HMRC: Appendix 21 H7 NI Updates Revise CDS Guidance

• HMRC has updated Appendix 21 guidance, introducing the new H7 Declaration Category for specific Northern Ireland imports under the UK Carrier Scheme.
• The H7 category is exclusively for 'not at risk' movements into Northern Ireland and now supports Import One Stop Shop (IOSS) usage via data element 3/40.
• Extensive declaration simplifications and data element changes have been applied across H1-H5, I1 C&F, I1 B&E, and Appendices A-G.
• All references to the legacy CHIEF system have been removed from the guidance, confirming the full transition to the Customs Declaration Service (CDS).
• Compliance professionals must review these updates to ensure accurate import declarations and adherence to the latest HMRC requirements.

For compliance officers and legal teams advising on trade and customs, these extensive revisions necessitate a thorough review of the updated Appendix 21 guidance.

Her Majesty's Revenue and Customs (HMRC) has issued significant revisions to its Appendix 21 guidance, specifically impacting import declaration categories and data sets within the Customs Declaration Service (CDS). These updates are crucial for businesses and compliance professionals navigating UK trade regulations, particularly concerning movements into Northern Ireland. A new file, 'Appendix 21H', has been introduced, alongside amendments to the 'Appendix 21: Introduction to Declaration Category Data Sets', to reflect the new H7 Declaration Category, also known as the Super Reduced Data Set (SRDS).

The H7 declaration category has a specific and limited application: it is currently restricted to goods moving into Northern Ireland under the UK Carrier Scheme (UKC) that are definitively classified as 'not at risk' of subsequently entering the European Union. This particular update is central to understanding the latest HMRC Appendix 21 H7 NI Updates. Furthermore, data element 3/40 has been modified to permit the use of the Import One Stop Shop (IOSS) in conjunction with the H7 data set, although users are advised to consult the Known Error List (KELs) for any interim workarounds related to IOSS functionality. These changes underscore HMRC's ongoing efforts to refine declaration processes and adapt to evolving trade requirements.

Beyond the introduction of H7, HMRC has implemented a series of changes across various declaration categories to streamline processes and enhance clarity. Declaration simplifications have been integrated into the H1, H2, H3, H4, H5, I1 C&F, and I1 B&E Data Sets. Specifically, new reading note information has been added at data element (DE) 8/6 for Data Sets H1, H2, H3, H4, H5, and I1 B&E, and at DE 3/15 for H1, H2, H3, H4, H5, I1 C&F, and I1 B&E.

Further granular updates span numerous appendices. Appendix 21A has seen revisions at DE 2/2, 3/40, 4/1, 4/9, and 5/15. Appendix 21B is updated at DE 2/2, while Appendix 21C includes changes at DE 2/2, 4/1, and 4/9. Appendix 21D has updates at DE 2/2, 4/1, 4/9, and 5/15. Appendix 21E has been revised at DE 2/2, 4/1, 4/9, and 5/15, with an unnecessary reading note for DE 8/5 removed. Appendix 21F now includes updates at DE 2/2, 4/1, 4/9, 4/17, 5/15, and 6/1, and Note 46d has been added to DE 4/4 and 4/14 within its I1 C&F attachment. Appendix 21G features updates at DE 2/2, 4/1, 4/4, 4/6, 4/7, 4/9, and 6/2, alongside the removal of superfluous reading note references for DE 1/10, DE 1/11, and DE 4/17. The Declaration Category Data Sets Reading Notes have also been updated to reflect changes for notes 11b, 11c, 12f, 12n, 12o, 12r, 31, 68, and 68a. Additionally, new procedures for Grouping, which allows for declaring different products under a single commodity code, have been introduced.

A significant overarching change reflected in the updated guidance is the complete removal of all references to the Customs Handling of Import and Export Freight (CHIEF) system from the 'Appendix 21: Introduction to Declaration Category Data Sets'. This action confirms the system's full decommissioning, solidifying the Customs Declaration Service (CDS) as the sole platform for import declarations. Notes pertaining to previously deleted table content have also been expunged, ensuring the documentation remains current and relevant to the CDS environment.

For compliance officers and legal teams advising on trade and customs, these extensive revisions necessitate a thorough review of the updated Appendix 21 guidance. Ensuring import declaration processes align with current HMRC requirements is paramount to avoid non-compliance, especially concerning the specific conditions for H7 declarations for Northern Ireland under the UK Carrier Scheme and the proper usage of IOSS. The standardization of data set tables, including filling blank cells with em-dashes for accessibility, further underscores HMRC's commitment to a modern, user-friendly, and compliant customs declaration framework, even though the technical content itself remains unchanged.

Compliance officers and legal teams advising on trade and customs must review the updated Appendix 21 guidance, particularly regarding H7 declarations for Northern Ireland under the UK Carrier Scheme and IOSS usage, to ensure import declaration processes meet current HMRC requirements and avoid non-compliance. They should also note the complete removal of CHIEF system references.

Source: Original reporting via GOV.UK guidance