HMRC: CDS Additional Information Codes Update for Declarations

• HMRC has released significant updates to Additional Information (AI) codes for Data Element 2/2 of the Customs Declaration Service (CDS), primarily affecting Appendix 4B National.
• New codes like NIDSF, TSSAP, TSS45, BCPEX, VATIC, VLDIS, SDSDE, SHORT, MODRG, COMNE, OVR07, SDREX, MIB02, CDAUK, IDAUK, and TDAUK have been introduced.
• Existing codes such as PVA01, TOR01, GEN45, AG999, 00600, NIQUO, SDSMI, OVR06, NIREM, ECO12, ECO13, MIB01, GEN01, and GEN02 have been amended or updated.
• Codes NIHIS and OVR04 have been removed, while a large set of new codes (e.g., AGGSD, AGGTA) are for information only until the SPIMM launch.
• Compliance professionals must review these changes thoroughly to ensure accurate import/export declarations and avoid customs delays or penalties.

Lawyers and compliance officers involved in international trade must review these updated Additional Information (AI) codes for the Customs Declaration Service (CDS) to ensure all import and export declarations are compliant with the latest requirements, particularly regarding new codes, amended uses, and removed codes, to prevent customs delays or penalties.

HMRC has issued a significant update concerning the Additional Information (AI) codes utilized within Data Element (DE) 2/2 of the Customs Declaration Service (CDS). These revisions, primarily affecting Appendix 4B National, are crucial for all entities involved in international trade, particularly those responsible for import and export declarations. The comprehensive update introduces new codes, modifies the application of existing ones, and removes certain obsolete entries, necessitating a thorough review by legal and compliance officers.

The changes are designed to refine the declaration process, ensuring greater accuracy and alignment with evolving customs requirements. For professionals navigating the complexities of the Customs Declaration Service AI codes, understanding these modifications is paramount to maintaining compliance and avoiding potential disruptions such as customs delays or financial penalties. The updated Appendix 4B National codes changes reflect HMRC's ongoing efforts to streamline and clarify customs procedures, impacting how specific details are reported in declarations.

Among the notable additions to Appendix 4B National are the new Additional Information codes NIDSF, TSSAP, and TSS45, which are now available for use. The BCPEX code has also been incorporated into Appendix 4B, with its details updated in the associated ODS attachment. Furthermore, the VATIC code has been added to Appendix 4B National, while the VLDIS and SDSDE codes have also been introduced to this appendix. It is important to note that the SDSDE code is to be used exclusively when specifically instructed by HMRC.

Several existing codes have undergone significant amendments. The PVA01 code, for instance, has been revised to eliminate a previous workaround, and its details have been updated in the Appendix 4B: National codes document. The TOR01 code in Appendix 4B National has also been amended. A key change addresses short-shipments: the GEN45 code was initially amended to remove its short-shipment workaround, with a new, dedicated SHORT code introduced for this purpose. However, the instructions for GEN45 were subsequently updated to temporarily extend its use for indicating short-shipped goods previously included on an earlier declaration. The AG999 customs code has been specifically updated for an Indirect Export workaround, and it has been separated from other AG codes, reserving it solely for this workaround, thus removing it from traders' discretionary use. Codes AG001 to AG998, however, remain available for discretionary application by traders.

Beyond these major changes, the HMRC CDS Additional Information codes update includes numerous other specific revisions. The 00600 code has been reclassified to 'Export', and the MODRG code has been added to Appendix 4B. The COMNE code is another new addition to Appendix 4B National. The NIQUO code has been updated to provide clearer details on the specific scenarios and products for which its use is permitted, with further updates in the Appendix 4B: National codes document. The SDSMI code has been revised to confirm its applicability to both import and export declarations and has also been added to Appendix 4B. The OVR06 code has been amended, and OVR07 has been added, while OVR04 has been removed entirely.

A substantial set of codes—AGGSD, AGGTA, ARPEN, DESAD, DESRE, GLCCL, GLEMS, GLFNA, GLGPD, GLHYO, GLNCN, GLOIL, GLPRO, GLTBO, NIAPP, NIPAP, NIPNR, NIUKC, RSDSD, RSDTA, SCF01, and TSGEE—have been added, though these are currently for informational purposes only and cannot be utilized until the Simplified Process for Internal Market Movements (SPIMM) is launched. The NIREM code's instructions have been updated to clarify its use for indicating 'Not At Risk' goods when declared in DE 2/2 alongside document code 1UKI in DE 2/3, with outdated supplementary declarations information removed. The entries for ECO12 and ECO13 have been amended, and information has been added for CDAUK, TDAUK, IDAUK, and GEN13. The SDREX code has been added to Appendix 4B National, and the MIB01 code has been amended, with MIB02 being added. Notably, CDAUK, IDAUK, and TDAUK have been added to Appendix 4B specifically for use with imports of denatured alcohol. A reference to Data Element 5/12 has been removed from code 30500, and the BULKD code has seen a correction to its reference to N271. Finally, the NIHIS code has been removed from Appendix 4B National Codes, and codes GEN01 and GEN02 have been updated to reflect the discontinuation of form INF1.

The extensive nature of these HMRC Data Element 2/2 codes updates underscores the critical need for vigilance among legal and compliance professionals. Each change, whether an addition, amendment, or removal, directly impacts the accuracy and legality of customs declarations. Failure to correctly apply the updated Customs Declaration Service AI codes, including the specific NIDSF TSSAP TSS45 BCPEX PVA01 VATIC codes or the revised GEN45 SHORT AG999 customs codes, could lead to significant compliance breaches.

Lawyers and compliance officers involved in international trade must review these updated Additional Information (AI) codes for the Customs Declaration Service (CDS) to ensure all import and export declarations are compliant with the latest requirements, particularly regarding new codes, amended uses, and removed codes, to prevent customs delays or penalties. This proactive approach is essential not only to avoid fines and delays but also to maintain smooth trade operations and uphold the integrity of supply chains. Regular consultation of Appendix 4B for 'Completion Instructions' is advised to ensure ongoing adherence to HMRC's evolving customs regulations.

Lawyers and compliance officers involved in international trade must review these updated Additional Information (AI) codes for the Customs Declaration Service (CDS) to ensure all import and export declarations are compliant with the latest requirements, particularly regarding new codes, amended uses, and removed codes, to prevent customs delays or penalties.

Source: Original reporting via GOV.UK guidance