The upcoming CDS update, version 4.6.0, is scheduled for release on 28th September 2024. During this period, please note that any pre-lodged declarations that will be affected by the changes should be changed/amended prior to the goods arriving. If customs declarations are not corrected prior to arrival, they will be rejected.

For third-country goods in free circulation in the Channel Islands being moved to GB

For third-country goods not in free circulation in the Channel Islands being moved to GB 

When moving goods from the Channel Islands into NI, the following instructions should be followed to ensure the correct calculation of taxes and duties:

For third-country goods in free circulation in the Channel Islands being moved to NI

For third-country goods not in free circulation in the Channel Islands being moved to NI (manual calculation of duties and taxes required)

For third-country goods not in free circulation in the Channel Islands being moved to NI where AI Code ‘OVR07’ is not declared in DE 2/2

The guidance in the Declaration Completion Instructions for Imports – Data Element 2/2 should be followed, and CDS will automatically calculate any duties and taxes to be paid.

The remaining changes within version 4.6.0 are as follows:

Immediate Payment Method of Payment (MOP) codes - When paying/securing duties or taxes using an Immediate Payment method (MOP Codes A, B, C, H, M, or Z) in Data Element (DE) 4/8, all items on the declaration must use an Immediate Payment method. Combining MOP Codes A, B, C, H, M, or Z with a MOP code not on that list will cause the declaration to be rejected.

AI Code GEN13 - AI Code GEN13 may now be declared in DE 2/2 on import and export declarations. The workaround where GEN45 was to be declared in place of GEN13 on export declarations using APC C12 in DE 1/11 has now been withdrawn.

Additional Information (AI) Codes - When HMRC instructs a trader to declare one of the following AI Codes, SDSIP, SDSBF, or SDSTS in DE 2/2, the same code must be declared on all goods items on the declaration. Failure to declare the same code on all goods items will result in the declaration being rejected.

Document Codes - New validation has been added to several document codes.

The following restrictions apply to the listed document codes when declared in DE 2/3:

• The Document ID field must be completed for these document codes: C045, D021, Y795, Y797, Y799
• The Document Reason field must be completed for these document codes: Y152, Y154, Y972, Y976, Y978,
• Document Code Y163 requires both the Document ID and Document Reason fields to be completed. These document codes should be completed per the Completion Instructions in Appendix 5A.

Document Code 1MIB - When declaring document code 1MIB in Data Element 2/3, a document ID must be completed for this document code. Failure to declare a document ID with document code 1MIB will cause the declaration to be rejected. The previous workaround advising that a document ID is to be completed for all document codes when declaring 1MIB has been withdrawn and should no longer be followed.

Document Code 999L - Document Code 999L must only be declared in DE 2/3 a maximum of once per goods item on a declaration. Declaring more than one instance of the 999L Document Code on any goods item will cause the declaration to be rejected.

Consignee ID - When a Consignee ID is declared in DE 3/10, it must be a recognised EORI. Consignee IDs that do not match a recognised EORI will not be accepted, which will cause the declaration to be rejected. If the Exporter does not hold an EORI, DE 3/2 should be left blank, and DE 3/1 should be completed with the name and address details of the Exporter as per the Declaration Completion Instructions for Exports.

Final Supplementary Declarations (FSDs) - When submitting an FSD, DE 2/1 must be completed with the following previous document code, as per the Declaration Completion Instructions: Z-ZZZ-FSD If Z-ZZZ-FSD is not declared in DE 2/1 on a FSD the declaration will be rejected. The workaround that prevented other previous document codes from being declared on an FSD no longer applies, and declarations will not be rejected if other previous document codes are declared in addition to Z-ZZZ-FSD.

Removal of 400-series tax types and X400-series National Additional Codes - The 400-series excise tax type codes and correlating X400-series National Additional Codes were replaced by 300-series tax type codes and X300-series National Additional Codes from 1st August 2023. As the 400/X400-series codes are no longer required, they have been removed from the CDS code list. These codes are listed in Appendices 8B and 19B and will be removed from Gov.uk. Attempting to declare any tax types or National Additional Codes not listed in Appendix 8A or 19A will cause the declaration to be rejected. Appendices 8A and 19A will be renamed to Appendices 8 and 19.

Relief of Excise Duty with APC F05 - Excise duties may now be relieved when claiming Returned Goods Relief using APC F05. In order to make a claim to excise duty relief, APC 1RE must be declared in DE 1/11, in addition to APC F05. If APC 1RE is not declared, the total excise duty will be payable.

Imports of chewing tobacco and snuff- A new excise type has been added for use when importing goods under commodity code 2403991000 (chewing tobacco and snuff) to distinguish between the different excise duty rates applicable. The existing excise tax type 627 and National Additional Code X627 should continue to be used when importing chewing tobacco. This will ensure CDS calculates the correct excise duty rate for chewing tobacco. A new excise tax type, 639, and National Additional Code, X639, have been introduced for use when importing snuff, which is not subject to excise duty. This will ensure that CDS charges a 0% excise duty on imports of snuff. The correct tax type and National Additional Code should be used for the type of imported goods to ensure the applicable excise duty rate is applied to the shipment. The declaration will be rejected if neither tax type nor National Additional Code combination is declared against commodity code 2403991000.

Denatured alcohol AI Codes - Only one of the denatured alcohol AI Codes (CDAUK, IDAUK, or TDAUK) introduced in release 4.5.0 may be declared against the same goods item on a declaration. If a goods item has more than one AI Code declared in DE 2/2, the declaration will be rejected.

Removal of preference document codes - Document codes C100, U031, U052, U058, U072, U095, U096, U097, or U100 are no longer to be used to support claims to preference on import declarations. If a preference is claimed, another valid preference document code from Appendix 5A must be declared in DE 2/3 instead.

Mode of Transport for Universal Postal Union (UPU) operators - Mode of Transport Code 5 is only to be declared in DE 7/4 when the goods are handled by an authorised postal operator that the UPU governs. Code 5 must not be used for goods imported by a Fast Parcel Operator (FPO) or other non-UPU operator. Non-UPU consignments should use the correct code for the actual mode of transport as listed in the CDS Declaration Completion Instructions for DE 7/4

C21i EIDR NOP Dataset Changes - Two Data Elements have been added to the C21i EIDR NOP dataset for both GB and NI imports.

• Data Element 3/15 (Importer Name and Address) is now Dependent on a C21i EIDR NOP.
• In GB: This Data Element is required if the entity's EORI is not declared in DE 3/16.
• In NI: This Data Element is required if the entity's EORI is not declared or if a GB EORI is entered in DE 3/16.
• Data Element 6/8 (Description of Goods) is now Mandatory on a C21i EIDR NOP

Zimbabwe Currency Code ZIG - We know of a system issue preventing traders from making declarations using currency code ZIG. This issue is under investigation, but we cannot provide a date for when the problem will be resolved. When making a declaration that requires using a Zimbabwean currency code, a manual calculation will need to be completed using the guidance for AI Code OVR01 in the CDS Declaration Completion Instructions for DE 2/2. The value should be manually calculated using the appropriate exchange rate and declared in GBP. In such cases, the worksheet showing the calculations should be declared by completing document code 9WKS in DE 2/3 with document status code AC. Please note this guidance relating to the Zimbabwean currency code applies immediately. All other items on this list only take effect on the 28th of September, 2024.

If you are interested in exploring this topic further, you might find it worthwhile to consider the training courses and live clinics offered by Strong & Herd LLP: