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Import VAT: check the incidental expense method

HMRC updated its valuation guidance on 21 October 2026. The change concerns simplified arrangements for import VAT incidental expenses, including when the methods can be used and the nationally agreed Method 2 rates. It is not an announcement of a new VAT rate.

For your next shipment, ask the appointed customs representative which method applies and what evidence is needed. Keep costs already included in the declared value distinguishable from any additional amounts. If a previous shipment used an estimate, establish whether that approach remains appropriate for the new movement rather than copying the old calculation.

The practical task is to assemble information the representative can reconcile: the supplier invoice, transport scope, destination and supporting charges. An inclusive freight price can still need a clear explanation of its components for declaration purposes. Do not treat a valuation allowance as an extra transport invoice or assume that a freight quotation alone settles the declaration.

UK customs clearance for China imports can be discussed around the actual goods, documents and importing business. Identify who supplies missing information, who approves the declaration instructions and who retains the resulting records. Any tax-accounting questions should also reach the person responsible for your business’s VAT reporting.

Amazon: distinguish the FBA and MCF surcharge dates

Amazon has announced that its fuel and logistics-related surcharge will increase from 1.5% to 2% for UK FBA from 2 November 2026. For UK Multi-Channel Fulfilment, the same increase starts on 19 November. The calculation is based on fulfilment fees, not the product’s selling price.

Before changing a product budget, identify which fulfilment service handles the order. Use the relevant fee preview and keep the platform charge separate from international transport, import costs and delivery into stock. A change to one line should not be applied as a percentage increase to the whole shipment budget.

For a range with mixed product sizes, review the affected products individually. Record the service, applicable date and fee estimate alongside the sales assumption used for the replenishment decision. This gives purchasing and finance a shared basis for discussing whether the planned stock release still makes sense.

If the review prompts a change in stock routing, use the existing direct to FBA or a UK 3PL comparison for the wider transport and storage decision. Moving reserve stock to another warehouse does not, by itself, remove Amazon charges on orders that Amazon subsequently fulfils. Compare the complete arrangement before changing it.

Ocean freight: update the benchmark, then check the offer

Drewry’s 22 October assessment put its World Container Index at US$4,585 per 40ft container, up 2% over the week. Shanghai‒Rotterdam rose 3% to US$3,632 per 40ft container. The latter is an Asia‒Europe reference route, not a quoted service to a UK postcode.

For a China-to-UK purchase, use this movement to prompt a review of the offer already on your desk. Check its validity against the cargo-ready date and proposed departure. Confirm the loading and discharge points, any transfers, and the destination services included. Ask which changes would require a revised quote.

Avoid deciding solely on whether the ocean component is higher or lower than last week. A useful comparison starts with the same goods and receiving requirement. Differences in handling, delivery scope or conditional charges can matter more than the direction of an index.

Have a gap between the quoted scope and your receiving plan? Clarify it before instructing the supplier.

Discuss Your Shipping Plan

Retail demand: use the September release at category level

ONS published its September retail sales release on 23 October. Sales volumes in Great Britain fell 0.4% over the month, while the third-quarter total rose 0.7% against the previous quarter. These figures describe past retail activity in Great Britain; they are not an October forecast or a measure covering Northern Ireland.

For import planning, compare your own recent category sales with the assumptions behind the next China order. Include stock at suppliers, goods already dispatched and inventory awaiting release. Then identify which lines need replenishment first and which depend on demand that has not yet materialised.

A monthly decline does not establish that every importer should cut orders. Equally, quarterly growth does not justify increasing every product line. Where your own evidence is mixed, assess the cost and operational consequences of releasing priority goods separately. Include additional handling and delivery requirements in that assessment instead of assuming smaller batches always cost less.

Before the next supplier release

Bring the decisions into one working record:

1. Confirm the goods, packed quantities, measurements and actual supplier-ready dates.
2. Resolve declaration questions with the appointed representative before approving instructions.
3. Refresh the relevant Amazon fee estimate and keep it separate from freight costs.
4. Recheck quote validity and the complete journey to the receiving address.
5. Match the release quantity to stock already committed and the period it must cover.

Assign an owner to unresolved points. If the supplier date changes, revisit the quote and receiving plan together rather than updating only the departure estimate. Keep the approved assumptions with the order so later changes can be identified and discussed.

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