Category: Resources

UK Plastic Packaging Tax Update

22 May 2026

What Importers, Exporters and Supply Chains Need to Prepare for Now

The UK’s Plastic Packaging Tax (PPT) has been in force for a while, but the rules around recycled plastic evidence could soon become much stricter.

This week, HMRC and HM Treasury launched a new 12-week consultation looking at whether businesses should be required to use mandatory certification schemes to prove recycled plastic content in packaging.

For importers, exporters, manufacturers and logistics providers, this matters more than many realise.

The direction of travel is clear. Regulators want stronger traceability, better evidence, and tighter controls around recycled plastic claims, especially for imported packaging.

Here’s what businesses need to know now, what changes are being reviewed, and how to prepare before the next phase of compliance arrives.

What Is the Plastic Packaging Tax?

The Plastic Packaging Tax applies to plastic packaging manufactured in or imported into the UK that contains less than 30% recycled plastic.

The tax currently stands at £228.82 per tonne of taxable plastic packaging.

The aim is to encourage businesses to use more recycled plastic and reduce reliance on virgin polymers across UK supply chains.

The tax can apply to:

  • Plastic packaging manufactured in the UK
  • Empty plastic packaging imported into the UK
  • Plastic packaging imported with goods
  • Certain transport and distribution packaging

The Current Situation

Right now, businesses can claim exemption from the tax if they can show their packaging contains at least 30% recycled plastic content.

However, HMRC has concerns about how recycled content is currently evidenced.

At present, businesses may rely on:

  • Supplier declarations
  • Technical data sheets
  • Certificates of conformity
  • Production specifications
  • Commercial invoices
  • Audit records

The problem is that standards vary widely across the market.

Some importers have strong traceability systems. Others rely on supplier statements with very little independent verification.

For overseas supply chains in particular, proving exactly where recycled material originated and how it was processed can be difficult.

That’s one of the main reasons the government has opened this latest consultation.

What Is Being Reviewed?

The government is consulting on whether mechanically recycled plastic packaging should require mandatory certification before businesses can claim exemption from Plastic Packaging Tax.

In simple terms, businesses may eventually need independently verified proof that recycled content is genuine and traceable.

The consultation is specifically reviewing:

  • The risk of fraud or inaccurate recycled-content claims
  • How certification schemes could work in practice
  • The costs and operational impact on businesses
  • What evidence standards should apply
  • Which certification systems may be acceptable
  • Possible implementation timelines

HMRC is also engaging with:

  • Importers
  • Exporters
  • Packaging manufacturers
  • Waste management providers
  • Recyclers
  • Freight and logistics operators
  • Local authorities
  • Trade associations

The consultation is open until 10 August 2026.

Why Importers Should Pay Attention

Many UK importers are already liable for Plastic Packaging Tax without fully realising it.

If your business imports packaged goods into the UK, you may become responsible for PPT compliance even when the packaging was sourced and manufactured overseas.

That means HMRC may expect you to hold evidence showing:

  • Recycled content percentages
  • Source material details
  • Production traceability
  • Supporting technical documentation

The challenge is that many overseas supply chains are not yet set up for this level of reporting

Some businesses still rely on:

  • Generic supplier declarations
  • Unverified recycled-content claims
  • Incomplete technical specifications
  • Limited batch traceability

If certification becomes mandatory, those gaps could quickly become compliance risks.

What Exporters Need to Know

Exporters supplying goods into the UK should expect customers to tighten packaging compliance requirements over the next 12 to 24 months.

UK importers are likely to start requesting:

  • Formal recycled-content declarations
  • Third-party certification
  • Batch-level traceability
  • Chain-of-custody evidence
  • Audit access rights

This is especially relevant for:

  • Retail supply chains
  • FMCG products
  • Food packaging
  • Automotive components
  • Consumer goods
  • E-commerce shipments

Packaging compliance is becoming a procurement issue, not just an environmental one.

The Next Confirmed Change: April 2027

One important change has already been confirmed.

From 1 April 2027, the government plans to allow chemically recycled plastic to count toward recycled-content requirements under a mass balance approach.

