clear customs — e.g. £688 on £2,000 of goods at a 12% duty rate.
Duty rate applied to the customs value — this is what the India-UK trade deal reduces to 0% for most eligible goods.
UK's standard 20% VAT, charged on the goods value plus duty — not on the goods value alone.
Goods value plus duty plus VAT — the real, all-in cost of getting the goods to you.
How to use this import duty calculator
- 1Customs value: the goods' cost plus shipping and insurance (CIF value) — not the item price alone. This full figure is what duty and VAT are calculated on.
- 2Duty rate: look up your product's specific tariff rate using the UK Trade Tariff tool (trade-tariff.service.gov.uk) by commodity code — rates vary hugely by product, from 0% to over 20%.
- 3If your goods originate in India and qualify under the India-UK Free Trade Agreement (in force since 15 July 2026), enter 0% — 99% of Indian goods now enter the UK duty-free or at a reduced rate.
- 4Compare the total landed cost here against the price of buying the same goods domestically before importing — duty and VAT together often add 15–30% to the goods value.
Understanding your results
Total duty + import VAT is the headline number — everything you pay beyond the goods themselves. Import duty is calculated as a straight percentage of the customs value, and it's this figure the India-UK trade deal reduces to zero for most eligible Indian-origin goods. Import VAT is charged at the UK's standard 20% rate — crucially, on the goods value plus duty combined, not on the goods value alone, so a lower duty rate also lowers the VAT bill. Total landed cost is the complete picture: what the goods actually cost you once everything is paid, the number to compare against buying locally.
The formula
VAT = 20% × (Customs Value + Duty) · Duty = Customs Value × Duty RateDuty is a simple percentage of the customs value (goods cost plus shipping and insurance). VAT is then calculated on the customs value plus that duty — not on the customs value alone — which is why cutting the duty rate to zero under a trade agreement saves you twice: once on the duty itself, and again because there's less VAT to pay on top of it. This compounding effect is exactly why the India-UK FTA's duty cuts matter more than the headline percentage alone suggests.
A worked example
£2,000 of goods with a 12% duty rate: duty is £240, VAT is 20% of £2,240 (£2,000 + £240) = £448, for total charges of £688 and a total landed cost of £2,688. Now the same £2,000 of goods, but qualifying for 0% duty under the India-UK FTA: duty is £0, VAT is 20% of just £2,000 = £400, total charges £400, landed cost £2,400 — a saving of £288, not just the £240 of duty itself, because the VAT base shrank too. On a smaller order of £500 goods at 4% duty, charges come to £124 (£20 duty + £104 VAT) for a landed cost of £624.
Notes for the UK, US and India
The India-UK Free Trade Agreement (CETA) came into force on 15 July 2026: 99% of Indian goods entering the UK are now duty-free or at reduced tariffs, covering labour-intensive sectors like garments, textiles, footwear, carpets, processed foods, spices, and fish and meat products at zero duty. Going the other way, 90% of UK goods entering India get the same treatment — cars are the standout story, with duty on UK-built cars falling from 110% to 30–50% (depending on engine size) in year one, gliding down to 10% by year five under a vehicle quota. Always confirm your specific product's origin rules and commodity code qualify — not every product in a broad category is automatically covered, and rules-of-origin requirements (proving the goods genuinely originate in India or the UK, not just shipped from there) still apply.
Frequently asked questions
What is customs value (CIF) and why does it matter?+
CIF stands for Cost, Insurance and Freight — the goods' price plus what it cost to ship and insure them to the UK. Duty and VAT are both calculated on this full figure, not just the item's price, so shipping costs directly increase what you owe.
Do I have to pay both duty and VAT?+
Yes, in almost all cases — duty and VAT are separate charges that both apply to most commercial imports. A small number of goods are VAT zero-rated or duty-exempt for specific reasons (certain medical goods, low-value gifts under £39), but standard commercial imports attract both.
How do I find my product's duty rate?+
Use the UK government's Trade Tariff tool (trade-tariff.service.gov.uk) and search by product description or commodity code. Rates vary enormously by product category, from 0% on many raw materials to 20%+ on some finished goods.
Does the India-UK trade deal mean all Indian goods are duty-free now?+
Not automatically — 99% of tariff lines are duty-free or reduced, but you still need to confirm your specific commodity code is covered and meets the agreement's rules-of-origin requirements (proving the goods genuinely originate in India). Check the UK Trade Tariff tool for your specific product before assuming 0% duty.
How much does importing a car from the UK to India cost under the new FTA?+
It depends on engine size. Petrol engines above 3,000cc or diesel above 2,500cc: duty falls from 110% to 30% in year one, then down to 10% by year five, under a 10,000-vehicle annual quota. Smaller petrol/diesel engines: duty falls from 66% to 50% in year one, also reaching 10% by year five. Electric, hybrid and hydrogen vehicles are not included in the cuts and remain at 100% duty.