EU-Mercosur Trade Agreement: What UK Importers & Exporters Need to Know

The EU-Mercosur Trade Agreement, signed in January 2026, represents a landmark shift in global trade architecture involving the European Union and the Mercosur bloc of South American countries. While the United Kingdom is not an EU member, the changes in EU-South America trade will affect supply chains globally — including UK businesses that trade with both regions. 

What the Agreement Means for Trade

Once ratified and implemented, the agreement will liberalise tariffs on a wide spectrum of goods, expand market access, and create predictable rules for trade between the EU and Mercosur. 

For UK companies operating between Europe and South America, this means:

• Increased competitive pressure in European markets as Mercosur goods become more cost-effective under preferential terms

• Potential new sourcing opportunities that can reduce landed costs if properly managed

• A need for enhanced customs and compliance strategies, especially where goods transit EU territory

Practical Customs Considerations

Preferential Origin Rules

To benefit from lower tariffs in the EU, exporters must ensure that products meet the rules of origin under the agreement. Incorrect or incomplete documentation can lead to denial of preferential access and unexpected duties.

Compliance & Customs Planning

CustomsBrokerUK helps companies assess eligibility for preferential treatment, prepare accurate customs declarations, and minimise compliance risk. This is especially critical for products with complex manufacturing inputs or multi-modal logistics chains.

Risk of Non-Compliance

Failure to meet origin or procedural requirements can result in:

• higher duty outlays

• shipment delays

• penalties or retrospective duty assessments

How We Can Help

CustomsBrokerUK specialises in:

• Origin certification and preferential tariff strategy

• Customs declaration accuracy and audit readiness

• Cross-border compliance for EU and UK markets

Whether you’re importing from Brazil into the UK or exporting from the UK into EU markets that will face increased competition, our team provides bespoke compliance and customs solutions that ensure you stay ahead of regulatory changes.

DDP Shipping to the UK – Who Pays Import VAT and Who Is the Importer of Record? (2026 Guide)

DDP Shipping to the UK – What Most Exporters Get Wrong

Delivered Duty Paid (DDP) shipping sounds simple.

The seller handles everything — duties, VAT, and customs clearance — and the buyer receives the goods without hassle.

But when shipping to the UK, DDP creates one critical legal question:

Who is the Importer of Record?

Under UK customs law, someone must legally take responsibility for:

• Customs declarations

• Duty payment

• Import VAT liability

• Compliance with HMRC

• Product regulations

And it is often NOT who exporters assume.

What Does DDP Actually Mean?

Under Incoterms®, DDP (Delivered Duty Paid) means:

• The seller bears all costs and risks

• The seller arranges customs clearance

• The seller pays import duty and VAT

• The goods are delivered ready for unloading

However, Incoterms govern commercial responsibility — not legal customs responsibility.

That distinction is where many exporters make expensive mistakes.

Who Is the Importer of Record in a DDP Shipment to the UK?

In the UK, the Importer of Record (IOR) must be:

• Established in the UK, OR

• Represented by a UK-established entity authorised to act as IOR

A freight forwarder does NOT automatically become the IOR.

A customs broker does NOT become the IOR unless formally appointed and structured correctly.

If a non-UK company sells goods DDP to a UK customer but has:

• No UK EORI

• No UK VAT registration

• No appointed IOR representative

Customs clearance can be delayed — or refused entirely.

Who Pays UK Import VAT Under DDP?

Under DDP, the seller agrees to pay:

• Import duty

• Import VAT

• Clearance costs

But legally, import VAT is charged to the Importer of Record.

If the overseas seller is not properly registered or structured in the UK, they may:

• Be unable to reclaim VAT

• Trigger unexpected tax liabilities

• Face compliance investigations

• Damage customer relationships

This is why DDP to the UK without a structured IOR solution is high-risk.

For a complete explanation of legal responsibilities and non-resident importer rules, read our full guide to Importer of Record in the UK:

👉 https://www.customsbrokeruk.com/customs-logistics-blog/importer-of-record-uk

Can a UK Customer Act as Importer of Record in a DDP Shipment?

Sometimes - but it depends on:

• Contract terms

• VAT structure

• Commercial agreement

• Regulatory classification of goods

If the UK buyer becomes IOR while the seller ships DDP, commercial and legal responsibilities conflict.

This creates audit exposure for both parties.

Common DDP Shipping Mistakes When Exporting to the UK

1. Assuming the freight forwarder “handles everything”

Forwarders facilitate customs clearance.

They do not absorb legal tax liability unless contractually structured to do so.

2. Using a UK EORI without VAT structure

A UK EORI alone does not solve VAT recovery or importer liability issues.

