Exporting goods to the United Kingdom

Brexit and exports to the United Kingdom – why are companies limiting sales to the UK?

Since Brexit, exporting to the United Kingdom has become more demanding from an organisational perspective. For many businesses, the main challenge is not the transport itself, but import clearance, the payment of customs duties and taxes, and communication with the recipient.
Companies are concerned about situations in which:

• the recipient fails to pay import charges and the costs are transferred to the sender,
• unexpected fees arise,
• formalities extend the delivery time,
• the end customer does not know the total cost of the shipment before delivery,
• complaints or returns generate additional costs,
• the shipment is held during customs clearance.

In practice, this makes the entire export process less predictable. Yet security, transparency and effective communication with the recipient are now essential for companies developing international sales.

Why is it still worth exporting to the United Kingdom?

Despite the additional formalities, the United Kingdom remains one of Poland’s most important trading partners and one of the largest e-commerce markets in Europe.
It is a market of almost 70 million consumers with high purchasing power. Demand for foreign products – from food, furniture and clothing to automotive parts – remains very strong.
With well-planned logistics, exports to the United Kingdom can continue to run smoothly after Brexit. The key is to use solutions that:

• allow import costs to be calculated before shipment,
• improve communication with the recipient,
• reduce the risk of additional charges,
• speed up import clearance,
• enable shipment tracking at every stage of transport.

Exporting to the United Kingdom with GLS – Incoterms®25

One solution supporting secure exports to the United Kingdom is GLS Incoterms®25.
The service is based on the DAP model, or Delivered at Place. This means that the sender arranges transport to the destination, while the recipient pays import charges such as customs duty and VAT.
Incoterms®25 helps clarify customs and tax liabilities before the shipment is sent.
The recipient receives information about the amount due before delivery and can conveniently make the payment online. Once the payment has been confirmed, the shipment continues through the transport process.
This gives the sender greater control over the export process, reduces the risk of unexpected costs and minimises the possibility of the shipment being returned due to unpaid import charges.

Benefits of Incoterms®25

Incoterms®25 provides:

• greater predictability of the export process,
• smoother import clearance,
• better communication with the recipient,
• reduced risk of unexpected costs,
• greater convenience for the end customer.

How does Incoterms®25 work?

The process has been designed to be simple for both the sender and the recipient.
Before the shipment is sent, the applicable customs duty and VAT are calculated. This means that the recipient knows all import-related costs before the shipment is delivered.
The recipient then receives a message containing a link to a secure online payment page.
Once the charges have been paid, the shipment continues through the delivery process. The recipient receives payment confirmation and can track the shipment at every stage of delivery.
The entire process is transparent, predictable and convenient for both parties.

Who is Incoterms®25 designed for?

Incoterms®25 has been created primarily for companies exporting goods to the United Kingdom that do not have their own operational facilities in the UK.
The solution is suitable for both B2B and B2C sales, particularly for businesses looking for:

• efficient handling of import formalities,
• reduced risk of additional costs,
• a smooth delivery process,
• convenient communication with the recipient.

Please note that Incoterms®25 applies to shipments with a goods value exceeding GBP 135.
For shipments valued at up to GBP 135, different VAT settlement rules apply, which is why the Incoterms®18 solution is used.

What costs does the recipient pay in the United Kingdom?

For shipments handled under the Incoterms®25 model, the recipient pays the charges related to importing goods into the United Kingdom.
These may include:

• customs duty, depending on the type and value of the goods and their country of origin,
• VAT, usually charged at 20%, although rates of 5% or 0% may apply to selected categories of goods,
• an administrative fee for handling the import process, amounting to GBP 10.50 or 7.5% of the total customs duty and VAT.

By informing the recipient of all charges in advance and enabling payment before delivery, the import process becomes more transparent and both parties gain greater control over the shipment.
Well-planned logistics and the right transport solutions mean that exporting to the United Kingdom can continue to run smoothly after Brexit. At GLS, we develop services that help businesses expand their international sales securely and respond effectively to their customers’ needs.