Important information about changes to the Customs Declaration Service (CDS) for goods moving into Northern Ireland

Changes to the Customs Declaration Service (CDS)

FROM 24‌‌‌ ‌‌March 2024, there will be changes that will affect how you make declarations into Northern Ireland through the Customs Declaration Service (CDS). These changes will apply to goods moving into Northern Ireland from Great Britain (GB-NI) and to goods moving into Northern Ireland from a country outside of both the UK and the EU (Rest of World-NI).

From 24‌‌‌ ‌‌March 2024, if the 'NIREM' code is used without declaring a valid UK Internal Market Scheme (UKIMS) authorisation, duties at the EU rate will be calculated and charged by the CDS if duties are due. To use a UKIMS authorisation, there is a requirement to start using some new codes and a UKIMS authorisation number. 

There are points to note if you:

• are moving goods that will be subject to processing in Northern Ireland
• are moving goods subject to tariff-rate quotas, such as steel
• are seeking to waive duties under the customs duty waiver scheme (CDWS)

The 'Questions and answers: explanation of the changes' section below, provides the detail of these changes. HMRC will be writing to traders shortly, and further guidance on these changes will be published on GOV‌‌‌.UK from 24‌‌‌ ‌‌March 2024.

Important information you will need from the traders you work with

To avoid any risk of disruption, you will need to obtain the necessary information from the traders you work with to comply with the new process. This includes obtaining their UKIMS authorisation number and the correct Economic Operators Registration and Identification (EORI) number they should use with it. 

They should also let you know that the goods you intend to bring into Northern Ireland are eligible to be declared 'not at risk' under UKIMS.

Using the correct EORI number on declarations into Northern Ireland

From 24‌‌‌ ‌‌March 2024, to use the UKIMS authorisation, you will need to use the EORI number which is associated with a trader’s UKIMS authorisation.

If traders hold a valid XI EORI number, we will have already written to them in December 2023 to tell them to start using their XI EORI number, so please speak to them and follow the guidance set out in that communication.

By the time these CDS changes are delivered from 24‌‌‌ ‌‌March 2024, you should be using the trader’s XI EORI number when moving goods into Northern Ireland if they hold one, as this will be the EORI that is associated with their UKIMS authorisation.

If traders are established in parts of the United Kingdom other than Northern Ireland and do not hold an XI EORI number, they may continue to use their GB EORI number. If traders are not established in Northern Ireland, they will need to use an indirect representative that is established when moving goods into Northern Ireland. This can include use of the Trader Support Service.

If traders need to use a duty deferment account (DDA) for movements into Northern Ireland, they should also ensure that they have one that is assigned to the EORI against which their UKIMS is held.

Help and support

For further information and support please call the Customs and International Trade helpline on 0300‌‌‌ ‌‌322‌‌‌ ‌‌9434 or textphone 0300‌‌‌ ‌‌200‌‌‌ ‌‌3719. 

Questions and answers: explanation of the changes

1.  Where do these changes apply?

These changes apply both to:

• goods moving into Northern Ireland from Great Britain
• goods moving into Northern Ireland from a country outside of both the UK and the EU. This includes goods entering Northern Ireland from Great Britain where the good was not in free circulation in Great Britain

 

2.  How will these changes affect traders on and after 24 March 2024 when declaring goods 'not at risk' under UKIMS?

From 24 March 2024, to use a UKIMS authorisation, you will need to start using some new codes and a UKIMS authorisation number.

In order to use a UKIMS authorisation to declare goods 'not at risk' on declarations made on or after 24 March 2024, you must:

• in field DE 2/3 (documents, authorisations), use the document code '1UKI' followed by the UKIMS authorisation number
• in field DE 3/16 (importer identification number) ensure that the EORI number used for the importer is the EORI number that is associated with the UKIMS authorisation
• in field DE 3/39 (holder of the authorisation), use the authorisation type code 'UKIM' followed by the EORI number that is associated with the UKIMS authorisation

If the '1UKI' code is used but the rest of these steps are not completed correctly, the declaration will not be accepted by the CDS and will be returned to you to resubmit. You can then make corrections to these fields and resubmit the declaration.

You should also continue to use the code 'NIREM' in field DE 2/2 (additional information).

3.  How will these changes affect traders on and after 24 March 2024 when making a declaration which doesn’t use UKIMS?

Aside from the UKIMS authorisation, there are many other options to relieve duties on goods moving into Northern Ireland, including claiming preference and reliefs. You can find out more about other options to relieve duties on goods moving into Northern Ireland on GOV.UK for businesses who move goods from Great Britain (GB-NI) or from a country outside of both the UK and the EU (Rest of World-NI).