This is separate from the current consultation but closely linked to the wider reform of Plastic Packaging Tax.

Mass balance accounting allows recycled and virgin materials to be mixed during production while allocating recycled content through audited accounting systems.

For businesses using advanced recycling technologies, this could create more flexibility, but it will also require stronger documentation and verification processes..

Key Dates To Remember

Plastic Packaging Tax Introduced

☐ Already in force since 1 April 2022

Current Government Consultation Closes

☐ 10 August 2026

Chemically Recycled Plastic Rules Expected

☐ 1 April 2027

What Businesses Should Do Now

Waiting until new rules become mandatory could create serious operational pressure later.

Businesses should start preparing now.

CHECK LIST

Final Compliance Reminder

Businesses relying on basic supplier declarations or incomplete packaging records should act now.

The focus from HMRC is moving toward:

  • Stronger audit trails
  • Verified recycled-content claims
  • Supply chain traceability
  • Formal certification systems

Early preparation will reduce compliance risk and help avoid disruption later.

PREVIOUS UPDATE

HMRC TRE Reporting

What Importers Need to Know About the New Customs Data System

HMRC has introduced a new reporting platform called Trade Reporting & Extracting (TRE), replacing the older Management Support System (MSS). For many importers and exporters, this is a quiet but important shift in how customs data is accessed, reviewed, and used for compliance checks.

While TRE is still being developed and refined, it is already becoming a key tool for businesses that want better visibility over their customs declarations.

So what exactly is it, and why should it be part of your monthly checks?

What is HMRC TRE?

Trade Reporting & Extracting (TRE) is a free HMRC service that allows traders to access customs declaration data submitted in their name.

This includes import and export declarations made through both CHIEF and CDS systems. In practical terms, it gives businesses a structured way to view what has been declared to HMRC by freight forwarders, customs brokers, or internal teams.

Previously, this information was accessed through the Management Support System (MSS), which was a paid service and often required separate setup and access arrangements. TRE replaces that system and brings reporting into a more standardised digital format.

Reports are typically available to download in spreadsheet format, which makes it easier for finance teams, compliance managers, and logistics departments to review the data.

Why HMRC introduced TRE

The move to TRE is part of HMRC’s wider shift towards digital customs processes under the CDS framework.

The goal is simple: improve transparency and give businesses better access to their own trade data.

Instead of relying solely on agents or monthly summaries, importers can now directly review the declarations that affect:

  • Duty payments
  • Import VAT
  • Commodity classification
  • Customs valuation
  • Origin and preference claims

This matters because responsibility for accuracy sits with the importer, even when declarations are submitted by a third party.

What information TRE reports contain

TRE reports can include a wide range of customs data, such as:

  • Import and export entries
  • Commodity codes used on declarations
  • Customs values and currencies
  • Duty and VAT calculations
  • Country of origin and preferential claims
  • Declaration references linked to shipments

This level of detail allows businesses to compare what was expected against what was actually submitted, and that comparison is where most issues are found.

Why monthly TRE checks matter

Even though the system is new and still being improved, monthly checks should already be part of standard due diligence.

Here’s why it matters in real terms.

1. Catch classification errors early

A wrong commodity code can affect duty rates, VAT, and compliance exposure. TRE helps identify these issues before they build up over time.

2. Verify duty and VAT accuracy

Small errors repeated across multiple entries can quickly become costly. Regular reviews help ensure financial accuracy.

3. Monitor broker activity

Many importers use multiple agents. TRE gives a single view of all declarations, so nothing slips through the cracks.

4. Support audit readiness

If HMRC reviews your records, having a clear monthly reconciliation of declarations strengthens your position.

5. Improve internal controls

Finance and logistics teams can align declared values with purchase records and landed cost models.

What businesses should do

Importers should treat TRE as part of their standard monthly compliance routine.

A simple process works best:

  • Download monthly TRE reports
  • Match declarations to invoices and shipping records
  • Check commodity codes and values
  • Review duty and VAT outcomes
  • Flag inconsistencies early

This does not need to be complex, but it does need to be consistent.

