CDSSG09010 - Step-By-Step Guide, Step 4 - Understanding and selecting the CDS Procedure Code (DE 1/10): Introduction to Procedure Codes

Customs Procedures in CDS

CHIEF had a 7-digit code called a Customs Procedure Code (CPC). This always had a unique meaning and unique situation in which it was used.

Within CDS these have been split into 2 parts:

  • A 4-digit code that identifies the intended use to which the goods will be entered (the Procedure Code). This is declared at item level in DE 1/10. One 4-digit code per goods item.
  • 3-digit Additional Procedure Codes which identify any unique circumstances which apply (e.g., reliefs to be claimed, controls to be applied). These are declared at item level in DE 1/11. More than one 3-digit code may be required, e.g., 1 code for customs duty relief, a second code for VAT relief, a 3rd code for excise relief. Up to 99 3-digit codes may be combined with a single 4-digit procedure code. For guidance on Additional Procedure Codes, please see CDSSG10000.

Failure to declare all the required 3-digit Additional Procedure Codes may result in the declaration being processed incorrectly or a tax relief not being granted.

Follow the step-by-step guide in sections CDSSG09000 – CDSSG10000 to ensure you find the right combination of codes to be declared in DE 1/10 and DE 1/11 that cover the FULL circumstances of the goods.

Procedure Codes:

Procedure Codes are made up of 4-digits that provide information about:

  • The procedure that the goods are being entered to
  • Any previous procedure that the goods were held under
  • The type of declaration or movement taking place.

For import and export declarations:

  • The 1st and 2nd digits identify the procedure the goods are being placed into (the requested procedure), for example 40 to indicate a release to free circulation
  • The 3rd and 4th digits identify, if any, the procedure the goods were last declared to (the previous procedure), for example 71, to indicate the goods were previously held in a customs warehouse.

For Customs Clearance Requests (CCR made using a C21 data set):

  • The 1st and 2nd digit will be 00 to indicate a clearance request is being made
  • The 3rd digit will indicate what type of movement is taking place, e.g., 1 indicates an export clearance request
  • The 4th digit will indicate the reason for the clearance request, e.g. 6, a request to release goods under a transit procedure

Other procedures:

Final Supplementary Declarations (FSD) and Bulked Import reduced Data set (BIRDS) declarations are also identified by a Procedure Code, however, these are standalone types of declarations that only have a single Procedure Code option and do not follow the rules above.

FSD uses Procedure Code 0090 and BIRDS declarations use Procedure Code 0020. These are not CCRs.

It is vital that the correct Appendix is used according to the type of movement taking place, failure to use the correct index lists for the type of movement will result in the declaration or CCR failing validation. Each set of Procedure Codes are linked to specific types of declaration, the Procedure Code and declaration type must be compatible to ensure the declaration or CCR is processed successfully. For example, Procedure Codes beginning with 53 may only be used on an import declaration using the H3 (Temporary Admission) or I1 C&F (Simplified Declaration (Regular Use) data sets). Use of a 53 series Procedure Code on any other type of declaration will fail.

In order to determine the correct Procedure Code and Additional Procedure Codes, the step-by-step guide in sections CDSSG09000 - CDSSG10000 must be followed in the correct order or the wrong answer will be arrived at.

Reminder

Where CHIEF had a 7-digit code that was used to describe a CPC (customs procedure), CDS may require more than one DE 1/11 code to do the same thing, see section CDSSG10000.