HMRC: CDS Data Element 4/3 Tax Types See Key Appendix 8 Updates

• HMRC's Appendix 8, detailing `HMRC CDS Data Element 4/3 tax types`, has received significant updates for the Customs Declaration Service.
• New codes have been introduced for `Vaping Products Duty CDS codes`, snuff, and clarified for cooking alcohol, alongside preparations for `Alcohol excise duty UK 2023` changes.
• Specific `Customs Declaration Service tax codes UK` (A50, A70, A80, A90, A95, B05) are mandated for goods "at risk" of moving into the EU under the `Northern Ireland Protocol customs duty`.
• Tax type B05 must be declared alongside B00 for "at risk" goods, covering VAT on EU customs duties.
• Older 400 series tax types are now obsolete and should not be used in any declarations.

For items deemed 'at risk' of subsequently moving into the European Union, specific EU (Common External) Tariff duty rates and measures apply.

The UK's Customs Declaration Service (CDS) relies on specific codes to identify the various duties and taxes applicable to imported goods. These `HMRC CDS Data Element 4/3 tax types`, detailed in Appendix 8 of the official guidance, are crucial for accurately declaring amounts to be paid or secured. Declarants must input the relevant tax types in Data Element 4/3, which correspond to the commodity being declared. The appropriate codes are determined by factors such as the nature of the goods and their origin, with comprehensive information available through the UK Integrated Online Tariff or the Northern Ireland Online Tariff. This system ensures that the correct `UK import tax types guidance` is followed, facilitating smooth customs clearance.

Appendix 8 serves as the definitive list of these tax type codes, identifying the specific duties or taxes, such as A00 for Customs Duty or B00 for VAT, that need to be paid or secured. The application of these codes is directly linked to the commodity code of the imported item and any relevant tariff measures. Adherence to this guidance is fundamental for all businesses engaged in international trade with the UK, ensuring compliance with evolving customs regulations.

Recent revisions to Appendix 8 have introduced several significant changes, impacting various product categories and compliance requirements. Notably, new excise duty codes have been incorporated to facilitate the introduction of the `Vaping Products Duty CDS codes`. This update ensures that electronic smoking devices, particularly those falling under commodity code 8543400000, are correctly identified, with tax type 640 designated for devices not subject to excise duty. Furthermore, tax type code 639 has been added specifically for snuff.

The description for tax type 399 has been clarified to encompass foodstuffs without alcohol and those with an alcohol content not exceeding 5% abv, reflecting a new excise tax type for cooking alcohol within this alcohol by volume limit. These adjustments underscore the dynamic nature of `Customs Declaration Service tax codes UK` and the need for continuous adherence to the latest `HMRC Appendix 8 update`. Additional updates include changes to Tax Type Codes 431 and 473, as well as amendments to codes 444-447, reflecting ongoing refinements to the tax type system.

A critical aspect of the updated guidance pertains to goods moving under the `Northern Ireland Protocol customs duty` framework. For items deemed 'at risk' of subsequently moving into the European Union, specific EU (Common External) Tariff duty rates and measures apply. In such instances, declarants are required to use codes A50, A70, A80, A90, A95, and B05. It is particularly important to note that tax type B05 specifically covers the Value Added Tax (VAT) levied on EU customs duties, such as those associated with A50 or A80.

Consequently, for "at risk" goods, both B00 (VAT on the goods themselves) and B05 (VAT on the EU/Northern Ireland Protocol duties) must be declared. Conversely, if goods are not considered "at risk" and fall under the UK Integrated Online Tariff, the appropriate non-EU tax type codes should be utilized. Several codes, including A50, A70, A80, A85, A90, A95, and B05, which were previously exclusive to 'Part 2 CDS Declaration Completion Requirements for The Northern Ireland Protocol', have now been integrated into Appendix 8, streamlining the declaration process for these specific scenarios.

Beyond the specific product and protocol-related changes, the `HMRC Appendix 8 update` also addresses broader compliance issues. The appendix has been prepared for upcoming changes to the `Alcohol excise duty UK 2023` regime, effective from August 1, 2023, necessitating careful attention from affected businesses. Declarants are reminded that the 400 series tax types were replaced over twelve months ago and are no longer valid for any declarations, emphasizing the importance of using current codes.

Furthermore, Appendix 8B has been deleted entirely, while Appendix 8A has been renamed simply to Appendix 8, though its internal codes remain unchanged. These comprehensive revisions to the `HMRC CDS Data Element 4/3 tax types` necessitate careful review by all parties involved in customs declarations to ensure ongoing accuracy and compliance, preventing potential delays or penalties associated with incorrect declarations.

Source: Original guidance via GOV.UK