3. Selling DDP without understanding non-resident importer rules

Non-UK companies often underestimate HMRC compliance requirements.

4. Ignoring sector-specific regulations

Electronics, medical goods, chemicals and food products have additional import obligations.

When Does DDP Make Sense for UK Shipments?

DDP can work well when:

• The exporter has UK VAT registration

• The exporter has a UK EORI

• The importer structure is legally compliant

• An appointed Importer of Record is in place

• There is clarity on VAT recovery

Without these elements, DDP increases risk rather than simplifying delivery.

DDP vs DAP – Which Is Safer for UK Imports?

Many exporters choose DAP (Delivered At Place) instead of DDP.

Under DAP:

• The buyer handles import clearance

• The buyer pays duty and VAT

• The buyer becomes Importer of Record

This reduces compliance risk for the seller - but may reduce commercial competitiveness.

The right choice depends on your:

• Sales model

• VAT strategy

• Distribution structure

• Risk tolerance

Do Non-UK Companies Need an Importer of Record for DDP?

Yes - in most commercial cases.

If your business:

• Ships goods into the UK

• Sells on DDP terms

• Does not have a UK-established entity

You will need a compliant Importer of Record solution.

Without one, your shipment may be held at the border.

Learn more about compliant UK IOR solutions here:

👉 https://www.customsbrokeruk.com/ior

How to Structure DDP Shipments to the UK Correctly

To avoid customs delays and VAT complications:

1. Determine who will legally act as IOR

2. Confirm VAT registration position

3. Ensure proper customs representation

4. Align Incoterms with legal responsibility

5. Document everything clearly in contracts

This protects:

• Your margin

• Your reputation

• Your UK customer relationships

Need Help Structuring DDP Shipments to the UK?

We provide transparent, compliant and efficient UK Importer of Record solutions tailored to international businesses.

We support:

• One-off shipments

• E-commerce imports

• Amazon FBA stock

• Project cargo

• Regulated goods

Speak to our UK IOR specialists:

👉 https://www.customsbrokeruk.com/ior

Frequently Asked Questions About DDP Shipping to the UK

What does DDP mean in international shipping?

DDP (Delivered Duty Paid) means the seller is responsible for all costs and risks of delivering goods to the buyer’s location, including freight, customs clearance, import VAT and duties in the UK.

Who pays import VAT under DDP shipping to the UK?

Under DDP terms, the seller pays import VAT and customs duties. This means the overseas exporter must ensure proper VAT structuring and may need UK VAT registration or an Importer of Record (IOR) arrangement.

Can a non-UK company ship DDP to the UK?

Yes, but in most cases a non-UK company cannot act as Importer of Record without a UK establishment and a GB EORI number. Many overseas businesses therefore use a professional UK Importer of Record service to stay compliant.

Is DDP the same as being the Importer of Record?

Not exactly. DDP defines commercial responsibility under Incoterms, while the Importer of Record is the legal entity responsible to HMRC for customs compliance, VAT and duties. In DDP shipments, the seller must ensure a compliant IOR structure is in place.

What happens if DDP is structured incorrectly?

Incorrect DDP structuring can result in:

• Delays at the UK border

• Seizure of goods

• Unexpected VAT liabilities

• HMRC penalties

• Compliance audits

Proper planning avoids costly disruptions.

Importer of Record (IOR) in the UK - Complete Guide for Foreign Companies (2026)

Feb 12

If you are shipping goods to the United Kingdom from overseas, you may need an Importer of Record (IOR) to legally clear your goods through UK customs.

But who can act as an Importer of Record in the UK?

Do you need a UK company?

Can a non-resident business import into the UK?

What are the VAT and HMRC implications?

In this complete guide, we explain everything foreign companies need to know about UK Importer of Record services and how to remain fully compliant with HMRC regulations in 2026.

What Is an Importer of Record (IOR)?

An Importer of Record (IOR) is the legal entity responsible for customs declarations, payment of import VAT and duties, and ensuring full compliance with UK customs regulations. The IOR is accountable to HMRC for the shipment.

Who Can Act as Importer of Record in the UK?

To act as an Importer of Record in the UK, a company typically must:

• Have a valid UK EORI number (starting with GB)

• Be established in the UK (in most standard import structures)

• Be responsible for customs compliance

• Maintain required import records

• Be able to meet UK VAT obligations

In most cases, non-resident companies cannot act directly as IOR in the UK unless they have:

• A UK establishment

• A UK EORI registration

• Appropriate VAT registration (where required)

This creates challenges for many international businesses.

Can a Non-UK Company Be the Importer of Record?

