CDSSG04310 - Navigating the Tariff, Step 3 - Understanding Procedure Codes

Once the Commodity Code has been identified (see Step 2: Navigation Guide, section CDSSG04200), you need to identify the customs procedure to which the goods are to be declared.

  • Step 3: Use the Index list for the 4-digit Procedure Codes in Appendix 1 (for the type of movement being made) to identify the appropriate procedure code to be declared in D.E. 1/10 for the treatment or use to which the goods will be placed

Step 3 of the Navigation Guide helps you to understand and find information on the first two parts of the Customs Procedure: the Procedure Code.

Procedure Codes

The Procedure Code declared in DE 1/10 is a 4-digit code and is used to identify the intended use to which the goods are being declared. It also identifies, where appropriate, any previous procedure that the goods are being removed from.

The 4-digit Procedure Code allows customs to identify any specific controls that need to be applied prior to the goods being released, including the application of any documentary requirements, authorisations or application of taxes.

For example, the following conditions apply when Procedure Code 4400 is declared.

Conditions for use:

This Procedure Code is used to claim duty (and where applicable VAT) relief under end use with simultaneous release for free circulation and home use.

Any customs duties not relieved under end use, must be paid or accounted for under Article 195, EU Reg. No. 952/2013 (UCC), in order for the goods to be released to this procedure.

An end use authorisation is needed to use this customs procedure. This may be pre-approved (single member state or multi-state) or declaration specific (Authorisation by Customs Declaration), see conditions and requirements detailed in Notice 3001.

These notes must be read in conjunction with the appropriate completion notes for the Additional Procedure Code used on the declaration (D.E. 1/11).

Additional Procedure Codes

The Procedure Code identified in Navigation Guide: Step 3 (section CDSSG04300) will be tailored to suit the specific circumstances that apply to the goods by declaring Additional Procedure Codes in DE 1/11.

The Navigation Guide Steps 4 and 5 (sections CDSSG04400 and CDSSG04500) will help you understand Additional Procedure Codes and where to find information on them in the UK Trade Tariff, CDS Volume 3.

For example, Procedure Code 4400 permits the Additional Procedure Codes shown below to be used:

Additional procedure Codes (D.E. 1/11):

The following additional procedure codes may be used with Procedure Code 4400:

Union Additional Procedure Codes:

E01, E02.

National Additional Procedure Codes:

000, 1RL, 1RV, 1SW*, 2CD, 2CG, 2MO*.

*Please note - 1SW and 2MO may not be used together against the same goods item.

Failure to select the Additional Procedure Code from the Permitted list for the Procedure Code will result in the declaration failing validation and a CDS error message being generated.

Compatibility of Procedure Codes:

It is important to identify the Procedure Code early in the process as the Commodity Code (see section CDSSG08000) and Declaration Category (see section CDSSG06000) previously identified may not be compatible with the procedure you wish to enter the goods to.

Failure to identify the Procedure Code and ensure its compatibility with the Commodity Code and Declaration Category will result in the declaration being rejected by CDS.

The use of a specific Procedure Code in DE 1/10 constitutes a formal declaration that the conditions of the relevant regulations (including but not restricted to):

  • Council Regulation (EU) 952/2013
  • Commission Delegated Regulation (EU) 2015/2446
  • Commission Implementing Regulation (EU) 2015/2447 and
  • Taxation (Cross-Border Trade) Act 2018

Will be complied with and binds the legal declarant accordingly.

The use of a Procedure Code is an undertaking by the legal declarant to pay to the Commissioners of HMRC immediately, on demand, any duties or other charges due in respect of the goods in question if the conditions of the specific procedure are not met.

Representatives/ Agents must have prior written approval from the legal declarant (holder of the procedure) to enter goods to a specific procedure on their behalf and must ensure a copy of the declaration is returned to the holder of the procedure.