What Traders Need to Know & How UKP Worldwide Can Support You

HMRC has announced that the Customs Declaration Service (CDS) will be unavailable to all users from 9:30pm on Saturday 13 December until 6:00am on Sunday 14 December 2025 due to planned maintenance.

During this period:
Any declarations submitted will be queued and processed once CDS is back online.

Creating, updating, or embarking a Goods Movement Reference (GMR) may be affected.

Only goods with pre-lodged declarations attached to a GMR will be permitted to move using GVMS.

Traders moving controlled goods with pre-lodged entries must follow inspection requirements at port or inland border facilities.

All export movements must hold Permission to Progress (P2P) before travel.

What’s Changing in CDS from 13 December 2025?

HMRC is introducing a significant update that will impact how many businesses lodge their customs declarations.

Key changes include:

Revised and new Additional Information (AI) codes and Document codes, affecting the data required for certain declaration types.

Stricter validation rules to identify inaccuracies earlier and reduce rejections.

Updated requirements for Northern Ireland export declarations, including additional coding and evidence for Onward Supply Relief.

Expanded data needs for electronic licence submissions, with traders required to provide more detailed information.

These updates aim to enhance data accuracy and compliance across the UK border, but they also mean businesses must review processes, update systems, and check any pre-lodged declarations scheduled to move after the changes take effect.

How UKP Worldwide Can Help

At UKP Worldwide, we know that customs changes especially those involving CDS create operational risk, extra admin, and potential delays.

Our team is here to make sure you stay compliant, prepared, and interruption-free.

We support businesses with:

✔️ Expert review of existing customs processes to ensure they meet the new CDS standards

✔️ Guidance on updated AI/document code requirements

✔️ Specialist support for Northern Ireland exports, including Onward Supply Relief procedures

✔️ Training for operational teams so they understand new validation and data rules

✔️ End-to-end customs management, ensuring declarations remain accurate, timely, and compliant

✔️ Hands-on help during the CDS downtime window, including planning movements and managing any impacted GMRs

As the UK customs landscape evolves, UKP Worldwide continues to provide clear, practical and compliant solutions for importers, exporters, marketplaces, carriers, and logistics partners.

If you’re unsure how these updates may affect your supply chain or would like advice on staying compliant, the UKP Worldwide team is ready to assist.

📩 Get in touch with our customs experts today.

The UK Government has announced major customs reforms as part of the 2025 Budget – changes that will significantly affect how low-value eCommerce shipments are imported into the UK over the coming years.

These updates mark the most substantial shift in small-parcel import policy since Brexit, and businesses involved in global eCommerce supply chains will need to begin preparing now.

Below is a breakdown of the confirmed measures and what they mean for importers, marketplaces, consolidators, postal operators, and carriers.

1. The £135 Duty-Free Threshold Will Be Removed by March 2029

The government has confirmed that the current duty relief for consignments valued at £135 or below will be abolished no later than March 2029.

What this means for businesses

All low-value goods entering the UK will become subject to customs duty.
The measure is expected to generate significant annual revenue for HM Treasury.
It aims to level the playing field between direct-to-consumer overseas sellers and traditional bulk import channels, where duties already apply.
In addition, a formal consultation has been launched to design a new customs model for low-value imports.

Areas under review include:
How duty will be calculated
Data elements importers will be required to submit
Whether administrative fees will be introduced
The impact on marketplaces, carriers, and postal operators
This development represents a fundamental reworking of how small parcels will be cleared into the UK.

2. Border Locations Will Be Required to Fund Their Own Infrastructure

New legislation in the Finance Bill 2025–26 will mandate that all UK border sites must fund and provide their own customs infrastructure.

This move is intended to:
Bring greater consistency across all ports and postal hubs
Remove ambiguity over operational responsibilities
Support long-term stability in border processes

The update signals a push toward clearer accountability and better-aligned infrastructure planning across the UK border network.

3. Greater Flexibility for Ministers to Adjust Duty Rates

The government will also update tariff provisions under the Taxation (Cross-border Trade) Act 2018, granting ministers expanded authority to specify applicable import duty rates.

While:
No immediate rate changes have been announced
No direct tax impacts will occur at this stage

This legislative update creates room for faster tariff adjustments in future, allowing the government to respond more dynamically to economic conditions, trade priorities, or global market pressures.

4. Further Customs and Tax Reform Expected in 2026

The Budget signals only the beginning of a wider programme of border and tax reform. Additional announcements are expected at a dedicated Tax Update event in early 2026, with a focus on modernising and simplifying customs processes.

