Customs procedure code


For the proper marking of customs procedures, a corresponding system was created to collect their codes in one place. The customs procedure code, first of all, specifies for what purpose the goods are being imported or exported. It also depicts what processes your shipment will go through and what required taxes will be collected during the execution of transportation. In order not to lose out on the smoothness of the transportation of goods, which can be caused by too long and complicated customs clearance, it is necessary to use the appropriate customs procedure codes, which are generally accepted. Thus, the appropriate code allows you to identify the purpose for which you intend to import or export goods. This system is designed to increase the speed of the entire procedure. It was primarily intended to simplify the difficult and often incomprehensible customs procedure. Customs procedure codes are used to identify them more efficiently.

HS code

What exactly is a HS code?

In 1988, the World Customs Organization incorporated a new solution, which was the introduction of appropriate markings for transported products. It was then that the Harmonized Commodity Description and Coding System (in short, HS- Harmonized System) came into effect. Without proper classification, it would not be possible to transport them. Thanks to this, there are no major problems establishing trade cooperation, even with countries from the farthest corners of the earth. This is because the customs codes used are similar for all countries. The HS code also governs what customs duties, restrictions, and exemptions are available for a particular product. Without the right designation for a commodity, its import or export can be significantly delayed.

NCTS 5 new version of the computerized transit system

NCTS is, in a nutshell, a computerized system that allows the submission of common transit declarations. NCTS, or New Computer Transit System, is present throughout the European Union, and is based primarily on customs declarations made electronically. Its main objectives were to increase efficiency and effectiveness during transit procedures. The system also prevents possible fraud, and secures goods that are in transit. All member countries are required to switch to version 5 of NCTS by the end of November 2023. The latest version of NCTS 5 introduces a number of changes that European Union member states should comply with.

Ipaffs new system for transporting livestock and food products

Britain's exit from the European Union has dramatically affected imports and exports from the remaining member countries. When it comes to transporting livestock, major changes have also been noted. Therefore, instead of the existing EU TRACES system, a new solution - Import of products, animals, food and feed system, called IPAFFS was presented. It is used for the transportation of goods such as animals, food products, plants, animal products, biological products, high-risk non-animal foods, and complex food products. Thus, in addition to the usual import declaration, an IPAFFS will be required when transporting the above products.

Introducing GVMS


With the UK leaving the European Union, HMRS has established a brand new system that significantly improves the transportation of goods. GVMS, or Goods Vehicle Movement System, is a system that helps with transportation between the European Union and the UK and Northern Ireland. It is designed to streamline all border crossing procedures and is linked to pre-loading declarations(pre-lodge).

Customs Procedure 42

What is customs procedure 42?

With Customs Procedure 42, a company can be exempt from paying VAT on the transportation of goods, provided that it meets several necessary conditions. Nevertheless, it should be remembered here that we are still obliged to pay customs duty. Procedure 42 has its main application when a businessman wants to bring goods from a third country to the European Union with the help of another EU member country. It should be noted that all these countries must belong to the community. Its main purpose is primarily to streamline all customs formalities for importing VAT-taxable entities by allowing the use of VAT exemption. The exemption is used when importing as well as supplying within the European Union. This allows the operator to avoid cash expenses.

Brexit and transportation between the EU and the UK


Britain's withdrawal from the European Union has been a rather controversial topic. People feared significant changes that would affect most aspects of their existing lives. Fortunately, a solution was put in place to prevent unnecessary complications. Brexit itself was introduced on February 1, 2020. In order to avoid changes in the existing system regarding trade, it was therefore necessary, to introduce a special regulation on this issue.

Postponed VAT Accounting: Changes related to importing goods after Brexit


UK-registered companies that were involved in importing goods have started a new system called VAT deferral. It was introduced on January 1, 2021. This is the result of a major change, which was the exit of the UK from the European Union. In the broadest terms, PVA is the way VAT is calculated after Brexit.
Before the end of the transition period on December 31, 2020, a special trade agreement was concluded between the UK and the European Union. However, the deferred VAT system was to be introduced regardless of whether the agreement had been signed.

