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United Kingdom Import Duty Rate for Passenger Cars

HS 8703 · Motor vehicles for transport of persons

United Kingdom MFN Import Duty Rate

Live

6.5%

on CIF value

UK–EU TCA: 0%

MFN rate. UK–EU TCA provides 0% for qualifying EU-origin cars.

How duty is calculated

CIF value

Product cost + international freight + insurance

Import duty (6.5%)

Applied to CIF value. EU, UK, and most countries use CIF.

VAT (20%)

Applied to CIF value + duty. Collected at customs.

Use our Landed Cost Calculator to compute the full cost including freight, brokerage, and last-mile delivery.

Worked example: passenger cars worth US$10,000

A commercial shipment invoiced at US$10,000 with US$900 of international freight and insurance. United Kingdom charges duty on the CIF value (goods + freight + insurance), so the duty base is US$10,900. Customs converts the amount to GBP at the official exchange rate on the day of import.

Charge	At 6.5%
Import duty	$709
VAT (20%)	$2,322
Total paid at the border	$3,030

VAT is usually recoverable for a registered business, so the cost that stays with you is the duty. Excise, anti-dumping duties and broker fees are not included.

Classifying passenger cars correctly

Heading 8703 covers motor cars and other vehicles principally designed to carry people, split by engine type and size: petrol, diesel, hybrid and fully electric (8703.80).

Pick-ups and vans built mainly for goods go to 8704
Electric vehicles have their own subheading and often a different rate or incentive
Vehicles shipped as CKD kits may qualify for lower assembly rates

Compliance. Cars must meet the destination's homologation and emissions rules (EU whole-vehicle type approval, US FMVSS and EPA certification) before they can be registered.

Importing into United Kingdom: what you need

HM Revenue & Customs (HMRC) collects duty and import VAT through the Customs Declaration Service (CDS); rates come from the UK Global Tariff.

Registration. A GB EORI number. Non-UK sellers usually appoint a UK customs agent or use a carrier's DDP service.

Low-value shipments. Customs duty is waived when a consignment is worth £135 or less, but 20% VAT applies from £0 — for parcels up to £135 the seller or online marketplace charges UK VAT at checkout.

Documents customs will ask for

Commercial invoice
Packing list
Transport document
Statement on origin to claim 0% under the UK–EU TCA or another UK trade agreement
Licences for controlled goods (e.g. some steel, chemicals)

Charges on top of duty

Import VAT 20% (5% or 0% for some goods) — VAT-registered businesses can use postponed VAT accounting
Excise on alcohol, tobacco and fuel
Trade remedies and anti-dumping duties from the Trade Remedies Authority

Watch out. Since Brexit, EU-made goods still need a statement on origin to enter duty-free; without it the full UK Global Tariff rate applies.

Frequently asked questions

What is the import duty rate for Passenger Cars in United Kingdom?

The MFN (Most Favoured Nation) import duty rate for Passenger Cars (HS 8703) in United Kingdom is 6.5% on the CIF value. MFN rate. UK–EU TCA provides 0% for qualifying EU-origin cars.

Is VAT charged on Passenger Cars imports to United Kingdom?

Yes. United Kingdom charges VAT at 20% on the CIF value plus any import duty. This applies to virtually all commercial imports.

Are there FTA rates available for Passenger Cars in United Kingdom?

Yes. UK–EU TCA: 0%. UK–EU TCA, UK–Japan CEPA, CPTPP, UK–Australia FTA, UK–New Zealand FTA are the key agreements — verify origin requirements with your customs broker.

How is import duty calculated for Passenger Cars entering United Kingdom?

Duty is calculated on the CIF value of the goods. CIF value includes the product cost, international freight, and insurance. The MFN duty of 6.5% is applied to this value. VAT (20%) is then applied on the duty-paid value.