Policy paper

The Customs (Miscellaneous Amendments) Regulations: 2026

Published 9 June 2026

Who is likely to be affected

Port operators, and businesses, organisations and individuals who import and export goods.

General description of the measure

The measure includes various changes to customs regulations. It will ensure HMRC can require operators of ports to provide appropriate facilities for customs formalities at an offsite location where there is insufficient space for those facilities to be provided at the port. Other changes in the measure simplify declaration of goods for customs purposes.

These relate to the use of digital ‘carnet’ documents as declarations and extend bulk customs declaration arrangements for imported postal packets, so these are available for imported postal packets sent to recipients anywhere in the United Kingdom. The measure also updates the law concerning interest chargeable by HMRC where a customs duty liability arises due to non-compliance with a customs obligation or where incorrect information is contained in a declaration and is only identified after the declaration has been accepted.

Policy objective

To level the playing field between ports while ensuring the checks on goods necessary to protect the United Kingdom can continue to take place.

To ensure users of digital carnets can benefit from the same facilitations as persons using paper carnets, and that bulk customs declaration arrangements are available for imported postal packets sent to recipients anywhere in the United Kingdom.

To ensure legislation concerning charging of interest on customs duty liabilities in certain situations is effective.

Background to the measure

Since leaving the European Union (EU), the United Kingdom government has funded and operated a small number of Inland Border Facilities (IBFs). These ensure that customs infrastructure is available where there is insufficient space for it to be provided at a port. The longstanding model at all other ports is that the port must provide this infrastructure within the port at its own cost as a condition of its approval by HMRC.

Government provision of IBFs was always intended to be temporary. The changes will ensure that HMRC can require operators of ports assessed as having insufficient space for customs infrastructure on-site to provide suitable facilities for checks of goods and other customs formalities at an off-site location agreed by HMRC, rather than relying on government provision of IBFs.

HMRC has been engaging with affected ports and relevant government departments on the changes since early 2025 and will continue to do so to support implementation, ensure a smooth transition, and address any operational issues that arise.

HMRC has discussed the digital carnet provisions with carnet-issuing bodies and has worked with the London Chamber of Commerce and industry on a pilot of digital carnets.

The changes relating to the charging of interest and the declaration of postal packets are technical amendments for which consultation is not considered necessary.

Detailed proposal

Operative date

The measure will have effect on 30 June 2026.

Current law

The Customs and Excise Management Act 1979 (CEMA) provides for the approval by HMRC of places for the loading and unloading of goods. CEMA also permits HMRC to specify approval conditions by regulations. The CEMA provisions concerning the imposition of these conditions and restrictions were updated by Finance Act 2026.

These updates permit regulations to specify conditions and restrictions which may be imposed after an approval has been granted, including conditions requiring the provision of specified facilities, services or infrastructure at an off-site facility and conditions and restrictions in relation to the movement of goods between the place approved under section 20(1) CEMA and an off-site facility.

The Wharves, Examination Stations and Temporary Storage Facilities (Approval Conditions) (EU Exit) Regulations 2018 (S.I. 2018/1265) are made, in part, in exercise of the CEMA regulation-making powers set out above. These regulations set out conditions that ports must meet to be approved or to remain approved by HMRC.

The main provisions of United Kingdom law concerning import duty are in the Taxation (Cross-border Trade) Act 2018 (the TCTA), and in regulations made under that Act. These regulations include the Customs (Import Duty) (EU Exit) Regulations 2018 (S.I. 2018/1248) (the Import Duty Regulations) and the Customs (Export) (EU Exit) Regulations 2019 (S.I. 2019/108) (the Export Regulations), which permit the use of a paper-based carnet document as a declaration where goods are exported or imported.

The Customs Transit Procedures (EU Exit) Regulations 2018 (S.I. 2018/1258) (the Transit Regulations) make provision in relation to various transit arrangements, including the United Kingdom transit procedure (under which imported goods can be moved between locations within the United Kingdom, with customs duty only becoming chargeable at the end of the movement). The transit regulations make provisions for various simplifications and other rules that apply where goods are declared for the United Kingdom transit procedure using a paper-based-carnet.

The import duty regulations also set out rules that apply for the calculation and recovery of interest chargeable where a liability to customs duty has not been paid by the due date.

The Customs (Bulk Customs Declaration and Miscellaneous Amendments) (EU Exit) Regulations 2020 (S.I. 2020/967) are also made under powers in the TCTA and provide for the use of the simplified bulk customs declaration process by an approved person. This simplified declaration process may not be used to declare goods of a description specified in a notice published by HMRC.

Proposed revisions

The Wharves, Examination Stations and Temporary Storage Facilities (Approval Conditions) (EU Exit) Regulations 2018 (S.I. 2018/1265) are amended to specify conditions of approval regarding the provision of space, facilities and physical infrastructure for the performance of customs functions. HMRC may require those customs facilities to be provided at an off-site location agreed by HMRC if there is insufficient space for those facilities at the place approved under the section 20(1) CEMA.