Cumulation - what is it?


Cumulation occurs when countries share production and jointly comply with the ROO provisions. This allows for products which are produced entirely in one country or substantially transformed to be considered as originating in that country, even though this deviates from the core concept of origin

Global supply chains are heavily relied upon in the manufacturing process, with component sourcing and processing taking place across many countries. When two or more countries have agreed to follow the same ROO principles within a free trade agreement, if one country's product is further processed in another country that falls under the agreement, then it can be considered as originating from the final production country.

Economic Operator Registration and Identification (EORI) number

EORI Number

If you want to move goods into or out of Great Britain, you will need an Economic Operator Registration and Identification (EORI) number. HMRC uses this number to identify your business and track your exports and imports.

You'll need an EORI number if you want to trade with the UK after Brexit. If you don't have one, don't worry - you can apply for one now, even if you're not planning on using it immediately.

Animal-by products exporting

Exporting or transporting animal by-products, including bones and protein.

If you want to export or move animal by-products (ABPs) such as bones and protein, there are some steps you need to follow. In most cases, you will need an Export Health Certificate (EHC) or Model Declaration Form. However, there are some types of ABP that cannot be exported and situations where a certificate is not required.

The certifier invoices the government for these costs; therefore, companies do not have to pay for certification out of pocket as part of the Movement Assistance Scheme.


Special rules for exporting rough diamonds

Rough diamonds export

You need a certificate to export rough diamonds. If you try to import or export them outside of the Kimberley Process (KP) Certification Scheme, law enforcement could seize your merchandise. The KP regulates global trade in Rough Diamonds.

If you plan on international transport of your rough diamonds, you will need to obtain a KP certificate. Exchanges of rough diamonds after January 1st, 2021 - the UK's Independence Day - have new rules for those within Great Britain and the European Union. If you find yourself transporting rough diamonds between these two areas, know that you will need a UK KP certificate in hand before exporting them into an EU country. You can apply for this document by contacting the Government Diamond Office via their website (linked below).

Determining the origin of goods

How do you determine the origin of goods?

The first thing you need to do is figure out what good is being traded. The World Customs Organization has a comprehensive list that classifies every product based on tariff headings. Each product has its own code, which falls into different categories.

After the good is classified, we need to find its "economic nationality" instead of just the country it originate from. This means figuring out how much value the product has and where most of work in making it was done (as described below under "sufficient value-added").

Statement Of Origin

Submission of a preference application using a statement of origin.

Statement of origin.

An importer may use the “statement of origin” prepared by an exporter to claim preferences. An exporter is obliged by the law to publish “statement of origin” on an invoice or other document, including commercial document which describes originating product in sufficient detail to enable it to be identified. The statement or document may be submitted in electronic form.


Rules Of Origin

What are rules of origin?

Simply put, rules of origin are criteria used to determine the country of origin of a good. This is crucial for trade purposes because it can determine whether duties should be paid on a good when it is imported into another country.

Under the UK-EU trade agreement, rules of origin will be used to determine whether goods imported into the UK from the EU qualify for preferential treatment. This means they may be exempt from paying customs duties or may qualify for reduced tariffs.

To claim preferential treatment, companies will have to prove that their goods meet the relevant rules of origin. In most cases, this will require a certificate of origin from the exporting country.


Customs Handling of Import and Export Freight (CHIEF)

The Customs Handling of Import and Export Freight (CHIEF) System will be closed.

HMRC will close the Customs Handling of Import and Export Freight (CHIEF) system.

The Customs Declaration Service (CDS) will be the standardised customs platform.

Customs Declaration Service

HMRC warns - Switch to the new Customs Declaration System now or risk "significant delays" on imports.

HMRC sent correspondence to many companies informing them of the new British Customs Declaration Service (CDS) system. If you do not act quickly, your customs broker may not be able to file declarations, which will result in delays in receiving the goods for your company.

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