HM Revenue and Customs (HMRC) has issued updated guidance for UK businesses moving goods that have undergone processing or repair back into the UK market or out for export.
The update, released on 23 September 2026, details the specific procedures required to ‘discharge’ goods from Inward Processing (IP). This customs relief allows organisations to suspend duty and VAT on items imported specifically for processing or repair, provided they eventually leave the procedure through an approved route, such as re-export or being released into free circulation.
Deadlines and Digital Validation
A critical component of the updated guidance concerns the Customs Declaration Service (CDS) Release 5.3.0, which is scheduled for deployment on 26 September 2026. This system update introduces 31 new validation changes. Businesses are warned that failing to provide data that aligns with these new technical rules may result in rejected declarations and potential delays at the border.
For those holding full authorisation for Inward Processing, the requirement to submit a Bill of Discharge (BOD) remains a strict priority. This document must be submitted to HMRC no later than 30 days after the end of the discharge period. For those using ‘authorisation by declaration’, the standard discharge period is typically six months, unless a different timeframe has been specifically agreed with customs officials.
Calculations and New Codes
The updated guidance also reinforces significant technical changes that came into effect earlier in the year. Since 1 January 2026, businesses using Article 86(3) of the Union Customs Code for duty calculations must use the additional information code ‘FIFYI’. This code replaced the previous ‘FIXXX’ designation and is necessary for the CDS to process the declaration correctly.
Furthermore, the allowance for using Inward Processing ‘Authorisation by Declaration’ has been significantly expanded. Businesses can now apply for this type of authorisation up to 10 times within a rolling 12-month period, a substantial increase from the previous limit of three. This change is intended to provide greater flexibility for firms that handle occasional repair or processing work without the need for full, permanent authorisation.
To ensure compliance and avoid unexpected duty charges or penalties, businesses are advised to review their current authorisation status and ensure their internal systems or customs agents are prepared for the 26 September validation shifts. While the majority of declarations are now handled via the CDS, some legacy discharges may still require referencing the older CHIEF system if the original import was processed through it.