The Customs (Import Duty) (EU Exit) Regulations 2018 (S.I. 2018/1248) are amended to:

• ensure that goods declared using digital carnets can benefit from the same facilitations and other treatment under the customs rules as goods declared using a paper-based version of the carnet
• update rules concerning the calculation of interest chargeable on a liability to import duty where the liability arises due to non-compliance with a customs obligation or where a declaration is identified as incorrect following its acceptance (including the start and end date for this calculation)

The Customs (Export) (EU Exit) Regulations 2019 (S.I. 2019/108) and the Customs Transit Procedures (EU Exit) Regulations 2018 (S.I. 2018/1258) are amended to ensure that goods declared using digital carnets can benefit from the same facilitations and other treatment under the customs rules as goods declared using a paper-based version of the carnet.

The Customs (Bulk Customs Declaration and Miscellaneous Amendments) (EU Exit) Regulations 2020 (S.I. 2020/967) are amended to allow postal packets destined for a recipient in Northern Ireland to be included on a bulk customs declaration when brought to GB before delivery. This is subject to exceptions for goods of a description specified in a notice published by HMRC.

Summary of impacts

Exchequer impact (£ million)

2025 to 2026	2026 to 2027	2027 to 2028	2028 to 2029	2029 to 2030	2030 to 2031
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The final costing will be subject to scrutiny by the Office for Budget Responsibility and will be set out at a future fiscal event.

Economic impact

This measure is not expected to have any significant macroeconomic impacts.

Impact on individuals, households and families

Conditions of approval for port operators

There is no impact on individuals as this measure only affects businesses.

Digital carnets

There is no impact on individuals as this measure only affects businesses.

Interest

This measure will have no impact on compliant individuals.

Bulk customs declaration process

There is no impact on individuals as this measure only affects businesses.

Equalities impacts

The changes for port operators, the changes to digital carnets, and the changes to the bulk customs declaration process only affect businesses.

Interest

Sole traders may be affected by this measure where liability to import duty arises through non-compliance with a customs obligation or through the accepted declaration being later corrected or amended.

HMRC does not currently hold data on the protected characteristics of individuals impacted by this measure and so cannot make an assessment of the equality impacts.

Administrative impact on business including civil society organisations

Conditions of approval for port operators

The changes to conditions of approval for port operators are expected to have a significant impact on three ports currently benefitting from IBFs by requiring them to provide and operate customs infrastructure.

Provided it meets HMG requirements, how ports choose to provide infrastructure and recover any costs is a commercial matter, as is longstanding practice at all other ports. One-off costs will include costs for setting up the required infrastructure. Ongoing costs will relate to operating the customs infrastructure. Ports may choose to pass infrastructure costs on to trade, meaning traders pay slightly more to use affected ports or pay for the use of customs infrastructure functions.

The changes are expected overall to bring these businesses’ experience of dealing with HMRC in line with the status quo at all other ports, by requiring them to take on customs infrastructure requirements.

There may be one-off familiarisation costs for businesses using routes following any changes implemented by affected ports as a result of this measure.

Digital Carnets

The measure does not itself impact businesses that choose to use a carnet, as it simply ensures digital carnets are treated in the same way as paper carnets within the customs rules.

Interest

The measure will have no impact on compliant businesses.

Bulk customs declaration process

The measure will extend the availability of this declaration simplification. It will permit an approved person to use a single bulk customs declaration for postal packets brought to GB for onward delivery to any part of the United Kingdom.

These measures are not expected to disproportionately impact civil society organisations.

Operational impact (£ million) (HMRC or other)

Conditions of approval for port operators

There will be no significant additional IT or resourcing costs as a result of this measure. The underlying primary legislation has already transferred responsibility for funding and operating off‑site customs infrastructure from HMRC to the private sector. This measure supports that transition and will contribute to the significant reduction in government expenditure at IBFs.

Digital carnets

Changes in relation to digital carnets are expected to have no, or no significant operational impact upon HMRC.

Interest

The changes to the provisions in relation to the charging of interest are expected to have no, or no significant operational impact upon HMRC.

Bulk customs declaration process

The changes in relation to the bulk customs declaration process are expected to have no, or no significant operational impact upon HMRC.

Other Impacts

Other impacts have been considered and none have been identified.

Monitoring and evaluation

Conditions of approval for port operators

Funding and provision of customs facilities will be monitored through the existing port approval process.

Consideration will be given to monitoring the other changes through information collected from compliance activity, and kept under review through ongoing stakeholder engagement with trade bodies and other representative businesses.

Further advise

If you have any questions about this change, please contact Iram Akhtar at HMRC email cpsbriefingandco-ordinationteam@hmrc.gov.uk

Declaration

Dan Tomlinson MP, Exchequer Secretary to the Treasury, has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.