In most standard commercial import scenarios, a foreign company without a UK entity cannot act as the Importer of Record.

This affects:

• US companies selling DDP to UK customers

• EU businesses shipping post-Brexit

• Asian manufacturers supplying UK distributors

• E-commerce sellers using UK fulfilment centres

• Companies sending goods to Amazon FBA UK

In these situations, a professional UK-based IOR service provider becomes essential.

UK Importer of Record (IOR) services

You can learn more about our dedicated UK Importer of Record services here:

Real Example: US Company Shipping DDP to the UK

A US electronics manufacturer sells goods to UK retailers under DDP (Delivered Duty Paid) terms.

They:

• Do not have a UK subsidiary

• Do not want the UK customer to act as importer

• Want control over landed costs and VAT

Without a UK IOR, the shipment cannot be legally cleared.

By appointing a UK Importer of Record service provider:

• The IOR acts as the legal importer

• Customs declarations are filed correctly

• Import VAT is handled properly

• HMRC compliance is maintained

• Product documentation is reviewed

This allows the US company to sell into the UK without forming a local entity.

When Do You Need an IOR Service in the UK?

You typically require an Importer of Record service when:

• You do not have a UK entity

• You are shipping DDP (Delivered Duty Paid)

• You do not want your UK customer to be the importer

• You are storing goods in UK warehouses

• You are shipping to Amazon FBA UK

• You are importing regulated or controlled products

• You require a compliant non-resident import structure

Using the wrong importer can result in:

• Delays at the border

• Seizure of goods

• Unexpected VAT liabilities

• HMRC penalties

• Compliance audits

The legal responsibility always sits with the declared Importer of Record.

Importer of Record vs Customs Broker – What’s the Difference?

Many businesses confuse these two roles.

A Customs Broker:

• Submits customs declarations

• Acts as an agent

An Importer of Record:

• Is legally responsible for the shipment

• Carries financial and regulatory liability

• Is accountable to HMRC

Sometimes both services are provided by the same company — but the legal responsibilities are very different.

The broker files paperwork.

The IOR carries the liability.

Importer of Record and UK VAT

One of the most important aspects of acting as IOR is import VAT liability.

The Importer of Record is responsible for:

• Paying import VAT

• Managing customs duties

• Declaring postponed VAT accounting (if applicable)

• Ensuring VAT registration compliance

• Maintaining audit-ready documentation

Incorrect VAT structuring can result in significant financial exposure.

For DDP shipments in particular, VAT handling must be carefully structured to avoid double taxation or compliance breaches.

Common Industries Requiring UK IOR Services

We regularly see IOR requirements in sectors such as:

• IT and telecom equipment

• Medical devices

• Automotive parts

• Industrial machinery

• E-commerce and retail

• Electronics

• Exhibition and temporary imports

• Regulated goods

Each sector may have additional regulatory requirements, including product conformity documentation and licensing.

Why Work with a UK-Based Customs & IOR Specialist?

Brexit has significantly increased complexity in UK customs procedures.

Working with an experienced UK customs broker and Importer of Record provider ensures:

• Faster customs clearance

• Reduced compliance risk

• Full HMRC regulatory alignment

• Professional representation

• Clear and transparent cost structure

• No surprises at the border

For foreign companies, this means you can ship to the UK with confidence and predictability.

What Does a Professional UK IOR Provider Do?

A professional UK Importer of Record service provider will:

• Act as the legal importer for your shipment

• Handle customs declarations

• Manage import VAT and duty payments

• Ensure regulatory compliance

• Maintain required records

• Coordinate with freight forwarders

• Provide audit support if required

This enables overseas companies to trade in the UK market without setting up a local subsidiary.

Frequently Asked Questions – Importer of Record UK

Can a foreign company be the Importer of Record in the UK?

In most cases, no. The importer must have a UK EORI number and typically be established in the UK.

Is a UK VAT number required to act as IOR?

Yes, where import VAT is payable and VAT recovery is intended, VAT registration is required.

Can a freight forwarder act as Importer of Record?

No. A freight forwarder acts as an agent. The IOR carries legal and financial responsibility.

What happens if the wrong importer is declared?

It may result in shipment delays, VAT exposure, penalties or HMRC audits.

Is IOR required for Amazon FBA UK shipments?

Yes, in most cases overseas sellers need a compliant UK importer structure.

Need an Importer of Record in the UK?

If your business needs a reliable and compliant UK Importer of Record (IOR), our customs specialists can support:

• One-off shipments

• Regular commercial imports

• Project cargo

• Amazon FBA and e-commerce distribution

• DDP (Delivered Duty Paid) shipments

• Regulated or controlled goods

We provide transparent, compliant and efficient UK IOR solutions tailored to international businesses.

