Importing from the UK to the US: the full cost picture

British brands ship worldwide — but a US buyer pays more than the checkout price. Here's every layer: UK VAT, MFN duty, the 10% forced-labor overlay, MPF, and the carrier's clearance fee.

What a UK order actually costs

A £60 cotton sweater from a UK shop lands in the US with four cost layers on top of the checkout price:

• Customs duty — the MFN rate for the garment (16.5% for knitted cotton) plus the 10% Section 301 forced-labor overlay = 26.5%
• MPF — CBP's Merchandise Processing Fee, from $2.69 on informal entries
• Carrier clearance — a flat $9.35 via the USPS mail path, or $10–$35+ with private couriers
• Shipping — which itself is added to the dutiable value

On that sweater, expect roughly $20 in duty plus $12–$19 in fees — a 55–65% uplift on the item price. Run your exact numbers in the UK corridor calculator before you buy.

The UK's rates are MFN — there is no US–UK trade deal (yet)

Despite years of talk, no comprehensive US–UK free trade agreement exists. UK goods enter at standard MFN rates, same as most of the world. What changed in 2026 is the overlay stack: the Section 301 forced-labor action added 10% to UK-origin goods from July 24, 2026.

One nuance: "UK origin" means where the goods were produced, not where the shop is. A US brand shipped from a UK warehouse still enters under its own origin rules — but UK-made goods (Barbour, Dr. Martens made in England, bone china) carry the overlay.

VAT: pay it, then forget it

UK prices include 20% VAT by law. For exports, many sellers can zero-rate the sale — but only if you ask or the checkout detects a US address. Either way, VAT has no effect on your US duty: CBP assesses duty on the customs value (item price plus shipping), not on foreign taxes paid.

The fee trap: courier brokerage

The UK is far enough that most orders go by courier — and courier brokerage is where landed cost explodes on small orders. DHL's clearance plus disbursement runs $15 + 2% (min $17.50); UPS's disbursement is 2% of the advanced amount, min $14. On a £30 order the fees can exceed the duty 3-to-1.

Full math in USPS vs UPS vs FedEx vs DHL customs fees.

Practical checklist for UK orders

• Ask the seller to deduct VAT and declare the net price on the customs form
• Budget 26.5% duty on apparel, 18% on leather shoes (8% + 10%), 0% duty but full fees on books and cosmetics
• Prefer Royal Mail / Parcelforce for anything under ~£150 — the $9.35 flat fee wins
• Keep the invoice: the declared value drives duty, and mismatches cause delays

FAQs

Do I pay UK VAT when shipping to the US?

UK VAT (20%) is charged at UK checkout but it is a UK tax — it neither counts toward your US dutiable value nor reduces it. Many UK sellers deduct it for US delivery addresses; if the price looks VAT-inclusive, ask before ordering.

What is the Section 301 forced-labor overlay on UK goods?

Since July 24, 2026, US imports from the UK carry an additional 10% ad valorem under the Section 301 forced-labor action. It stacks on top of the normal MFN rate — a 16.5% cotton sweater effectively pays 26.5%.

Which carrier is cheapest for UK-to-US parcels?

USPS. Royal Mail and Parcelforce hand parcels to USPS for US clearance, where the flat $9.35 fee applies. Private couriers (UPS, FedEx, DHL) charge brokerage that often exceeds the duty on small orders — see our carrier fee comparison.

I'm spending part of the year in the US and part in the UK — how does that affect my taxes?

Customs duty and income tax are separate systems, but days spent in each country drive both. If you split time across countries, a day-counting tool like TaxResidencyDays (taxresidencydays.com) helps you track substantial-presence and 183-day thresholds.