Customs Procedures

CDS - Changes to Ozone Depleting Substances Import and Export Measures

by Bernard O'Connor • 6 March 2025
The Department for Business and Trade (DBT) has implemented changes on behalf of the Environment Agency, to the controls on Ozone Depleting Substances (ODS) as previously notified in Tariff Stop Press Notice - 27 January 2025 - UK Integrated Online Tariff .

Understanding 3PL – Third Party Logistics

by Niamh O'Connor • 13 August 2024
Acronyms are a daily occurrence when you are involved in international trade, and we often come across the term 3PL. But what does it actually mean in practice? It stands for third-party logistics; essentially, 3PL providers offer outsourced services related to the shipping and handling of goods. These services encompass various logistical needs, making them essential partners for many businesses.

Transitioning from NCTS4 to NCTS5: Key Changes and Action Steps

by Gail Leeson • 1 June 2024
NCTS Phase 4 is about to progress to NCTS Phase 5 as part of a program of planned changes agreed under the Common Transit Convention to how Transit operates and aligns with other contracting nations. This alignment needs to be completed by December 2nd, 2024.

The Customs Declaration Service - CDS Exports

by Bernard O'Connor • 15 September 2023
HMRC has recently published timescales for the migration from the Customs Handling of Import and Export Freight (CHIEF) National Export System (NES) to the Customs Declaration Service (CDS).

Case Study for the Direct Consignment Rule using a Customs Warehouse and Non-Manipulation

by Calvin Sherratt • 11 September 2023
Understanding the significance of a Non-Manipulation certificate and its optimal applications is perhaps, more than ever, vital for UK exporters, who may have previously faced pricing challenges.

The UK Border Target Operating Model and Movements from the island of Ireland Explained

by Niamh O'Connor • 6 September 2023
The publication of the UK Border Target Operating Model (BTOM) now guarantees that Northern Ireland businesses will continue to enjoy unfettered access when transporting goods to Great Britain.

Customs Warehousing and Preferential Origin

by Lucille Roche • 4 September 2023
A Customs Warehouse allows traders to store goods with suspended duty or import VAT payments. When goods are in a Customs Warehouse, they are considered to have never landed in that country.

HMRC published the Final Border Target Operating Model today, August 29th, 2023

by Niamh O'Connor • 29 August 2023
The UK Government has today (29th August 2023) published its Border Target Operating Model (BTOM), setting out new controls to protect the UK against security and biosecurity threats and create a world-class border system for trade in goods. The BTOM confirms a delay to UK import controls due this October.

Case Study for the use of a 2200 series Customs Procedure Code (CPC) on CHIEF or CDS

by Bernard O'Connor • 21 August 2023
VAT Payable - Non-Warranty Repair Export through CHIEF Customs Procedure Code 2200 000 can be used for duty-free goods that are being temporarily exported outside the UK for process, repair, adaptation, reworking or making up. Use of this code constitutes a declaration that the goods are intended for temporary export, for the purpose of processing or treatment outside the UK, and for re-importation after completion of the process. Export through CDS Customs Procedure Code 2200 B54 can be used to for duty-free goods that are being temporarily exported outside the UK for process, repair, adaptation, reworking or making up. Use of this Procedure Code constitutes a declaration that the goods are intended for temporary export, for the purpose of processing or treatment outside the UK, and for re-importation after completion of the process. Note: Procedure 2200 B54 cannot be used if the goods are only duty-free by virtue of a Free Trade Agreement. Procedure 2200 B53 must be used instead. Note that the procedure can only be used 3 times in any 12-month period. Scenario In our scenario, the tools are being temporarily exported outside the UK for a process (sharpening). They will then be re-imported to the UK after completion. The “Process”, sharpening in this case, would be subject to VAT on importation to the UK under the following guidelines. Re-import through CDS (CHIEF Can no longer be used) Procedure 6122 B06 should be used to re-import the duty free goods after processing, with VAT chargeable at importation (unless exemption is claimed) on the following value: The freight charged for the transport to and from the processor’s premises (but not insurance) The price charged for the process, repair or service, including any charge for parts and materials To declare the amount of VAT payable on an import customs declaration, Tax type code B00 should be used, with the amount of VAT payable or postponed manually calculated. HMRC advises that the use of Procedure 6122 B06 constitutes a declaration that the goods: Were previously exported outside the UK Were exported using CPC 22 00 000 in SAD Box 37 under CHIEF, or Were exported using Procedure 22 00 B54 in DE 1/10 and 1/11 under CDS Were intended at the time of their export to be re-imported after completion of the treatment or process outside the UK Have been repaired, processed, adapted, reworked or made up outside the UK Ownership was not transferred to any other person at exportation or during the time they were outside the UK To conclude, the tools which were temporarily exported for a process (sharpening) are subject to VAT at importation on the cost of the process, including parts and materials used in the process. VAT Exempt - Warranty Repairs An example of VAT not being payable upon importation would be where the “tool” was under a warranty or was faulty and was being repaired as a part of this cover. VAT exemption would apply and therefore, VAT would not be payable at re-importation.