This may include:
Streamlining data requirements
Digitising additional customs functions
Enhancing border interoperability and automation

How UKP Worldwide Will Support Your Business

These changes will bring new complexities for organisations importing parcels into the UK – whether you move tens of shipments per day or tens of thousands.

At UKP Worldwide, this is our core expertise.

We specialise in:
UK customs clearance
eCommerce import solutions
Duty management and compliance
International parcel logistics
Returns handling and duty drawback

As the reforms evolve, UKP Worldwide will:

Monitor all government consultations and policy updates
Provide clear, actionable guidance for affected businesses
Help you understand operational and financial impacts
Prepare your organisation for new duty, data, and compliance requirements

Our goal is to ensure your supply chain remains compliant, efficient, and competitive- no matter how the regulatory landscape changes.

If you’d like tailored advice on how these Budget announcements may affect your operations, our team is ready to help.

Contact UKP Worldwide for guidance and support.

The EU Deforestation Regulation (EUDR) is a major new law designed to stop products linked to deforestation from entering or leaving the EU.

It applies to anyone importing or exporting certain goods – and it will significantly impact customs processes.

What Is the EUDR?

The EUDR requires businesses to prove that specific products are:

Deforestation-free

Legally produced

Fully traceable to the plot of land they came from

Who’s Affected?

Seven key commodities and their products:

Cattle, wood, cocoa, coffee, palm oil, soy, rubber
(including leather, paper, chocolate, tyres, furniture, etc.)

Deadlines

Large/medium companies: from 30 Dec 2025

Small/micro businesses: from 30 June 2026

What Businesses Must Do

Every shipment of in-scope goods must have a Due Diligence Statement (DDS) submitted via TRACES NT before customs clearance.

This includes geolocation, production dates, supplier details and proof of compliance.

Customs declarations must contain the DDS reference number.

Enforcement & Penalties

EU authorities will audit and inspect businesses, with strong penalties for non-compliance, including:

Fines up to 4% of EU turnover

Confiscation of goods

Temporary market bans

Publication of offenders

How to Prepare

Identify in-scope goods

Map supply chains

Collect supplier data early

Submit DDS for every shipment

Keep records for 5 years

Digital tools can help manage traceability and automate compliance.

For UK Exporters

The EUDR applies to any UK business sending covered goods to the EU. Full traceability and accurate data-sharing with EU partners are essential.

For further guidance, support or practical advice on navigating EUDR compliance, contact UKP Worldwide – your customs and compliance specialists.

The European Union has formally approved the removal of the long-standing €150 customs duty exemption for e-commerce imports, with implementation scheduled for 2026.

This development marks one of the first major outcomes of the EU Customs Reform announced in 2023 and signals a significant shift in how low-value goods entering the EU will be treated.

The reform aims to address the rapid rise in direct-to-consumer e-commerce shipments and to create a more level playing field between traditional retailers and overseas sellers. With Member States pushing for earlier action, the collection of customs duty on all e-commerce imports will begin well before the rollout of the new EU Customs Agency and central EU Data Hub in 2028.

Key Changes Announced

End of the €150 duty exemption: All e-commerce goods imported into the EU will be subject to customs duty, regardless of value.

Interim simplified duty calculation: A temporary simplified method for duty assessment will operate until the EU Data Hub becomes fully functional in mid-2028.

New handling fee expected: The EU has indicated that a handling fee for e-commerce imports is likely to be introduced from late 2026.

Enhanced data and transparency requirements: Importers, carriers, and marketplaces will face stricter data obligations to improve risk management and customs oversight.

These changes will have wide-ranging implications for retailers, marketplaces, logistics providers, consolidators, carriers, and postal operators moving goods into the EU.

How UKP Worldwide Supports Your Business

At UKP Worldwide, we are closely monitoring the legislative process and preparing our customers for the transition.

As specialists in cross-border e-commerce, customs clearance, returns, duty reclaim, and final-mile delivery, we work proactively to help businesses understand and adapt to evolving regulatory requirements.

We will continue to share updates as further details emerge and support our clients in reviewing their logistics, customs, and compliance strategies to maintain efficiency and competitiveness in the changing European market.

If your business imports e-commerce goods into the EU and you need guidance on how these reforms may affect your operations, our team is ready to help.

Last delivery/lorry arrival at 16:00, Monday-Friday. NB: *Last delivery/lorry arrival at 13:30 on 24th and 31st December.

Normal business hours will resume from Friday 2nd January 2026.