👉 Learn more about our UK Importer of Record services:

UK Importer of Record (IOR) services

Or contact our team today to structure your UK imports correctly and avoid unnecessary compliance risk.

Temporary Admission Made Simple: How We Help Businesses Import Equipment into the UK with Full Duty & VAT Relief

At CustomsBrokerUK, we specialise in helping businesses navigate the complexities of temporary imports into the United Kingdom — saving them time, money, and compliance headaches.

Recently, we successfully cleared a shipment of high-value equipment into the UK for short-term demonstration and evaluation purposes. The movement was handled under Temporary Admission using procedure 53 00 C08, which enabled our client to benefit from:

• Zero-rated VAT

• 100% Duty Relief

• Simplified CDS (Customs Declaration Service) entry

• No need for a full import authorisation

• Seamless clearance via air freight at London Heathrow Airport

Our team also ensured:

• Timely submission of the ENS (Entry Summary Declaration),

• Smooth coordination with the airline’s compliance team (FedEx), and

• Fast delivery to the final UK consignee.

This approach allows foreign businesses to temporarily bring in machinery, tools, or demo products, without the burden of high import taxes — as long as the goods are re-exported afterward.

Who benefits from Temporary Admission?

• International manufacturers showcasing at UK events

• Medical device companies arranging short-term trials

• Tech firms demoing equipment to UK clients

• Film & production companies importing props temporarily

If you’re planning to import goods temporarily into the UK, let us manage the compliance while you focus on growth.

Contact us today to discuss your shipment.

SEO Keywords to Include (naturally):

• Temporary admission UK

• Import to UK duty free

• Zero VAT import UK

• CDS customs clearance

• ENS declaration UK

• Temporary import UK customs broker

• Demonstration equipment import

#TemporaryAdmission #UKCustomsBroker #DutyFreeImport #ZeroVAT #CDS #ENS #UKTrade #AirFreightUK #CustomsSupport

What is ENS and Why It Matters for EU–UK Logistics

In the post-Brexit logistics landscape, ENS (Entry Summary Declaration) is no longer just a formality — it’s an essential part of smooth, compliant freight movement between the EU and the UK.

One of our daily clients — a UK distributor of Evian water delivering to the London — recently avoided major delays at Calais during system updates on Monday, April 28th, thanks to pre-submitted ENS and the use of GVMS and ELO digital systems.

What is ENS?

ENS is a safety and security declaration required before goods enter the UK from the EU. It must be submitted prior to arrival at the border, allowing UK customs to assess potential risks.

Why ENS Matters

• Delays avoided: Trucks without ENS or proper pairing with GVMS face being stopped.

• Border readiness: ENS, when paired with GVMS + ELO, ensures seamless clearance.

• Customs compliance: Non-submission leads to penalties and inspection.

Our Role as Customs Broker UK

We ensure that ENS is:

• Filed correctly, using accurate CN codes and descriptions

• Paired to GVMS for GMR creation

• Integrated with ELO for France–UK crossings

With our daily experience, especially supporting hauliers transporting perishable goods like water, we know that one digital mistake can mean a day lost at the border.

Why It Worked for Our Client

Our client adopted the ENS + ELO model voluntarily before it became mandatory in September 2025. On April 28th — while others queued for hours — his trucks were scanned and cleared in seconds, saving time, cost, and stress.

Need Help?

Let us take care of your ENS + GVMS + ELO declarations.

We specialise in support for Polish hauliers, EU exporters, and UK importers.

#ENS #GVMS #ELO #UKCustoms #PolishHauliers #FreightForwarding #BrexitLogistics

How ELO Simplifies Customs for Polish Hauliers & Freight Forwarders

Polish hauliers and freight forwarders transporting goods to the UK often face customs clearance issues when handling multiple consignments with different MRN numbers. A recent case with a Polish haulier delivering car parts from Poland to a factory in Oxford highlights the importance of using ELO (Entry Summary Declaration Envelope) and ICS2 compliance to avoid delays and VAT-related problems.

The Challenge

Multiple MRNs from different exporters were not properly scanned at the EU-UK border.

Polish tax authorities rejected zero VAT invoices due to missing proof of export.

The exporter had to submit additional UK customs documents, delaying supply chains.

How We Solved It

Implementing ELO envelopes ensured all MRNs were correctly processed.

Using two barcodes for border clearance simplified compliance.

The exporter received proper documentation, resolving VAT and customs issues.