MORE INFORMATION

TRE is more than just a reporting upgrade. It represents a shift towards full transparency in UK customs data.

For importers, this means greater control, but also greater responsibility.

Businesses that build TRE checks into their monthly process will be better positioned to avoid duty errors, reduce compliance risk, and maintain cleaner customs records.

As the system evolves, those who adapt early will have a clear advantage in both operational control and HMRC readiness.

CROSS TRADE SHIPPING

Cross Trade refers to shipping goods from one country to another without the cargo entering the country where the freight forwarder or contracting party is based.

For example, a UK trading company may purchase goods from China and sell them directly to a customer in Canada. The cargo moves from China to Canada. It never enters the UK. Yet the shipment still requires full coordination, documentation, customs clearance, and freight management.

Cross Trade allows importers and exporters to operate globally without physically routing goods through their home country. For businesses managing international supply chains, this is not unusual. In fact, it is now a common model in global trade. It reduces transit time, lowers costs, and removes unnecessary handling.

At Future Forwarding, we handle Cross Trade shipments globally by air, sea, and road. We also provide customs brokerage, warehousing, online tracking, and full logistics support to keep your shipments controlled from origin to destination.

What Are the Benefits of Cross Trade for Importers and Exporters?

The main benefits of Cross Trade are reduced costs, faster transit times, and improved supply chain flexibility.

For Road Freight Europe to Europe no documents / customs required.

By shipping directly from supplier to customer, businesses can:

  • Avoid double handling and potential duplicate duties
  • Eliminate unnecessary warehousing
  • Reduce freight expenses
  • Shorten delivery lead times
  • Improve global responsiveness

For importers sourcing in Asia and selling into Europe or North America, or exporters manufacturing overseas for international distribution, Cross Trade offers a practical logistics structure.

It supports global expansion without increasing operational complexity.

How Does Cross Trade shipping Work?

Cross Trade shipping works by coordinating international transport and, depending on the Incoterms, managing customs clearance at origin and destination.

The process typically includes:

  • Export customs clearance in the origin country
  • Freight movement by air freight, sea freight, or road freight
  • Import customs clearance in the destination country (subject to Incoterms)
  • Full documentation management between all parties

The freight forwarder acts as the central coordinator, ensuring compliance in both countries while keeping communication clear between supplier and buyer.

For importers and exporters, this means you can buy and sell globally without physically handling the cargo in your home country.

What Documents Are Required for Cross Trade shipments?

Cross Trade shipments require standard international shipping documents, including a commercial invoice, packing list, and a transport document such as a bill of lading or air waybill.

Additional documentation may include:

  • Export declarations at origin
  • Import declarations at destination
  • Certificates of origin, if required
  • Neutral documentation when requested
  • Switch Bills of Lading

Road Freight Europe to Europe = no documents or customs required.

Why Choose an Experienced Freight Forwarder for Cross Trade?

Cross Trade involves multiple countries, customs authorities, and time zones. Without proper coordination, shipments can face delays, storage charges, or compliance issues.

An experienced freight forwarder ensures:

  • Correct export and import procedures
  • Clear and consistent communication
  • Accurate and compliant documentation
  • Efficient routing and transit planning
  • Reliable tracking and updates

At Future Forwarding we support global importers and exporters with structured Cross Trade designed for control and reliability.

If your business buys in one country and sells to another, Cross Trade is not complicated when managed correctly. It is simply a more efficient way to move cargo globally.

Speak to our team to discuss your next Cross Trade shipment and explore how we can support your global operations.

Our Services

FAQ

What are Switch Bills of Lading?

A Switch Bill of Lading is used when the seller or trading company does not want the final buyer to see the original supplier details. The original bill of lading is replaced with a new version that removes or changes certain information, such as the shipper or consignee.
 
This is common in Cross Trade, particularly for trading companies, as it protects commercial relationships and pricing structures.
 
Accuracy across all documents is critical. Errors can lead to customs delays, additional costs, or cargo being held at port.

