AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Find the product's 10-digit commodity code on the UK Trade Tariff, select Nigeria as the country of origin, and read the duty rate and any DCTS preference shown, plus the VAT rate and any import controls. Duty is worked out on the customs value. If the classification is unclear, HMRC's Advance Tariff Ruling gives a legally binding decision, with replies in 30 to 120 days.
Before you agree a price with a supplier in Kano or Aba, you want to know what the goods will cost landed in Birmingham. Customs duty, import VAT and any border check fees all sit on top of the invoice. This guide covers the duty and VAT part, which is the one you can check yourself, for free, before you order.
Step 1: the commodity code
GOV.UK describes commodity codes as internationally recognised reference numbers that describe a specific product. Only the first 6 digits are used worldwide; the rest are national. GOV.UK's import step by step says the code goes on the import declaration and sets the duty rate and whether you need an import licence.
Classification follows what the product is, how it is processed and what it is made of, not what it is called at Balogun market. A dried, ground product can sit in a different chapter from the fresh or whole version. For worked food examples, see finding the code for egusi, garri or palm oil.
Step 2: look it up with Nigeria as origin
Use the UK Trade Tariff tool on GOV.UK. Search by product or browse by chapter to the 10-digit code, then choose Nigeria as the country of origin. The tariff then shows:
- The third country duty, which is the UK Global Tariff rate everyone pays without a preference
- Any preferential rate for Nigeria under the Developing Countries Trading Scheme
- The VAT rate for the code
- Measures such as licences, certificates or checks that apply to that code
GOV.UK's DCTS guidance says tariff rates depend on the origin country's preference tier and the commodity code. Nigeria is in the Enhanced tier, which GOV.UK says gives 0% on 92% of product lines; the remainder pay the UK Global Tariff. Duties can be ad valorem (a percentage), specific (for example £74 per tonne for oats outside Enhanced cover), compound or seasonal.
Step 3: the value
GOV.UK says you declare the value of the goods, which is used to calculate duty and VAT. It starts from the invoice price; ask your customs agent which freight and insurance costs go into the value for your shipment. Import VAT is then charged on the value including duty.
Worked example (illustrative)
| Item | Without preference | With DCTS 0% |
|---|---|---|
| Customs value (assumed) | £5,000 | £5,000 |
| Duty at an assumed 8% | £400 | £0 |
| Value for VAT | £5,400 | £5,000 |
| Import VAT at 20%, if the code is standard-rated | £1,080 | £1,000 |
Figures are illustrative. The real duty and VAT rates come from the tariff for your code, and some codes carry a VAT rate other than 20%. VAT-registered businesses can usually account for import VAT on their VAT return rather than paying at the border; see postponed VAT accounting.
Step 4: other ways to reduce duty
GOV.UK's import step by step lists trade preferences, duty suspensions, tariff quotas and other reduced-rate options, and some ways to delay paying duty. For Nigerian goods the main one is the DCTS preference, which needs proof of origin; see rules of origin.
When to ask HMRC: Advance Tariff Ruling
If two codes look plausible and the duty differs, you can apply for an Advance Tariff Ruling, which GOV.UK describes as a legally binding decision on the commodity code to use when importing into or exporting from Great Britain. You apply online with sign-in details or through a business tax account; HMRC replies in 30 to 120 days. The Tariff Classification Service's address is tariff.classification@hmrc.gov.uk, and GOV.UK asks you to email first if you plan 10 or more applications in a week. Northern Ireland and EU imports need Binding Tariff Information instead.
Remember that duty is only part of the landed cost. High-risk Nigerian foods also carry border control post fees for checks, and possibly laboratory costs if the consignment is sampled. Ask the border control post for its current charges when you plan the first order.
Checklist before you order
- Write a precise product description: ingredients, processing, packing.
- Find the 10-digit code and save the tariff page.
- Note the third-country rate and the Nigeria preference rate.
- Check the measures for licences, certificates or border checks.
- Ask the supplier for an origin declaration on the invoice.
- Get a landed-cost quote from your customs agent.
Where Pryme fits
Landed cost includes the cost of paying the supplier. A Pryme Business Account lets you pay in naira or dollars with Send; the app shows the rate and the fee before you approve, so you can add the true payment cost to your duty sums.
Questions people ask
Where do I check UK import duty for goods from Nigeria?
On the UK Trade Tariff tool on GOV.UK. Find the commodity code and select Nigeria as the country of origin to see the duty and any preference.
Is there import duty on Nigerian goods?
For most lines, Enhanced DCTS preference gives 0% if the origin rules are met and claimed. Other lines pay the UK Global Tariff.
What if I use the wrong commodity code?
You may pay the wrong duty and VAT. GOV.UK's import step by step says you report underpayments to HMRC and pay the difference, or claim refunds for overpayments.
Can HMRC confirm my code in advance?
Yes, through an Advance Tariff Ruling, which is legally binding. HMRC replies in 30 to 120 days.
Sources
- GOV.UK: Finding commodity codes for imports or exports (updated 22 Aug 2022) · accessed Oct 2026
- GOV.UK: Import goods into the UK, step by step (updated 21 Oct 2026) · accessed Oct 2026
- GOV.UK: Identify tariffs by product under the DCTS · accessed Oct 2026
- GOV.UK: Preference tiers under the Developing Countries Trading Scheme (updated 19 Oct 2026) · accessed Oct 2026
- GOV.UK: Apply for an Advance Tariff Ruling (updated 2 Jun 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.