Import Export Business UK: How to Start One Properly
International trade sounds like the preserve of large corporations, yet plenty of genuinely small UK operators build profitable import and export businesses without ever needing a warehouse full of stock or a dedicated logistics team. What trips people up isn’t finding products or buyers — it’s the paperwork, licensing, and customs requirements that differ depending on exactly what you’re trading and where.
This guide covers what actually needs sorting before you import or export your first shipment — the EORI number, VAT registration, product-specific licensing, and the practical first steps that determine whether your first shipment clears customs smoothly or gets stuck.
Whether you’re planning to import goods to sell in the UK or export UK products abroad, the core requirements overlap significantly, though a few details differ depending on direction.
Quick Answer
To start an import or export business in the UK, you need an EORI number from HMRC (free, mandatory for customs clearance), to register your business structure with Companies House or HMRC, and to check whether your specific product category needs an additional licence from bodies like DEFRA, HSE, or the Export Control Joint Unit. VAT registration becomes mandatory once turnover exceeds £90,000, though voluntary registration earlier can help reclaim import VAT.
Key Takeaways
- An EORI number is mandatory for customs clearance on both imports and exports, and it’s free to apply for through HMRC
- Product-specific licences vary by category — food and agricultural goods, chemicals, and controlled items all have different requirements
- VAT registration becomes mandatory at £90,000 turnover, though voluntary registration earlier can help reclaim import VAT
- Market research into demand, competition, and supply chain reliability matters as much as the regulatory side
- A customs agent can handle declarations for you, which is often worth the cost while you’re still learning the process
On this page: What Is an Import Export Business? | Getting Your EORI Number | Product-Specific Licences | VAT and Import/Export | Choosing Your Business Structure | Practical First Steps | Illustrative Examples | Common Mistakes | Editor’s Insights | Import vs Export: Where to Start | Comparison Table | Checklists | FAQ | Sources
What Is an Import Export Business?
An import export business buys goods from one country to sell in another, either bringing products into the UK (importing) or sending UK-made or UK-sourced products abroad (exporting).
Many small import/export operators specialise in a single product category — a specific type of homeware, food product, or component — rather than trading broadly, since deep knowledge of one supply chain and its regulations is more manageable than trying to master several at once. The core requirements (EORI number, customs declarations, potential licensing) apply whichever direction you’re trading, though the specific documentation differs.
Editor’s Insight: Choosing a narrow product niche you can genuinely become knowledgeable about — rather than trying to trade broadly from day one — makes the regulatory side considerably more manageable while you’re still learning the process.
Getting Your EORI Number
An Economic Operators Registration and Identification (EORI) number is mandatory for customs clearance when moving goods between Great Britain and any other country, including the EU.
Applications are free and made directly through HMRC, typically processed within a few working days. Without an EORI number, your goods won’t clear customs, which can mean delays and storage charges while the issue is resolved. If you’re only moving personal or non-controlled goods rather than trading commercially, an EORI number generally isn’t required — but any genuine import/export business needs one before its first shipment.
Editor’s Insight: Apply for your EORI number well before your first planned shipment, not once goods are already in transit. Processing is usually quick, but leaving it until the last minute risks your first shipment being delayed at customs.
Product-Specific Licences
Beyond the EORI number, many product categories require an additional licence from a specific regulatory body before you can legally import or export them.
- DEFRA — handles licensing for agricultural and food products
- HSE (Health and Safety Executive) and MHRA — cover chemicals and pharmaceuticals
- Home Office — manages licences for firearms and ammunition
- Export Control Joint Unit — covers military, dual-use, and other controlled goods requiring an export licence
Checking which body (if any) governs your specific product category early avoids discovering a licensing requirement only once goods are already in transit. The UK government’s online checker tools can confirm exactly what applies to your product before you commit to a supplier or shipment.
Editor’s Insight: Don’t assume your product is unregulated just because it seems straightforward — labelling requirements, UKCA marking, and certification standards can apply even to product categories that don’t feel like they’d need a licence.
VAT and Import/Export
VAT registration becomes mandatory once your taxable turnover exceeds £90,000 in a rolling 12-month period, the same threshold that applies to any UK business.
Voluntary VAT registration below this threshold is worth considering specifically for import/export businesses, since it allows you to reclaim VAT paid on imports — a genuine cost saving for businesses regularly importing goods, even before turnover justifies mandatory registration. Understanding customs duties separately from VAT matters too, since duties and VAT are calculated and applied differently depending on the goods and their country of origin.
Choosing Your Business Structure
Import and export businesses can operate under any standard UK business structure — sole trader, partnership, or limited company — with the choice affecting liability, tax treatment, and administrative burden in the same way it would for any other business.
Many smaller import/export operators start as sole traders while testing a specific product niche, incorporating as a limited company later if the business scales and the additional liability protection becomes worthwhile given larger shipment values and supplier commitments.
Practical First Steps
Getting an import/export business genuinely trading involves both the regulatory setup and the commercial groundwork happening in parallel.
- Research your specific market — demand, competition, and typical pricing for your chosen product category, both in the UK and your target trading country.
- Identify and vet suppliers or buyers — confirm they hold any necessary export declarations, licences, or certificates on their end too.
- Register your business structure with HMRC or Companies House, depending on sole trader or limited company status.
- Apply for your EORI number through HMRC, well ahead of your first planned shipment.
- Check product-specific licensing requirements with the relevant regulatory body for your goods.
- Decide whether to handle customs declarations yourself or use a specialist customs agent, particularly for your first few shipments while you’re learning the process.
