UK updates preference codes for customs declarations
HMRC published updated guidance on preference codes for Data Element 4/17 in the Customs Declaration Service, effective 8 May 2026. Preference codes denote the preferential origin status of goods—whether they qualify for reduced or duty-free tariff treatment under FTAs, trade agreements, or other schemes. Shippers and customs agents must use the correct code when declaring imports and exports to claim tariff preference and avoid duty miscalculations.
Photo: Nimit Kansagra / PexelsUK preference codes for customs declarations updated
On 8 May 2026, HMRC published guidance on preference codes for Data Element 4/17 of the Customs Declaration Service. This governs how importers and exporters declare the preferential origin status of goods entering or leaving the UK.
What are preference codes?
Preference codes indicate whether goods qualify for duty-free or reduced-tariff treatment under:
- UK FTAs (e.g. Australia, Japan, Canada, Gulf Cooperation Council)
- Historic EU preferential schemes (where applicable)
- GSP or other preferential access regimes
- Non-preferential origin
Data Element 4/17 is a mandatory field in the UK Customs Declaration Service (CDS) that must match the preferential arrangement claimed on the customs bill of entry or exit summary declaration.
Who must comply
All importers, exporters, customs agents, and freight forwarders submitting customs declarations to HMRC must declare the correct preference code:
- Imports: Code the origin status to claim duty relief or reduced rates.
- Exports: Code to trigger duty suspension or refund schemes where available.
Incorrect or missing preference codes can result in:
- Denial of tariff preference
- Full tariff assessment at non-preferential rates
- Post-clearance audit and duty recovery
- Customs penalties
Action required
IMHH has published Appendix 12, listing all valid UK preference codes and their eligibility criteria. Shippers and customs professionals must:
- Review the current code set against your trading agreements.
- Update your CDS submissions to use the correct code for each shipment.
- Train staff on the preference scheme rules underpinning each code.
- Cross-check supplier certificates of origin against the applicable preference code.
The guidance applies immediately to all CDS declarations.
What this means for shippers
Wrong preference codes cost you duty money and audit risk. Pull Appendix 12 now, map each of your supplier countries and products to the correct code, and audit one week of recent declarations for compliance. If you ship under UK FTAs (Australia, Japan, Canada, etc.), misclassifying the preference code strips your tariff benefit—run a landed-cost check on your top SKUs to see the tariff impact of non-preferential origin, then fix your CDS data. /landed-cost
