UK Customs Glossary A-Z

Authorised Economic Operator status granted by customs authorities (in the UK, by HMRC) to businesses that meet security and compliance criteria. AEO is voluntary — benefits include fewer checks and easier access to customs simplifications.

International document for the temporary import of goods free of duty and taxes (e.g. exhibitions, trade fairs, professional equipment) — often called a passport for goods. Valid in countries party to the ATA convention, including the UK and EU; a carnet is valid for up to 12 months. Our fee: see easyclearance.pl/en/pricing.html; the issuing chamber (in the UK, LCCI) charges its own fee and security.

Binding Tariff Information — an EU customs decision on the classification of goods, generally valid for 3 years and never issued with retroactive effect. In Great Britain the equivalent is an Advance Tariff Ruling (ATaR) issued by HMRC. The most reliable way to confirm your commodity code.

The UK Border Target Operating Model (published August 2023) — sets out sanitary and phytosanitary (SPS) controls and safety and security requirements for imports into Great Britain. Implemented in phases from 31 January 2024.

Monthly HMRC import VAT certificate — confirms import VAT paid at clearance and is the standard evidence for reclaiming it on your UK VAT return. Businesses using PVA (postponed VAT accounting) use the monthly postponed import VAT statement from CDS instead.

The EU Carbon Border Adjustment Mechanism — settled through CBAM certificates rather than as a conventional customs duty. Covers cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. In the definitive period (from 1 January 2026) importers into the EU declare embedded emissions and surrender CBAM certificates.

HMRC's electronic system for customs declarations in Great Britain — replaced CHIEF (imports from 1 October 2022, exports from 4 June 2024). Import and export declarations in GB are made in CDS, fully digitally.

HMRC's former customs system — accepted import declarations until 30 September 2022 and export declarations until 4 June 2024. All declarations are now made in CDS; CHIEF references only appear on records of older clearances.

Customs Procedure Code — a four-digit code combining the requested and previous procedure (e.g. 4000 = release for free circulation, i.e. a standard import; 1000 = permanent export; 5100 = entry to inward processing, IPR). In CDS it is complemented by a three-character additional procedure code.

Common Transit Convention — allows goods to move between its contracting parties with duties and taxes suspended until destination. Parties include the EU, the UK, Switzerland, Norway, Iceland, Liechtenstein, Turkey, North Macedonia, Serbia, Ukraine, Georgia, Moldova and Montenegro. The UK has been a contracting party in its own right since Brexit.

The value on which duty is calculated — usually the transaction value (invoice price) plus transport and insurance costs to the place of entry into the UK customs territory and other required additions (e.g. royalties, commissions). There are 6 valuation methods — your customs agent applies the correct one.

HMRC Duty Deferment Account — lets you defer payment of customs duty, import VAT and excise; on CDS the amount is collected by direct debit on the 16th of the following month (or the next working day). Usually requires a guarantee from a financial institution. Improves cash flow for regular importers.

Unique reference for a consignment in a UK customs declaration (year, GB, EORI number and a reference string). A DUCR must be unique — it is created by the party whose EORI number it contains. It links the declarations for one consignment in CDS; for exports it is entered in the GMR in GVMS.

Entry in Declarant's Records — a simplification (part of SCDP) where goods are released by making an entry in your own records instead of a standard declaration, with a supplementary declaration made later. Requires prior HMRC authorisation and does not cover controlled goods.

Entry Summary Declaration — safety and security data submitted before goods arrive. For Great Britain it is lodged in HMRC's Safety and Security GB service (for Northern Ireland, in ICS2). Deadlines depend on transport, e.g. deep-sea containers 24 hours before loading, short sea crossings 2 hours before arrival. Required for goods from the EU since 31 January 2025; the carrier is responsible.

Identification number for businesses in EU and UK customs procedures. A business importing or exporting usually needs one (or acts through an indirect representative with their own EORI). Polish companies register for an EU EORI via PUESC. Declarations in Great Britain require an EORI starting with GB (XI for Northern Ireland).

The EUR.1 movement certificate is a document of preferential origin. In EU–UK trade (TCA) EUR.1 is not a proof of origin — a statement on origin made out by the exporter, or the importer's knowledge, is used instead. EU exporters sending consignments worth more than EUR 6,000 must have a REX number.

Goods Movement Reference created in GVMS — required for crossings through ports and routes using GVMS (e.g. Dover, Eurotunnel, Holyhead, Newhaven). The GMR is created by the haulier or forwarder, and the driver presents it at check-in. Our fee: see easyclearance.pl/en/pricing.html.

HMRC's Goods Vehicle Movement Service — mandatory at designated ports and for listed movement types. Links the GMR to customs declarations (MRN, DUCR, NCTS transit, ATA Carnet). Hauliers or forwarders register for GVMS online through a GOV.UK sign-in.

Security (e.g. from a bank or insurer) guaranteeing payment of duties and taxes if a customs debt arises. Required for T1 transit; for special procedures (e.g. IPR) and duty deferment it depends on the authorisation, and a waiver may be available.

Six-digit commodity classification code in the Harmonized System — the shared international basis for commodity codes. In the UK tariff a commodity code has up to 10 digits and the full code determines the duty rate. Correct classification is the foundation of a valid customs declaration.

The EU Import Control System 2 (also used for Northern Ireland) — requires electronic advance safety and security data before goods enter the EU. Rolled out in phases from 2021 for different transport modes. Note: for Great Britain, ENS is lodged in the Safety and Security GB service, not in ICS2.