- Organise logistics for transport in both the origin and destination countries.
Illustrative Examples
Real-World Scenario — Importing a niche product: A sole trader importing a specific type of homeware from an overseas supplier obtains an EORI number, registers for Self Assessment, and uses a customs agent for the first few shipments while learning the declaration process, before eventually handling straightforward shipments independently.
Real-World Scenario — Exporting UK-made goods: A small manufacturer exporting specialist equipment to the EU checks destination-country import rules through their buyer, applies for an EORI number, and confirms no additional export licence applies to their specific product category before their first shipment.
Illustrative Example — Discovering a licensing requirement early: Someone planning to import a food product uses the UK government’s online checker before finalising a supplier agreement, discovering a DEFRA health certificate is required — building the extra time and cost into their plan rather than discovering it once goods were already shipped.
Common Mistakes
- Assuming a product category is unregulated without checking — labelling, certification, or licensing requirements can apply to categories that don’t seem obviously regulated.
- Leaving EORI registration until the last minute — though processing is usually quick, delaying it risks the first shipment being held at customs.
- Underestimating VAT and customs duty as separate costs — treating them as one combined figure rather than understanding how each is calculated can throw off pricing.
- Not vetting suppliers’ own compliance — assuming a supplier holds the correct export documentation on their end without confirming it directly.
- Trying to handle complex customs declarations without support too early — attempting to self-manage complicated declarations before understanding the process well enough, risking costly errors or delays.
Editor’s Insights
- Specialising narrowly in one product category, at least initially, makes the regulatory learning curve considerably more manageable than trying to trade broadly across several product types.
- A customs agent’s fee for the first few shipments is often worth it purely as a way of learning the process correctly before managing declarations independently later.
- Building a relationship with a specific supplier or buyer, rather than treating each shipment as a one-off transaction, tends to smooth out the practical logistics considerably over time.
- Voluntary VAT registration before hitting the mandatory threshold can make genuine financial sense for import-heavy businesses, given the ability to reclaim import VAT.
- Checking destination-country import rules, not just UK export rules, avoids goods being held up on the other end even when the UK side of the process was handled correctly.
Import vs Export: Where Should You Start?
- Start with importing if: you’ve identified strong UK demand for a specific overseas product and have a reliable supplier relationship
- Start with exporting if: you already manufacture or source a UK product with genuine demand in a specific overseas market
- Consider both eventually: many established import/export businesses do both once they understand the regulatory process for one direction well
Import vs Export Requirements
| Factor | Importing to the UK | Exporting from the UK |
|---|---|---|
| EORI number | Required | Required |
| VAT | Import VAT applies, reclaimable if registered | Exports are typically zero-rated for VAT |
| Licensing | Depends on product category | Depends on product category and destination |
| Key consideration | Reclaiming import VAT, customs duties | Destination-country import rules |
Before You Start Checklist
Getting Trading Checklist
FAQ
Do I need a licence to start an import export business in the UK? It depends entirely on your specific product category — many goods need no special licence beyond an EORI number, while others (food, chemicals, controlled goods) require approval from a specific regulatory body.
What is an EORI number and do I need one? An EORI number is a mandatory registration for customs clearance when moving goods between Great Britain and any other country, required for any genuine import/export business, and free to apply for through HMRC.
How much does it cost to start an import export business? Costs vary significantly depending on product type, supplier terms, and shipment volume, though the regulatory registrations themselves (EORI number, business registration) are largely free or low-cost.
Do I need to register for VAT to import or export? VAT registration becomes mandatory once your taxable turnover exceeds £90,000, though voluntary registration earlier can help reclaim VAT paid on imports.
Can I run an import export business as a sole trader? Yes — import/export businesses can operate under any standard UK business structure, with many smaller operators starting as sole traders before incorporating as they scale.
Do I need a customs agent to import or export goods? Not legally required, but many new import/export businesses use one for their first few shipments to learn the declaration process correctly before managing it independently.
What happens if I import goods without an EORI number? Your goods won’t clear customs without one, which typically means delays and storage charges until the issue is resolved.
Are exports from the UK subject to VAT? Exports from the UK are typically zero-rated for VAT, though the specific treatment can depend on the goods and destination, so checking current HMRC guidance for your situation is worthwhile.
Sources & References
- GOV.UK — importing and exporting goods
- GOV.UK — get an EORI number
- GOV.UK — VAT on imports and exports
- HMRC — customs declarations guidance
About the Author Written and reviewed by the Epiclectic Editorial Team. Epiclectic is an independent UK publication owned by Eternity Accountants Limited, publishing practical, fact-checked guides across accounting, business, home & living, gardening, travel, sustainability and wellness. Editorial standards: original research, fact-checking against official sources, and regular review. Last reviewed: August 2026 Sources: GOV.UK, HMRC
Conclusion
An import export business is genuinely accessible for small UK operators once the regulatory groundwork is understood — the EORI number, product-specific licensing, and VAT rules aren’t as daunting once broken down individually rather than treated as one overwhelming compliance task. Starting narrow, in a single product category you can genuinely understand, makes the whole process considerably more manageable.
If you’re still deciding on your broader business structure, our guide to different types of business structures covers sole trader versus limited company, and our UK business tax rates guide explains how VAT and other taxes actually work.
For import/export businesses wanting guidance on VAT treatment or customs duty planning specifically, Eternity Accountants can help — though for most people starting out, working through the EORI and licensing steps in this guide is enough to get your first shipment moving.
