Import customs declarations and procedures

Every import into the UK requires a customs declaration through the Customs Declaration Service (CDS). Getting your commodity codes right determines what duty you pay, what licences you need, and what restrictions apply. Since 1 April 2024, CDS has fully replaced the old CHIEF system for all import and export declarations.

Register for the Customs Declaration Service

CDS is the UK's single platform for all customs declarations. You must subscribe to CDS even if a customs agent makes declarations on your behalf. You will need a Government Gateway account and an EORI number starting with GB (or XI for Northern Ireland trade).

Full and simplified declarations

There are two main approaches to making customs declarations. A full declaration provides all required data at the point of import and is suitable for most businesses. Simplified declarations allow you to release goods with less data at the border, then submit a full supplementary declaration later.

Simplified Declaration Procedure (SDP)

SDP lets you submit a simplified frontier declaration with reduced data to get goods released quickly. You then submit a supplementary declaration with the full data set within a defined period (normally by the 4th working day of the month following import). You need HMRC authorisation to use SDP.

Entry in Declarant's Records (EIDR)

EIDR is the most streamlined approach. Instead of making a frontier declaration, you record the import in your own commercial records when goods arrive and submit a supplementary declaration afterwards. EIDR requires separate HMRC authorisation and you must have a duty deferment account in place.

Commodity codes and tariff classification

Commodity codes are 10-digit numbers that classify every type of product traded internationally. The code structure follows the international Harmonised System (HS):

• Digits 1-2: Chapter (e.g. 62 = Articles of apparel, not knitted)
• Digits 1-4: Heading (e.g. 6203 = Men's suits, jackets, trousers)
• Digits 1-6: Subheading (internationally harmonised)
• Digits 7-8: UK-specific subdivision
• Digits 9-10: Further UK subdivision for national measures

The General Interpretive Rules (GIRs) govern how goods are classified. The key principle is that a more specific description takes precedence over a general one. Use HMRC's online Trade Tariff tool to look up the correct code for your goods.

When to get an Advance Tariff Ruling

If your goods are complex, novel, or could fall under multiple codes, apply for an Advance Tariff Ruling (ATR) from HMRC. An ATR is legally binding for three years and protects you if HMRC later challenges your classification. It is free to apply and particularly valuable for goods where the difference between two possible codes means a significant duty rate difference.

Customs Procedure Codes (CPCs)

Every import declaration must include a Customs Procedure Code that tells HMRC what you intend to do with the goods. The code determines the duty and VAT treatment. Common procedure codes include:

• 40 00: Release to free circulation and home use (the standard code for most imports)
• 71 00: Customs warehousing (duty suspended while goods are stored in an approved warehouse)
• 51 00: Inward processing (duty suspended on goods imported for processing before re-export)
• 61 00: Outward processing (reduced duty on goods re-imported after processing abroad)
• 53 00: Temporary admission (goods imported temporarily with full or partial duty relief)

Using the wrong procedure code can mean paying duty you did not need to, or failing to pay duty you owe. If you are unsure which code applies, your customs agent can advise.

Declaration data requirements

A CDS import declaration requires up to 46 data elements. The main supporting documents you will need include:

• Commercial invoice showing goods description, quantity, and value
• Packing list with weights and package counts
• Transport document (bill of lading, air waybill, or CMR note)
• Certificate of origin (if claiming preferential rates)
• Import licences or certificates (where goods are controlled)
• Valuation declaration (for goods over the statistical threshold)

Using a customs agent or broker

Most SMEs use a customs agent to handle declarations, especially when starting out. There are two types of representation with very different liability implications:

• Direct representation: The agent acts in your name and on your behalf. You remain liable for the customs debt (duties and VAT). This is the most common arrangement.
• Indirect representation: The agent acts in their own name but on your behalf. Both you and the agent are jointly and severally liable for the customs debt. Agents may charge more for this because of the liability they take on.

Always confirm which type of representation your agent provides. Get a written agreement covering responsibility for errors, how amendments will be handled, and what happens if HMRC queries a declaration.

Authorised Economic Operator (AEO) status

AEO is a trusted trader certification that provides customs benefits. There are two types:

• AEOC (Customs Simplifications): Faster access to simplified procedures, fewer physical and documentary checks, priority treatment during customs examinations
• AEOS (Safety and Security): Reduced security-related data requirements, priority treatment for security-related customs controls, mutual recognition with partner countries

AEO status takes up to 120 days to approve and requires demonstrating compliance history, financial solvency, and competent customs management. It is most beneficial for businesses importing regularly and in volume.

Correcting errors on declarations

If you discover an error on an import declaration after it was submitted, you may need to correct it. The process depends on whether goods have been released from customs.

Voluntary disclosure

If you discover you have underpaid duty or VAT, making a voluntary disclosure is always better than waiting for HMRC to find the error. Voluntary disclosures qualify for lower penalties and demonstrate compliance intent. You have three years from the date of the original declaration to request a post-clearance duty adjustment using form C285.

Common errors to watch for

Regularly review your import declarations for:

• Commodity codes - Incorrect classification directly affects duty rates
• Customs value - Must include all costs to first place of arrival in the UK
• Origin - Affects eligibility for preferential rates under trade agreements
• Quantity - Weight, volume, or number of items
• Procedure codes - Affects VAT and duty treatment

Penalties for customs errors

HMRC applies civil penalties for customs contraventions based on the type of behaviour:

• Non-deliberate (careless): Penalties from 0% to 30% of the duty shortfall. A first contravention typically starts at a minimum of £250.
• Deliberate: Penalties from 20% to 70% of the duty shortfall.
• Deliberate and concealed: Penalties from 30% to 100% of the duty shortfall.

Penalties can be reduced through unprompted disclosure (telling HMRC before they find the error) and by cooperating fully with any enquiry. Where the undeclared duty or VAT exceeds £50,000, HMRC may charge at a rate two steps higher than the standard starting point. Persistent non-compliance can also lead to suspension of simplified procedure authorisations.