The party named on the UK import declaration, responsible for duty, taxes and regulatory compliance. Must hold an EORI number starting with GB. Can act through a UK-established customs agent under written authority (direct or indirect representation). UK VAT registration is not a condition of importing — without it, import VAT is paid at clearance.

ICC international trade rules (2020 edition) defining how costs, risks and obligations are split between buyer and seller (e.g. EXW, FCA, DAP, DDP). They affect who arranges customs clearance and which costs must be considered when establishing customs value.

Inward Processing — for businesses importing goods for processing, assembly or repair and re-export. Lets you suspend customs duty and import VAT on goods that will be exported after processing. Requires HMRC authorisation and record keeping.

Local Reference Number — an identifier for a declaration assigned by the declarant (data element 2/5); it must be unique for 2 days after the declaration is accepted. The official MRN is only issued by CDS once the declaration is lodged. LRNs are also used in transit (NCTS).

Monthly postponed import VAT statement for businesses using PVA. Lists the month's imports with VAT amounts and is used to account for import VAT on your VAT return. Downloaded from CDS — available there for 6 months, so keep a copy.

Movement Reference Number issued by CDS (HMRC) once a customs declaration is accepted (in transit, by NCTS). The MRN is the official identifier of the declaration — used to track clearance, deal with customs and link the declaration to a GMR in GVMS.

Master Unique Consignment Reference — groups several DUCRs (each DUCR can belong to only one MUCR). Used in CDS to manage a set of consignments as one unit, e.g. when consolidating loads for export.

New Computerised Transit System — when you move goods under transit between the UK and the EU or other CTC countries, the transit declaration is lodged in NCTS. Every T1 movement requires an approved guarantee. The UK currently operates NCTS Phase 5.

Outward Processing — relief for businesses exporting goods from the UK for processing or repair abroad and re-importing them. On re-import, duty is paid only on the cost of processing or repair, not on the full value of the goods. Requires HMRC authorisation.

Rules determining the origin of goods — key to preferential duty rates under trade agreements (EU–UK TCA). Goods must be wholly obtained or sufficiently processed in the EU or UK. Goods that do not meet the rules of origin pay the standard duty rate.

Postponed VAT Accounting — the importer does not pay VAT at clearance but accounts for it on the regular UK VAT return. Improves cash flow. Available to UK VAT-registered businesses without prior HMRC approval — you choose PVA on the import declaration by entering your UK VAT number.

Returned Goods Relief — if you export goods from the UK and re-import them within 3 years, you can avoid customs duty (and, where conditions are met, VAT). Requires evidence of the original export (export declaration, invoices). Common for goods returned by overseas customers.

Safety and Security GB — the HMRC service used to lodge entry summary declarations (ENS) for goods entering Great Britain (not CDS and not ICS2). The carrier is responsible and may authorise another party. Deadlines: RoRo at least 2 hours before arrival, deep-sea containers 24 hours before loading at the port of departure, bulk cargo 4 hours before arrival.

Single Administrative Document — the customs declaration format containing goods details, customs value, taxes, CPC and party data. The paper SAD (C88) is no longer used in the UK: in CDS the declaration is submitted electronically as a data set corresponding to the former SAD.

Simplified Customs Declaration Process — a simplified declaration (or an entry in records, EIDR) is made at import, and the supplementary declaration by the 10th calendar day of the month following the reporting period. Speeds up border clearance. Requires HMRC authorisation (incl. EORI, a duty deferment account and a good compliance record).

Simplified declaration — in the UK, part of SCDP: a reduced data set is provided at import and full data in the supplementary declaration. Allows goods to be released faster at the border. Requires HMRC authorisation.

Document confirming the country of origin of goods. In EU–UK trade (TCA) preferential origin is proven not by a certificate or EUR.1 but by a statement on origin made out by the exporter (e.g. on the invoice) or the importer's knowledge. EU exporters need a REX number for consignments over EUR 6,000; in the UK the exporter's reference is their EORI.

External transit procedure — goods move with duties and taxes suspended through one or more countries without full clearance at each border. T1 is opened at the office of departure (or by an authorised consignor) and closed at the office of destination. Our fee: see easyclearance.pl/en/pricing.html.

A limited quantity of goods eligible for a reduced duty rate during a set period. Once the quota is used up, the standard rate applies. Common for agricultural products and steel. Most quotas are allocated first come, first served, some require a licence — the quota must be claimed on the customs declaration.

The EU–UK Trade and Cooperation Agreement — agreed on 24 December 2020 and applied from 1 January 2021. Gives zero tariffs on goods originating in the EU or UK under the rules of origin (with proof of origin). Without the preference, UK Global Tariff rates apply — e.g. 12% on typical clothing items.

Customs relief for people moving TO the UK — relief from import duties and charges on personal belongings (excluding e.g. alcohol, tobacco products and commercial vehicles). Requires at least 12 months living outside the UK, import within 12 months of moving and approval of a ToR1 application by HMRC. Our fee: see easyclearance.pl/en/pricing.html.

Union Customs Code (EU Regulation 952/2013) — the core customs legislation of EU member states, including Poland. After Brexit Great Britain applies its own legislation (incl. the Taxation (Cross-border Trade) Act 2018 and CEMA 1979); the UK Trade Tariff is a tariff, not a code. Businesses trading between Poland and the UK need to understand both systems.