Re-export from the UK — How to Ship Goods Outside the EU Without Paying Duty Twice

What is re-export from the UK?

Re-export is the export of goods that were previously brought into (imported or introduced into) a given country. In a UK context, re-export refers to a situation where:

1. Goods arrive in the UK (e.g. from Poland, China, India)
2. They are stored or processed in the UK
3. They are then exported to a third country (e.g. USA, Canada, Saudi Arabia, Nigeria)

The United Kingdom has been a distribution hub for European goods destined for English-speaking markets and the Middle East for decades. Since Brexit that role has not diminished — if anything, new UK customs tools have made the UK an even more attractive location for managing global supply chains.

When does re-export from the UK make sense?

Re-export is advantageous when:

• You have customers both in the UK and in third countries and want to maintain a single central warehouse.
• The destination country (e.g. USA) offers better tariff conditions for goods originating from the UK than from the country of production.
• You want to use UK logistics infrastructure — seaports (Felixstowe, Southampton), airports (Heathrow) and distributor networks.
• Your goods require processing or repacking before delivery to the end customer.
• You want to avoid double duty — paying once on import into the UK and again on export from the UK.

Customs procedures enabling re-export without double duty

1. Customs Warehousing

Customs Warehousing is a duty suspension procedure whereby goods are stored in a customs warehouse without paying duty and VAT, until they are either:

• Released for free circulation in the UK (duty and VAT then become payable), or
• Re-exported to a third country (in which case no UK duty is payable at all).

How does a UK customs warehouse work?

1. The importer applies to HMRC for authorisation to operate or use a customs warehouse (Customs Warehouse Authorisation).
2. Goods arrive in the UK and are placed in the customs warehouse — without paying any duty.
3. Goods may remain in the warehouse indefinitely (no time limit in the UK, unlike in the EU where the limit is 5 years).
4. On re-export to a third country — you submit an Export Declaration and the goods leave the UK with no UK import duty payable.

Types of UK customs warehouse:

• Type A: Public customs warehouse — anyone can store goods there.
• Type B: Private customs warehouse — only the authorisation holder.
• Type E: Simplified private warehouse (EIDR — Entry in Declarant's Records) — for companies with CFSP authorisation.

2. Inward Processing (IP)

Inward Processing (IP) is a procedure allowing goods to be imported into the UK for processing (manufacturing, assembly, repair, processing), and the finished product to then be re-exported — without paying duty on the raw materials or components.

Example application:

You import furniture components (timber, fittings) from Poland into the UK. You assemble the furniture in the UK. You export the finished furniture to the USA. Under IP you pay no duty on the imported components — duty would only be charged on those that remain in the UK.

Requirements for obtaining IP:

• The company must apply to HMRC for IP authorisation.
• Detailed records (IP records) must be kept — what came in, what went out, how much remains.
• The IP cycle closes on export of the processed goods or on payment of duty on goods that remain in the UK.

3. Standard re-export procedure

If the goods have already been cleared for import into the UK (duty and VAT paid) and you subsequently wish to export them to a third country, you are dealing with a standard export. In that case:

• Duty paid on import into the UK is not automatically refunded.
• You may apply for Customs Duty Drawback — a refund of duty if goods were released for free circulation and subsequently exported.
• Drawback requires an application to HMRC and documentation confirming the export.

Re-export vs transit — what is the difference?

This is a question many clients ask. The key difference is:

Documents required for re-export from the UK

Re-export requires a complete set of customs documents at each stage:

On arrival in the UK (import declaration or customs warehouse declaration):

• Commercial invoice from the exporter in the country of despatch
• Packing list
• Transport document (CMR, AWB, B/L)
• Certificate of origin of the goods
• Import licences (if required)

On re-export from the UK to a third country (export declaration):

• Commercial invoice from the UK exporter to the customer in the third country
• Packing list
• EX1 (Export Accompanying Document) — generated by CDS once the export declaration is accepted
• UK certificate of origin (if required by the destination country)
• EUR.1 or invoice declaration (for countries with an FTA with the UK)
• Special certificates required by the destination country (phytosanitary, halal, CITES, etc.)

What goods are most commonly re-exported from the UK?

The goods most frequently re-exported from the UK include:

• Industrial machinery and equipment — the UK is a distribution centre for European and Asian machinery destined for African and Middle Eastern markets.
• Pharmaceutical products — the United Kingdom is an important distribution centre for medicines and medical materials.
• Electronics and IT equipment — goods from Asia arrive in the UK and are distributed globally.
• Luxury consumer goods — clothing, perfume, watches and jewellery for the Middle Eastern market.
• Raw materials and chemicals — the UK as a hub for developing markets.

Costs of re-export from the UK

The total cost of re-export from the UK comprises several elements:

• Import clearance (to customs warehouse or IP): £45 to £150
• Customs warehouse fees: depends on the operator and storage period
• Export clearance from the UK: £45 to £120
• Freight from the UK to the destination country: at market rates
• Certificates for the destination country: £50 to £500 (COO, halal, phyto, etc.)

The price ranges shown are indicative — an exact quote will be provided once documents and a description of the shipment are submitted.

Official sources

• GOV.UK: Apply to use a customs warehouse — HMRC, 2026
• GOV.UK: Inward Processing Relief — HMRC, 2026
• GOV.UK: Customs Duty Drawback — HMRC, 2026

Frequently asked questions (FAQ)

What is re-export from the UK?

Re-export from the UK is the export of goods that were previously brought into the United Kingdom (from the EU or third countries) and, after possible storage or processing, are sent onwards to the next destination country outside the UK. In this model the United Kingdom acts as a transshipment or distribution centre.

When do you not pay UK duty on re-export?

You pay no UK duty if the goods are placed under a customs warehousing or inward processing procedure at the time of import into the UK. In both cases duty is suspended, and on re-export to a third country it is discharged. The condition is holding the appropriate HMRC authorisation and maintaining customs records.

What documents are needed for re-export from the UK?

Re-export from the UK requires import documents (invoice, packing list, certificate of origin, transit or warehouse document) and export documents (invoice to the customer in the destination country, packing list, EX1, certificates required by the destination country such as COO, halal, phyto). The customs broker handles declarations in HMRC's CDS system at both stages.

What is the difference between transit and re-export from the UK?

Transit (T1 procedure) involves transporting goods through the UK without unloading or storage — goods travel straight onto the ferry or to the next country. Re-export means goods are physically brought into the UK, stored (and sometimes processed), then exported. Transit is faster and cheaper (£200 to £500), while re-export offers more scope for processing and distribution.

How much does re-export from the UK cost through a customs broker?

The cost of customs handling for re-export from the UK is the sum of the import clearance (£45 to £150) and the export clearance (£45 to £120), plus any customs warehouse fees and certificates for the destination country. The price ranges shown are indicative — an exact quote after documents and shipment details are submitted to our team.