Read More

Can Cross Trade be shipped by Air, Sea, or Road?
 

Yes, Cross Trade can be managed across all major transport modes, depending on the cargo and urgency.
 
Air freight is typically used for urgent or high-value shipments.
Sea freight is common for full container loads and groupage cargo.
Road freight supports regional cross-border movements, particularly within Europe and North America.
 

Is Cross Trade common in global logistics?

Yes, it’s widely used, particularly by trading companies and businesses with international supply chains.

As global sourcing and distribution continue to expand, Cross Trade has become a standard part of how goods move worldwide.

Do Cross Trade shipments require customs clearance?


Yes. Customs clearance is required in both the origin and destination countries, depending on the agreed Incoterms.

Even though the cargo does not enter your home country, full compliance with international shipping regulations is essential.

Do you offer Cross Trade shipping services?


Yes. At Future Forwarding, we manage Cross Trade shipments globally across air, sea, and road freight.

We provide full logistics coordination, customs brokerage, documentation management, and shipment tracking, giving you complete visibility and control throughout the process.
If your business buys in one country and sells to another, we can support your Cross Trade operations.

LCL Groupage UK to USA

Fast, Reliable Shipping from the UK in Just 19 Days

Moving consignments to the US doesn’t need to be slow or unpredictable. Our premium LCL groupage service from the UK is built for speed, consistency, and full control from origin to delivery.

With direct weekly sailings and a strong network across the South East USA, you get a service you can actually plan around.

Why Shippers Choose This Service

Time-Critical Cargo? Covered.
Fast, dependable LCL schedules designed to keep your supply chain moving without delays.

Proven LCL Specialists
Experienced consolidation teams handling your cargo carefully at every stage.

Reliable Weekly Departures
Consistent groupage sailings you can build your shipping plans around.

Door-to-Door Service
From UK collection through to final US delivery, everything is handled.

Full Shipment Visibility
Clear updates at every milestone so you always know where your cargo is.

Simple, Joined-Up Process
One point of contact managing the full movement from origin to destination.

Strong US Delivery Network
Reliable last-mile delivery across the South East USA.

Competitive Pricing
Cost-effective LCL solutions without cutting corners on service.

Service Schedule

Our fixed weekly schedule keeps your shipments predictable and easy to manage:

  • Last Collection: Wednesday
  • Container Loading: Thursday
  • Vessel Departure: Saturday

Transit Times

  • Port-to-Port: 19 days
  • Door-to-Door: 23–25 days

Dates and Transit times are estimates and subject to change, and customs clearance at destination.

Built for Consistency, Not Guesswork

This isn’t ad-hoc groupage. It’s a structured, weekly service designed for businesses that need reliability. Whether you’re shipping regularly or working to tight delivery windows, you’ll have the confidence of fixed cut-offs and dependable transit times.

Ship to South East USA with Confidence

If you’re moving LCL cargo from the UK to the South East USA, this service gives you speed, visibility, and control without the cost of full container loads.

Get in touch today to secure your next shipment.

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Ocean Freight Services

What is the EU ETS? A practical guide for importers and exporters

What importers and exporters need to know now

From January 2026, the EU Emissions Trading System (EU ETS) has moved into full implementation for shipping. If you’re moving cargo in or out of Europe, this is no longer a background cost. It’s now a visible and growing part of your freight rates.

Here’s what’s changed and what it means for your business.

What is the EU ETS?

The EU ETS (Emissions Trading System) is the European Union’s carbon pricing system. It puts a cost on greenhouse gas emissions.

Here’s the simple version:

  • Companies in certain sectors must pay for the carbon they emit
  • They do this by buying emission allowances
  • The more they pollute, the more they pay

Think of it as a cap and trade model. There’s a limit on total emissions, and companies trade allowances within that limit. it links all your imports, exports, and transit operations to a single, official identifier.

The key change: full carbon costs now apply

The phased rollout is complete.

  • 2024: 40% of emissions covered
  • 2025: 70%
  • 2026: 100% now covered

Shipping lines must now pay for all emissions linked to EU voyages, and those costs are being passed through the supply chain.

