If you're a New Zealand business looking to expand your reach to the United Kingdom, you'll be glad to know that the UK-New Zealand Free Trade Agreement (FTA), effective from 1 March 2022, offers a range of advantages. Key benefits include:
- Reduction or elimination of tariffs on goods
- Facilitated trade in services
- Enhanced intellectual property protection
- Improved regulatory cooperation
Despite these advantages, UK customs maintain strict import rules for goods entering the country. Understanding these regulations is essential before shipping to London or other parts of the UK.
This guide will provide you with everything you need to know about UK customs taxes, import duties, and the required documents for smooth and successful international shipping. By following these guidelines, you can ensure that your parcels reach their destination on time and in ideal condition while leveraging the full benefits of the UK-New Zealand FTA.
5 Steps to ship from New Zealand to the UK
To simplify the process of shipping from NZ to the UK, here is a high-level overview of the entire journey. Following these steps will help you master how to ship internationally from NZ.
- Prepare your shipment & documentation: Ensure your goods are securely packed for the long journey. Complete the key international shipping documents, which include a commercial invoice and a packing list. When you ship with DHL Express, the air waybill (AWB) will be provided for you.
- Check UK import rules: Before shipping to the UK, verify that your goods are not prohibited or restricted for entry. Understanding potential UK VAT and customs requirements like prohibited and restricted goods helps prevent delays and ensures smooth clearance.
- Leverage the NZ-UK FTA: To benefit from reduced or zero tariffs under the FTA, you must declare the origin of your goods on the commercial invoice. This involves understanding the FTA rules of origin to confirm your products qualify.
- Book your shipment: Once your package and documents are ready, you can book your shipment. DHL Express offers reliable and fast services for shipping from New Zealand to the UK, providing you with the necessary air waybill and expert support.
- Track and manage: After your parcel is dispatched, use the DHL tracking number to monitor its journey in real-time. You and your receiver will be notified of any duties or taxes that need to be paid for the final delivery.
Preparing your shipment for customs clearance
Let’s take a closer look at the key steps to ensure smooth customs clearance. Before your international shipment leaves New Zealand, it must comply with both export requirements and UK customs regulations. Proper preparation of parcels and required documentation sets the foundation for smooth customs clearance in both New Zealand and the UK.
Commercial invoice
This is the key document required by both NZ Customs and UK Customs. It should include:
- Shipper/Receiver details
- Detailed description of goods (avoid generic terms like “samples” or “parts”)
- Country of origin – critical for claiming benefits under the NZ–UK Free Trade Agreement
- Accurate value of goods
In addition, depending on your shipment, you may also need supporting shipping documents such as a packing list, certificate of origin, port health certification, test certificates, or import/export licenses. Preparing these thoroughly reduces the risk of clearance delays.
HS codes (Harmonized System Codes)
HS codes classify your goods for both export from NZ and import into the UK. Using the correct code ensures your shipment is declared accurately and the correct duties or preferential rates are applied.
You can use the UK Customs Trade Tariff Tool or using DHL Express’ dedicated Interactive Classifier Tool to confirm the correct code and check whether your goods require a special licence for import.
Prohibited and restricted goods
Customs regulations vary by country, and certain items may be restricted or prohibited for importation. Always confirm that your goods are allowed into the UK before shipping to avoid costly delays or seizures at the border.
Packing and labelling
Secure packaging is crucial for long-haul shipping. Best practices include:
- Using strong, durable boxes and cushioning material
- Ensuring labels are clear, scannable, and weatherproof
- Affixing labels to a flat surface (not over seams or corners)
If you are exporting goods such as food or manufactured goods, ensure compliance with UK labelling standards, such as expiry dates, ingredients lists, safety standards, or country of origin markings. Proper packaging and labeling minimize the risk of delays, damage, or misrouting.
Securing and sending your shipment
Once your documents and packaging are ready, seal the shipment carefully. You can then arrange for parcel collection with DHL Express:
- Schedule a pick-up through MyDHL+ or by calling our customer service team
- Or drop off your shipment at any DHL Express service point
This combination of correct documentation, compliant labelling, and secure packaging helps ensure your goods clear customs smoothly and arrive in the UK on time.
Using the NZ-UK FTA to your advantage
The NZ–UK Free Trade Agreement (FTA) strengthens trade ties between New Zealand and the United Kingdom, opening valuable opportunities for exporters. By reducing or eliminating tariffs on most goods shipped to the UK, the agreement enables more competitive pricing and smoother access to the market.
To benefit from these tariff reductions, your goods must meet the Rules of Origin (RoO) requirements.1 This involves determining whether your products are made entirely from New Zealand materials or incorporate inputs from multiple countries.
- Wholly obtained: Goods produced exclusively in New Zealand without incorporating materials from elsewhere, such as agricultural products or natural resources.
- Sufficiently worked or processed: Goods that use imported materials but have undergone substantial manufacturing or transformation in New Zealand.
To claim preferential tariffs under the FTA, you need to make a declaration of origin on your commercial invoice. This is usually a simple statement from the exporter confirming that the goods qualify.
UK customs taxes and tariffs to be paid
1. Customs tax
When shipping goods from NZ to the UK, it's important to be aware of the customs regulations. Customs taxes and charges in the UK are levied based on the market value of the imported goods. Generally, UK customs taxes per item can be broken down into cost, insurance, freight, and duty. It's important to note that you must pay taxes for your shipment worth more than £135.
2. Excise duties
If your business is shipping tobacco or alcohol to the UK, excise duties also apply.2 The UK sets different rates for various types of alcohol, including wine, cider, beer, and spirits, as well as for tobacco products. Being aware of these rates helps you calculate total shipping costs accurately and avoid unexpected charges at customs, ensuring your pricing and logistics strategy remains effective.
3. Value-added tax
Under the NZ–UK Free Trade Agreement, customs duty on goods imported from New Zealand to the UK is assessed based on the market value. The standard VAT rate is 20% (as of 4 January 2011).3
- Goods worth £135 or less: You generally do not pay VAT unless they are gifts over £39 or excise goods (e.g., alcohol or tobacco). In such cases, VAT is charged by the courier before delivery.
- Goods worth more than £135: VAT must be paid to the delivery company before receiving the goods. VAT is calculated on the total value of the package, including the cost of goods, postage, packaging, insurance, and any applicable duty.
VAT is charged at the rate applicable to the specific type of goods. For excise goods or gifts above £39, payment must be made before delivery to avoid delays or returned shipments. Following these guidelines ensures smooth UK customs clearance, avoids delays, and keeps your shipments fully compliant with UK customs regulations.
Make DHL Express NZ your logistics partner of choice
When it comes to international delivery and logistics, reliability is paramount. As the industry leader in global shipping, DHL Express NZ provides a comprehensive range of services and unmatched expertise to optimize your logistics operations, making us your trusted partner for shipping goods from New Zealand to the UK and beyond.
Choose DHL for fast, reliable delivery for your business
Our swift and reliable express delivery services ensure that your goods are delivered to customers worldwide with industry-leading transit times. This translates to faster delivery, improved customer satisfaction, and a distinct advantage in the global market.
With customizable solutions tailored to your needs, you can enjoy:
- Flexible shipping options
- Real-time shipment tracking
- Comprehensive customs clearance support
This complete visibility and control over your shipments helps minimize delays and streamlines the shipping process. Open a DHL Express business account today and let us be your logistics partner of choice as you expand into the UK and beyond.
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