HMRC: CDS Data Element 2/3 Union Codes Updated in Appendix 5A

• HMRC has updated Appendix 5A of the Customs Declaration Service (CDS) for Data Element 2/3, affecting Union document codes for licenses, certificates, and authorisations.
• New codes like Y149 and X803 have been added, while codes such as Y851 and Y707 have been removed, and others like Y863 and U190 have been amended.
• Specific updates include code N954 for the UK-India Free Trade Agreement (effective July 15, 2026) and code U190 for claiming preference on US goods into Northern Ireland, requiring U110 to be declared concurrently for a transitional period.
• When claiming a document waiver using status codes like XX or XW, a supporting statement is mandatory in DE 2/3, and businesses must retain sufficient evidence to prove eligibility for exemption.
• Compliance teams must review these UK customs document code changes to ensure accurate declarations and avoid potential penalties, especially concerning new codes for specific trade agreements.

Businesses must maintain robust records to substantiate any claimed waivers or exemptions, as the use of certain status codes constitutes a legal declaration of documentary control exemption, with evidence required on demand.

Her Majesty's Revenue and Customs (HMRC) has issued significant updates to the Customs Declaration Service (CDS) document codes, specifically impacting Data Element (DE) 2/3, which pertains to 'Documents and Other Reference Codes (Union)'. These revisions, detailed in Appendix 5A, are crucial for businesses involved in international trade as they dictate how licenses, certificates, and various authorisations are declared for customs procedures. The guidance primarily focuses on Union codes, with separate provisions existing for National codes in a distinct Appendix 5A.

Several document codes have been introduced to Appendix 5A Union, including Y149, X803, Y771, Y772, Y773, L159, Y681, Y764, Y749, C127, C128, C129, and Y081. Conversely, codes Y851, Y862, Y928, and Y707 have been removed from Appendix 5A Union, indicating they are no longer in active use. Additionally, existing codes such as Y863, Y006, Y007, L159, U190, Y071, C669, C670, C672, and Y923 have undergone amendments to reflect current requirements or correct previous inaccuracies.

Data Element 2/3 within the Customs Declaration Service is designed to capture essential information regarding documents and other references required for customs declarations. This includes all types of authorisations necessary for specific customs procedures, such as code C512 when utilising the Simplified Declaration Procedure. When both Union and National document codes are applicable to a declaration, the Union codes must always be entered first.

For situations where a required document is not held, specific waiver protocols apply. If a document code permits the use of status codes UA, UE, UP, US, XX, or XW, and the document typically requires a reference number, a supporting statement is mandatory. This statement must be provided in both the Second Component (Document Identifier) and the fourth component (Document Reason) of DE 2/3, with a maximum length of 35 characters. Further definitions for these document status codes can be found in Appendix 5B. It is important to note that a document identifier reference number is generally not required unless explicitly instructed otherwise in column 4 of the individual document code.

Among the updated HMRC CDS Data Element 2/3 Union codes, several are particularly relevant for specific trade agreements and scenarios. Document code N954 has received two significant updates: first, its usage has been clarified, and second, it has been specifically updated to reflect its application under the UK-India Free Trade Agreement, effective from July 15, 2026. This change is vital for businesses engaged in trade with India.

Another key amendment involves document code C715, which has been updated to clarify its use for declaring an applicable IOSS VAT number, specifically in cases where Additional Procedure Code F48 is not being used. Furthermore, document code U190 has been both amended to correct previously listed EU legislation and introduced for claiming preference on US goods imported into Northern Ireland. Until the Customs Declaration Service is updated to fully recognise U190 as a preference document code, traders are temporarily required to declare document code U110 in conjunction with U190. Additionally, codes C669, C670, C672, and Y923 have been updated to remove direct references to legislation, with the applicable legal texts now accessible via footnotes.

The use of certain document status codes, specifically XX or XW, carries significant legal weight. These codes constitute a formal legal declaration that the goods being declared are exempt from specific documentary controls. Consequently, businesses bear the responsibility of maintaining robust records to substantiate any claimed waivers or exemptions. These records must contain sufficient evidence to demonstrate eligibility for the waiver.

This evidence must be readily available and capable of being produced upon demand by customs authorities. Failure to comply with these stringent record-keeping requirements and accurate HMRC customs import declarations can lead to compliance breaches, potential delays in goods clearance, and the imposition of penalties. Legal and compliance teams must meticulously review these updated Customs Declaration Service document codes to ensure their clients' declarations are accurate and fully compliant with the latest regulations.

Legal and compliance teams must review these updated HMRC document codes for the Customs Declaration Service (CDS) to ensure accurate declarations, particularly concerning new codes for specific trade agreements (e.g., UK-India FTA, US goods into Northern Ireland), thereby preventing compliance breaches, delays, and potential penalties for their clients involved in international trade.

Source: Original reporting via GOV.UK guidance