What’s happening?
In the UK’s Update to VAT and Excise Measures – 3 June 2026, HMRC announced that VAT and excise measures for certain commodity codes will end at 23:59 on 30 June 2026. Declarations pre-lodged before that must be amended prior to goods arrival to avoid being rejected by the Customs Declaration Service (CDS). (trade-tariff.service.gov.uk)
Affected Chapters include: Chapters 29, 38, and specific codes 2924297017, 2934999025, 3811210010. (trade-tariff.service.gov.uk)
Implications for importers and traders
- If goods are already in transit under old rules, declarations must be updated before arrival.
- Failure to amend may lead to rejected declarations, delays at the border, increased costs or storage fees, and potential VAT or customs penalties.
What to Do Immediately
- Audit all current declarations for goods falling under the specified commodity codes.
- Coordinate with your customs broker: ensure amendments are submitted in time, especially for shipments arriving near or after 30 June 2026.
- Update your internal procedures: train logistics teams to flag commodity codes listed, ensure you are using current protocols for VAT/excise compliance.
- Budget for potential costs: delays, storage, or penalties may occur if missed — better to factor them in early.
Example Scenario
A UK retailer imports certain chemical mixtures coded under 2924297017. A shipment dispatched in mid-June arrives on 2 July. If the declaration was not amended before arrival, under new rules, the CDS may reject the declaration — leading to delayed customs clearance, possible return of goods to UK entry point or customs warehouse storage. Additional costs and VAT treatment delays could significantly affect inventory and cash-flow.
Bottom line: Traders and importers must act now. A small administrative oversight regarding a commodity code can create cross-border headaches and compliance failures.