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Those traders who are scratching their heads are wondering why an IP import declaration with a Valuation Method input in Data Element 4/16 was okay before last Sunday and now isn't. Let me explain.
Right from the start of CDS, you only ever needed a Valuation Method for 5100 F44, or indeed any procedure with "51" in it and ending in "F44".
If you don't believe me, look at the declaration category sets and their reading notes.
If you look at the declaration category data set for IP, you can see that against DE 4/16; there is a reading note [21]
That reading note gives you the reason why CDS has been updated.
It has always been in the UK Trade Tariff right from the start. It just needed to be corrected on CDS.
Until Sunday, 15 January, the Customs Declaration Service was at odds with the UK Trade Tariff.
The CDS 3.9.0 changes, which took place over the weekend of 14/15 January, fixed that anomaly.
For Inward Processing under 5100 F44, you must input a Valuation Method.
If you are using 5100 F44, you are saying to Customs that the processed products will be declared to free circulation using the rate, value and quantity of the imported goods.
If you are using 5100 000, you are saying to Customs that the processed products will be declared to free circulation using the rate, value and quantity of the processed goods.
As an IP importer, you must decide which procedure to use based on what you end up doing with the goods.
When we come to the VAT-only procedure of 5100 A04, there is no duty involved and, therefore, no Valuation Method to declare. The VAT is suspended, and the procedure can only be used for commodity codes that are "erga omnes" duty-free in the UK Trade Tariff. The procedure cannot be used for duty-free commodity codes under a Free Trade Agreement.
It is now correct on CDS and in the UK Trade Tariff.
Please note that, for Inward Processing declarations (category H4) where Additional Procedure F44 has not been used, a Valuation Method is no longer required.
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