What This Means for Polish Logistics Companies

Avoid customs clearance delays for goods moving between Poland and the UK.

Ensure compliance with ICS2, ENS, and ELO to prevent financial and operational disruptions.

Reduce risks of VAT invoice rejection and additional paperwork.

If your transport or logistics company is facing similar customs challenges, we can help!

Contact us today to streamline your EU-UK customs processes.

#PolishHauliers #PolishLogistics #CustomsClearance #UKImport #EUExport #ICS2 #ENS #ELO #FreightForwarding #Transport #BrexitLogistics #SupplyChain #VAT #MRN #odprawaCelna #logistyka #Spedycja #ICS2 #ELO #ENS #TransportMiędzynarodowy #VAT #Eksport #import

ICS2, ENS & ELO: Everything You Need to Know for Seamless EU-UK Border Crossings

New EU & UK Border Regulations Are Coming!

From 3rd June 2024, major changes in customs regulations will impact all businesses transporting goods between the UK & EU. The Import Control System 2 (ICS2) Release 3 will require an Entry Summary Declaration (ENS) for all road freight into the EU, while ELO(Obligatory Logistics Envelope) will become the new standard for smooth crossings at the France-UK Smart Border from 1st April 2025 (mandatory from 1st September 2025).

What Are ICS2, ENS & ELO?

ICS2 & ENS (EU)

ICS2 is the EU’s updated safety and security system. ENS must be filed before arrival for all goods entering the EU, ensuring customs compliance and risk assessment. This requirement starts 3rd June 2024.

ELO (France-UK Smart Border)

ELO replaces verbal customs questions at the border with a single barcode, reducing delays and administrative errors. It will be available from 1st April 2025 and mandatory from 1st September 2025.

GVMS & UK ENS

For shipments into the UK, customs compliance still requires GMR, ENS & CDS filings.

Why You Need to Prepare NOW

Starting 1st September 2025, ELO & ENS will be mandatory for all businesses moving goods between the UK & EU. Failing to comply could result in delays, penalties, and rejected shipments.

How We Can Help

At Customs Broker UK (part of Silesia Holding Ltd.), we provide a full suite of customs services to ensure your shipments comply with both UK & EU regulations:

ENS (EU) Filing – From 3rd June 2024, we handle all ENS submissions for EU-bound shipments.
ELO Registration & Barcode Creation – Available from 1st April 2025, mandatory from 1st September 2025, ensuring seamless border crossings between France & the UK.
GVMS & UK ENS Services – Linking GMR, ENS, and CDS for smooth UK entry.

Why Choose Us?

One-Stop Customs Solution – We handle both UK & EU border requirements.
Expert Support – Our specialists ensure your shipments comply without delays.
Seamless Digital Integration – Automated processes for efficiency & compliance.

Get Ahead of the 2025 Border Changes!

ELO (Obligatory Logistics Envelope) – Live from April 2025, Mandatory from September!

France is introducing the Obligatory Logistics Envelope (ELO) as part of its post-Brexit customs modernisation efforts. Starting in April 2025, ELO will be available as a pilot project, allowing businesses to familiarise themselves before it becomes mandatory on 1st September 2025.

WHAT IS ELO?

ELO is a new digital tool that consolidates customs declarations into a single logistics envelope, making border crossings faster, smoother, and error-free.

April 2025: ELO launches as an optional pilot phase.

September 2025: ELO becomes mandatory for all UK-EU movements via France.

BE AN EARLY ADOPTER & AVOID SEPTEMBER CHAOS!

WHY CHOOSE OUR ELO + ENS SERVICE?

ENS + ELO Processed Together: One seamless service for both UK & French customs.

Pilot Program Assistance: Join the April 2025 ELO pilot with our expert guidance.

Avoid Border Delays: Ensure smooth crossings with properly paired documents.

Dedicated 24/7 Support: A customs team available anytime you need assistance.

Customs Clearance in UK & France: We handle all import/export documentation.

OUR SERVICES & PRICING PLANS

ENS Only: £8 per declaration

ELO Only: £10 per declaration

ENS + ELO Full Package: £15 per shipment (Bundled for efficiency & savings!)

• Monthly Subscription Fee: £360 plus VAT.

• Services Included: Up to 10 customs clearance entries per month.

• Additional Entries: Charged at £35 per entry beyond the included 10.

Special Offer: Sign up during the April 2025 ELO pilot & get discounted pricing!

GET STARTED TODAY – BEAT THE DEADLINE!

Join the ELO Pilot Phase & Avoid Future Delays!

Email: admin@customsbrokeruk.com

Call us: +44 1304 600240

Visit: www.customsbrokeruk.com