The Tax Update published on the 23rd of June gives some measure of government intent to move towards implementing electronic and digitalisation simplification methods at UK borders.

Some measures are already in place; for example, the e-ATA Carnet went live on 1st June (link to the S&H article is included at the end of this article).

The proposed Customs Modernisation includes a Call for Evidence, with a focus on the digitalisation of Customs documentation, systems, and digital updates to the Online Tariff Tool that will make use of AI. 

Call for Evidence: Modernising the UK Customs Regime published 23rd June

A Call for Evidence is included in the Tax Update aimed in general at traders, intermediaries, freight forwarders, Customs agents, trade bodies, and Customs consultancies. 

The purpose of the consultation is to seek working practice opinions on trade digitalisation, including the opportunities and challenges it presents for the UK Customs regime.

Respondents are invited to participate in the consultation during the 12-week consultation phase, which commenced 23rd June.

The scope of the call for evidence revolves around the following three key areas:

1. the future of international trade and its impacts on commercial operations and the UK Customs regime
2. the future of Customs data and how the UK Customs model aligns or could better align with digitalised business operations
3. whether the UK’s approach to Customs authorisations supports a modernised trading world, now and into the future

This focus is intended to provide HMRC with insight into evolving trade practices from those directly involved with goods movement across the borders.

The results of the consultation are to be published 12 weeks post consultation closure.

Digitalisation, AI Customs Initiatives 

HMRC will build on recent Customs digitalisation pilots to develop innovation initiatives to revamp the Customs system. 

Focus will include the design and delivery of services allowing HMRC to process Electronic Trade Documents (ETDs) for Customs applications, supporting businesses to adopt trade digitalisation. ETD project work has been underway for some time and is hoped to support the introduction of any future Single Trade Window initiative in due course.

Digitalisation of documentation is expected to support real-time casework, which should improve border controls and security. 

Iterative changes are also expected to the Online Tariff Tool, embedding both e-commerce and AI elements within some parts of the Online Tariff Tool.

These new OTT elements will be aimed at supporting businesses new to international trade and will be designed to include helpful data links, with options to download and filter data.

The innovative elements of the Tariff Tool will be additional to the present OTT and will be subject to ongoing development and testing. Further information will follow in due course.

E-Carnets

HMRC guidance has already been published explaining changes to ATA Carnets, now available in digital format, enabling innovations such as access to e-carnet data through multiple electronic devices. 

70% of ATA carnets are expected to be issued in digital format going forward, depending on the destination country.

Low Value Imports

A measure to revise legislation for Low Value Imports (under £135) is being brought forward from March 2029 to October 2028.

Improving the Standard for Customs Intermediaries

HMRC has been working with industry to agree a voluntary standard for those working as Customs intermediaries, i.e., those 3rd parties making the Customs declarations on behalf of another.

Both industry and HMRC have made headway in scoping the specification for the voluntary standard but are not yet agreed on the way forward to implementation. 

A supporting Call for Evidence has been launched to gather industry views on the following:

• the proposed scope of a mandatory registration for customs intermediaries
• which intermediaries should be in scope or excluded
• the proposed mandatory requirements and any associated checks
• the proposed enforcement approach
• how the proposals could be implemented proportionately

The government hopes to engage with any individual or business with views on the proposed introduction of the mandatory registration. The consultation will be of interest to the following:

• customs intermediaries, including agents, brokers, freight forwarders and express operators
• traders who rely on intermediaries to fulfil their customs obligations
• professional and representative bodies
• software providers
• other stakeholders with an interest in, and understanding of, the customs intermediary sector

The consultation will be open until 21st September 2026

The specification for the agreed standard is included at a link at the bottom of this article.

Duty Reimbursement Scheme for Northern Ireland goods

Also included are changes that have been introduced to simplify reclaiming ‘at risk’ duty paid on goods brought into Northern Ireland, where goods remained in Northern Ireland, and duty is therefore eligible for repayment. 

Changes implemented on 26 May 2026 are intended to improve access to the DRS and include simplifications for goods equivalence compliance and the ability to reclaim duty within given time ranges.

Useful Links:

A link to the call for evidence:

Modernising the UK Customs Regime - GOV.UK

A link to the e-carnet article on the S&H website can be found here:

The UK, EU, Norway, and Switzerland Launch the Digital ATA Carnet on 1st June 2026

The published specification of the Standard for Customs Intermediaries, published June 2026, can be found here:

PAS 41201:2026 | 30 Jun 2026 | BSI Knowledge

A link to the Call for Evidence for the Registration for Customs Intermediaries is here:

Customs intermediaries: introduction of Mandatory Registration - GOV.UK

Northern Ireland Duty Reimbursement Scheme:

Apply to claim a repayment or remission of import duty, or reclaim state aid used on ‘at risk’ goods brought into Northern Ireland - GOV.UK