You might expect five years to be enough time for international logistics to adapt to changes in customs regulations. Yet Brexit, which took effect at the end of the transition period on 1 January 2021, continues to create challenges for many businesses.
The United Kingdom is no longer a member of the European Union, and the free movement of goods between the EU and the UK has consequently come to an end. This change has had a significant impact on international shipping. What was once intra-EU trade without customs formalities is now trade with a non-EU country. As the UK remains an important market for many retailers, it is worth taking a closer look at the situation in 2026.
- What has changed since Brexit?
- What impact has it had on shipping and logistics?
- And, most importantly, how can retailers ship to the UK smoothly and efficiently?
The current situation can be summarised as follows: businesses shipping to the UK must account for customs declarations, import VAT, additional documentation and new regulatory requirements. Since the end of the Brexit transition period, every shipment must be formally declared, regardless of its value or the shipping method used.
For online retailers that previously shipped to the UK with minimal administrative requirements, this change represents a significant challenge. These processes bring additional bureaucracy, longer transit times, higher costs and an increased risk of errors. Incomplete or inaccurate customs data can delay shipments or even prevent them from being cleared.
At the same time, five years after Brexit took effect, the UK remains an important sales market, with customers who are accustomed to high standards of service and continue to expect them. Businesses must therefore continually balance these operational challenges with the need to deliver a reliable customer experience.
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Customs Status & Documentation Requirements
Since Brexit, Great Britain has been treated as a non-EU country for customs purposes. For the first time since the establishment of the customs union in 1968, trade between the EU and the UK is subject to standard customs formalities for exports and imports. Every shipment must be properly declared. This includes complete customs declarations, commercial invoices, accurate descriptions of goods, commodity codes, declared values and country-of-origin information, among other requirements.
Errors in this documentation can lead to delays, additional costs or goods being returned. The administrative burden has therefore increased significantly, requiring structured processes and sound customs expertise to ensure smooth and reliable shipping.
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Customs Duties and the Free Trade Agreement
The EU–UK Trade and Cooperation Agreement (TCA) has applied provisionally since 1 January 2021. The agreement provides for zero tariffs on goods traded between the EU and the UK, provided they meet the relevant rules of origin. These rules mean that goods must qualify as originating in the EU or the UK to benefit from preferential tariff treatment. The key factor is not where the goods are shipped from, but their qualifying origin. For online retailers selling products sourced from third countries or operating complex supply chains, this can make shipping more complicated.
Even for products that qualify as EU or UK originating, the administrative burden remains significant. Preferential treatment must be supported by appropriate proof of origin, such as a statement on origin provided by the exporter or, where applicable, the importer’s knowledge. A statement on origin can be included on a commercial invoice or another document that sufficiently identifies the goods. If the required evidence is missing, customs authorities may deny preferential treatment or delay the release of shipments.
It is therefore essential to verify, document and regularly review the origin of goods. This already requires considerable effort for a standard online shop product range, and the complexity increases significantly when product assortments change frequently or goods are sourced from multiple suppliers.
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Delays & Border Checks
Given this complexity, it is hardly surprising that customs and documentation requirements can lead to delays. Shipments are subject to customs processes and risk-based checks, meaning that even when the data is correct, border procedures can extend transit times. If information is incomplete or inaccurate, the process can take considerably longer. The impact is particularly noticeable during periods of high shipment volumes: backlogs at border crossings and longer transit times make reliable delivery planning more difficult. This, in turn, can make it harder for retailers to meet their delivery promises.
The administrative requirements increased further in 2025. Since 31 January 2025, entry summary declarations (ENS) have been required for imports from the EU into Great Britain, subject to applicable exemptions. These safety and security declarations must be submitted before arrival and include the information needed for border risk assessments, such as transport details, goods descriptions and relevant shipment references. This additional requirement increases process complexity and reinforces the importance of accurate, complete data for efficient cross-border shipping.
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VAT & Tax Considerations
Brexit has also brought significant changes to VAT. The EU VAT rules that previously applied to trade with Great Britain no longer apply in the same way, and UK-specific VAT requirements must now be taken into account. The processes for low-value consignments have changed substantially. For many B2C shipments to Great Britain with a consignment value of £135 or less, VAT is charged at the point of sale rather than collected from the customer at import. Where the retailer is responsible for accounting for this VAT, UK VAT registration is generally required.
The aim of these rules is to reduce tax losses and create greater transparency in online retail. However, the exact VAT treatment depends on factors such as the consignment value, whether the sale is made directly or through an online marketplace, and where the goods are located at the point of sale.
Practical Implications for Shipping & Logistics
The changed regulatory landscape has a direct impact on operational shipping and logistics processes. For shippers, it means more preparation and stricter requirements for complete, accurate data. Correctly completed customs documentation is essential for smooth and efficient shipping.
Even when the data is accurate, additional border procedures can lead to longer transit times. Administrative requirements and border checks make reliable delivery planning more challenging. Retailers and shippers must also account for higher costs. Additional services, such as customs brokerage, customs clearance and the preparation of safety and security declarations, increase the overall cost per shipment. These additional expenses need to be factored into pricing and operational planning to maintain profitability and competitiveness.
Partnership with MS Direct
Complex shipping and customs processes in cross-border e-commerce are difficult to manage without a specialist partner. MS Direct is an established e-commerce fulfilment provider and a long-standing partner of PARCEL.ONE.
Together, we develop and implement solutions for cross-border shipping, including in demanding markets such as Great Britain.
MS Direct helps reduce administrative barriers and simplify operational processes. The objective is to deliver stable, transparent and scalable shipping solutions, even in the face of significant regulatory complexity.