Even if traders hold the UKIMS authorisation, you may still choose to use these options in situations where the trader is moving goods that can’t be declared 'not at risk' as they don’t meet the scheme’s criteria – for example, they might not be sure that the goods are for final sale or end use in Northern Ireland (and Great Britain in the case of goods moving from Great Britain).

 For movements from Great Britain to Northern Ireland, traders won’t need to pay duties if the applicable EU rate of duty is zero. Similarly, for movements into Northern Ireland from a country outside both the UK and the EU, traders will pay the applicable UK rate of duty if it is equal to or greater than the applicable EU rate of duty. 'Applicable duty' means the duty due that is calculated after any claims for preference or relief are taken into account.

From 24 March 2024, traders must no longer use the 'NIREM' option on the TSS portal for goods that don’t meet the criteria to move under UKIMS, even if they are 'not at risk' due to the applicable EU rate of duty being zero (or equal to or less than the UK rate, in the case of goods moving from a country outside both the UK and the EU).

If you are not using the TSS portal, you must not use the '1UKI' document code for goods that don’t meet the criteria to move under UKIMS. If you are not using the TSS portal, you will no longer be required to declare the code 'NIREM' in field DE 2/2 (additional information) for these types of movements that aren’t using the UKIMS authorisation.

This is because, from 24 March 2024, HMRC will automatically check the applicable EU rate of duty, taking into account any claims for preferences or reliefs. If this is zero, the trader will not be charged duty on movements from Great Britain to Northern Ireland. If this is equal to or less than the UK rate of duty, the trader will pay the UK rate of duty on movements into Northern Ireland from a country outside of both the UK and the EU. You must make sure you include any claims for preference or reliefs when making your declarations to the CDS or through the TSS portal, if the trader intends to use these.

4.  What do I need to do if I am moving goods that will be subject to processing in Northern Ireland?

If the trader is moving goods that will be subject to processing in Northern Ireland and these goods do not meet the additional processing criteria to be considered 'not at risk', you must use the code 'NIPRO' in field DE 2/2 (additional information). This is because goods that will be subject to processing in Northern Ireland are automatically 'at risk' unless they meet the additional processing criteria. You must not use the code 'NIREM' on goods that will be subject to processing in Northern Ireland unless these goods meet the additional processing criteria.

5.  What do I need to do if I am moving steel into Northern Ireland?

Guidance for moving steel into Northern Ireland is set out in the Steel Notice.

To move steel without being subjected to safeguard charges where relevant quotas are open, from 24 March 2024 you should no longer use the code 'NIREM'. Instead, you must use the code 'NIQUO' in field DE 2/2 (additional information).

If you use the code 'NIQUO' to move steel subject to safeguard charges from any country outside the UK or the EU to Northern Ireland, you must still provide the UK Quota order number in DE 8/1 (quota).

6.  What are the changes to how duties are waived under the Customs Duty Waiver Scheme?

Traders can continue to waive the duties paid on 'at risk' goods which are moved into Northern Ireland from Great Britain or countries outside both the UK and EU via the Customs Duty Waiver Scheme using their 'de minimis' state aid balance. From 24 March 2024, traders will be able to benefit from increased flexibility around use of the 'NIAID' code to claim a customs duty waiver in circumstances where they are not sure whether the goods are 'not at risk' due to the 'not at risk' applicable duties calculation – a trader’s state aid balance will only be used if the goods are determined to be 'at risk'. 

Declaring 'not at risk' under UKIMS and using the code 'NIAID'

The CDS will also permit the use of the code 'NIAID' in field DE 2/2 (additional information) in conjunction with the code 'NIREM' (currently you may not use both codes together).

You may wish to make use of this option if you are declaring goods that are moving into Northern Ireland from a country outside of both the UK and the EU (rest of world) under UKIMS, but where you are not sure that the difference between the applicable EU rate of duty and UK rate of duty is not greater than 3 percentage points at the time of the goods movement.

If the CDS determines that the difference is not greater than 3 percentage points, the CDS will not use up the trader’s state aid balance. In this situation, the CDS will only make use of the customs duty waiver scheme if the 'not at risk' test determines that the trader’s goods are 'at risk' due to the difference being greater than 3 percentage points.

Note: If you are unsure if the trader’s goods meet the other criteria to be 'not at risk' under UKIMS, such as that the trader is able to keep records showing that the goods are for final sale or end use in Northern Ireland (and Great Britain in the case of goods moving from Great Britain), the 'NIREM' code must not be used.