UK Import Duties and Taxes for Parcels from China

A parcel worth £135 or less is not automatically tax-free in the UK. For purchased non-excise goods at or below that value, VAT is generally collected at the point of sale under the applicable rules. Above £135, import VAT and product-dependent Customs Duty may be collected through the delivery company. A genuine gift has separate conditions and a £39 VAT relief threshold.

Last reviewed against GOV.UK guidance on 23 September 2026. This page explains general parcel rules, not tax advice for a specific commercial import.

What does the £135 threshold actually mean?

The £135 figure is mainly a Customs Duty and VAT-collection boundary; it is not a blanket tax-free allowance for online shopping.

Parcel situation	General UK treatment
Purchased non-excise goods worth £135 or less	VAT is normally included by the seller or marketplace at purchase
Purchased goods worth more than £135	Import VAT may be collected by the delivery company; Customs Duty depends on product classification and origin
Genuine gift worth £39 or less	VAT relief may apply if all gift conditions are met
Genuine gift over £39	Import VAT may apply
Excise goods	Excise Duty and other charges can apply regardless of value

GOV.UK states that when VAT is collected at import, the taxable amount can include the goods, postage, packaging, insurance and any duty owed. For the current rule, see Tax and duty for goods sent from abroad.

When is a parcel really a gift?

Labelling a purchase as a gift does not make it one. GOV.UK says a qualifying gift must be sent between private individuals, be occasional, be intended for personal use and be described as a gift on the customs declaration. Goods bought by the UK recipient do not qualify merely because the parcel is addressed as a present.

See the official GOV.UK gift conditions.

How is Customs Duty determined above £135?

The duty rate depends on the commodity code, product type, materials, use and origin. There is no single “China parcel duty rate.” The UK Trade Tariff is the official place to check the commodity code, duty and VAT treatment.

Before dispatch, keep:

• the purchase invoice or order record;
• an accurate item description;
• quantity and unit value;
• material or ingredient details where classification depends on them;
• the transport and insurance amount;
• evidence supporting any relief claim.

Under-declaring a parcel or using a false description can lead to reassessment, delay, seizure or penalties.

What is the difference between DDP and DDU for a UK parcel?

DDP means the service arrangement assigns delivery and applicable import-charge handling to the sender or appointed service provider. DDU is commonly used in forwarding to describe a shipment where import charges may be payable by the recipient, although the current Incoterms term is DAP.

The practical rule is simple: read the booking confirmation. It should state whether duties and taxes are included, which charges remain outside the quote and what happens if customs changes the declared treatment. YANCHAO's dedicated UK air and sea lines may be offered on a DDP basis, while Air EMS is DDU. Do not generalise one customs term to every line.

DDP does not mean “no tax exists,” and it does not prevent inspection. It describes who handles the charge under the service arrangement.

Do students moving to the UK have different relief rules?

Potentially. GOV.UK provides relief for eligible clothing, study items and household effects belonging to a student coming to the UK for full-time study. The guidance states that the goods must belong to the student and be intended for personal use, and evidence of the study period is required with the customs entry. Students use a specific customs procedure rather than assuming every personal parcel is automatically exempt.

Read Transfer of residence to the UK and plan the declaration before dispatch. The related logistics checklist is in the UK Student Luggage Shipping Guide.

What should you confirm before paying for shipping?

1. Is the destination Great Britain or Northern Ireland? The rules are not identical.
2. Are the goods purchased items, genuine gifts or eligible personal effects?
3. What is the total consignment value?
4. Does the route state DDP or DDU?
5. Are brokerage, postcode and oversize charges included?
6. Is the product restricted or subject to a special licence?

For item restrictions, read What Can You Ship from China to the UK?. For the forwarding sequence, see How to Ship from China to the UK.

Frequently asked questions

Are parcels under £135 tax-free in the UK?

No. Purchased non-excise goods at or below £135 are generally subject to VAT collected at the point of sale. The threshold does not create a general VAT exemption.

Will I always pay Customs Duty above £135?

Duty becomes potentially chargeable, but the rate depends on the product's commodity code, origin and applicable reliefs. Check the UK Trade Tariff rather than applying one percentage to every parcel.

Does DDP guarantee that there will never be another charge?

No. The booking should define the included scope and exceptions. Incorrect declarations, restricted goods, postcode charges, oversize handling or a customs reassessment can fall outside a simple headline quotation.

Is Northern Ireland covered by the same parcel rules as Great Britain?

Not in every case. GOV.UK provides separate treatment for some goods entering Northern Ireland, including whether goods are considered at risk of entering the EU. Confirm the destination rules before shipping.

Sources and review date

• GOV.UK: Tax and duty for goods sent from abroad
• GOV.UK: Gifts sent from abroad
• GOV.UK: UK Trade Tariff
• GOV.UK: Transfer of residence
• YANCHAO UK customs-term references, reviewed 23 September 2026.
• First-party brand disclosure: YANCHAO publishes this page.