If you’re moving goods under preference using the UK–EU Trade and Cooperation Agreement (TCA), a key change has come into effect that you need to be aware of. From 14 June 2025, document code U110 has been replaced with U116 for import declarations where preference is being claimed using an invoice statement.
This isn’t just a minor technical update. If the right codes and details aren’t submitted, your declarations will be rejected immediately. Unlike the older CHIEF system, HMRC’s Customs Declaration Service (CDS) no longer gives leeway for errors to be picked up during audits. The system now validates key data as soon as the declaration is submitted.
So what exactly has changed?
When you’re using an invoice statement to claim preference under the UK–EU TCA, you must now use the U116 code. And crucially, the document ID must show the invoice number and not a REX number. Using a REX number with U116 is incorrect and will result in rejection. This is already catching traders out.
In some cases, importers are also being penalised for mismatches between the reason for import and the document code. For example, HMRC has rejected claims where the reason selected was “Importer’s Knowledge,” but the actual claim was made using an invoice statement. These sorts of discrepancies are no longer being overlooked and are now being treated as non-compliance, and import duty is being applied where claims are rejected.
What do you need to check?
If you’re claiming any form of preferential duty relief, the document code, document ID, and reason for import/export must all align. Specifically for U116, you must:
- Use the invoice number as the document ID.
- Make sure your reason for import supports the claim being made.
- Double-check that your declarations match what’s in the UK Trade Tariff Volumes 2 & 3. Find the relevant document codes, document status codes and details to be declared such as licences and certificates in Appendix 5A.
CDS is evolving, and accurate declarations are more important than ever. If you’re claiming preference using the invoice statement method, make sure you’re using the new U116 code and following the guidance carefully.
We’re here to Help
If you need support with your declarations or unsure if you’re using the right codes, we’re here to help you stay compliant and avoid costly errors. Get in touch with our team today or visit us online https://denholmgoodlogistics.com/customs-clearance
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