FAQ's

  • We supply goods to an unrelated company in another EU Member State which can be subject to transfer price adjustments at a later date. If prices are adjusted do I have to submit corrected Intrastat data once the true value is known?

    Yes. You should submit corrected data via the on line system, as described in paragraph 6.3 of the Intrastat General Guide (Notice 60). Use the on line amendment form at https://www.uktradeinfo.com/Intrastat/ElectronicSubmission/OnlineAmendments/Pages/OnlineAmendmentsForm.aspx 



    NB: You only need to submit a correction if the value of the error exceeds the thresholds shown in paragraph 6.3 of Notice 60.

  • Why do I have to declare net mass on the customs declaration? It's yet another piece of information I've got to try and find and it doesn't seem to have much purpose.

    Net mass must always be declared on customs entries, including the EU Intrastat reports. It may seem a pointless exercise, but don’t forget that for some commodities, net mass is a far more relevant measure than value. Value can depend on commercial pressures and can fluctuate wildly, whereas the weight of goods generally remains constant.

  • I think our technologists should join in the Commodity Code classification process, particularly as our products are technically sophisticated, do you agree?

    Yes Totally!! But… remember, whilst technology specialists may be able to describe goods in their terms, the classification of goods for import and export follows fairly precise rules in the UK Integrated Tariff. Whilst taking the advice of technologists, you should always consult the chapter and section notes in the Tariff and any of the number of guides to assist in classifying particular types of goods. Ultimately, the Harmonised System (HS) Explanatory Notes should be consulted. If you are still uncertain, get in touch with the Tariff Classification Team via E-Mail – classification.enquiries@hmrc.gsi.gov.uk

  • Hopefully you will be able to make sense of this query. We sold some demo units to a sister company in the US back in 2018 & 2019. This company was then sold and we bought the units back from them which were then delivered to another company in the USA as our stock but for demonstration purposes. These units have now been sold to a company in Mexico and they are requesting that we supply them with a EUR-1 Preference Form so they can clear customs easier. The 5 pieces are still in the USA. Is this something we can do?

    I’m afraid you can’t issue an EUR preference document unless the goods are physically in an EC member state. This is because of the “direct transport” rule. The EUR1 Form would, if you could issue it, allow the Mexican’s to import the goods at a lower customs duty rate. If they ask for a NAFTA (North America Free Trade Agreement) Certificate instead – you can’t do this either because the NAFTA rules says the goods must be manufactured in USA, Canada or Mexico. I’m afraid they are stuck with importing it as a standard supply and pay the customs duties and taxes. If this is a lot of money then you could consider shipping the units to the UK first and then sending them to Mexico.

  • A US customer recently returned some items for repair. The problem is that we supplied them with a large system and they have only returned a small part of the whole but have declared the full system price on the paperwork but of $500,000. We will be using Inward Processing Relief (IPR) so duty won’t be paid we don’t want to have an artificial duty liability. Can we legally declare the correct price for the small bit to Customs ($25,000)?

    Yes!! Any import with incorrect value shown on the senders’ paperwork can be amended. You must make a written declaration of correct value on your letterhead to HMRC via the freight forwarder. You must be able to justify the change in value. This is important for both higher and lower values. You can use IPR as you mentioned to suspend the duty/vat, but only the correct amount of duty/vat based upon the correct value of landed goods. Another alternative would be Returned Goods Relief (RGR) if items were exported in the last 3 years and have returned unchanged, other than them not working

  • What is or were Smoot-Hawley as it was referred to in a recent document on tariff controls but not explained?

    Willis Hawley (congressman from Oregon) and Reed Smoot (senator from Utah) were responsible for the Tariff Act of 1930 which some economists believe helped to make the 1930’s depression what it was. The Act increased nearly 900 American Import Duties in a display of American protectionism

  • Arm's length trading and 'distance selling' what are they and what is the difference (if any)?

    They are very different indeed. Arm’s length trading is an expression used in relation to the GATT Valuation rules. It is used as an expression in section 30.1 of Customs notice 252 which is the section that explains how to demonstrate that you do not get a reduced price on the goods you are valuing for customs purposes at import if you are related (in the business sense) to the party who has consigned the goods to you from overseas. ‘Distance selling’ on the other hand is a term used to describe supplies of goods from one Member State to a person in another Member State where:



    The customer is not registered for VAT and

    The supplier is responsible for delivery of the goods


    The recipients of distance sales will mainly be private individuals. The rules are intended to transfer the place of supply to the Member State in which the customer receives the goods. The rules are intended to combat distortion of trade and unfair competition because of the lack of harmonization of VAT rates across the EU