HMRC has introduced several changes that may affect your import processes when importing goods into the UK from the EU under preference allowing UK importers to benefit from reduced or zero rates of duty under the EU-UK Trade and Cooperation Agreement (TCA).

These updates relate to preference codes, status codes, and supplier documentation.

New Preference Codes

• U116 Replacing U110
  • HMRC’s preferred code.
  • Must be evidenced by a Statement of Origin or a valid REX number shown on the supplier’s invoice.
• U118 Replacing U111
  • Used where preference is claimed under a Statement of Origin for multiple shipments of identical products, covering a 12-month period.
• U117 Replacing U112
  • HMRC’s least preferred code.
  • Based on Importer’s Knowledge and should only be used where the other two options are not possible.
  • HMRC has also added the use of certain status codes, including AE, AP, and JE.

These can be found in Data Element 2/3 of your import MRN.

The old codes will continue to be accepted for a transitional period but should be updated to the new codes going forward.

What this means for you

• When checking your import MRNs, you may now see the new preference and status codes.
• These codes only apply where you are claiming EU preference.
• Ensure your records and systems reflect these changes to avoid any issues during HMRC’s transition period.

If you have any questions or need help updating your processes, please get in touch with our team on 01254 945903.