Top Mistakes UK Importers Make And How to Avoid Them

Importing goods into the UK can be profitable, but even seasoned importers run into costly pitfalls. From incorrect paperwork to poor supplier vetting, mistakes can lead to delays, fines, or even confiscated goods. To help you avoid common traps, here are the top mistakes UK importers make—and how you can steer clear of them.

1. Failing to Obtain an EORI Number Before Importing

The Mistake:
Many new importers overlook the need for an Economic Operators Registration and Identification (EORI) number, which is essential for clearing goods through UK customs.

The Fix:
Apply for a GB EORI number at gov.uk before your first shipment. It’s free, and most applications are approved within a few days.

2. Using the Wrong Commodity Code

The Mistake:
Incorrect commodity codes result in the wrong duty rate or even seizure of goods.

The Fix:
Use the UK Trade Tariff Tool to classify your goods accurately. When in doubt, seek advice from a customs broker or HMRC.

3. Underestimating Import Duties and VAT

The Mistake:
Not budgeting for customs duty and import VAT can kill your profit margins.

The Fix:
Use your commodity code and country of origin to calculate all taxes and duties in advance. Consider Postponed VAT Accounting (PVA) if you're VAT registered, to manage cash flow more efficiently.

4. Neglecting Import Licences and Restrictions

The Mistake:
Importing restricted goods—like food, chemicals, or electronics—without proper licenses can result in major delays or rejections.

The Fix:
Check if your product needs a license via UK import controls. Always confirm with your supplier what’s included in the shipment.

5. Choosing the Wrong Incoterms

The Mistake:
Unclear or unfavorable Incoterms (like DDP or CIF) may leave you with unexpected costs or liability.

The Fix:
Understand and negotiate Incoterms wisely. FOB (Free On Board) or EXW (Ex Works) often offer better control over logistics and cost transparency.

6. Poor Supplier Due Diligence

The Mistake:
Relying on unknown overseas suppliers without checks can lead to low-quality products or scams.

The Fix:
Research suppliers, ask for certifications, order samples, and use trade assurance platforms like Alibaba or a trusted sourcing agent.

7. Lack of Proper Documentation

The Mistake:
Missing or incorrect documentation—like invoices, packing lists, or certificates of origin—can hold up customs clearance.

The Fix:
Double-check that your supplier includes all required paperwork. If using a customs agent, ensure they’re aware of every detail.

8. Ignoring Shipping Insurance

The Mistake:
Skipping insurance to save costs can be disastrous if goods are damaged or lost.

The Fix:
Always insure your shipments, especially high-value goods or fragile items. Review what’s covered and consider a marine insurance policy.

9. Handling Customs Declarations Alone

The Mistake:
Trying to submit customs declarations without experience can lead to expensive errors.

The Fix:
Hire a licensed customs broker or freight forwarder, especially for your first few shipments. They can ensure everything is done correctly and on time.

10. Failing to Keep Accurate Import Records

The Mistake:
Disorganized paperwork can lead to compliance issues and failed VAT audits.

The Fix:
Store invoices, bills of lading, declarations, and duty payments for at least 6 years, either digitally or physically. Organized records protect your business.

Final Thoughts

Importing into the UK doesn't have to be complicated—but the details matter. Avoiding these common mistakes can save you time, money, and stress. Whether you’re a beginner or scaling your operations, staying informed and working with trusted logistics partners will keep your supply chain running smoothly.

Pro tip: Consider working with a customs expert or consultant, especially if you’re dealing with complex goods, new trade partners, or post-Brexit compliance rules.

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Bonus Tip: Save on Currency Exchange with LUDPAY.com

When paying overseas suppliers, foreign exchange rates and bank fees can eat into your profit margins. Many UK importers overpay by relying on traditional banks for international payments.

The Solution?
Use LUDPAY.com — a trusted platform offering:

• Excellent FX rates
• Low-cost international transfers
• Faster settlement times

Whether you're paying in USD, EUR, CNY, or any other major currency, LUDPAY helps you keep your import costs low and your suppliers happy.

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