Alcohol Duty changes
At the Spring Budget 2023, the Chancellor confirmed changes to the structure of the Alcohol Duty system, creating standardised tax bands for all alcoholic products based on alcohol by volume (ABV). These changes take effect on 1 August 2023.
These changes will impact those who you submit import declarations through the Customs Declaration Service (CDS) and make declarations using commodity codes linked to alcohol for consumption. These will be codes starting 2203, 2204, 2205, 2206, and 2208.
For any pre-lodged declarations, or declarations you make through CDS on or after 1 August 2023, you may have to change the information you include for:
- Tax Types for Data Element 4/3 of the Customs Declaration Service.
- National additional codes to declare with Data Element 6/17 of the Customs Declaration Service.
What you need to do for declarations on or after 1 August 2023
- Make sure the new 300 series tax type is used in declarations. Declarations using codes from the 400 series will be rejected on CDS.
- Use the new X300 series for national additional codes. Any declarations using codes from the X400 series will be rejected on CDS.
The exception to the above changes is for supplementary declarations. Please note that those with an accept date prior to 1August 2023 will be allowed to use the 400 series and X400 codes until they are cleared.
What you need to do for pre-lodged declarations
You will need to cancel or amend any pre-lodged declarations that were submitted prior to 1 August 2023, will be arrived on CDS on or after 1 August 2023, and use the 300 and X300 codes.
You will be able to amend your pre-lodged declaration to include the new codes from 1 August 2023 up until the declaration is arrived.
Once the declaration has arrived, you will no longer be able to amend it. CDS will reject the declaration upon arrival, and you will need to submit a new declaration.
Please read the guidance on how to cancel or amend a declaration on CDS on GOV.UK.