In practical terms, ETS is now a core component of ocean freight pricing, not a minor surcharge.

So whether you’re importing containers into Rotterdam or exporting from Antwerp, you’ll likely see these charges reflected in your freight rates.

What you’ll see in your freight costs

Higher ETS surcharges

With full compliance in place, carbon-related charges have increased noticeably compared to 2025.

These charges:

  • Vary by trade lane and vessel efficiency
  • Change in line with carbon allowance prices
  • Are applied differently by each carrier

So two similar routes can now show very different total costs.

More cost volatility

Unlike fixed surcharges, ETS is linked to a live carbon market.

That means:

  • Costs can rise or fall month to month
  • Budgeting needs a bit more flexibility
  • Long-term pricing requires closer attention

A broader emissions scope

From 2026, the system also expands beyond CO₂.

Shipping companies must now account for:

  • Methane (CH₄)
  • Nitrous oxide (N₂O)

This increases the overall emissions calculation, which in turn increases the cost of compliance.

How this affects your shipments

The structure remains the same, but the impact is now stronger:

  • 100% of emissions → for movements within the EU
  • 50% of emissions → for imports into or exports out of the EU

Now that full pricing applies, these rules have a direct and visible effect on your landed costs.

What we recommend to our clients

At this stage, it’s less about reacting and more about planning properly.

Review your freight quotes in detail

Look at how ETS is applied. Not all carriers calculate or present it the same way.

Compare total cost, not just base rates

A lower base rate doesn’t always mean a lower final cost once ETS is included.

Keep routing flexible

Where possible, small changes in routing or consolidation can help manage exposure.

Talk to us

We support our clients by:

Identifying practical ways to reduce impact

Explaining ETS charges in plain terms

Comparing carrier options across total cost

In Summary

January 2026 marked the point where EU ETS becomes fully embedded in European logistics.

For importers and exporters, that means:

  • Higher and more variable freight costs
  • Greater importance on carrier and route selection
  • A stronger link between sustainability and pricing

Handled properly, it’s manageable. Ignored, it can quietly eat into margins..

If you’d like a breakdown of how EU ETS is affecting your specific shipments, we can walk you through it and highlight where savings or stability can be found.

USA 3PL Profile Questionnaire

Please find link to our new client 3PL Profile Questionnaire. Please complete this form providing as much detail as possible, this will help ensure we can find the right solution for you!

Link to Form

Shipping Container Types, Sizes, and Their Uses

Shipping containers are the backbone of global trade, quietly moving everything from everyday household goods to industrial machinery across the world. But not all containers are created equal. Knowing the different types, and how they’re typically used, can make a huge difference. It ensures your cargo arrives safely, on time, and without unexpected costs. A well-chosen container isn’t just a box; instead, it’s a key part of your logistics strategy.

Choosing the Right Container

Picking the right container might seem simple, but there are a few critical factors to keep in mind:

  • Cargo type: Some goods, like fresh produce or pharmaceuticals, need temperature control. On the other hand, oversized machinery or construction materials might require an open top or flat rack container. Even everyday items have different storage needs. Moreover, the wrong container can risk damage or delays.
  • Weight and volume: Proper planning prevents overloading and helps you make the most of the space available. Knowing the exact weight and dimensions of your shipment ensures you don’t run into issues during loading or transport.
  • Handling and transport: Some containers are easier to load and unload depending on your equipment and the ports you’ll be using. Others, like specialized containers for liquids or hazardous materials, require extra handling precautions. Planning ahead keeps operations smooth and avoids costly surprises.

Understanding these factors early helps you select the container that’s the best fit for your shipment, not just in size, but in functionality and safety. It’s about more than just moving cargo; instead, it’s about making logistics predictable, efficient, and stress-free for everyone involved.

Shipping Container GuideDownload

Ocean Freight Services

Road freight Specialist Services

Road Freight Out of the Ordinary FlyerDownload

Lithium Batteries

Lithium BatteriesDownload

Known Consignor Information

Known Consignor Information BookletDownload

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