Policy & Compliance
Declaring goods that arrive in the UK without a customs declaration
It is envisioned that HMRC will allow traders to submit a new customs declaration speci fi cally intended to disclose the arrival of undeclared goods
U nder UK customs legislation, goods that arrive in the country without a valid customs declaration are technically liable to forfeiture. The legal basis for this position is found in the Taxation (Cross- border Trade) Act 2018 (TCTA), which sets out the framework governing the importation of goods into the UK following the country’s departure from the EU. In strictly legal terms, according to TCTA Schedule 1, Paragraph 1, where goods are imported without being declared or presented to customs, they are considered to have been imported non- compliantly and therefore are subject to seizure. New reality Following the UK’s departure from the EU, the new reality of the border crossing occasionally led to situations where goods arrived in the UK without a declaration submitted in advance. Recognising the operational challenges during the early stages of the new regime, HM Revenue & Customs (HMRC) introduced a temporary facilitation laid out in a Customs Information Paper (CIP 1). This measure allowed traders to submit delayed customs declarations for goods that had already arrived in the UK without a declaration. Importantly, the policy provided a window of up to 175 days in which traders could regularise their position by submitting the required customs declaration retrospectively. When the facilitation provided by CIP 1 came to an end, the legal position reverted to the default set out in the TCTA, namely that goods arriving without a declaration are technically liable to forfeiture. In
practice, this created a difficult position for traders and intermediaries who identified undeclared movements. In such circumstances, traders were advised to report the issue to HMRC and seek their instructions on further steps to take. Cases have been considered on a case- by-case basis, with HMRC assessing the circumstances and determining the appropriate course of action. However, this approach is far from ideal. It requires manual intervention by HMRC officers and can introduce delays and uncertainty for traders seeking to mitigate their customs position. For several years the trade community was asking for a more structured solution that would allow undeclared goods to be regularised in a quicker and more predictable manner. Potential solution Following the ongoing discussions with the industry, HMRC is developing a potential solution that will allow traders to make a voluntary disclosure for this type of shipment. Under this approach it is envisioned that traders will be able to submit a new customs
declaration specifically intended to disclose the arrival of undeclared goods. The declaration will include a specific Additional Information (AI) code indicating that the entry is being submitted as a disclosure for goods that have already arrived. This coding will enable HMRC systems to identify such submissions to process them appropriately. Key challenge One of the key challenges in developing this solution relates to the declaration of the ‘tax point’ date and the associated complexity in determining the applicable customs duty liabilities. Where goods are declared retrospectively, the process of determining the correct duty rates, exchange rates and other fiscal elements in a timely manner is one of the key issues that government officials must reach agreement on and explain clearly to traders. The relevant policy team within HMRC is currently working on detailed operational guidance to describe the new process. BIFA will closely monitor the developments and update Members as soon as further information becomes available.
“ One of the key challenges in developing this solution relates to the declaration of the ‘tax point’ date and the associated complexity in determining the applicable customs duty liabilities
April 2026 | 17
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