Can a UK business declare an international shipment as a gift?
When a UK business sends a product overseas free of charge, it may be tempting to declare it as a gift. That is not always correct.
A free item and a customs gift are not necessarily the same thing. Whether a shipment qualifies depends on the import rules of the receiving country. Selecting “gift” does not automatically remove import duty, tax or clearance charges.
A UK business should only declare an export as a gift when it genuinely meets the destination country’s legal definition. Do not select “gift” simply because the recipient has not paid for the goods.
Gift rules are set by the destination country
The UK exporter supplies the customs information, but the destination customs authority decides how the parcel will be treated. Each country can set its own rules covering:
- who may send and receive a gift
- whether a business can act as the donor
- the maximum value eligible for relief
- how often gifts may be received
- excluded products such as alcohol or tobacco
- the documents and evidence required
There is no worldwide gift threshold and no declaration that guarantees duty-free entry everywhere.
How the rules differ in major export markets
| Destination | Current treatment of gifts sent by a business |
|---|---|
| European Union | Gift relief is for occasional, non-commercial consignments sent from one private individual to another. The relief threshold is €45. A shipment from a UK company does not meet the private-to-private condition. European Commission guidance |
| Canada | The CAN$60 gift exemption requires a friend or relative to send the item personally. Advertising material and items sent by a business are excluded. Canada Border Services Agency guidance |
| Switzerland | Relief up to CHF100 applies to gifts sent from a private individual abroad to a private individual in Switzerland. Business-to-person shipments do not meet this condition. Swiss customs guidance |
| Norway | Relief up to NOK1,000 requires the shipment to be sent by a private individual living abroad to a private individual in Norway. Norwegian Customs guidance |
| United States | A genuine gift may qualify for relief up to US$100 in aggregate fair retail value received by one person in one day. The donor may be a commercial firm, but the item must have been owned by the donor and given outright without payment or promised payment. A business parcel would not ordinarily contain a qualifying gift, so supporting information may be required. US regulations, 19 CFR 10.152 and 10.153 |
| Australia | Gifts and donated goods sent through the mail are still assessed for duty, taxes, restrictions and other charges. Goods valued at A$1,000 or less generally do not attract charges at the border, apart from exceptions, but this is general low-value treatment rather than a gift exemption. Australian Border Force guidance |
| New Zealand | From 1 April 2026, imported gifts no longer receive separate duty relief and Customs no longer collects information identifying goods as gifts. General low-value rules apply instead. Goods other than alcohol and tobacco valued at NZ$1,000 or less may enter duty-free, while GST rules can still apply. New Zealand Customs guidance |
These examples show why businesses should check the destination rather than use one setting for every country.
Common business shipments and how to describe them
| What you are sending | Appropriate declaration |
|---|---|
| A product purchased by a customer | Sale of goods, even if it is delivered to somebody else as a present |
| A free product sample | Commercial sample, with an accurate product description and value |
| An influencer or PR product | Other or commercial sample, depending on its purpose and the carrier's options; describe it as a promotional product supplied free of charge |
| A competition prize | Other, described as a competition prize supplied free of charge |
| A warranty replacement | Other, described as a warranty replacement supplied free of charge; include original shipment or import details where required |
| A free customer goodwill item | Other, described as a goodwill or promotional item supplied free of charge |
| A corporate Christmas or thank-you present | Check the destination's gift definition. Where business senders are excluded, use Other and describe it as a corporate gift supplied free of charge |
| Goods sent back to their owner or seller | Returned goods, with the original export or import information where available |
The exact options differ between postal, courier and shipping platforms. The description should always explain what the product is and why it is being sent.
A gift must still have a customs value
Free of charge does not mean free of value. Customs authorities may use the declared value to calculate duty and tax, test a relief threshold and decide which clearance process is required.
Do not enter £0 or a token value simply because the recipient did not pay. Use a supportable customs value under the destination’s valuation rules and keep evidence such as the normal selling price, purchase cost or production cost. See HMRC guidance on free-of-charge goods.
For a genuine free-of-charge shipment, the invoice can state:
Supplied free of charge. Value shown for customs purposes only.
What information should be included?
- a specific product description—not just “gift”, “sample” or “merchandise”
- quantity and weight
- the correct HS or commodity code
- country of origin
- a genuine customs value and currency
- the reason for export
- the sender’s and recipient’s full details
- any tax, importer or product identifiers required by the destination
- a commercial or pro forma invoice where required
- confirmation of who will pay import duty, tax and clearance charges
For example, use “One men’s cotton T-shirt, promotional item supplied free of charge” instead of “Gift, no value.”
What if a customer buys an item as a present?
It remains a sale of goods. The relationship between the buyer and final recipient does not change the commercial transaction between the customer and your business.
What can happen if the declaration is wrong?
Customs or the carrier may reclassify the shipment, charge duty and tax, request evidence, delay or return it, seize goods, or apply a penalty where customs law has been breached. Marking a parcel as a gift is not a lawful way to reduce the recipient’s charges.
Royal Mail’s international sending guidance warns that incorrect or incomplete declarations can cause delays, returns or charges. HMRC also publishes customs penalty guidance.
A practical check before dispatch
- Is this genuinely a gift, or is it a sale, sample, prize, promotion, replacement or return?
- Does the destination allow a business to be the donor?
- Is there a value limit or product restriction?
- What customs value can you support with evidence?
- Have you provided a full description, HS code, origin and reason for export?
- Does the recipient know that import charges may still apply?
If any answer is unclear, check the destination customs authority or ask your carrier before dispatch.
The key point
A UK business can give a product away, but that does not automatically make the export a customs gift. For most business shipments, selecting sale, commercial sample, returned goods or other and giving a precise explanation will be more accurate. Only use gift when the facts and the destination country’s rules support it.
Official sources
- European Commission: low-value and private-to-private consignments
- United States eCFR: bona fide gifts and conditions
- Canada Border Services Agency: importing by mail or courier
- Australian Border Force: importing by post or mail
- New Zealand Customs Service: imported gifts from 1 April 2026
- Swiss Federal Office for Customs: gift shipments
- Norwegian Customs: gifts
- HMRC: customs valuation of free-of-charge goods